What matters now: price, trust, and the rise of the selective Irish consumer

The sharp rise in the cost of living in recent years has reshaped how Irish consumers think, shop, and spend. With global economic uncertainty set to persist, these behavioural shifts are unlikely to be temporary. Instead, they signal a lasting reset in consumer priorities and Irish businesses must act now to understand and respond.

To explore these changes, EY conducted a survey of 20,000 global consumers, including participants from Ireland. The research explores shifts in spending habits, channel preferences, attitudes towards private label products, and perceptions of AI in retail. The findings paint a picture of a population deeply cost-conscious yet cautiously optimistic and open to change when brands meet them on their terms.

Price has emerged as the primary driver of consumer purchase criteria across a range of categories. On average, 53% of Irish consumers cite price as a key purchase driver across everyday categories. For 58%, it ranks as the top priority when purchasing clothing and footwear—well ahead of quality (44%). Even in fresh food, 46% of consumers place price above quality (32%), underscoring the extent to which affordability is influencing buying decisions.

This price sensitivity has prompted a shift in shopping habits. For example, 42% of consumers are now opting for less expensive alternatives in home and household care, and 37% are doing the same for fresh food, snacks, and confectionery.

Meanwhile, 47% are turning to discount stores to stretch their budgets, while 45% are waiting for sales or joining loyalty programs to secure better value.

However, the dynamics at play, coupled with the continued strength of private labels, are more intricate than a straightforward price-for-value trade-off. Consumers are becoming increasingly aware of shrinkflation, where products are reduced in size while prices stay the same. This has led to scepticism towards promotions that appear overly generous, with nearly half (48%) believing that product improvements are often the result of cost-cutting rather than genuine enhancements for the customer.

Next steps for businesses:

Instead of discounting prices, focus on enhancing product value. Highlight qualities that justify the price—whether that’s sustainability, health benefits, or craftsmanship. Loyalty and simplicity in offers will win over savvy, price-sensitive consumers.

Financial matters dominate the Irish consumer mindset. In a clear signal of strain, 96% of consumers say they are either extremely or moderately concerned about the cost of living. The worry is personal —with 45% describing themselves as extremely worried about their own finances and another 47% moderately so. But it is broad too, with 93% uneasy about the state of the economy.

Yet amid the anxiety, there is some optimism. Over half (54%) of consumers believe they’ll be better off in 12 months, compared to just 19% who expect their financial situation to be worse off. This sentiment reveals a complex mindset—concerned but not resigned.

These pressures are directly impacting how people respond to increases in the price of things they regularly purchase. Some shoppers are cutting back on non-essentials like clothing, cosmetics, and alcohol. Others are leaning harder into value, shifting their spending to discount retailers and embracing private label options. There’s also a noticeable pullback in spending on indulgences like dining out and takeaways.

Next steps for businesses:

Avoid a race to the bottom. Instead, double down on clearly articulating the benefits—performance, prestige, provenance that justify your price point. For mid-tier brands, now’s the time to rethink product architecture and consider value-tier extensions that don’t dilute core brand equity. Be proactive in assessing the impact of tariffs and building price resilience into supply chain and pricing strategies.

While price is the dominant force in purchase decisions, sustainability isn’t being sidelined completely. Irish consumers remain deeply concerned about the environmental impact of their consumption, with 89% recycling as much as they can, 91% consciously avoiding food waste, and 82% thinking twice before making purchases. However, these attitudes may also reflect a financial incentive to curb unnecessary spending, not just an ethical one. 

Yet, there’s a clear contradiction. While sustainability is valued, nearly three-quarters (72%) of respondents want healthier, more sustainable products to be more affordable. And 83% believe brands should shoulder the responsibility of making their products more sustainable, without passing on additional costs to consumers.

Interestingly, only in fresh food do sustainability considerations rank higher than price, with 53% of consumers prioritising sustainability over cost. For processed foods, price is the decisive factor for 60% of consumers, and even higher for snacks (68%) and home care (63%).

Next steps for businesses:

Consumers are increasingly looking for sustainable options but are hesitant to pay more for them. Brands should explore opportunities to embrace sustainable packaging and circular products that could lead to decreased waste management costs, more efficient logistics, improved stakeholder perception and ultimately margin growth, not decline. Focus on improving your product’s green credentials while maintaining competitive pricing.

Once the second choice on the shelf, private label products have undergone a striking transformation. Today, 78% of consumers believe these products match or even surpass the quality of branded counterparts—and just as many say they meet their needs just as well. With 77% saying private labels help them save money, it’s no surprise they’re gaining serious traction.

That confidence spans generations. Gen Z (78%), Millennials (79%), and Gen X (87%) all agree private label and store brands satisfy their needs just as well as branded options. Yet the story doesn’t end there. When consumers switch back to branded products, one factor stands out across all age groups: superior taste, quality, and performance.

Product preferences also vary by generation. Gen Z leads with private label snacks and confectionery, while Millennials and Gen X are more focused on fresh food. Meanwhile, branded goods still hold their ground in categories like beauty and alcohol—where image, experience, and indulgence continue to matter.

