FOR IMMEDIATE RELEASE – WEDNESDAY 29TH JUNE 2011
IRISH LIFESTYLES: 28% OF IRISH CONSUMERS HAVE NO MONEY LEFT AFTER
BILLS EACH MONTH
Despite a high level of confidence and faith in institutions,
consumers are still feeling the pressure of the economic downturn and
according to latest research from Mintel’s flagship report Irish
lifestyles – today, 28% of Irish consumers saythat they have no
money left after paying bills each month.
According to Mintel’s research, 38% of Irish consumers worry
about rising grocery bills while a further 32% worry about rising
utility bills. Today some 13% of Irish consumers have bills in
arrears. It is the unemployed who appear to be struggling the most
with 41% claiming to have no money left after paying bills closely
followed by part time workers at 39%. Some 11% of Irish consumers
claim to be concerned about not being able to keep up with mortgage
repayments.
David Pasley, Research Manager, Mintel Ireland comments
“By comparison to their NI counterparts, RoI consumers are less
concerned with rising utility and food bills. Their problems are very
much in the present, with more consumers south of the border finding
it difficult to keep up with bills and to make their income
stretch.”
And it appears purchasing big ticket items such as cars, houses and
smart phones are restricted to a few lucky consumers in the coming
year, as 4% are looking to buy a car, 6% are considering buying a
second hand car and 3% are considering buying a new smart phone.
In order to cope with their finances better, now more than four in
every ten (46%) consumers spend more time looking for special offers.
Furthermore, some 51% of Irish consumers now shop at discount
retailers with 47% of consumers claiming to do so to pick up bargains.
Banks are facing a challenging time following the banking crisis and
as a result consumers have shifted their faith to other institutions.
Indeed, some 37% of Irish consumers look to alternatives for financial
services, such as the Post Office or Credit Unions compared to 15% who
have faith in the banks. There appears to be some faith in the new
government, with 26% of adults believing it will aid economic
recovery. Support for the EU is quite strong among Irish consumers
with 64% believing that being part of a single currency is good for
the economy, and a further 22% believing that being part of the EU
will help economic recovery. Additionally, 24% have faith in Irish
businesses to lift the country out of recession.
David adds
“Banks will have to work hard to regain the trust of many
segments of the population and may face increased competition from
alternative financial institutions. Encouragingly for banks, younger
adults show a relatively higher level of confidence in banks. In the
past the banks have worked hard to secure the custom of younger
clients through promotions, such targeting strategies may need to be
embraced once again.
While the economy has taken quite a battering, Irish consumers are
showing a high degree of confidence in themselves to weather the
economic downturn. Today, some 35% of Irish consumers have confidence
in themselves to get through the economic downturn.
Furthermore, 37% of 35-64 year olds have a higher level of confidence
in themselves compared to other age groups. It is the self employed
and full time workers who are most confident at 45% and 40%
respectively; with the lowest level of confidence in the unemployed at
29% followed by part time workers at 27%.
David adds
“The high level of self-confidence among the self employed is
an encouraging signal of the “can-do” attitude of Irish
entrepreneurs. On the other hand, the much lower levels of
self-confidence among the unemployed shows a degree of demoralization
for this group. It is likely that this sentiment will continue until
we see real and visible job prospects in sectors which suit the skill
sets of those currently in unemployment.”
Emigration is a major concern for the Irish population, and while 15%
of Irish adults claiming they are concerned that they may have to
emigrate to find work or go to college it is the 51% of 16-24 year
olds who are most concerned.
LESSONS LEARNED
It appears that Irish consumers want to get their finances in order
with the top spending priority being to save money with 23% of Irish
consumers wishing to do so; closely followed by clearing debt at 21%.
Today some 26% of Irish consumers agree that they are more careful
about how they use their credit cards which is especially prevalent
among 41% of full time workers, who state that they are exercising
caution when using their credit card.
It also appears that women are the bargain hunters with some 54% of
Irish women claiming to look more often for special offers and lower
prices, compared to 38% of Irish men.
HEATH
Health is the biggest concern for Irish adults with 42% of Irish
consumers claiming to be concerned about their health, additionally
the rising cost of health care is worrying Irish consumers in
particular with 15% of consumers worried that they cannot afford
adequate healthcare on the back of rising health insurance costs.
Furthermore, only 15% of the Irish population have confidence in the
health care system to provide adequately for themselves and their
families. The over 65’s have the highest level of trust in the
system at 39% while the youngest show the lowest level of trust at
15%.
GROCERY RETAILING
Branded goods face stiff competition from our own-brand label goods,
with Mintel estimating that own-brand products now account for
approximately one third (35%) of all grocery sales in the island of
Ireland. The recession has allowed discounters to help capture a
greater share of grocery spending; today some 51% of Irish consumers
claim to shop in discount retailers to help save money.
As a result competition between retailers has intensified as the
recession seen the all-Ireland grocery market contract from €15.7
billion in 2009 to an estimated €14.7 billion predicted for 2011.
It is estimated that all Ireland sales of discounters will grow from
€705 million in 2004 to €816 million in 2011. In 2010, 48%
of Irish consumers felt that the quality of goods available in
discounters was as good as those in main supermarkets. Furthermore,
only 4% of Irish consumers felt it was embarrassing to shop in
discount retailers.
ALCOHOL
Alcohol consumption rates in Ireland have dropped from 85% to 83%
between 2009 and 2010, with those aged 18-34 and men most likely to
drink alcohol at 83%. Concerns about health and the negative
associations with alcohol, further encouraged by the government are
helping to drive the decline in consumption; and now 41% of Irish
consumers are concerned with the long term effects that alcohol might
have on their health.
TOURISM AND LEISURE
Almost three quarters of Irish consumers took a holiday in 2010 with
Ireland and the UK being the most popular destination for Irish
consumers, compared to 2007 when travelling overseas was the most
popular option. Mintel’s findings indicate to a return to
overseas travelling when the economy recovers as 73% of consumers
agree that they like they like the idea of travelling abroad.
Furthermore, 20% of Irish consumers would like to take a foreign
holiday in the next 12 months.
– ends –
FOR MORE INFORMATION
Please contact Therese
McCrory in the Mintel Press Office on 028 90 241 849 or
press@mintel.com
