Recent data from The Marketing Research Foundation (MRF) has shed light on where South African consumers are directing their finances amidst growing economic pressures.
As food, education and medical bills dominate spending, the country’s evolving landscape reflects significant shifts in consumer behaviour between July 2023 and June 2024.
Johann Koster, the CEO of the Marketing Research Foundation, said, "Our MAPS dataset provides a holistic view of the South African consumer landscape. In addition to the interviews, over 10000 leave-behind questionnaires are completed each year, enabling us to capture detailed information, from product categories and brands to behavioural and psychographic insights."
The report revealed that South Africa's population aged 15 and above stands at 43592223, comprising of 18.5 million households with an average size of 3.7 people.
The country's population is relatively young, with an average age of 38 years.
"Our data shows that many South Africans are feeling the financial strain over the past four years. We've observed shifts in employment status and socio-economic class identification that reflect the current economic climate," Koster added.
Media Consumption Trends
Television remains a dominant medium, with 25136302 South Africans watching TV in the past seven days, with 8.2 million people spending more than 20 hours per week watching TV.
SABC 1 leads viewership, followed by e.tv, SABC 2 and SABC 3.
Even though the data shows a decline over the four-year period, Radio listenership remains strong, with 20767693 South Africans tuning in. Ukhozi FM, Umhlobo Wenene FM, Lesedi FM, Metro FM and Thobela FM being the top stations.
The digital landscape continues to evolve, with 8.4 million South Africans having access to on-demand streaming services.
Over the four-year period penetration of on-demand streaming has increased from 15% to 22%.
Social Media and Online Behaviour
The report showed that about 75% of South Africans regularly engage on social media platforms. Facebook (29 million users), WhatsApp (26 million users), and TikTok (12 million users) are the top three social media platforms.
13 million South Africans spend more than 20 hours per week on social media.12.8 million people watched video content in the past 7 days. 88% of people who watched video content visited social media platforms in the past seven days.
There's been a notable increase in the use of streaming services:
Approximately 8072102 people have access to on-demand streaming services. Netflix leads with 6.7 million users, followed by Showmax with 4 million users. YouTube Premium has however declined to 898000 users.
The growth in online shopping continues, particularly for groceries, clothing and fast-food delivery:
Shein has emerged as the online clothing retailer of choice. Sixty60 dominates the grocery delivery landscape. About 900 000 people prefer to use a delivery service when ordering food.
The MAPS data provided crucial insights into South Africans' financial behaviours and preferences.
And 72% of the population have a bank account (excluding Sassa accounts), while 35% have some form of insurance. Brand loyalty trends are also captured, offering valuable information for marketers and advertisers.
The survey revealed shifts in purchasing behaviour, with many consumers adjusting their brand preferences in response to economic pressures.
A financial snapshot of the consumer:
The top reasons for taking out loans in the past 12 months include buying food, paying bills, education and covering medical expenses.
This as 6% of consumers have taken a loan to assist family members or friends,.
Meanwhile, 22% of consumers transfer or send on average R1086 to family or friends monthly, while 8.4% belong to a stokvel.
Average monthly spend on groceries and toiletries has remained fairly stable over the past four quarters at approximately R2 100.
Apparel has seen a 35% decline in average monthly spend in quarter two of 2024. However, this is seasonal and occurred in every 2nd quarter of the years tracked this far.
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