Consumers spent R103bn in 2024 on food and liquor at independent traders, slightly less than the previous year, according to a report by market researchers NIQ South Africa.
In their “State of the Retail Nation” analysis for 2024, they said consumers spent nearly R637bn on fast-moving consumer goods (FMCG) through traditional and modern trade channels — a year-over-year growth of 3.4%, mostly driven by price increases rather than higher consumption.
Of that total, R359bn was spent on food and liquor, while R278bn went to other goods, including nonalcoholic beverages, personal and health-care products, snacks, home and pet supplies, baby food and care, and tobacco.
The bulk of the spending went to big retailers.
NIQ South Africa MD Zak Haeri said R60bn was spent at independent retailers — including traditional traders or informal markets — on personal care, healthcare, snacking, nonalcoholic beverages, home care, pet products and tobacco.
Overall, spending in traditional trade (informal markets) has declined. However, food sales saw a 1.8% increase compared to the previous year. Notably, food sales surged by nearly 10% during the festive season. Liquor sales, however, remained flat and down over the past 12 months
— Zak Haeri, NIQ South Africa MD
NIQ describes traditional traders as non-branded or franchised, including those that stock at least one consumer packaged product, are open to the public, are accessible from a public thoroughfare and have a fixed, physical location. They do not include non-licensed traders such as unregistered shops and street vendors.
“Overall, spending in traditional trade (informal markets) has declined. However, food sales saw a 1.8% increase compared to the previous year. Notably, food sales surged by nearly 10% during the festive season. Liquor sales, however, remained flat and down over the past 12 months,” Haeri said.
Consumers were prioritising essentials due to financial constraints, and taking advantage of loyalty programmes, private label brands and promotions to stretch their rand further, he said. Consumers were also buying large packages to take advantage of lower bulk costs, or buying small packages to reduce immediate spending.
Spending on pets — an important area of future growth for JSE-listed companies — was less than 1% of total consumer spending. “With pet food inflation nearly at 6%, consumers are adjusting their purchasing habits by opting for fewer and smaller pack sizes. ” said Haeri.
In the major domestic appliances category, washing machines saw a 16% growth in sales value and units, said Thomas Woods, NIQ South Africa market intelligence head.
Fridges also performed well, with sales value increasing by 12% year-over-year in value, and unit sales rising by 14%. “Strong competition, particularly from Chinese brands, helped drive prices down. It seems consumers are also using two-pot retirement savings to fund larger appliance purchases,” he said.
Small domestic appliances also continued to show growth, especially air fryers (up 11%), coffee machines (up 12%), and vacuum cleaners (up 13%).
Media tablets saw solid growth, with sales value increasing by 16% — driven by the popularity of short-form video content. This trend has been growing steadily since 2020.
The technology and durables market, meanwhile, experienced flat growth, with sales value increasing just 1.8% to R90bn.
NIQ’s benchmark data comprises more than 10,000 branded retail outlets (such as supermarkets and garage forecourts) and more than 143,000 independent stores (such as spaza shops and taverns) across South Africa, and measures more than 80% of all retail grocery transactions.
Haeri said high unemployment and rising living costs would remain challenges for many households. The government’s decision to raise VAT by 0.5% was expected to add more pressure.
“As such, consumers will continue to make purposeful choices and seek value when they shop, focusing on essential purchases, making the most of loyalty programmes, private label brands and promotions to stretch their rand further.”
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