Irish Producers remain confident despite economic uncertainty

Ireland’s food and drink industry continues to identify key growth areas and invest strategically in order to drive brand growth and performance.

9 June 2026: New research from Love Irish Food and Bank of Ireland’s Business Barometer survey, based on responses from 128 Irish food and drink businesses, shows that just 8% expect the Irish economy to improve over the next 12 months, while over half (51%) believe it will worsen. Despite this uncertainty, 62% remain confident in their own company’s growth prospects.

This comes as a decline in confidence for the Irish economy, with just 8% of businesses expecting economic conditions to improve over the next 12 months – down 9% compared to 2025 (17%) and 19% lower than in 2024 (27%).

Amid economic challenges, Irish Food and Drink producers continue to demonstrate resilience within the industry, which is driven by a strong focus on new customers, innovation and, increasingly, export markets. When asked: ‘what growth opportunity most occupies your mind currently and why?’ one respondent replied: “Most of our business is major retail so there is [a] big opportunity for us in foodservice which we have recently had some exciting listings in.” Another stated “Expansion of brand into more retailers. Strong potential – but lots of hurdles to cross.”

Almost two-thirds (62%) of producers now view exports as the most significant opportunity for growth, with many identifying international markets as critical to offsetting a more challenging domestic environment. “Export. Currently the only avenue where I see real growth potential. [The] domestic market is relatively flat with not much room for growth.”

In addition, a third (34%) consider NPD and innovation as the key growth opportunity to attract new customers and meet evolving consumer demands and constraints. Meanwhile, a quarter (27%) see domestic retail expansion as a key area of opportunity for growth – “Increasing sales in the multiples. It’s where we operate.”

However, this optimism is tempered by ongoing pressures facing the sector. Inflation and rising costs remain top of mind as business threats, cited by a significant 81% of respondents. Economic volatility (62%) and supply chain issues (56%) were also identified as major concerns for Ireland’s food and drink industry.

These challenges are further compounded by geopolitical uncertainty, which continues to impact costs, logistics and consumer confidence – “Input and labour costs are already very high. The inflationary pressures following on from the war in Iran are concerning for the future.”

In response to these challenges, businesses are continuing to invest strategically to drive performance over the next 12 months. Two-thirds (61%) of respondents stated they plan to invest in operational efficiencies to drive business performance, although this marks a 5% decline compared to 2025. Additionally, 59% of respondents stated that launching new products and or service will be the key focus area in order to drive business performance in the coming year – “New Products and new branding and packaging will grow the business in 2026.”

Brand building also remains a priority, with 61% of respondents planning to invest in PR and marketing services to drive brand performance – “Adding revenue through strong relationship building and strong marketing activity.” This remains unchanged from 2025.

Conor Kilduff, Executive Director, Love Irish Food said:

“What we’re seeing this year is a clear shift in sentiment. Irish food and drink producers are understandably cautious about the wider economic outlook, but what’s really striking is their resilience and confidence in their own businesses.

There is a strong sense of focus on what they can control – whether that’s building their brands, investing in innovation or exploring new markets. In particular, exports are increasingly seen as a key growth driver, as businesses look beyond Ireland to scale.

Despite the challenges, this is a sector that continues to adapt, evolve and find opportunity, even in uncertain conditions.”

Lucy Ryan, Head of Food & Beverage Sector, Bank of Ireland said:

“These findings reflect the reality of operating in a complex and uncertain global environment. While cost pressures, inflation and geopolitical factors continue to present challenges, it’s encouraging to see Irish food and drink businesses taking a proactive and forward-looking approach.

There is a clear emphasis on investment – particularly in operational efficiency, innovation and brand development – which will be critical to sustaining growth. The continued focus on export markets also highlights the ambition within the sector to compete and succeed on a broader stage. At Bank of Ireland we have seen an increase in our sectoral SME funding in the first four months of this year, and we are keen and ambitious to support more food and drink businesses with their growth and expansion plans.”

This marks the fifth annual Business Barometer Survey, conducted in collaboration with Love Irish Food and Bank of Ireland, with a total of 128 participants. This continued growth in participation – up from 120 participants in 2025 and 100 in 2024- reflects the increasing willingness of Irish producers in sharing their perspectives in order to better capture a complex and ever-evolving industry.