Mumbai, November 12 (IANS). Rural India has started giving priority to convenience products for some time now. With the increasing demand for convenience products, consumption of FMCG goods in rural areas has increased tremendously.
According to the latest Group M and Kantar report released recently, the average FMCG basket size among India’s rural consumers has increased by 60 per cent in the last two years, driven by the growing preference for convenience products.
“The average basket size in rural India sees a strong growth from 5.88 in 2022 to 9.3 in 2024, driven by higher consumption in convenience categories like RTE, beverages,” the report said.
This reflects the evolving lifestyle and increasing purchasing power in rural areas.
However, regional variations exist regarding this change in rural India. States have seen moderate growth in the FMCG basket despite fewer financial concerns, with Jammu and Kashmir up 39 percent, Maharashtra 41 percent and Odisha 26 percent.
This positive trend in the expansion of the FMCG category basket is accompanied by growth in rural incomes and diversification of income sources, the 2024 Rural Barometer report said.
This report shows only 19 percent of the rural population having agricultural income. Whereas, people with diverse income sources constitute the remaining 81 percent.
People who depend only on agricultural income face greater financial worries, affecting 82 per cent of them, the report said.
At the same time, those who have diverse income sources are less stressed and enjoy FMCG goods more.
In terms of media consumption, rural India is increasingly adopting a hybrid model that combines traditional and digital media. In this, 47 percent of the population is involved in this trend.
According to the report, this change is more pronounced in areas with better digital infrastructure. However, states like Bihar, Jharkhand, Uttar Pradesh, Madhya Pradesh and Chhattisgarh are less digitally connected.
Ajay Mehta, managing director, GroupM OOH Solutions in India, said: “Rural India is no longer just a geographical area; it has emerged as a digital frontier full of opportunities. Rural consumers are adopting online platforms.”
As rural India evolves, digital platforms are playing an important role in reaching and connecting with consumers.
From payments and e-commerce to gaming and lifestyle content, the digital landscape is evolving rapidly.
At the same time, traditional media is still effective but at the same time the hybrid approach which is available in both online and offline channels also remains effective. Connecting rural listeners/audience easily.
The report suggests that by understanding the changing needs and preferences of rural consumers, brands can tap the growth potential of this market.
The report said rural consumers are increasingly attracted to lifestyle content such as fashion, health and travel that enhance their daily lives.
Additionally, the report shows a significant shift towards digital payments in rural India, with active internet users now reaching 42 percent.
E-commerce has reached 23 percent of active Internet users.
–IANS
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