Over half (58%) of Irish consumers are either ‘extremely’ or ‘very’ concerned about their personal financial situation - as cost-of-living and inflationary concerns continue to weigh high.

Inflation greatest threat to Irish consumers

In light of ongoing cost of living impacts, over half (58%) of Irish consumers are either ‘extremely’ or ‘very’ concerned about their personal financial situation, up from 49% a year ago. Nearly two-thirds (61%) are holding back on non-essential spending, up from 57% a year ago (non-essential spending is after paying for essentials such as food, clothing, utilities, mortgages, taxes etc). This is according to PwC’s 2024 Irish Voice of the Consumer Survey, published today, which collected the perspectives of more than 1,000 Irish and 20,000 global consumers from across 31 countries and territories. This press release deals with the Irish results. 

The research found that almost nine-in-ten (84%) Irish consumers say that they are experiencing first-hand the disruptive effects of climate change in their daily lives (Global: 85%) with 43% confirming that they are buying more sustainable products (Global: 46%). 

But while consumers are focused on sustainability, they are also impacted by continued cost-of-living pressures. Despite inflation In Ireland falling significantly over the last year, Irish consumers are still feeling the impact of high prices in their pockets. Four out of ten (40%) Irish consumers cite inflation as the number-one risk to their consumption habits (Global: 31%). Over the next six months, nearly half (48%) of Irish consumers cite the most significant increase in spending will be on groceries as inflation continues to keep the price of essential goods high.

John O’Loughlin, Partner, PwC Ireland Retail & Consumer Practice, said: “Irish consumers are continuing to feel the squeeze of inflation and rising prices. Value remains high on the agenda, with nearly half of Irish consumers seeking better value for money when considering switching from brands to which they are loyal. In the year ahead, companies must achieve a delicate balance between consumer affordability and environmental impact if they are to win new and retain existing consumers. They will also need to bolster their digital engagement and service-delivery, particularly as more consumers purchase products directly through social media.”

Consumers are prioritising sustainable shopping decisions  

Eight out of ten (80%) Irish consumers are worried about climate change (Global: 85%).

The survey highlights that Irish consumers are increasingly prioritising sustainability in their consumption practices. 43% say that they are buying more sustainable products as a way to reduce their impact on the environment (Global: 46%). Personal actions consumers say they have taken include: making more considered purchases with the aim of reducing their overall consumption (Ireland: 41%; Global: 43%), eating different foods e.g. less meat, more plant based (Ireland: 26%; Global:32%) and travelling less or differently (Ireland: 28%; Global:31%). Over the next six months, consumers are planning to increase consumption of fresh fruit and vegetables (Ireland: 45%; Global: 52%) as well as grains, pasta and beans (Ireland: 28%; Global: 34%). On the other hand, over a fifth (22%) of Irish consumers say that they will reduce red meat intake (Global: 22%). 

At the same time, nearly a fifth (17%) of Irish consumers are not taking any actions to reduce their impact on climate change (Global: 12%). Consumers are also assessing producers' sustainability practices through tangible attributes that are most visible to them including: waste reduction and recycling (Ireland: 42%; Global: 40%), eco-friendly packaging (Ireland: 39%; Global: 38%), making a positive impact on nature and water conservation (Ireland:29%; Global: 34%), renewable energy usage (Ireland 24%; Global: 29%), ethical labour practices (Ireland: 25%; Global: 21%) and supply chain transparency (19%; Global: 21%).  

Half of Irish consumers agree that an independent sustainability score on food products would be useful when choosing products with 42% proactively seeking out information to learn if a food product is sustainable. These survey insights demonstrate the growing consumer demand for clear and informative product sustainability data.

Over four out of ten (42%) Irish consumers would consider acquiring a hybrid vehicle in the next three years (Global: 39%). 20% would consider acquiring an electric vehicle (Global: 32%). 74% would be willing to use alternative transport if their area had better public transport infrastructure (Global: 74%) while over half (54%) would support a car-free city centre (Global: 58%).  

