Four-fifths of Irish consumers have changed their non-essential spending habits in the past six months amid a rise in inflation, a new study suggests.
The PwC Irish Consumer Insights Pulse Survey, which questioned 523 people, found that 19 per cent of consumers were “extremely concerned” and 26 per cent “very concerned” about their personal financial situation.
More than three-quarters (79 per cent) said they had adjusted their non-essential spending habits, with some 15 per cent saying they have stopped non-essential spending altogether.
Almost all consumers (98 per cent) said they would adopt cost-saving measures over the next six months.
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PwC said consumers had become cautious and mindful of cost and value following the reappearance of inflation after a long period of stable prices.
Some 60 per cent said they intended to buy retailers’ own brand products, 59 per cent said they intend to shop with retailers offering better value, 55 per cent said they will buy certain products only when they are on special offer and 53 per cent will switch to cheaper brands.
Respondents to PwC’s Irish survey were more likely to say they will make such changes than respondents elsewhere, with the consulting firm surveying 9,180 consumers across 25 countries.
As a result, planned outlays on expenses such as home improvement, travel, health and beauty and luxury/designer goods have fallen compared with the level of spending intentions recorded by PwC a year earlier.
At the same time, almost half (47 per cent) expect they will be spending more on groceries.
“Last year was challenging for consumers with growing inflation, higher fuel bills and rising interest rates. The new research highlights a heightened level of concern across Irish consumers. They are also very clear about the actions they will take to manage their budgets,” said John Dillon, leader of PwC Ireland’s retail and consumer practice.
Despite many Irish consumers not feeling confident about their personal financial situation, they are still willing to pay an above-average price for sustainable product types.
Some 77 per cent said they were willing to pay a higher than average price for products that are produced or sourced locally, while 73 per cent said they were more likely to do so if they are made from recycled, sustainable or eco-friendly materials.
