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Non-booze beverage market grows as minimum pricing hits
'Veganuary' had limited impact

07 Feb 2022 / ireland Print

Non-booze beverage market up as minimum prices hit

Dry January has seen record-breaking engagement, with 7.6% of households purchasing a non-alcoholic beverage – an increase of 5.8% since 2018, new figures show.

However, the impact of ‘Veganuary’ was more muted as Irish shoppers spent €481,000 less on frozen vegetarian products than this time last year.

Irish take-home grocery sales have declined by 4.5%, but still remain 11.2% higher than two years ago, Kantar figures for the 12 weeks to 23 January show.

Grocery-price inflation has reached 1.7%, the highest level since October 2020. In response, consumers are shopping around in search of the best bargains, as the number of products on promotion drops by 3% compared with last January.

Online grocery sales remain strong, with shoppers spending €5.4 million more on digital orders than at the same time last year.

Convenience-chill options

Senior retail analyst Emer Healy said that, with busier social calendars, consumers have turned to convenience options, and an additional €14.5 million was spent on chilled convenience products in this period. 

Sales of deodorant and men’s skincare have also soared 3.8% and 6.5% respectively.

But some COVID-19 lifestyle changes have stuck, as delivery services continue to grow, by 3.8% monthly or €5.4 million more than at the same time last year.

With many continuing to work from home for part of the week, there is less likelihood of going out for lunch or an evening meal on those days.

Shoppers are buying 13.3% more on each trip to the supermarket than they were in early 2020, Healy added.

Strong growth

“Non-alcoholic drinks are enjoying really strong growth, and this looks set to continue following the introduction of minimum unit pricing in Ireland,” she said.

“Dry January gave people the perfect opportunity to explore the different options on the supermarket shelves, and many traditional brands are diversifying their ranges to keep up with the change in demand.”

Dunnes retained its position as Ireland’s largest retailer this month, holding 23.1% of the market in the period up to 23 January. The retailer also benefited from the largest influx of new shoppers, who contributed an additional €42.2 million to its performance.

SuperValu follows closely with a market share of 22.2%, while Tesco is just 0.1 percentage points behind this at 22.1%. Lidl now holds an 11.8% share, with Aldi at 11.6%.

Gazette Desk
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