South Africans cutting restaurants, medical aid, DStv, and Netflix

South Africans are cutting back on restaurants, takeaways, streaming services, and healthcare due to the rising cost of living in 2026.

Research from NielsenIQ (NIQ) South Africa’s Consumer Outlook: Guide to 2026 showed that pressure on household budgets is forcing consumers to relook which expenses they can afford.

The report noted that consumers remain cautious about spending, with many prioritising essential purchases and reducing expenditure on non-essential goods and services.

The report highlighted that 64% of South Africans surveyed expected their household financial situation to improve in 2026, while 37% said they were worse off than a year earlier.

However, this was up from 33% from the previous survey, while the proportion who felt better off declined from 42% to 38%.

The rising cost of living was the leading reason households felt worse off financially, cited by 70% of respondents.

The second-leading reason was an economic slowdown, cited by 41%, while 38% cited job insecurity.

“While inflation has abated and there are some green shoots in the economy, South African consumers are still spending cautiously,” said Zak Haeri, managing director of NIQ South Africa.

“Given that many households have cut spending to the bone and have low tolerance for more price increases, retailers and manufacturers will need to focus on growing volumes and market share.”

Restaurants and takeaways were cited as the first expenses being cut. NIQ found that 45% of consumers were cutting spending on food delivery and takeaways, and 43% cut off dining out.

Another 43% were reducing their spending on movies, concerts, and other social outings. Additionally, 43% of respondents were removing ready-to-eat meals from their shopping baskets.

Another 42% were cutting back on non-essential groceries, including snacks, sweets and confectionery.

Households are also postponing purchases of household goods and technology. NIQ found that 40% were delaying small-appliance purchases, while 38% were delaying major-appliance purchases. 

Pausing upgrades, downgrading plans and switching brands

Technology upgrades, including phone contracts, are also being delayed as consumers try to manage their monthly expenses.

TransUnion’s second-quarter 2026 Consumer Pulse Study added that 28% of South African consumers had cancelled subscriptions or memberships.

24% had reduced spending on digital services, including television, internet, and wireless plans. South Africans have also turned to a practice known as “subscription cycling”.

This is where consumers subscribe to streaming platforms such as Netflix or Amazon Prime for a month to watch particular shows, then cancel and switch to another service.

DStv subscribers are also increasingly considering cheaper packages or alternatives, including free, advertising-supported streaming services and YouTube.

Additionally, TransUnion found that 33% of South Africans planned to reduce spending on medical care and services.

Some households are opting to downgrade their medical aid plans rather than cancel their cover entirely, while others are delaying elective procedures, specialist consultations, and non-urgent treatment.

Lané Klopper, Consumer Panel Services Lead at NIQ South Africa, noted that brand loyalty had also taken a knock. 

“Consumers are becoming more willing to switch brands and retailers in search of savings. Consumers are more reactive to price increases and promotions than they were last year,” Klopper said.

She added that some brands were on promotion for as many as 40 weeks of the year, putting pressure on traditional brand loyalty as shoppers became more focused on finding lower prices.

Consumers are also reconsidering where they shop. Klopper said spaza shops and independent retailers are often closer to households and may help consumers save on transport costs.

“If I’m able to do my shopping at a place that is a lot closer, that will cost me less in terms of transport, then I would go do my shopping there,” she said.