Five years ago, the pandemic flipped the world on its head and with it, our financial systems, habits, and priorities. Lockdowns, global supply disruptions, and shifting interest rates reshaped economies everywhere. For South Africans, the way we spend has changed profoundly.
Since March 2020, when SA entered lockdown, we’ve seen some fascinating transformations in how money moves through households. And with that change comes opportunity, new behaviours, emerging trends, and the chance to understand what’s really driving consumer decisions today.
So, what does this new landscape look like? Let’s unpack..
The Essential Spend
Groceries, Medical expenses, house and rent expenses, home and utility, as well as transport and fuel, make up the 5 categories we analysed as essential spending.
The Reign of Groceries
In 2019, rent was the biggest essential expense for South African households. But in the years that followed, groceries surged ahead to claim the top spot. Between 2019 and 2024, average annual grocery spend jumped by 69%, far outpacing rent, which rose by just 21%.
This shift closely mirrors inflation trends. In 2020, CPI hit a low of 3.3%, but by 2022 it peaked at 6.9%, driven largely by rising costs in food and non-alcoholic beverages, along with housing and utilities (StatsSA). Groceries, once a stable category, became a standout driver of essential expenses, and this proves that when it comes to essentials, where one lives is the easiest place to cut expenses when prices go up fast.
Interestingly, by 2024, as inflation eased to 4.4%, grocery spend finally dipped slightly—a small but notable reversal in the trend.
Grocery Spend Hits Harder at the Bottom
While high-income households still spend the most on groceries in absolute terms, with a 28% increase from 2019 to 2024, it’s low-income households that have felt the sharpest impact.
For many South Africans in the lower income bracket, groceries have become significantly more expensive, with average annual spend soaring by 88% over five years. Medium-income households also saw a steep rise at 48%.
Meanwhile, rent continues to dominate essential expenses for both medium- and low-income groups, highlighting how rising food costs are squeezing budgets already stretched by housing.
🔒 Curious how non-essential spending habits have changed — and what they say about where South Africa is headed?
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