Rising aspirations and purchasing power has led rural consumers to expand their FMCG basket size by 60 per cent, fuelled by convenience and diverse income sources, a report released by GroupM and Kantar revealed. There has also been a sharp rise in use of digital payments and e-commerce channels in rural regions. Also, rural India’s media consumption is increasingly hybrid, with nearly 1 in 2 rural consumers exposed to both online and offline media.

The 2024 Rural Barometer report indicated, “a 60 per cent rise in average FMCG basket size among rural consumers, from 5.8 in 2022 to 9.3 (categories) in 2024, driven by a growing preference for convenience products.” Besides essentials, they are seen buying categories such as ready-to-eat products, beverages and beauty & cosmetics.

States where rural consumers have less financial concerns have broadly shown higher growth in basket size. Also, rural consumers with diversified income streams have larger monthly category basket size, it added.

Multiple factors

Puneet Avasthi, Director- Specialist Businesses, Insights Division, Kantar said, “It is a confluence of multiple factors that is enabling the expansion of rural FMCG baskets. There has been rural income growth, particularly fuelled by diversification of income sources. Rural consumers who have access to a diverse set of income sources are more likely to buy multiple categories. Regional differences in financial resilience are closely linked to diverse employment opportunities including salaried income. “

Digital payments

Digital platforms for payments, e-commerce and gaming are gaining traction in rural India, while genres like fashion, travel and fitness are popular among rural online users in line with their evolving aspirations. “There has been a significant shift in rural India towards digital payments, which now reaches 42 per cent of active internet users and e-commerce, representing 23 per cent of active internet users indicating growing financial and digital inclusion,” the report added. Digital payments usage was seen higher in States such as Bihar, Jharkhand, Maharashtra and Odisha.

Ajay Mehta, Managing Director, GroupM OOH Solutions in India said, “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 tap into a burgeoning market that promises substantial growth.”

This is the fifth edition of the Rural Barometer report and the findings are based on a sample of 4,376 rural adults (18+ year olds) surveyed across 20 Indian States.