Rural India has observed an increase in the average FMCG basket size increasing by 60%, from 5.8 in 2022 to 9.3 in 2024, revealed Kantar – GroupM’s Rural Barometer Report for 2024. This growth is attributed to a rising preference for convenience products like ready-to-eat (RTE) items and beverages, reflecting changing lifestyles and increasing purchasing power. Regional variations were observed, with states such as Jammu & Kashmir at 39%, Maharashtra at 41%, and Odisha at 26% showing moderate growth in FMCG basket sizes despite facing fewer financial concerns. The report also notes a positive trend in rural income growth, with many households diversifying income sources beyond agriculture. The findings from this report are based on a survey of 4,376 rural adults from 20 Indian states, representing various socio-cultural regions and covering different genders, age groups, and socio-economic classifications. The study also includes insights from migrants who have returned to their villages.
“The rural landscape is no longer just a geographical space; it’s a digital frontier ripe with opportunities. As rural consumers embrace online platforms, brands must adapt their strategies to meet them where they are. By investing in digital initiatives that resonate with rural India’s aspirations, brands can contribute to the nation’s development and tap into a burgeoning market that promises substantial growth,” Ajay Mehta, managing director, GroupM OOH Solutions, India, said.
The report identifies a clear divide between rural consumers who rely solely on agricultural income, which accounts for 19% of the population, and those with diversified income streams, making up 81%. The former group faces more financial concerns, with 82% reporting financial stress, while those with varied sources of income experience fewer financial worries and exhibit larger basket sizes. In terms of media consumption, rural India is increasingly embracing a hybrid model that blends traditional and digital media. The report indicates that 47% of rural consumers engage with both forms of media, especially in regions with more developed digital infrastructure. However, states like Bihar, Jharkhand, Uttar Pradesh, Madhya Pradesh, and Chhattisgarh continue to face digital connectivity challenges. The growing use of digital platforms for payments and e-commerce also reflects a shift toward greater financial and digital inclusion, with 42% of active internet users in rural areas utilizing digital payment platforms and 23% engaging in e-commerce.
“2024 Rural Barometer report shows that rural consumers are experiencing rising purchasing power and evolving lifestyles, as seen in increased basket sizes and a preference for convenience products, despite ongoing financial concerns. Regional differences in financial resilience are linked to diverse employment opportunities. We are also seeing rural media consumption shifting toward a hybrid of traditional and digital formats, though digital access remains uneven across states.” said Puneet Avasthi, director – specialist Businesses, Insights Division, Kantar.
Additionally, the report notes an increasing interest in lifestyle-oriented content among rural consumers, particularly in categories like fashion, health, and travel. This trend indicates a shift in rural aspirations, with more focus on improving daily life through modern lifestyle choices. Digital platforms, including gaming and lifestyle content, are gaining traction as rural India evolves.
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