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Irish Times
4 days ago
- Business
- Irish Times
Why are food prices going up? Who is profiting and what can be done about it?
The cost of groceries is climbing again, is it? Unfortunately, yes. Figures published by the Central Statistics Office last Thursday point to a general rate of inflation of 1.8 per cent – which is on target – but when it comes to the food and nonalcoholic beverages sector, prices are 4.6 per cent higher than they were this time last year. Research from retail analysts Kantar Worldpanel this month was even gloomier, suggesting a rate of inflation of 5.3 per cent over the past 12 weeks. But 4.6 per cent – or even 5.3 per cent – is not that much, is it? Well, in isolation, perhaps not. However it has to be remembered that a 4.6 per cent year-on-year increase is on top of three years of price hikes up and down Irish supermarket aisles. The cumulative impact since the end of 2021 means Irish consumers are now paying well over 30 per cent more for groceries than they were four years ago. What does that mean in cash terms? A family who were spending €150 a week in 2020 are now spending closer to €225. Or well over €3,000 a year extra for exactly the same stuff. Many people are having to pay substantially more than that. [ The cost of living in Ireland is nuts Opens in new window ] Where are the biggest hikes being seen? A pound of butter is now more than €1 dearer than it was a year ago, while cheese is up by an average of almost €1 per kilogramme. Milk is 27 cent dearer per litre. But the biggest increase over the past 12 months has been the price of beef and veal, which is now almost 22 per cent more expensive. Chocolate is 17.5 per cent dearer, while eggs, coffee and a whole lot more also cost a whole lot more than they did. [ Ireland's grocery prices are still soaring. How can that be? Opens in new window ] Well that's not good news. What's behind the increases? Pretty much everything. Irish consumers – and indeed those in many other countries – have found themselves caught up in an almost perfect storm with almost everything that could go wrong going wrong. What do you mean by that? Grocery prices started to climb as the pandemic came to an end in the winter of 2021 with global demand for energy and other products soaring after two years of being in the doldrums. Then Russia invaded Ukraine , which saw energy prices spike even further, while the cost of commodities such as wheat and cooking oil climbed dramatically. The climate crisis is having a huge impact on food prices, with cocoa and coffee particularly impacted. Anything else? Oh yes. Poor harvests across southern Europe, particularly in Spain and Italy have, in recent years, led to significant supply shortages and sharp price rises for key staples such as olive oil, tomatoes and fresh produce. While energy prices eased back for a period in the early part of last year, wholesale gas and electricity prices spiked again during the winter of 2024. This was due to supply constraints in Europe, with the increases affecting food processing, refrigeration and transport costs. And there are ongoing supply chain issues, including container shortages and port delays. Geopolitical unrest – including the uncertainty caused by the Trump administration – has further fanned the flames of higher prices on global markets. [ The era of cheap food is over Opens in new window ] All of this is global but are there any price pressures at home? There are environmental pressures and sustainability goals to be met in Ireland, and we have a lingering Brexit hangover and a significant increase in the minimum wage – up from €10.20 an hour to €13.50 (an increase of 32 per cent). Energy costs here are up more than a third over the past four years, and that has fed into higher prices too. The retailers must be making a fortune on the back of the higher prices right? Well, they insist they are not making any excess profits and what evidence we have would appear to support that. At the height of the cost-of-living crisis in the summer of 2023, when grocery price inflation was running at close to 17 per cent by some estimates, there were calls for the State to do something to help consumers with their weekly shopping. The Competition and Consumer Protection Commission (CCPC) conducted an investigation into pricing in Irish supermarkets but found no evidence of price gouging or profiteering. So are the farmers making more money? Almost certainly not. According to farmers they have had their margins eroded for years by what Denis Drennan of the Irish Creamery and Milk Suppliers Association termed 'corporate retailers being allowed to dictate price backwards to the farmers, so that they could operate the 'Cheap Food' policy that had farmers systematically and deliberately underpaid.' But all this is temporary, right? Um, no. It seems likely that for many years up to 2022, the prices Irish people were paying in supermarkets were artificially low and we are now facing what Drennan described as a 'new normal'. Is there anything that can be done? Politicians are calling for government action but we have been here before. Aside from a couple of inconsequential meetings hosted by the Department of Enterprise in the summer of 2023, and the CCPC study, nothing was done. It is hard to see what can be done this time either in the absence of legislative change that would give greater powers to the CCPC . This leaves it up to consumers, and many people are already doing what they can to cut costs – including shopping around, buying on promotion and switching to cheaper own-brand products.
