South African consumers remain cautiously optimistic despite economic challenges

As the festive season approaches, retailers in South Africa brace for what they hope will be an end-of-year sales surge. Yet, amidst the anticipation lies a pivotal question: how do consumers with disposable income truly feel as 2025 draws to a close?

The preliminary insights from the annual BrandMapp survey—focused on the nation's top 30% of adults by household income—reveal a complex tapestry of emotions, tinged with cautious optimism but guarded by economic realities.

Brandon de Kock, Director of Storytelling for BrandMapp, encapsulates this sentiment: “Despite the slower-than-expected reforms, rising living costs, and an arduous labour market, consumer confidence has dipped but remains markedly higher than the anxiety-ridden landscape of 2023."

He notes that while around a third of consumers continue to feel a sense of hope for the future, approximately 40% remain uncertain, reflecting a delicate balance between optimism and pessimism as they navigate their financial realities.

“We may be squeezed, but there’s still just enough breathing room to see out the year on a reasonably good vibe,” de Kock adds, highlighting a resilient spirit among the tax-paying segment of society. With a nod to global uncertainties—including geopolitical tensions and economic pressures—he points to the fact that only a quarter of consumer class South Africans currently express pessimism about the future. This speaks volumes about a populace that remains hopeful amid a backdrop of challenges, suggesting an enduring spirit inspired by realism and the belief in gradual improvement.

Finding gratitude amid challenges

De Kock encourages a broader perspective, noting the positives that South Africans can rally around. “From the unbridled joy that our national sports’ achievements bring to the absence of load-shedding during a surprisingly chilly winter, the nation is experiencing moments of light that uplift the collective mood.” The resilience shines through even as South Africa faces economic upheaval, proving that the camaraderie felt during exhilarating sports victories can infuse daily life with optimism.

However, an economic lens shows a more conflicted reality. According to the Bureau for Economic Research (BER), consumer confidence declined to -13 towards the year's end—which, while disheartening, remains above a record low of -20 recorded earlier this past year. This decline has disproportionately affected lower-income groups, who are grappling with rising costs and limited financial options. Yet, contrasting signals emerge, as 2025 has seen new passenger vehicle sales reach heights not seen since 2017, indicating that a considerable segment of the population feels financially secure enough to act on their aspirations.

A tale of two economies

The economic narrative in South Africa is one of stark contrasts. While the Johannesburg Stock Exchange (JSE) celebrated significant gains—surpassing 100,000 points mid-year and climbing past 112,000 by November—many South Africans continue to feel the brunt of deepening income inequality and escalating living costs. The disconnect between financial success and prevailing economic stress may paint a challenging picture.

De Kock explains, “South Africa remains a country of parallel universes. At the top, the JSE is flourishing, buoyed by a relatively stable exchange rate and favourable interest rate cuts. Yet, at the other end, the expanded unemployment rate sits stubbornly around 40%, even after the creation of nearly a quarter of a million new jobs in the past year.”

As the year draws to a close, the deepening divide raises concerns, but it also illuminates a segment of society that continues to innovate and build economic stability, perhaps laying the groundwork for a more equitable future.

With the full insights from BrandMapp 2025 set to be released soon, consumers and policymakers alike are encouraged to keep an eye on emerging trends. Data will be available through various channels, including WhyFive Insights, Telmar, and Nielsen.

BUSINESS REPORT