Food Drink Ireland highlights growing input cost pressure in the sector as result of inflation
- Food Drink Ireland publishes Food Drink Ireland Business Monitor.
Food Drink Ireland (FDI), the Ibec group representing the food and drink sector, has warned that businesses in the sector are under growing pressure from significant input cost inflation. The concern is raised as FDI publishes the latest edition of its Food Drink Ireland Business Monitor.
Data from the Monitor shows a sharp increase in operational costs for businesses, driven by rising transport fuel prices and surging food commodity indices, in particular cereals, sugar, and oils. These supply-side challenges are further compounded by persistently low consumer sentiment, and overall inflation in the economy.
Paul Kelly, Director of Food Drink Ireland, said:
“Ongoing friction, most notably the prolonged conflict in the Middle East, is driving persistently high crude oil costs. These international market conditions are inevitably cascading down, resulting in elevated energy and fuel costs for Irish businesses. Irish food and drink producers are currently experiencing mounting cost hikes across all primary headings, including labour, raw materials, transport and packaging.
To date, food and drink companies have made every effort to manage these cost increases to protect consumers, but the mitigation options are quickly running out. Government must act quickly to implement the recommendations of the Cost of Business Advisory Forum, particularly around efforts to bring energy prices more in line with other European countries.
Note to editors:
The Food Drink Ireland Business Monitor tracks key retail, economic, and consumer trends. Issue 2 2026 is available here.
