Rural FMCG basket measurement improves by way of 60% as source of revenue resources develop – Trade Information

As rural areas show a revival in demand for fast-moving consumer goods (FMCG) products, the average FMCG basket size is growing, a new report by agencies Kantar and GroupM shows.

The latest findings show that there is a nearly 60% rise in the FMCG basket size among rural consumers, from 5.8 in 2022 to 9.3 in 2024. Moreover, rural consumers are buying more convenience products, the report says, driven by diversity in income sources.

“What we have found is that those individuals with more diverse income sources are the ones adopting more categories versus those who depend solely on agriculture,” Puneet Avasthi, director, specialist businesses, insights division at Kantar, said.

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While there are regional variations with states like Jammu & Kashmir (39%), Maharashtra (41%), and Odisha (26%) showing moderate growth in the FMCG basket despite lower financial worries, Avasthi says that the broad trend in terms of buying and consumption patterns has been positive for most other states. Also, concerns about one’s personal financial situation among rural consumers has remained largely range-bound since 2022, which points to growing income levels and access to diverse income sources.

Higher consumption, Avasthi says, can be seen in convenience categories such as ready-to-eat products, carbonated beverages, beauty and make-up, toilet and floor cleaners, as income sources grow and financial worries reduce.

Called the Rural Barometer Report, the study looks at consumption patterns and economic behaviour of rural Indians across 20 different states. Around 4,376 rural adults, aged 18 years and above, were surveyed for the current study.

The study also notes that rural India’s media consumption is increasingly becoming hybrid, with 1 in 2 rural consumers exposed to both online and offline media. Rural consumers are also accessing the internet for a wide range of needs and interests ranging from fashion and beauty, learning and education, health and fitness and travel and lifestyle besides news, gaming and music.

There is also a sharp rise in the use of digital payments and e-commerce delivery this year versus 2022, as internet penetration grows. States such as Bihar, Jharkhand, Maharashtra and Odisha are high on usage of digital payments, while the usage of health and medical apps is high in Maharashtra. Also, digital and telecom can be effective in providing incremental reach in Hindi-speaking markets, according to the report.

“The rural landscape is no longer just a geographical space; it is a digital frontier ripe with opportunities. As rural consumers embrace online platforms, brands must adapt their strategies to meet them where they are,” Ajay Mehta, managing director, GroupM OOH Solutions, said.