Time of India
03-07-2025
- Business
- Time of India
Ready-to-cook foods surge 58% as Indian consumers prioritise convenience
Convenience is driving a surge in demand for ready-to-cook (RTC) meals, with more consumers choosing them than ever. Notably, RTC is the only packaged food segment that has doubled in volume over the past two years, attracting 18 million new households. While overall packaged foods saw modest growth of around 8%, the RTC segment posted a sharp 58% rise in 2024, according to Kantar Worldpanel data. From dosa batters to curry and cake mixes, consumers are increasingly opting for convenience, with their yearly purchases in this category having doubled. The shift is being fueled by urbanisation, more dual-income families, and fast-paced, changing lifestyles. Even as RTC has surged, its cousin category, Ready-to-eat (RTE) foods, is quickly losing relevance. RTE, which includes products that can be served straight from the pack, (such as, heat and eat pulaos, heat and eat curries, where the packaged food just needs to be warmed before eating) has lost half its volume in the past two years. This underscores a greater interest towards semi-cooked options that offer convenience without compromising the home-cooked experience, compared to fully cooked meal offerings, K Ramakrishnan, MD, South Asia, worldpanel division, Kantar told TOI. "Convenience is king, but the landscape is evolving. Consumers want speed, but they also crave freshness, health, and control over their meals. Brands that innovate along these lines stand poised to capture the next wave of growth,''he added. Live Events Capitalising on the trend, packaged food companies are expanding their offerings. Ashu Phakey, VP and business head - frozen and fresh foods at ITC , said "There has been substantial growth in the overall RTC category in the last few years, given the heightened demand. In addition, the recent rise of quick commerce has boosted accessibility. In the last few years, we have seen Indian consumers increasingly add RTC products in their grocery basket. There are several factors, which are driving category traction such as, increase in disposable income, convenience, accessibility and innovation in the product portfolio. Also, consumers prefer buying RTC as it also cues fresh food made at home''. Just a couple of years ago, the convenience category made up a mere 5% of the packaged foods segment. Today, that share has climbed to 8%, a steady but significant expansion that reflects their growing foothold. Rajiv Kumar, vice chairman, Dharampal Satyapal Group said: "We have been present in the gourmet, ready-to-cook gravies segment since late 2023. These products tend to be more popular, as they cater to the consumer's desire to feel involved in the cooking process.'' (With TOI inputs)
Time of India
02-07-2025
- Business
- Time of India
Dosa to cake: 'Ready to cook' meals heat up
NEW DELHI: Convenience rules and consumers are now reaching for ready-to-cook (RTC) meals more than ever before. Interestingly, RTC is the only category in packaged food that has doubled in volume over the last two years, with an additional 18 million households jumping on board. While packaged foods witnessed single-digit growth of nearly 8%, RTC category recorded 58% increase in 2024, according to the latest data from Kantar Worldpanel. From dosa batters to curry and cake mixes, shoppers are not only embracing ease, but have doubled their annual trips to purchase the category. Urbanisation, the rise of dual-income households and a busy evolving lifestyle is driving the trend. Even as RTC has surged, its cousin category, Ready-to-eat (RTE) foods, is quickly losing relevance. RTE, which includes products that can be served straight from the pack, (such as, heat and eat pulaos, heat and eat curries, where the packaged food just needs to be warmed before eating) has lost half its volume in the past two years. This underscores a greater interest towards semi-cooked options that offer convenience without compromising the home-cooked experience, compared to fully cooked meal offerings, K Ramakrishnan, MD, South Asia, worldpanel division, Kantar told TOI. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Tinnitus: what this grandson discovered will surprise you Hearing Magazine Undo "Convenience is king, but the landscape is evolving. Consumers want speed, but they also crave freshness, health, and control over their meals. Brands that innovate along these lines stand poised to capture the next wave of growth,''he added. Capitalising on the trend, packaged food companies are expanding their offerings. Ashu Phakey, VP and business head - frozen and fresh foods at ITC, said "There has been substantial growth in the overall RTC category in the last few years, given the heightened demand. In addition, the recent rise of quick commerce has boosted accessibility. In the last few years, we have seen Indian consumers increasingly add RTC products in their grocery basket. There are several factors, which are driving category traction such as, increase in disposable income, convenience, accessibility and innovation in the product portfolio. Also, consumers prefer buying RTC as it also cues fresh food made at home''. Just a couple of years ago, the convenience category made up a mere 5% of the packaged foods segment. Today, that share has climbed to 8%, a steady but significant expansion that reflects their growing foothold. Rajiv Kumar, vice chairman, Dharampal Satyapal Group said: "We have been present in the gourmet, ready-to-cook gravies segment since late 2023. These products tend to be more popular, as they cater to the consumer's desire to feel involved in the cooking process.'' Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Irish Times
16-06-2025
- Business
- Irish Times
Grocery prices are still soaring. How can that be?
