South Africans spent R214 billion ($11.79bn) on Fast-Moving Consumer Goods (FMCG) and Technology & Durable products in the third quarter of 2024. This marks a 4.1% growth compared to the same time last year, according to the NIQ Retail Spend Barometer. The barometer, based on data from GfK (an NIQ company), tracks sales of everyday and non-food products in retail stores nationwide.
The NIQ Retail Spend Barometer gives a clear picture of how much South Africans are spending on everyday goods like food, healthcare, and homecare products, as well as durable goods like appliances and electronics. Published quarterly, it highlights trends in household spending.
FMCG Growth Slows, But Inflation Eases
Growth in FMCG sales slowed from 6.5% in Q3 2023 to 4.5% in Q3 2024. However, inflation dropped to 3.8% in September 2024, the lowest since March 2021. Lower fuel prices helped ease inflation, although fuel remains expensive overall.
Within FMCG, frozen food sales grew by 7.4%, and fresh food sales rose by 9.1%.
“With loadshedding on pause, consumers are spending more on perishable goods,” said Nikki Quinn, Retail Lead at NIQ South Africa. “This trend is likely to continue, especially with lower chances of loadshedding this summer.”
Intentional Spending in Tech & Durables
The Tech & Durables market grew 2.1% in Q3 2024 compared to last year. Home appliances led the way, growing by 9.9%. Products like washing machines, dryers, refrigerators, and air fryers sold well, thanks to competitive pricing and online shopping deals.
While technical goods like routers and soundbars saw growth, wearables, headphones, and smartphones declined. The DIY & Home Improvement market rebounded from last year’s drop, returning to normal after pandemic-related surges.
“Consumers are being careful with their money,” said Quinn. “They’re replacing products only when necessary and looking for the best deals rather than chasing the latest models. With Black Friday, Christmas, and Back-to-School shopping ahead, there’s reason to be optimistic as consumer confidence improves.”
//Staff writer
