According to the latest EY Future Consumer Index, more than two thirds of consumers are being put off buying sustainable goods due to the rising cost of living.
The research, which includes a survey of 18,000 global consumers conducted between May and June, found that nearly 80% were concerned about their finances, while more than 60% expected their living costs to rise further in the coming six months.
The report shows that these concerns are not just affecting the people on lower incomes but it is the concern for people of all income levels.
Due to a massive reduction in consumer confidence, the research reveals a very pessimistic outlook on our economy, especially from the western markets when compared to emerging or other markets.
“Irish Inflation has risen to levels not seen since the 1980s, and as prices continue to rise there is increased pressure placed upon household budgets throughout the country.” said Ivan O’Brien, EY Ireland Consulting Partner.
The findings of the report show that more than one in three consumers are worried about having enough money to spend on things other than just living expenses.
“Irish consumers are responding by becoming more prudent in their weekly grocery shop, holding on to clothes a little longer and reducing their spend on hospitality,” said Mr O’Brien.
“Our urge to embrace sustainable products is also challenged, as inflation forces push consumers to re-prioritise how they spend. It is very likely that some new frugal lifestyle habits will stick,” he concluded.