South African households are becoming more cautious about how they spend their money, with takeaways, dining out, entertainment subscriptions and even healthcare facing cuts as the cost of living continues to put pressure on household budgets.
According to a report by BusinessTech, findings from NielsenIQ (NIQ) and TransUnion show that consumers are increasingly making trade-offs between essential expenses and spending on goods and services they can reduce or postpone.
The shift is being seen in everyday decisions, from what goes into the grocery basket to which subscriptions remain active each month.
Rising costs are changing household priorities
NIQ’s South Africa Consumer Outlook: Guide to 2026 found that 37% of surveyed South Africans felt worse off financially than they had a year earlier. This was an increase from 33% in the previous survey.
The proportion who said they were better off also declined, falling from 42% to 38%.
However, there was still some optimism about the future, with 64% of respondents expecting their household financial situation to improve by the beginning of 2026.
The cost of living was the biggest reason respondents felt worse off, cited by 70% of those surveyed. An economic slowdown followed at 41%, while 38% pointed to job insecurity.
Zak Haeri, managing director of NIQ South Africa, said consumers remained cautious about spending even as inflation had eased and there were signs of improvement in the economy.
Takeaways and restaurants are among the first cuts
For households looking to reduce their monthly expenses, food delivery and eating out are proving to be areas where spending can be scaled back.
The NIQ research found that 45% of consumers were cutting their spending on food delivery and takeaways, while 43% were reducing how much they spent on dining out.
Social activities are also being affected. A further 43% said they were cutting back on movies, concerts and other social outings.
The same pressure is visible in grocery shopping.
According to the findings, 43% of consumers were removing ready-to-eat meals from their shopping baskets, while 42% were cutting back on non-essential groceries, including snacks, sweets and confectionery.
These changes show how households are looking beyond major expenses and making smaller adjustments to their regular shopping habits.
Streaming subscriptions face a new challenge
Entertainment subscriptions are also being reconsidered as consumers look for more flexible ways to spend.
TransUnion’s Q2 2026 Consumer Pulse Study found that 28% of South African consumers had cancelled subscriptions or memberships, while 24% had reduced spending on digital services, including television, internet and wireless plans.
The research also highlights the practice of ‘subscription cycling’.
Instead of paying for several streaming platforms throughout the year, consumers may subscribe to services such as Netflix or Amazon Prime for a month, watch the programmes they want and then cancel or move to another platform.
DStv customers are similarly looking at cheaper packages and alternatives such as free, advertising-supported services and YouTube.
For households trying to manage limited budgets, entertainment subscriptions can therefore become expenses that are switched on and off depending on what is available to watch.
Medical costs are harder to avoid
Healthcare presents a more complicated picture because it is not as easy to remove from a household budget as a restaurant meal or streaming subscription.
Nevertheless, affordability pressures are being felt in this area.
TransUnion found that 33% of South Africans planned to reduce spending on medical care and services.
Some households are reportedly choosing to downgrade their medical aid rather than cancel it completely. Others are delaying elective procedures, specialist consultations and other non-urgent treatment.
The findings suggest that financial pressure is affecting not only discretionary purchases but also decisions around healthcare spending.
Price matters more when consumers shop
The changes are not limited to what people buy. They are also influencing where they shop and which brands they choose.
Lané Klopper, Consumer Panel Services Lead at NIQ South Africa, said consumers were becoming more willing to switch brands and retailers in search of savings.
Shoppers were also becoming more responsive to price increases and promotions.
Klopper said some brands were on promotion for as many as 40 weeks of the year, which was weakening traditional brand loyalty.
This means consumers may be less likely to remain with a familiar brand simply because they have always bought it, particularly when another option offers a lower price.
Closer shopping options could benefit
The research also points to changing shopping patterns at a local level.
Klopper said spaza shops and independent retailers could benefit from their proximity to consumers. For households watching transport costs, being able to shop closer to home can make a difference.
As she explained, consumers may choose a nearby retailer when doing so reduces the cost of travelling to a larger shopping destination.
A more cautious consumer
The latest findings show how rising living costs are influencing everyday choices across South African households.
Dining out, takeaways, entertainment subscriptions and non-essential groceries are among the areas where consumers are cutting back, while healthcare and other essential expenses are being reassessed rather than simply removed.
The result is a consumer who is paying closer attention to prices, promotions and alternatives.
For households, that can mean changing brands, cancelling subscriptions or choosing a cheaper option. For retailers and service providers, it means competing for consumers who have become increasingly careful about where their money goes.
With household finances still under pressure, the research suggests that saving money is increasingly shaping the way South Africans eat, shop, entertain themselves and manage essential services.
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