SA food manufacturers feel the pinch as constrained consumer spening trends down

FOOD INFLATION

- TAWANDA KAROMBO

FOOD manufacturers are responding to South Africa’s toughening economic environment by introducing smaller packs and adjusting pricing downwards to boost demand as consumers trend down in search of value offerings.

This is despite a rebound in consumer confidence as reflected by the FNB/BER Consumer Confidence Index (CCI) which moved to -9 index points in the fourth quarter, after falling from -10 to -13 in the third quarter of 2025.

Although the fourth-quarter CCI reading of -9 is slightly lower compared to the 2024 festive season reading of -6, it is the highest consumer confidence reading for 2025.

Despite the South African Reserve Bank moving its inflation target to 3%, consumers are still feeling the pinch of cost pressures, driving a large portion of them into debt.

To survive the squeeze that SA consumers are facing, food and beverage manufacturers are introducing smaller packages.