THE DROP in the consumer spend on groceries of €600 per annum over the past two years has been halted and the grocery market is moving back to growth, international research has shown.
Figures released by An Bord Bia quoting data from Kantar Worldpanel showed the average grocery spend here had fallen by 10 per cent per annum, while the average annual shopping bill fell from €6,127 to €5,572.
The research attributed this drop directly to the recession, and said behavioural changes included shopping more often, shopping around in more outlets, lower volumes on each trip and reduced spend on each shopping occasion.
“However, there are indications that spend levels are stabilising, with August 2010 being the first month in the last two years where no price deflation was recorded,” the Bord Bia report said.
It said the big question was how shoppers had cut back to save this €600, because average shopper volumes had not changed and buying the item cheaper elsewhere had accounted for only €58 of the savings.
“August 2010 marked an important milestone in that it was the first month in the last two years that there was no deflation,” the Bord Bia report continued.
“At this point the rate of decline has decelerated and the grocery market has in fact just moved back into growth, with only 80 categories experiencing deflation versus 203 categories experiencing inflation. Value growth is seen once again to be a realistic target.”
It said categories driving growth included treats, pizzas, desserts and ethnic foods; the value end of convenience foods – pasta, rice and frozen poultry – and pet supplies.