Competition limiting grocery-price rises – CCPC
An analysis of the grocery market in Ireland has found “no evidence” that competition is not working in the sector.
The Competition and Consumer Protection Commission (CCPC) finds that, while food prices have increased significantly in recent years in Ireland, they have generally remained below the European average.
The CCPC says that the report, an update of a 2023 study of the market, shows that increased competition in the market over the last 20 years has brought “sizeable benefits” for consumers.
“The data available on profit margins does not indicate that margins are notably high when compared to international comparators,” the watchdog finds.
Agricultural prices
It says that increases in the prices of some agricultural products have been a key driver of recent rises in food prices.
The CCPC’s study finds, however, that grocery prices have increased at a slower pace than agricultural prices since 2021.
“This suggests that competition in the grocery market has helped limit the impact of increased agricultural prices on Irish consumers,” the CCPC says.
Market concentration
The study states that the five main nationwide supermarket chains in Ireland – Dunnes Stores, Tesco, SuperValu, Lidl, and Aldi – account for around 93% of the market.
“While this is up from 91% in our 2023 analysis, this figure fluctuates on a monthly basis,” the CCPC adds.
Using a measure of market concentration called the Herfindahl-Hirschman Index (HHI), the report finds that the Irish market has become “significantly less concentrated” since 2001.
“Since 2023, the main grocery retailers in Ireland have expanded their presence, opening approximately 296 new stores across the country,” the report states, citing this as an indicator of a healthy market.
Enforcement actions
The CCPC finds that, from 2021 to June 2025, Irish consumers experienced a 27% increase in grocery prices, compared with the EU average rise of 35%.
It points out that only four other EU states have experienced smaller price increases since 2021.
The report points to actions that the CCPC has taken in recent years to enforce consumer and competition law in the sector – including requiring Tesco to sell off one of its outlets in Oranmore, Co Galway as a condition of approval for an acquisition in 2022.
The watchdog concludes that, while it has not seen evidence to justify an in-depth study of the sector, it remains a key market that it will continue to review.