Rural India continues to lead FMCG demand, outperforming urban markets for seven consecutive quarters with 5.7% volume growth in the September quarter. This sustained rural strength, coupled with price increases and a revival in smaller towns, und...
By ET Bureau |
Rural India has remained the strongest driver of FMCG demand, clocking higher volume growth than urban markets for seven straight quarters. In the September quarter, rural volume grew 5.7%, far ahead of the 1.9% rise in cities. Though the gap is narrowing compared to last year, rural markets still hold the edge.
Overall FMCG value growth stood at 12.9%, supported by price increases and a steady revival in smaller towns. Food and personal care categories grew 5.4%, while modern trade continued its recovery with 4.2% growth.
A rapid expansion of small manufacturers, along with easing disruptions from GST-linked issues flagged by companies like HUL, Dabur, and Godrej, has also helped improve consumption trends in both rural and semi-urban pockets.
The data suggests that while urban demand is gradually picking up, rural India remains the backbone of the FMCG recovery story.
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