This evolving dynamic spells both challenge and opportunity. For brands, the old playbook of competing on price or presumed quality no longer holds. As consumer perceptions shift, so too must brand strategies.

Next steps for businesses:

Brands must respond with more than reactive pricing. Real differentiation will come from innovation, premium experiences, and meaningful value propositions—things private labels can’t easily mimic. Strategic use of loyalty programmes and partnerships can also help tip the scales. For retailers, the path forward lies in understanding the nuances of your customer base and activating insights that drive both value and loyalty.

Reports of the demise of bricks-and-mortar retailing have been greatly exaggerated. Across Ireland, physical retail continues to hold strong—not just out of convenience or habit, but because of the real emotional and practical value it offers. A large majority of Irish consumers still prefer in-person shopping for essentials: 83% favour physical stores for fresh food, while 74% prefer them for personal care items. In fact, seven in ten (70%) prefer physical stores across everyday categories, underscoring the resilience of bricks-and-mortar retail and its enduring role in the consumer journey.

Part of this preference is rooted in the sensory nature of shopping—touching, smelling, tasting—which online channels struggle to replicate. But in Ireland, the appeal goes deeper. In rural and regional communities, the ‘local shop’ remains a cornerstone of daily life: a place for trusted advice, social interaction, and connection to community.

Whether it’s a family-run grocer or a village pharmacy, these businesses often serve as more than just retail outlets—they’re trusted institutions. In smaller towns and rural areas, they offer immediacy, familiarity, and a sense of reliability that digital-only players can’t match.

This physical-first mindset is more pronounced in Europe than in Asia, where higher digital trust and platform penetration have driven consumers online in categories like beauty and electronics. In contrast, Irish consumers still value the human, experiential side of retail.

Next steps for businesses:

Retailers should continue investing in store experience, particularly in regional and rural locations where the ‘local shop’ is a key part of community life. Think local product ranges, community events, and staff empowered to create personal connections. Omnichannel strategies should support, not replace physical channels.

While consumer enthusiasm for AI may not fully match that of investment markets, there is a willingness to engage with it. Nearly three-quarters (74%) of survey respondents claim to understand AI, yet 61% remain cautious about its capabilities, particularly regarding AI-generated content.

Still, 63% find AI-driven product recommendations useful, and 66% express moderate or complete trust in tailored promotions and deals. Tools like wish list alerts (69% interest) and saved shopping carts are also viewed positively.

However, trust is situational. Only 31% are willing to share publicly attributed data, and there’s far less confidence in AI’s role in financial advice or healthcare decisions.

Next steps for businesses:

Consumers are open to AI—if it improves their experience. Ensure that applications are transparent, customer-first, and genuinely valuable. Prioritise quality assurance and clear communication to build trust.

Health remains high on the agenda for Irish consumers. A significant 81% say they are moderately or extremely concerned about their mental wellbeing, while an even greater 88% express concern for their physical health. This anxiety is driving action: over the past two years, 60% say they’ve made healthier food choices, 61% have exercised more, and 49% have prioritised sleep.

But these ambitions come with practical conditions. When asked what would encourage them to make healthier choices, the top factor was affordability (72%), followed by improved quality (50%) and better taste (45%). While price pressures remain, consumers are showing a clear willingness to prioritise wellness—particularly in fresh food (68%), processed food (53%), and beauty and cosmetics (52%).

Next steps for businesses:

Make healthier choices the easy choices. Irish consumers are actively seeking ways to improve their wellbeing—but they expect brands to meet them with solutions that are affordable, appealing, and accessible. That means offering health-first products that don’t compromise on taste, price, or convenience.

In categories like food and beauty, healthier alternatives should be clearly priced, well-communicated, and prominently positioned to drive uptake. And it’s not just about the physical—mental wellbeing matters, too. Businesses have an opportunity to support holistic health through thoughtful services, environments, and experiences that promote balance, calm, and care.

The message is clear: make health part of everyday value, and consumers will respond.

Conclusions: There Is No One Consumer

The 2025 Future Consumer Index confirms that the Irish consumer cannot be painted with a single brush. They are price-sensitive, but many will pay more for health or sustainability. They prefer local, but they’re open to digital. They’re cautious but not resigned.

For businesses, the message is clear: avoid generalisations. Instead of trying to reach all consumers, focus on deeply understanding the personas that matter most based on lifestyle, location, needs, and values. Whether it’s the health-conscious urban shopper, the rural loyalist, or the digitally curious value hunter, each requires a tailored approach.

Success will come to those who listen first and build second.

Summary

This article examines the transformation of Irish consumer behaviour driven by rising costs. Price sensitivity has become paramount, influencing purchasing decisions across categories. Despite this focus on affordability, consumers still value sustainability, creating a complex dynamic for brands. To succeed, businesses must enhance product value and tailor their strategies to meet the diverse needs of price-conscious shoppers while fostering trust and loyalty.