Food inflation leads to big changes in shopping habits of SA consumers

Creative in their shopping strategies 

“South African consumers have lived through several years of load shedding, rising costs and slow economic growth. Our data shows that they are becoming increasingly proactive and creative in their strategies to reduce costs — creating opportunities for innovative FMCG brands and retailers to expand their market share even in difficult times,” says Zak Haeri, MD for NIQ in South Africa. 

“In addition to value shopping, South African consumers are using mobile channels to find better deals and shopping at stores that offer loyalty points.  

“While promotions and value product options are important strategies in today’s economic climate, it’s clear that retailers can also achieve breakthrough growth by focusing on their omni-channel presence and customer relationship management programmes.”   

Among the key findings: 

• 65% of consumers believe their financial situation will be better by the end of 2024, while 20% believe it will be worse. 

• Increasing food prices is the biggest concern over the next six months. More than half (55%) say they have only enough money to cover food, shelter and the basics. 

• Close to half (46%) of South African consumers are closely monitoring the overall cost of their basket of goods. Buying whatever brand is on promotion is a preferred saving strategy for 39%, while 45% have stopped buying certain products to focus on just the essentials. 

• Bulk buys are a key saving strategy. Nearly half (48%) stock up or buy in bulk when their preferred products are on sale or promotion; 31% are buying larger package sizes. 

• Where and how people shop is evolving. Some 46% are shopping more often at discount or value stores, 31% are shopping online to get better deals and save transport money, and 59% shop at stores where they can use loyalty points to manage spend. 

• Healthy living is the top life priority influencing consumers: 38% of South Africa consumers want to build, maintain or improve their health and wellness. 57% of consumers would choose a new product because it is better for their health. 

• Seven in 10 people only buy what they know they can use to avoid waste, much higher than the global average of 56%. 52% are eating leftovers more often and 25% are skipping more meals.