Social media driven consumption surges, driven by influencers, even as privacy is of high concern

Social media driven consumption has surged. Over a third (Ireland: 34%; Global: 47%) of Irish consumers have purchased products directly through social media, up from 15% in 2019 for Ireland. All the while, 66% use social media to discover new brands (Global: 67%) and 68% seek reviews to validate a company before making a purchase via social media (Global: 70%). Social media influencers continue to drive sales, with 35% of Irish respondents noting a celebrity or influencer has influenced their decision to make a purchase (Global: 41%). 61% say they are influenced by advertisements via social media (Global: 72%).

But while technology platforms are shaping consumer habits, they are also driving concerns. Nearly three-quarters (74%) of Irish consumers are concerned about their privacy and data sharing on social media (Global: 70%). An overwhelming 83% say that the protection of their personal data is one of the most crucial factors to earn their trust (Global: 83%). At the same time, only 38% feel confident that they understand how their data is being shared (Global: 54%). Over half (55%) are not comfortable purchasing via social media (Global: 51%). 33% are not willing to share their data to get a more personalised service/experience (Global: 26%).

Irish consumers less inclined to trust AI compared to global peers: trust needs to be earned

In the last six months, nearly half (47%) of Irish consumers have encountered daily or weekly suspicious online and mobile activity, such as scams, unsolicited messages, calls or phishing attempts when browsing or shopping online, higher than global counterparts (39%). 

Irish consumers are less inclined to trust AI compared to global peers. For example, just 37% of Irish consumers on average would trust AI to support them on low risk activities such as getting product information, providing product recommendations (Global: 48%). Just 17% on average would trust AI with higher risk activities such as providing investment advice and executing financial transactions (Global: 27%). Nearly a quarter (23%) of Irish consumers do not trust AI at all to support them on any activities (Global: 11%). 

Irish consumers are also more concerned than global peers about the potential outcomes of future AI developments and capabilities. For example, 89% are concerned about the increased risk of being hacked / scammed when using AI (Global: 83%); 87% are concerned about the potential for job losses (Global: 82%); 90% are concerned about the lack of regulation/governance for AI (Global: 85%) and 89% are concerned about how AI development could infringe on their personal and data privacy (Global: 84%).

Whilst concern exists, it is clear that younger generations are overall more trusting of AI to complete activities than their older counterparts. Unsurprisingly, Gen Zs are the most trusting across both low and high risk activities. For example, 44% of Gen Zs would trust AI to support them with written communications compared to 30% of Baby Boomers; 34% of Gen Zs would trust AI to handle customer service versus 25% for Baby Boomers. 

Owen McFeely, Director, Retail & Consumer Practice, concluded: “There is no doubt that digital is playing a huge part in retailing and the overall customer journey with AI  having the potential to deliver significant opportunities if applied in a safe and secure manner.  But trust needs to be earned. Those retailers who can demonstrate that they are keeping consumer data safe and who are using AI to enhance the consumer experience whilst ensuring they bring their customers on the journey, will be the winners.”  

ENDS

Notes to editors :

Daily/weekly shopping channels 
When looking at daily / weekly shopping, physical in-store shopping remains the most popular shopping channel (Ireland:43%; Global: 42%).  24% of Irish shoppers purchase via smart phone (Global: 34%). 12% of Irish shoppers purchase online via PC (Global: 22%). Irish shoppers are behind global peers when shopping via smart home voice assistants (Ireland: 6%; Global: 14%), wearable devices (Ireland: 5%; Global: 11%) and virtual reality (4%; Global: 9%). 

About the survey
The PwC 2024 Voice of the Consumer Survey builds on insights amassed over 15 years of consumer research by collecting the perspectives of 1009 Irish and 20,662 global consumers across 31 countries and territories on issues ranging from embracing technology, trust in AI, finding value for money, coming back to shops, being open about data, caring for the environment and more.