Rural India's appetite for FMCG grows by 60%; what's behind the surge?

The Kantar and GroupM study highlights a nearly 60 per cent growth in the average FMCG basket size for rural consumers, increasing from 5.8 in 2022 to 9.3 in 2024

Demand for fast-moving consumer goods (FMCG) in rural areas is on the rise, with a notable increase in average basket size, according to a new report from market research company Kantar and GroupM. 

The study, accessed by The Financial Express, indicates nearly 60 per cent growth in the average FMCG basket size for rural consumers, increasing from 5.8 in 2022 to 9.3 in 2024. Rural shoppers are also purchasing more convenience items, attributed to a broader range of income sources. 

According to Puneet Avasthi, director of Specialist Businesses at Kantar, households with multiple income sources are more likely to adopt various product categories than those relying solely on agriculture.

 

Regional growth and rising digital engagement 

While regions such as Jammu & Kashmir (39 per cent), Maharashtra (41 per cent), and Odisha (26 per cent) exhibit moderate growth in FMCG basket sizes, the report shows a positive overall trend in purchasing patterns across rural areas. Financial stability appears to be improving, with rural consumers reporting stable levels of personal financial concerns since 2022, which may indicate higher income levels and diversified income sources. 

The Rural Barometer Report, which surveyed 4,376 adults across 20 states, also sheds light on digital trends in rural India. Currently, half of rural consumers engage with both online and offline media. Internet use is expanding beyond traditional needs, with rural users accessing content related to fashion, beauty, education, health, travel, and more. Additionally, there has been a noticeable rise in digital payments and e-commerce delivery, especially in states like Bihar, Jharkhand, Maharashtra, and Odisha.

Ajay Mehta, managing director of GroupM OOH Solutions, described the evolving rural landscape as a ‘digital frontier’ and advised brands to adapt to meet rural consumers on digital platforms.