Irish Consumer Insights Pulse Survey 2022

Where will consumers spend?

46% of consumers are expected to increase purchasing from local retailers, with 68% willing to pay more for products produced or sourced domestically in order to support the local economy. The top three categories in which Irish consumers expect to increase their spending are groceries, travel and eating out—significantly higher than their global counterparts—and over 40% expect to increase purchasing across both online and in-store channels. The rising price of groceries and product availability are the two key issues facing consumers purchasing on both channels. These issues have resulted in consumers frequently shopping with multiple retailers and using comparison sites to assess availability.

Which of these issues is having the greatest impact on you when shopping?

(Showing answers only from respondents answering 'occasionally';, 'frequently' or 'almost always')

In a physical store
(% rank 1-3)

Rising prices for groceries

Unable to purchase a product due to it being out of stock

A product taking longer to be delivered than you were told at time of purchase

While shopping online
(% rank 1-3)

Rising prices for groceries

Unable to purchase a product due to it being out of stock

A product taking longer to be delivered than you were told at time of purchase

	Global	Australia	Brazil	Canada	China	Egypt	France	Germany	Hong Kong, SAR	India	Indonesia	Ireland	Japan	Malaysia	Mexico	Philippines	Qatar	Saudi Arabia	Singapore	South Africa	South Korea	Spain	Thailand	United Arab Emirates	United States	Vietnam
Rising prices for groceries	65%,56%	60%,44%	71%,67%	76%,59%	43%,41%	67%,60%	61%,54%	68%,58%	59%,52%	52%,51%	56%,47%	75%,56%	76%,62%	67%,60%	65%,56%	68%,55%	54%,59%	58%,54%	57%,57%	76%,62%	65%,64%	69%,57%	57%,54%	48%,48%	73%,60%	66%,59%
Unable to purchase a product due to it being out of stock	37%,43%	55%,52%	25%,30%	46%,47%	26%,35%	24%,35%	34%,47%	40%,40%	49%,49%	31%,44%	41%,44%	46%,51%	44%,50%	42%,44%	30%,39%	29%,38%	35%,39%	30%,38%	36%,47%	35%,51%	30%,39%	34%,35%	33%,34%	29%,38%	56%,58%	38%,31%
A product taking longer to be delivered than you were told at time of purchase	20%,42%	18%,49%	22%,44%	16%,44%	30%,46%	22%,43%	25%,40%	15%,38%	20%,44%	24%,39%	20%,44%	16%,45%	15%,31%	19%,45%	16%,41%	21%,51%	23%,44%	28%,41%	17%,41%	15%,38%	28%,44%	16%,39%	24%,42%	25%,43%	20%,40%	24%,48%

The ESG factor

ESG factors continue to affect Irish consumers' shopping behaviours. For example, 53% of respondents stated that their purchasing choice is influenced by the transparency of a company's business practices while 45% are willing to pay more for products produced or sourced domestically in order to reduce their carbon footprint. Meanwhile, factors that affect Irish consumers' brand trust have become significantly more influential. Personal data protection remains the top factor impacting Irish consumers' brand trust, and there has been a significant increase in the following factors: exceptional customer service, ease of repeat purchases, sharing relevant discounts or recommendations, and always meeting expectations.

To what extent would a company's environmental, social and governance actions influence your behaviour to purchase a product or service from the company?

(Showing answers only from respondents answering 'often' or 'always')

Environmental factors
e.g., commitment to reducing carbon emissions, using recycled materials or reducing plastic waste in its products
Social factors
e.g., supporting human rights, supporting diversity and inclusion of workers and staff, or supporting local communities
Governance factors
e.g., being transparent and ethical, complying with regulations, or managing customer data and privacy appropriately

Global values for comparison

Global

Australia

Brazil

Canada

China

Egypt

France

Germany

Hong Kong, SAR

India

Indonesia

Ireland

Japan

Malaysia

Mexico

Philippines

Qatar

Saudi Arabia

Singapore

South Africa

South Korea

Spain

Thailand

United Arab Emirates

United States

Vietnam

Purchase a product or service

41%,40%,30%

42%,38%,34%

55%,49%,39%

34%,35%,28%

45%,43%,34%

51%,44%,34%

26%,28%,16%

28%,32%,20%

37%,32%,23%

50%,53%,44%

50%,43%,33%

39%,37%,25%

19%,12%,10%

50%,49%,38%

51%,54%,35%

56%,52%,38%

49%,41%,33%

45%,45%,35%

32%,31%,21%

50%,52%,39%

41%,34%,28%

43%,42%,27%

44%,42%,30%

46%,46%,35%

35%,39%,29%

59%,51%,46%

Entering the Metaverse

The Metaverse includes technologies such as augmented and virtual reality, artificial intelligence and blockchain. 40% of Irish respondents have heard about virtual reality but haven't used it yet. However, with the growth of AR headsets and glasses, it is likely that the consumer goods industry will start to leverage these platforms more to drive consumer engagement. Although it is still an emerging channel, consumer products companies and retailers alike will need to consider the Metaverse as part of their omnichannel strategy. Notably, trust is indispensable in an omnichannel world—over 50% of respondents cited data protection as a significant driver of brand trust.

Key areas to focus on

Recent waves of disruption are likely to continue shaping consumer behaviour. This will continue well into the future as continual change forces ongoing adaptation. Retailers and consumer goods manufacturers must therefore focus on the following:

If retail companies had any doubt about the need to reach consumers across all channels, the COVID-19 pandemic, gnarled supply chains and increased consumer expectations have made the imperative clear.

Emerging digital platforms, including the growing reach of virtual reality, leaves little room for delay. Virtual reality will in time be a key pillar of successful omnichannel strategies.

In the coming years, ESG will likely grow as both a disruptive force and a creator of value. Investors are demanding more insight into ESG risk and performance, and global regulators are converging around common non-financial reporting standards. Governments also are moving ahead with new regulations. These include the The Task Force on Climate-Related Financial Disclosures (TCFD) and a proposal from the European Commission to set new standards on how durable and reusable clothing must be made by 2030. Such changes will affect how consumer products companies and retailers do business, how products reach consumers and which products are available.

Political polarisation and geopolitics continue to raise awareness of the need for online security and privacy protection. The retail sector may need to redouble its investment in the infrastructure required to ensure data privacy. And if people are already making purchasing decisions out of patriotism and perceptions of greater quality in domestic products, an increasingly polarised world may impinge on international brands.

Economic contraction may be on the horizon. An economic slowdown in major markets will inevitably affect consumer spending patterns and behaviours.

We are here to help you

Our pulse survey offers insights into the complexity of changing Irish consumer expectations and increasing demands. There is a broad range of issues to address, and careful consideration is required to ensure that decisions are made in line with long-term strategy. Our team of industry and subject matter experts are available to discuss any questions you may have.