Private labels, once deemed a cornerstone of the booming retail sector, have lost ground, ceding market share as consumers return to branded goods even as they remain financially strapped.
According to the NIQ’s latest “State of the retail nation” report, sales in private-label products grew just 3.1% in the third quarter of 2025, less than half the rate recorded a year ago. Their share of the fast-moving consumer goods (FMCG) market dropped to 17.6%, down from 18.6% in the same period last year.
Independent brands surged 10.3%, showing that shoppers are seeking value, but not necessarily the lowest-cost option.
NIQ South Africa MD Zak Haeri said the trend and others observed in the study reflect shifting priorities.
“Shoppers remain cautious and price-sensitive,” he said.
“We see shoppers use strategies such as bulking purchases, stocking up during promotions, leveraging rewards and switching to lower-priced brands to manage their spending and get the most value for their rand.”
The FMCG sector posted strong results in the third quarter, with consumers spending nearly R167.5bn on everyday goods. According to the NIQ, this represents 7.1% year-on-year value growth, with sales volumes up 8.7%, a sign of resilient demand for essentials.
We see shoppers use strategies such as bulking purchases, stocking up during promotions, leveraging rewards and switching to lower-priced brands to manage their spending and get the most value for their rand.
— Zak Haeri, NIQ South Africa MD
Strong performers included non-alcoholic beverages up 9.3% to R22.6bn, snacking up 7.7% to R12.3bn, tobacco up 11.5% to R6.6bn and food up 8% to R61.7bn.
Despite the positive headline numbers, Haeri warned that rising prices for staples such as beef, coffee and maize meal are shaping consumer behaviour. Category growth is being driven by careful budgeting rather than broad confidence.
“In the FMCG sector we enter the festive season with consumers rebalancing priorities. While some categories such as beverages, snacks and tobacco are showing encouraging growth, price volatility challenges shoppers and brands alike. Rising prices of beef, cocoa and coffee beans, for example, are forcing consumers to evaluate new options. Manufacturers that pivot fast to attractive and affordable alternatives can win consumers’ trust and open new markets.”
While FMCG spending accelerated, the tech & durables sector continued its downturn. The NIQ said total spending fell 3% to R21.5bn, with weakening smartphone sales pulling the category lower.
The smartphone market fell 5% in value despite an 8% rise in units sold as South Africans opted for cheaper prepaid devices. Average prices fell 9%.
Other discretionary electronics remained sluggish, including panel televisions, which recorded a 1% drop in sales value.
Households continued investing in home-related and productivity technologies. NIQ said major domestic appliances grew 3% in value and 8% in unit sales, aided by falling prices and steady demand for essentials such as dishwashers, washing machines and microwaves.
IT equipment, including routers and laptops, delivered strong unit growth of 15% though discounting kept value growth to just 3%.
One of the most significant behavioural shifts highlighted in the report is the rise in shopping frequency. According to the NIQ, households are now making an average of five shopping trips per month, reversing the pandemic-era habit of consolidating purchases.
New opportunities
This opens new opportunities for retailers and brands, particularly heading into the festive season.
“With households shopping an average of five times a month, brands and retailers can benefit from designing promotions or product strategies that target frequent trips. Smaller pack sizes, convenience offerings or repeat-purchase incentives could capture more of these frequent visits,” he said.
With inflation appearing under control, a steady rand and manageable fuel prices, FMCG categories enter the festive period with some momentum. But Haeri cautions that the pressure on household budgets will shape decisions across both this and the tech sectors.
In technology and appliances NIQ expects shoppers to remain selective, delaying major upgrades unless the value proposition is compelling.
“In the tech & durables sector, we can expect some turbulence as rising component prices start to filter through to the South African market. With consumers timing their purchases strategically, manufacturers and retailers must lead with value. This means delivering innovation that resonates with today’s purpose-driven consumers. The opportunity lies in products that improve performance, enhance everyday experiences and offer visible return on investment.”
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