Specialist
78% of consumers in Ireland are concerned about inflation, just behind the UK at 79% followed by 79% in Netherlands. The least concerned countries were China (37%) and Saudi Arabia (49%)
The Deloitte November Global State of the Consumer Tracker illuminates the sentiment and beliefs driving consumer behaviours in Ireland and 24 other markets throughout the world. In compiling the tracker Deloitte teams engage with 24,000 consumers to understand their perspectives on their financial wellbeing, where they spend their money and how they select and purchase their products.
Irish consumers are concerned and changing their behaviours in response to these concerns
Daniel Murray, Partner and Head of Consumer at Deloitte Ireland said: “The results from the Deloitte State of the Consumer Tracker show that six in 10 Irish consumers have no spare money at the end of the month and 55% of consumers feel that their financial situation has worsened in the past year. On the sentiment side, 21% of Irish consumers are concerned about making upcoming payments and 19% are concerned about their credit card debt.”
Of 24 countries survey, Irish consumers are the second most concerned about inflation (78%), just behind the UK at 79%. The least concerned countries were China (37%) and Saudi Arabia (49%).
Murray continued: “Inflation concerns have been widespread among Irish consumers for well over a year and with the prolonged situation taking its toll on spending decisions, many are adopting more recessionary behaviours. This is a pattern in the majority of the 24 countries in which Deloitte spoke to consumers but particularly the case with Irish consumers. 54% of Irish consumers intend to delay large purchases and only 36% said they can now afford to spend on things that bring them joy.”
Inflation impacts beyond category
Murray also said: “For consumer companies, paying attention to inflation perceptions might be just as important as inflation rates. Consumers' perception of price increases doesn't always match reality, particularly at the category level. And these perceptions have become a critical driver of spending confidence. Irish consumers most concerned about inflation are signalling weaker spending intentions across several key categories—particularly more discretionary ones. It is for this reason that a lot of advertising focuses on value and multi-buy deals.”
Other findings included :
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Six in 10 Irish consumers have no extra money left at the end of the month
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55% of consumers feel that their financial situation has worsened in the past year
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Consumers are starting to adopt more modest spending behaviours. 43% of Irish consumers dedicate a lot of time to planning their grocery shopping (the global average is 41%).
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Although Irish consumers are increasingly concerned about the economic future, concerns around the price of gas and fuel have decreased by 8% to 77% which shows some signs of prices stabilising.
Murray concluded: “We can see from the Irish grocery patterns that price and value will become a dominant consideration. 43% of Irish consumers dedicate a lot of time to planning their grocery shopping (the global average is 41%) with 84% expecting grocery prices to rise further. 41% purchase most own brand labels and half are now choosing meals to make the most of the food they already have. These short-term spending shifts to tackle inflation run the risk of cementing into longer-term habits.”
To see more data from the Deloitte Consumer Tracker, please visit Deloitte Insights.