Early this month the latest data from retail analysts Kantar Worldpanel confirmed what almost anyone who has gone shopping in Irish supermarkets in recent months knows all too well: the cost of living crisis is not over and things are actually getting worse. Its monthly research showed that the rate at which grocery prices are climbing in Ireland has more than doubled in the past 12 months, with prices in supermarkets going up at a rate of 4.96 per cent compared with the same 12-week period last year. When Kantar went shopping this time last year, the annualised rate of inflation it recorded was closer to 2.5 per cent. There are – of course – several ways to look at these numbers. READ MORE Grocery inflation of 4.9 per cent is undoubtedly worse than a rate of 2.5 per cent but it is dramatically better than the rate of about 17 per cent Kantar ecorded at the height of the crisis in early summer 2023. Shoppers might be forgiven, then, for thinking that things are better than they once were. But that would be quite wrong. [ Consumer despair at food inflation: 'Working people can't afford to eat in one of the supposedly richest countries in the world' ] [ Supermarket prices up almost 5 per cent in 12 months new data shows Opens in new window ] For a household that spends €200 a week on groceries, a 5 per cent increase is costing them an extra €500 a year. But that 5 per cent comes on top of – and not instead of – all the other savage spikes that have been recorded over the past four years. That means many families are now down about €3,000 on 2021 on their supermarket spending alone. Every couple of months since early 2022, when the cost of living crisis started in earnest, Pricewatch has been tracking the price of a basket of 25 items typically found in Irish supermarket shops. When we last did out supermarket sweep, in April, the basket that once cost €87.06 cost us €115.93, a jump of 33 per cent. We had a look at just five of the products last week. Brennans Bread, which cost €1.87 in 2022, costs €1.99 now. A two-litre carton of Avonmore milk, which cost €1.99, now costs €2.69. A 200g jar of Nescafé coffee, which cost €6.50, is now €7.15. A kilogramme of chicken breasts that could have been bought for €4.99 then, costs €11 now; and a kilogramme of sirloin steak that cost €10.66 was selling for €22.56 last week. Someone buying just these five items every week will spend €45.39, which, spread over the course of the next 12 months will cost €2,360.28. By contrast, the weekly spend on these items in 2022 was €26.01 or €1,352.52. What is going on? According to the Central Statistics Office (CSO), the consumer price index has climbed by just over 20 per cent over the past four years while grocery prices have climbed by closer to 40 per cent. Oliver Browne, a lecturer in the UCC economics department, has a personal and professional interest in how we spend our money and the globalisation of markets around food in particular and how that affects our daily lives. He is self-deprecating when talking about the role economists play in discussing what might be coming down the tracks, and recalls Dara Ó Briain once roasting a professor of economics who happened to be sitting in the front row of one of his shows. 'He basically said economics was the wishy-washiest of all the sciences and one which explains to people why something has happened after it has happened but we won't tell you it is going to happen beforehand.' For all its failings, it is a useful guide to working out where we are and where we might be going. Browne says we are in the middle of a perfect storm and almost everything that could go wrong – from wars in Ukraine and Gaza to the climate crisis and the dizzying uncertainty caused by the Trump tariffs – has gone wrong. [ Tariffs Q&A: How will Irish consumers be affected? Opens in new window ] On top of all the global uncertainty there are also severe pressures closer to home, he adds, including a lingering Brexit hangover, the housing crisis, a significant increase in the minimum wage – up from €10.20 and hour to €13.50 (an increase of 32 per cent) and dramatically higher energy costs – up more than a third over the past four years. He notes that the Irish herd has been reduced significantly so the country can meet its climate change targets, which has put pressure on dairy and beef prices at home. 'Often the price of the food that is exported stays the same and, to make things balance, the price has to give somewhere and that tends to be here. We tend to try and keep our image up abroad for the sake of trades as opposed to keeping prices sustainable here.' He says many of the products that frequently find their way into our shopping trollies, including wheat, coffee and cocoa, are commodities traded on global markets and when they climb on international markets they climb in our supermarkets too. At the height of the crisis there were calls for the State to do something to help consumers with their weekly shopping and the Competition and Consumer Protection Commission conducted an investigation into pricing in Irish supermarkets that found no evidence of price gouging or