The Competition and Consumer Protection Commission (CCPC) has published an update to its 2023 high-level analysis of the grocery sector in Ireland, revealing that competition is functioning effectively in the market.

Despite significant increases in food prices over recent years, the report indicates that these price hikes have generally remained below the European average, which correlates with the heightened competition in the Irish grocery retail sector over the past two decades.

The analysis also shows that profit margins in the grocery sector are not excessively high when compared to international standards, suggesting a healthy competitive environment.

Furthermore, while grocery prices have surged since 2021, the rate of increase has been slower than that of key input costs, such as agricultural prices. This indicates that competition within the grocery market has played a role in mitigating the effects of rising agricultural costs on consumers.

The CCPC's mandate is to ensure fair and competitive markets in Ireland, as well as to enforce consumer protection laws among retailers. Although the CCPC has not found sufficient evidence to warrant a detailed investigation into the grocery retail sector, it remains a priority area for ongoing monitoring.