Hidden nutrition crisis observed in South Africa: People are eating, but not receiving necessary nutrients

Amid the cost of living crisis, residents of South Africa are becoming more meticulous about every purchase in grocery stores, as rising food prices, debt repayments, and other household expenses place significant pressure on already strained budgets.

Consumers in South Africa are exercising greater caution in spending, forced to analyze everything from food prices to debt repayment. For many shoppers, the familiar brand on the supermarket shelf is no longer an automatic choice. The popularity of private label goods is growing, as consumers compare prices, question the justification for premium brand prices, and seek ways to stretch limited family income.

Neil Ruets, CEO of Debt Rescue, noted that this reflects a broader shift in household financial management. He stated: 'At Debt Rescue, we see this as part of a wider change in how households manage money: buyers are paying much closer attention to what they are buying, what they truly need, and whether the price they are paying can be justified within their monthly budget.'

The increasing demand for private label goods is one sign of this shift. According to NielsenIQ data cited in a recent industry analysis, private label sales in South Africa reached 53.5 billion rand in the first half of 2026. Ruets added that from a consumer finance perspective, this trend indicates that purchasing decisions are becoming less automatic.

He emphasized: 'Loyalty to established brands can still matter, but when household finances are constrained, consumers have a stronger financial incentive to compare alternatives and decide if the cost of a particular product remains affordable.'

Households under growing pressure

This shift occurs against a backdrop of a difficult economic situation characterized by inflationary pressure, high interest rates, weak economic growth, and persistently high unemployment, which continues to negatively affect household finances. The latest PMBEJD Household Affordability Index revealed the pressure consumers are facing. In September, the average cost of a food basket was 5488.06 rand, which is 108.64 rand, or 2% year-on-year, higher.

Of the 44 main products tracked, 21 increased their price during the month. For families already incurring costs for housing, transport, electricity, insurance, debt repayment, and food on the same income level, even small savings can become substantial over a month. Thus, choosing the retailer's own product instead of the familiar branded alternative is one way consumers are trying to control daily spending.

However, Ruets cautioned against interpreting this shift as merely evidence of increased consumer financial discipline. He warned: 'It is important to understand that this does not mean consumers will automatically choose the cheapest item in their entire shopping basket.' Households often save in areas where they are comfortable, continuing to spend on items they deem important. Ruets concluded: 'The level of consideration put into these choices has changed.'

Private label gains ground

Tony Man Gavin, Managing Director of Encore, a wholly-owned private label business of SPAR South Africa, reported that shoppers are increasingly focusing on value rather than just price. Man Gavin stated: 'South African shoppers are not just becoming more price-sensitive. They are becoming more value-sensitive.'

NielsenIQ data showed that private label sales grew by 1.9% year-on-year in the first half of 2026, highlighting the growing role of retailer brands in food baskets. Ruets noted that this trend is important because it demonstrates that consumers are actively re-evaluating established purchasing habits. He added: 'There is something encouraging about consumers actively comparing prices and looking for ways to cut unnecessary expenses. However, we must also be careful not to interpret all this behavior solely as improved purchasing discipline.'

For many households, the heightened focus on spending is due to necessity. Ruets noted that Debt Rescue's concern was particularly focused on families who had already significantly cut their spending. He explained: 'There comes a point where switching brands, buying on sale, and cutting non-essential expenses can no longer compensate for the constant gap between household income and monthly financial obligations.'

'When a consumer has already significantly reduced spending and still cannot comfortably cover basic necessities and debt repayment, the problem goes beyond finding extra savings in the supermarket. It may indicate deeper financial difficulties,' Ruets continued. For such households, the rise in private label sales offers only limited relief from broader financial pressure. Nevertheless, Ruets believes this trend provides valuable insight into the decisions being made by South African households striving to stay within increasingly tight budgets.

He concluded by saying: 'Consumers are becoming more selective and more willing to reconsider established purchasing habits while trying to keep essential expenses within increasingly limited budgets.' The problem for households is that there is a finite amount of expenses that can be cut. Thus, as consumers become more strategic in their purchases, the growing reliance on cheaper alternatives is not just a story of changing consumer preferences, but also a reflection of the financial pressure faced by millions of South African households.