Irish grocery chains will "feel the pinch" as European retailers continue to push for more of the Republic's market share, according to new research by retail analysts Verdict.

The past five years have seen the country's €24.4bn retail market boosted by 34%, as foreign multiples take advantage of changes to the Irish Grocery Order Act to move in, said report author Daniel Lucht.

"Buoyant economic growth and a relaxation of store size limits has attracted major international retailers," he said. "German discounters Lidl and Aldi have expanded aggressively, alongside M&S and Tesco.

"Lidl and Aldi have ambitious growth plans and Tesco is also expected to be very aggressive. We can expect to see fierce battles over retail space and Irish supermarkets Dunnes and SuperValu will feel the pinch."