Christmas 2024 marked a historic moment for the Irish grocery sector with record-breaking sales and a resurgence in brand performance, according to Kantar.
The market research company also reported that in-store footfall reached its highest levels ever over the festive period.
Over the four weeks to 29 December 2024, grocery sales in Ireland reached just under €1.4 billion, underscoring the resilience and evolving dynamics of the market.
In terms of market share, Tesco led in the four week period, while Dunnes Stores saw the strongest growth
Grocery inflation remains at 3.6% – lower than in previous years, which contributed to steadier volume growth throughout 2024.
Shopper behaviour also reflected confidence, with an average spend of €32.12 per trip and increased trip frequency, surpassing pre-pandemic levels.
The highest ever in-store visits were recorded at 42 million – one million more than the previous year.
Brands
Following high inflation and cost of living concerns, shoppers had turned away from branded products, opting instead for cheaper, private-label alternatives.
However, brands made a strong comeback this Christmas, accounting for 53.8% of value sales, compared to 46.2% of own-label ranges.
Brand spending reached an all-time high of €746 million, and promotions further fuelled brand loyalty, with €357 million spent on promotional products – 8.4% ahead of market growth.
Retailers placed significant emphasis on promotions over the festive period. With all major players increasing promotional activity beyond the annual average.
Emphasis on customer loyalty schemes, competitive pricing and Christmas dinner offerings drove retailer growth in the period.
While chocolate and crisps saw the biggest surge in value, healthcare was the fastest-growing category in volume terms, likely due to the cold weather.
Ambient grocery and premium niceties came next as shoppers stocked their cupboards, while non-alcoholic beverages reached their highest December sales at €3.4 million – up 23.6% – indicating the rising popularity of moderation.
Alcohol sales saw value growth despite a decline in volume, as beer and cider showed the strongest momentum at 1.3% and 11.9% respectively.
‘A Strong Position’
Speaking about the data, the business development director at Kantar Emer Healy said, “Monday 23 December was officially the busiest Christmas shopping day on record, with 85% of Irish households making a purchase.
“Sales surpassed €100 million in a single day for the first time, reaching €107 million – 23% higher than December 2022 and 13% greater than 2023’s peak day.
“The Irish grocery market remains in a strong position, with a healthy balance of value and volume growth.
“As grocery inflation stabilises, promotional strategies and brand engagement will be key to shaping consumer behaviour.
“With record-breaking sales, renewed brand strength and evolving shopper preferences, the 2024 Christmas season has set a strong precedent for the year ahead.”
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