More than 80% of consumers said that the rising cost of living has impacted how they shop, with 35% saying they expect to buy less local produce as a result, according to new research carried out by The Foundation.
Conducted across the whole of Ireland in March 2022 by digital agency The Foundation (TF), the research found that local food and drink are most likely to suffer from these changes in consumption patterns. Less than half of those surveyed said the amount of local produce they buy will remain unchanged.
However, it may not be all bad news for locally produced, sustainable, organic and Irish goods, as the research also showed that sourcing continues to carry weight for many customers.
Half of those surveyed said that despite the rise in cost of living, where the food and drink they purchase is coming from still has a ‘considerable’ or ‘a lot’ of influence on their choices.
The research also found that within the area of locally produced products, fresh goods are less likely to suffer than non perishables. When asked what type of local food and drink they would like to see more of, the three most popular answers were fruit and vegetables (56%); fresh meat and poultry (53%); and bakery (50%).
Findings show that customers were the least interested in seeing more local options within the non-alcoholic, alcoholic drinks and plant-based product groups. Discussing the findings, Brendan Gallen, strategy director of TF said:
“The cost of living is not a ‘trend’, it’s a crisis. Local producers have built a global reputation for the quality of their food and drink products, but with consumer spend being squeezed due to the rise in energy prices, it’s crucial that local brands communicate value as well as quality.”
Premium and own brands
Large and premium brands will also likely face challenges as they are perceived to be more expensive by many consumers. More than half said they will buy less of the “well known brands” and 55% said they will choose “premium products” less often.
According to TF, a clear “bargain hunting trend” emerged from the research and it estimates that supermarkets’ own brand ranges are set to see major increases in demand, as people opt for more economically friendly alternatives.
61% of customers stated they will buy more own brand products and 71% said they would look to purchase from the ‘value’ ranges. However, the action change that was most popular among food shoppers was the purchasing of products on special offer, which 80% of those surveyed said they will do more often.