Prepared Consumer Foods Sector

Meal solutions, now worth 20% of total PCF exports, grew by 14% to reach an estimated €685 million. This robust performance in a challenging year is a testament to the sector’s strength.

The UK market, particularly the retail frozen channel, was the most significant destination for meal solutions, accounting for 70% of total exports. The category continues to play a crucial role as consumers redefine value, out-of-home consumption is challenged, and discretionary spending is tight. Shoppers are willing to trade up in the category to a more premium offering to fill that out-of-home need, and the sector’s adaptability to changing consumer needs is a key strength. Consumers seeking convenience and speed in the kitchen helps to position the category strongly for continued success.

European markets, including strong performances from Germany and the Netherlands, are important for meal solution exports, accounting for 21% of the market share. The sector is proactively seeking opportunities in international markets to deliver on further growth plans

Irish bakery exports showed steady growth in both value and volume during 2024, with 11% growth exceeding overall export performance.

Dependency on Great Britain and Northern Ireland remains high, accounting for over 90% of all bakery exports. Bread accounted for 64% of the total and returned to growth in the UK during 2024 with consumers eating more bread on more occasions. Overall growth reflects the Irish sector’s excellent penetration of the UK retail channel in recent years. The biscuit category showed YOY growth to reach €25 million.

Sweet bakery performed particularly well in 2024 with growth of over 20%, driven by continued expansion of both private label and branded retail. This growth is a combination of new business development and up-weighting of existing accounts as exporters expanded their offerings. However, the performance is not without its challenges. Volumes in the foodservice channel were slow in 2024, and input costs, especially for chocolate and butter, will endure into 2025, continuing to put pressure on manufacturers. There is also price pressure on products comprising higher quality flour types. In spite of this, there is a strong commitment across the sector to further innovation to meet the evolving demands of UK consumers

Global chocolate confectionery faced a turning point in 2024 as poor cocoa yields hit manufacturers. Cocoa prices reached an all-time high of $12,000 (€11,275) per tonne after three consecutive years of supply shortages, forcing manufacturers to pay unprecedented prices for raw materials. This followed three years of elevated sugar prices, and cocoa yields are expected to remain below demand in 2025.

The impact on the value of Irish chocolate confectionery exports was moderate in 2024, with the value of exports estimated at €305 million. Exports to markets outside of the UK have been most affected, with trade viability challenged to service longer distance accounts.