Rural FMCG Market on the Rise: A Kantar Worldpanel Report

The FMCG sector is projected to see a 6.1% volume growth in rural markets this fiscal year, according to Kantar Worldpanel. Factors such as population growth, premiumisation, and adaptation to e-commerce are driving this growth. Despite previous stagnation, rural markets are expected to catch up with urban markets soon.

The FMCG sector is poised to experience a 6.1% volume growth in rural markets this fiscal year, according to a report by Kantar Worldpanel. This marks a significant increase from last year's 4.4% growth, contrasted by a flat 4.2% growth in urban areas.

Titled 'The Rural Challenge', the report indicates that rural market growth will potentially match urban growth soon. Currently, rural markets contribute half of FMCG volume and value in India.

The report underscores that population growth, rather than consumption, is the main driver of FMCG expansion in rural areas. Issues like inflation, declining household sizes, and higher utility costs have previously stagnated rural consumption. However, premiumisation trends and increased e-commerce usage are revitalising the sector.

(With inputs from agencies.)