FMCG demand lifts third quarter retail sales, but tech sector weakens — NIQ South Africa

SOUTH Africa's retail sector delivered robust growth in the third quarter of 2025 as consumers continued to spend on essential and discretionary fast-moving consumer goods (FMCG), even while the country's technology and durable goods market remained under sustained pressure, market researcher NielsenIQ (NIQ) South Africa said on Sunday.

- PHILIPPA LARKIN

In its latest State of the Retail Nation report, NIQ said consumers spent nearly R167.5 billion on FMCG products across both traditional and modern trade channels during the July-September period.

The figure represents a year-on-year increase of 7.1% in total sales value, supported by an 8.7% rise in unit sales. Analysts say the combination of volume growth and moderate inflation suggests that demand held up better than expected despite subdued economic conditions.

The report comes at a time when South Africa is grappling with longterm structural challenges, including persistently sluggish economic growth - which has averaged below 1% for more than a decade - and an unemployment rate hovering above 40% on the broad definition.

Yet NIQ's data indicates that within households, spending patterns remain resilient in key categories that consumers prioritise even under financial pressure.