South African (SA) retail experienced robust growth in the third quarter of 2025, according to NielsenIQ’s (NIQ) State of the Retail Nation report.
Consumers spent nearly R167.5 billion ($9.05 billion) on fast-moving consumer goods (FMCG) through both traditional and modern trade channels, marking a year-on-year value increase of 7.1%, with unit sales up 8.7%.
While FMCG sales strengthened, the Tech and Durables (T&D) sector continued to face challenges. Declining smartphone sales and sluggish demand for other telecom devices led to a 3% drop in T&D spending to R21.5 billion ($1.16 billion), reflecting a shift in consumer priorities towards essential home and productivity products.
FMCG growth was led by non-alcoholic beverages, which rose 9.3% to nearly R22.6 billion ($1.22 billion), snacking at R12.3 billion ($665 million, up 7.7%), and tobacco, which jumped 11.5% to R6.6 billion ($356 million). Food, the largest category, increased 8% in value to almost R61.7 billion ($3.33 billion), while most other key segments, including personal care, health, liquor, and home and pet products, delivered steady growth. Baby food and care remained relatively flat at R3.5 billion ($189 million).
Private label products showed slower growth, rising just 3.1% compared to 8.7% in the same quarter in 2024, while independent brands surged by 10.3%, reducing private labels’ market share to 17.6%. Zak Haeri, Managing Director of NIQ SA, noted that shoppers remain cautious, balancing rising prices for staples like red meat, coffee, and maize meal by bulk-buying, leveraging promotions, and switching to lower-priced brands.
In the T&D market, consumers are focusing on home-centric essentials and productivity technology while reducing discretionary spending. Smartphones saw a 5% decline in value despite an 8% rise in unit sales, reflecting longer replacement cycles and limited product innovation. Major domestic appliances increased 3% in value and 8% in units sold, while small domestic appliances grew modestly, driven by products such as air fryers, coffee makers, and vacuum cleaners. IT sales rose 15% in units but only 3% in value due to discounting, and panel television sales remained flat.
Haeri highlighted opportunities for brands, particularly in FMCG, where shoppers are increasing shopping frequency to an average of five trips per month. “Manufacturers that respond with affordable, convenient, and value-driven products can capture these frequent visits,” he said. In the T&D sector, he added, “Innovation must align with purpose-driven consumers, delivering visible performance improvements and everyday value.”
NIQ provides comprehensive insights into consumer behaviour across more than 90 countries, covering 85% of the world’s population and over $7.2 trillion in global consumer spend.
–ChannelAfrica–
