By Jessie Taylor
South Africa’s consumer landscape is evolving rapidly, shaped by technology, economic shifts, and changing household priorities. According to the Spend Trend Report from Discovery, consumers make more intentional choices with their money, balancing lifestyle spending with long-term financial security.
The report highlights key patterns in how South Africans allocate their resources, from increased adoption of digital banking and healthier lifestyle purchases to growing confidence in planning for retirement and investing. These shifts reveal a more financially aware consumer base and signal opportunities for government, business, and communities to align strategies with the nation’s economic future.
Spanning data from 2019 to 2024, the report offers an insightful analysis of consumer spending patterns across South Africa. Covering 2.6 billion transactions and over 12 million active credit cards, the report tracks shifts in behaviour during a financially challenging period marked by persistent inflation and high interest rates. By presenting an in-depth view of how South Africans earn, save, and spend, SpendTrend25 provides a mirror of current consumer habits and a roadmap for how businesses and policymakers can respond to changing dynamics.
Price pressures and a cautious rebound in spending
Although inflation dropped from 6% to 4.4% in 2024, South African spending per active card remained flat, trailing inflation by around five percentage points. High interest rates, peaking at 11.75% in 2024, continued to strain household finances, making value-conscious decisions essential. Consumers are increasingly prioritising value-based spending and rewards over discretionary purchases. Importantly, the data shows that spending levels are not collapsing but stabilising, which speaks to consumer resilience despite tough conditions.
Groceries, retail, travel (including eating out and takeaways), and fuel together account for over 70% of total consumer spend. While groceries remain essential, affluent South Africans are still allocating more to travel and retail, reflecting their greater flexibility. This suggests that while lower and middle-income households focus more narrowly on survival spending, higher-income households are helping to sustain growth in leisure and lifestyle sectors.
Residents of Bloemfontein, East London and Gqeberha prioritise groceries and fuel, while consumers in Johannesburg, Cape Town, Durban and Pretoria spend more on dining out and retail. This variation underscores how urbanisation and lifestyle differences influence consumption patterns. With their concentration of restaurants, shopping centres, and service industries, metropolitan areas continue to see higher discretionary expenditure. In contrast, smaller cities and towns more acutely reflect the strain of transport costs and food inflation.
With the return to office life accelerating, fuel spending grew by approximately 5% in 2024, after a dip in 2023, reflecting renewed commutes. Dining out and takeouts grew by 12%, exceeding the 6% growth in grocery spend – indicating a shift toward convenience. Meanwhile, online grocery purchases rose 15%, compared to a modest 6% for in-store shopping. Online baskets also included a healthier ratio of items (30% healthy) versus in-person shopping (27%). This reveals that digital shopping saves time and helps consumers make more deliberate, wellness-conscious decisions.
Digital payments are increasingly dominant
South Africans are rapidly abandoning cash. More than two-thirds use cash only occasionally, increasingly opting for cards or digital payments. Virtual cards are gaining popularity, with 45% of respondents using them for security, convenience, and rewards. In this shift, younger consumers, especially those under 35, are proving to be the most eager adopters, a trend that is reshaping how financial institutions design products.
Beyond convenience, digital payments offer improved safety: digital wallets reduce fraud risk and foster trust. Discovery Bank CEO Hylton Kallner emphasised that over 80% of consumers now favour digital payments and actively use credit card rewards to maximise value.
Omni-channel or phygital shopping – such as browsing online and buying in-store – is emerging strongly, with 21% of consumers embracing this hybrid model. Subscriptions are no longer just streaming. In 2024, categories now include AI services, sports bookings, groceries, and e-commerce. Notably, AI subscription spend tripled over the previous year, reflecting how digital transformation touches everyday lives in new ways.
A sobering trend shows that South Africans are increasingly dipping into long-term savings to cope with short-term costs, using the two-pot retirement savings system for essentials like school fees, servicing debt, and everyday living. This signals the need for further financial education and support mechanisms to help consumers avoid eroding long-term security.
The report underscores growing consumer pragmatism, balancing financial pressure with a clear priority on safety, ease, and value. Key emerging themes to watch in 2025 include continued value-based consumption, further decline of loyalty, and growing demand for affordability and flexibility. Businesses that can respond with agility—by offering better digital experiences, transparent value, and secure payment options—will be best positioned to thrive.
Sources: Discovery Bank SpendTrend25