profiteering. Browne says retailers' profit margins are fairly thin but he also notes that those margins can be manufactured to a degree. It is in the retail chains' interest to ensure it 'doesn't ever look like they're making too much money. Their cash flow is extremely good and their executives are extremely well paid. They're not doing badly by any means but there's an expectation within the markets that these companies operate on low margins.' [ Cost of living: 'You are going to see €5 lattes in Ireland by the end of the year' Opens in new window ] While there is no suggestion of any wrongdoing – it is a normal way of doing business – and there was no evidence of wrongdoing uncovered by the watchdog, consumers are still paying over the odds for many products. Browne is against the State exerting pricing controls on retailers and says addressing 'big ticket' issues such as the housing crisis to make finding a home more affordable would take the pressure off consumers and businesses. He also says consumers should place more emphasis on shopping locally and says it would have a positive impact and support local jobs and local businesses and put less strain on the local economy 'Ireland is not an outlier; nobody internationally has a grip on this. It is everywhere. We're looking at extreme global uncertainty driven by things outside of our control. 'If Donald Trump were to develop a more moderate trade policy and if we saw an end of the war in Ukraine and the end of the Israeli conflict – all of these things have impacts on our day-to-day lives, and if we had a more stable global economy, prices would kind of come down but there is very little we can do. 'Maybe in the good old days, the prices we were paying were maybe too low for what we were actually getting and perhaps the new normal of pricing is what we should have been paying for the past few years and it's just catching up on us.'
The Independent
15-06-2025
- Health
- The Independent
Food firms slash salt and sugar by nearly a third
Food firms have cut salt and sugar levels in their products by nearly a third over the past decade, according to a report. But UK manufacturers across the sector are calling for more funding and 'bold action' to help drive further innovation in healthy eating. The Food and Drink Federation (FDF) said research by Kantar Worldpanel showed products made by its members have 31% less salt, 30% less sugar and a quarter fewer calories than they did 10 years ago. The group – whose members make a quarter of all food and drink sold in the UK – said the progress comes after years of investment by the industry, including around £180 million in healthier product innovation in 2024 alone. But the FDF said rising cost and regulation pressures are putting this investment under pressure, with a recent survey of its members showing 41% are planning to scale back spend on this as a result. It wants extra funding support and is urging the Government to take 'bold, co-ordinated action across the whole food system' to help with the shift towards healthier food. 'This includes mandatory reporting on the sales of healthier and less healthy products across manufacturing, retail and hospitality,' the FDF said. 'It also means taking a more consistent approach to health policy across the entire food chain, ensuring consumers have access to the same clear information that helps them to make healthier choices, no matter where they're eating,' it added. As well as funding for research and development and science support to the food sector, it believes the Government should help smaller firms more, with a similar scheme to the Scottish Government's Reformulation for Health programme. Efforts so far by the industry have included changing recipes and portion sizes. Some manufacturers have added extra portions of vegetables, while others have invested in new machinery to make changes to the cooking process and recipe. Karen Betts, chief executive of the FDF, said: 'Companies have made major progress in slashing the calories, salt and sugar in everyday food and drink – making the food people love better for them, alongside hugely expanding the range of healthy options. 'But tackling poor diets and lifestyles is a complex issue and needs a more joined-up approach. 'We're calling on the Government today to work in a more structured partnership with the entire food industry to deliver change.' She added that 'holistic and co-ordinated action will help us truly move the needle on this critical health challenge'. A government spokesperson said: 'As part of this government's Plan for Change, we are committed to achieving our health mission to build an NHS fit for the future, which includes shifting from sickness to prevention. 'We are working closely with the food industry to improve people's diets and reduce levels of obesity and have already restricted junk food advertising on TV and online as well as limiting school children's access to fast food outlets. 'Making healthier choices easier is a major part of creating a food environment that is fairer, with the fewest lives lost to the biggest killers and where everyone lives well for longer.'
