NielsenIQ (NIQ) South Africa has released its Consumer Outlook: Guide to 2026. This annual report is a strategic roadmap for driving growth in a volatile, fast-moving market where caution is the consumer’s default and highlights opportunities for brands to connect with consumers across channels.

The report indicates that South African consumers have adapted to constant change. While 64% of South Africans report that they expect their household situation to improve by the start of 2026, this confidence masks the reality that consumers have become numb to rising prices and economic stagnation.

Among South African respondents, 37% say their household is worse off now than a year ago, up from 33% in the survey for the previous year. Some 38% say they are better off this year, compared to 42% in the previous survey. The increased cost of living (70%), an economic slowdown (41%) and job insecurity (38%) are among the reasons that consumers feel worse off.

“While inflation has abated and there are some green shoots in the economy, South African consumers are still spending cautiously,” said Zak Haeri, MD for NIQ in South Africa. “Given that many households have cut spending to the bone and have low tolerance for more price increases, retailers and manufacturers will need to focus on growing volumes and market share.”

Consumers remain worried about food inflation

South African shoppers name increasing food prices (21%) and rising utility bills (11%) as their biggest concerns for the next six months. With nearly half (49%) reporting that they have only enough money to pay for the basics, South African consumers report plans to cut back on spending across several categories in the next 12 months:

• Food delivery and takeaways (45%)
• Out-of-home dining (43%)
• Out-of-home entertainment (43%)
• Small domestic appliances (40%)
• Large domestic appliances (38%)
• Selected discretionary groceries, such as snacks and confectionaries (42%), alcoholic beverages (39%) and preprepared meals (43%)

In addition to cutting back on purchases, South African consumers have adopted a range of strategies to bring costs under control. Tapping into rewards programmes and loyalty points is particularly popular in South Africa, an approach used by 51% of consumers.

Other strategies South African consumers are embracing include stocking up their preferred brand when it goes on sale or promotion (45%), monitor the cost of their overall basket of goods (43%), completely stopping buying certain products to focus just on essentials (40%), and switching to a lower-priced brand (40%).

Affordability drives brand choices

In this context, it is unsurprising that affordability and low pricing ranks as the single biggest reason for brand choice among South African shoppers – named by 35% of respondents. Healthier and natural options (17%) and brand trust and familiarity (13%) come in next, suggesting that premium brands can get an edge by focusing on these attributes.

Even in a price-conscious environment, 74% of South Africans say brand trust is a very important consideration in purchase decisions. Trust in brands is highly influenced by product quality and consistency (named by 71% of respondents), customer service and responsiveness (56%) and recommendations or reviews from people consumers know personally (45%).

The data also reveals a trend towards more careful and deliberate purchases, with 56% of South Africans planning ahead before they shop, 53% comparing prices before they buy and 64% ensuring that they buy only what they know they will use to avoid wastage.

Haeri said: “South African shoppers reward retailers and brands that deliver affordability, trust, personalisation, and convenience – with attractive loyalty and reward programmes as a key lever for building repeat business and driving larger basket sizes.

“Despite growing consumer caution, brands can win loyalty by building trust and offering value beyond price. Capturing trips and baskets through sharper product assortment, innovation, loyalty points and private label offerings that stretch limited discretionary rands further will all prove to be winning strategies in the year to come.”

About Consumer Outlook: Guide to 2026

NIQ’s Consumer Outlook: Guide to 2026 provides an analytic assessment of the state of consumers, based on a global footprint of consumer intelligence solutions and the feedback of nearly 19,000 consumers in 27 countries. The goal: to better understand their current thinking about the economic environment, as well as what they’re buying – and why. The survey was conducted between 10 June and 8 July 2025.