In 2023, the Competition and Consumer Protection Commission ("CCPC") carried out an analysis of competition in Ireland's grocery retail sector finding no signs of market failure or excessive pricing due to abuse of dominance. On 7 August 2025, the CCPC published an update to its 2023 analysis on the Irish grocery retail sector, reaffirming that, while food prices in Ireland have increased significantly in recent years, there remains no evidence that competition is not working in the sector. This update exercise was driven by the increasing rise in grocery prices nationally (a trend seen globally) and a concern that the increases facing Irish consumers were driven by the lack of competition amongst Irish supermarkets.
In updating the work undertaken in 2023 and coming to this conclusion, the CCPC considered:
- market concentration;
- market entry and expansion;
- national and international grocery prices trends; and
- profit margins of major grocery retailers.
For the purpose of its analysis, the CCPC assessed the level of competition in light of the position nationally. While it noted that competition in the grocery sector typically occurs at a local level, the CCPC considered that operational decisions apply nationwide.
Key Indicators of a Competitive Market
Market Concentration
Market concentration is a key measure of industry competitiveness and provides a snapshot of market structure. A high market concentration with a few market players competing against each other can indicate greater market power and lower competition in a market. In its analysis, the CCPC considered how market shares have changed in the grocery retail sector since 2001. It found that competition has increased over the period, as a larger number of stores from a larger number of retail operators, including Lidl and Aldi, are now competing for customers on a national basis.
Market Entry and Expansion
Another key indicator is the ability of competitors to enter and expand within a market. The CCPC found that, since 2023, the main grocery retailers in Ireland have opened approximately 29 new stores, with further expansion planned, signalling healthy competition in a sector which is continuously growing.
Competitive Dynamics
The CCPC also considered the competitive dynamics at play in Ireland's grocery retail sector. It observed aggressive price marketing, various loyalty card schemes and different product offerings. Moreover, the CCPC noted that the focus on own-brand products has continued to grow. The CCPC considered that these factors demonstrate positive signs of competitive dynamics in the grocery retail sector.
Grocery Price Trends
The CCPC considered national and international trends in grocery prices and assessed how Ireland compares internationally. Using the Consumer Price Index ("CPI") as the framework for assessment, it was found that, since 2021, Irish consumers have experienced a 27% increase in grocery prices. While this is significant, it remains below the EU average of a 35% increase over the same period, calculated using the Harmonised Index of Consumer Prices ("HICP").
The Irish Central Statistics Office ("CSO") also recently published its own assessment separate to the CPI and HICP, "Price Levels of Food, Beverages, and Tobacco 2024: How Ireland Compares". This study estimates that 2024 Irish retail grocery prices were 14% higher than the EU average. However, this figure needs to be interpreted in the context of structural factors of the Irish economy, such as higher wages, relative geographic isolation as an island economy and higher costs which are likely to contribute to upward price pressure. As such, the CCPC considered that the inflation data observed by the CSO were not due to competitive failures or structural issues in the Irish retail grocery market.
Supply Chain Pressures
The CCPC also considered the wider supply chain when analysing retail inflation, including import costs, producer prices and agricultural prices – all of which were observed to have significantly increased since 2019. The CCPC noted this may indicate that retailers are in fact absorbing some of the cost pressures rather than passing them fully on to consumers, indicating strong competition at the retail level.
Product-Level Inflation
The CCPC also examined inflation at a product level and determined that a key driver of the recent rise in food prices is the increase in some agricultural product prices, such as the price of meat, milk, cheese and eggs. The CCPC observed that such prices have been higher in Ireland than the European average.
Profitability
Finally, the CCPC reviewed the profit margins of major grocery retailers operating in Ireland. It concluded that, overall, Irish supermarket margins appear to be consistent with those in the UK and Europe.
Conclusion
The CCPC has acknowledged that Irish consumers have experienced a notable increase in grocery food prices in recent years. However, the CCPC's updated analysis of the grocery retail sector shows that these increases were not attributable to a lack of competition in the retail grocery sector and, on balance, were more likely caused by other factors, including global trends and increases in some agricultural product prices in Ireland compared to other jurisdictions. The CCPC's analysis shows that the retail grocery sector appears to be remarkably competitive, with a number of retailers active nationally in many cases expanding their market presence, adopting dynamic pricing strategies, and in general seeing restrained profit margins, comparable to those observed in the UK and the EU.
However, the grocery retail sector remains a priority for the CCPC and it has said that it will continue to monitor developments in the sector.
Many thanks to Sarah McKeon for her contributions to this article
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
