South Africans are demonstrating resilience and adaptability in response to inflationary pressures, but this has led to a decline in alcohol and fast food purchases.
The most pressing issues issues for South Africans currently are the cost of groceries, and crime and violence. Both highlight the ongoing challenges that households face in their daily lives.
Close behind these concerns is the price of energy which is becoming an increasingly significant factor affecting the overall well-being of consumers.
Despite the pressure the consumer is facing, there are glimmers of hope with the reduction in load shedding and the severe inflationary and cost of living pressure.
This is according to the Marketing Research Foundation’s (MRF) recent presentation of the 13th Marketing All Product Survey (Maps) data set.
The data set provides a providing a comprehensive look into South African consumer trends and media insights from July 2023 to June 2024.
Rinisa Naidoo, project manager at Plus94 Research went through the Maps data, covering a significant period from July 2020 to June 2024 highlighting some key trends*.
Broader shifts in the market landscape include the financial impact on consumers and the steady movements towards online and digital platforms.
Shifts in spending
The financial strain increasingly felt by South Africans has led to shifts in spending, visits, and prioritisation of essentials over discretionary items.
These include:
fast food
There has been a shift in fast food frequency patterns. While there is a slight increase in monthly fast food purchases in year four, dining out, whether weekly or monthly, continues to decline.
While consumers are still turning to fast food as a convenient dining option, the increased cost of meals may be affecting purchase frequency, with some shifting towards more affordable brands or reducing visits.
Fast food outlets are facing pressure with a notable decline in overall patronage. There is a notable drop of approximately 1.4 million fewer purchases in quarter two compared to quarter one of 2024.
Within this landscape, chicken franchises are performing relatively better than others, though their performance remains stable rather than growing.
A key factor in these trends is the cost of food.
Hungry Lion is the most affordable brand, and it is seeing an increase in patronage as consumers gravitate towards lower-cost options.
Nearly half of the population reported purchasing fast food in the past four weeks and the average spend per visit was R95 rand with an average group size of three.
When it comes to ordering methods, in-store ordering and dining in or taking away are the top two preferences, showing that many consumers still value that in-person fast food experience despite the availability of delivery services.
Besides that, there are no major shifts from MRF’s previous webinar.
DStv subscriptions
Financial pressures are driving people to downgrade rather than cancel entirely. Premium subscribers are moving to Compact Plus, while Compact subscribers the more affordable access package. This pattern of downgrading shows a clear preference for maintaining some level of service at a more affordable cost.
Savings
There is a concerning drop in savings, highlighting a decline in disposable income for setting aside or investing. This trend points to broader economic challenges, with many households facing tough choices about their financial priorities.
Loans
Over the past year, the primary reason for taking out loans has been food expenses, with 35% of borrowers citing this as their main motivation.
This is followed by loans for paying bills and funding education. Education has consistently been a reason for loans, reflecting its importance for many individuals. Notably, travel has emerged as a new factor. While traditionally associated with leisure, it also includes necessary daily commuting expenses.
Brand loyalty
Groceries, cosmetics and toiletries
In year three, there is a notable decline in brand loyalty for groceries and toiletries.
This indicates a shift in consumer behaviour to seek value and alternatives in response to economic pressures.
However, the trend takes a positive turn in year four where we see an increase in brand loyalty across all three categories. Spending on groceries and toiletries shows a more stable pattern throughout the year with modest consistent increases over time.
The average monthly spend on groceries paints a picture of consumer behaviour in South Africa. The data indicates a relatively stable average spend on groceries per month.
However, the increase in grocery spending does not reflect an expansion in purchasing volume, but rather a resilience and adaptability in response to inflationary pressures.
South African households are managing their budgets more strategically, demonstrating a commitment to essential purchases, even as they face the challenges of buying less with more.
Respondents have an average monthly grocery spend of R2,033.
Of these, 67% report handling their shopping, with a preference for personal involvement in selecting household essentials.
Additionally, 66% of respondents typically do a monthly fill-out shop, indicating a trend towards larger planned grocery trips over frequent small purchases. Although still in its early stages and expected to stabilise over time, the data reveals a significant shift towards digital grocery platforms as preferences evolve.
Fifty-five (55) per cent of consumers now use grocery delivery services at least once a month, a transformative change in how essential shopping is approached. Leading this digital shift is Checker 6060, which currently is the preferred service for grocery delivery.
Alcohol
A new trend in alcohol purchases has emerged suggesting that even this typically resilient category now facing challenges. Historically, alcohol sales have been stable with consistent buying patterns.
However, recent data shows a decline, with the average monthly expenditure on alcohol dropping to R514, reflecting a significant decrease compared to previous periods. Importantly, this trend indicates not only a decrease in alcohol volumes but also a reduction in the number of people purchasing alcohol.
Only 23% of individuals reported purchasing liquor within the past 7 days, indicating a decrease in the frequency of purchases. Most of these transactions were conducted at taverns and shebeens, highlighting these venues as primary locations for alcohol consumption.
When examining these types of alcoholic beverages consumed, beer remains the most popular choice among consumers. Overall, data suggest a trend of reduced spending and less frequent liquor purchases, signalling changing consumer habits.
Clothing
Clothing purchases over the past three months indicate a decline in the number of consumers buying children’s clothing.
This trend suggests that fewer households can afford new clothing, linking back to observations of reduced disposable income.
This decline may indicate seasonal shifts in financial priorities as consumers tend to allocate more towards clothing earlier in the year, influenced by factors such as back-to-school shopping.
The average amount spent on clothing over the past 12 months shows an increase shows an upward trajectory.
This increase may be influenced by inflation, highlighting how consumers are adjusting their spending despite the number of purchases declining.
Household goods and baby productsThere is a clear downward trend in both these segments.
Online shopping
E-commerce penetration has reached 21%, with 9.37 million individuals actively engaging in online shopping, reflecting steady sector growth.
Over the past four weeks, there has been a significant rise in online shopping.
The shift in consumer behaviour reflects a growing preference for the convenience and accessibility that e-commerce provides, particularly in the clothing sector.
Clothing is a key driver of online purchasing, with consumers increasingly turning to digital platforms for their fashion needs.
Notably, Shein emerges as the leading online retailer across all categories, demonstrating its appeal and market presence. The data shows an increasing number of consumers shopping online for food, demonstrating the growth in this category.
The dataset also reveals that 21% of online shoppers actively research brands before purchasing and that 6.3 million respondents discovered new brands through search engines and social media ads.
*Note that the insights analysis of how South Africans engage with different forms of entertainment and information is based on new data collected in quarter one of 2024, covering six months of observations, which serve as a foundational overview for current trends.
