South Africans across the board are tightening their purse strings, with 99% of consumers changing their FMCG (fast-moving consumer goods) shopping habits, according to the Consumer Outlook 2024, a NIQ Thought Leadership report.

Forty-four percent of South African consumers feel they are in a worse financial position this year compared to a year ago, and of those respondents, 82% say that increased costs of living are to blame for their recent financial struggles.

Sixty-two percent of the respondents said that they are worse off due to the economic slowdown, while 50% of them had job security concerns.

Consumers are also downgrading from premium to mainstream or value products, with 48% switching to lower-priced options.

Zak Haeri, MD for NIQ in South Africa, said that their data shows consumers are becoming increasingly proactive and creative in their strategies to reduce costs.

Haeri said that consumers are also using mobile channels to find better deals and shopping at stores that offer loyalty points.

The consumer report also revealed that consumers are optimistic that their finances will improve, with 65% of consumers believing that their financial situation will be better by the end of 2024. However, 20% of consumers think that their financial state will be worse.

Increasing food prices is a major concern for consumers over the next six months, with 55% saying that they have only enough money to cover food, shelter, and the basics.

Forty-six percent of South African consumers are closely tracking the overall cost of their basket of goods.

Thirty-nine percent of consumers are choosing to buy brands that are on promotion as a saving strategy, while 45% have stopped buying certain products to focus on just the essentials.

Another saving strategy that consumers are using is bulk buying.

Forty-eight percent of consumers are stocking up or buy in bulk when their preferred products are on sale or promotion, while 31% of consumers are buying larger package sizes.

Forty-six percent of consumers are doing more of their shopping at discount or value stores, while 31% are shopping online to get better deals and save on transport money, and 59% shop at stores where they can use loyalty points to manage their spend.

Seven in ten South African consumers only buy what they know they can use to avoid waste, much higher than the global average of 56%.

Fifty-two percent of consumers are eating leftovers more often, and 25% are skipping more meals.

IOL Business

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South Africans strategise to combat rising costs: A glimpse into changing consumer habits amid economic strain