Small-town consumers spent more on durables & education, less on staples: Report

Indian consumers in tier-2, tier-3 and rural markets have invested significantly more on consumer durables, education and consumer services compared to staples, a new report said. The report by consumer insights think tank The Bharat Lab, draws conclusions on how such consumers spend, based on the household consumption expenditure survey report for 2022-23.

Over a two-decade period, spends on beverages and processed foods have doubled from 4.19% to 9.62% in 2022-23. Spends on consumer durables have surged by nearly 170%, and consumers in these markets have spent more than 70% on education and consumer services, the report by Bharat Lab, a joint venture between Rediffusion Brand Services and Lucknow University, notes.

Sandeep Goyal, managing director of Rediffusion and co-chair of The Bharat Lab, said: “There is a clear need for businesses to prioritise sub-regionality over regionality. Pockets of affluence and aspiration vary greatly within sub-regions.”


While fuel and light spending increased from year 2000 till 2011-12, these spending declined to 6.51% in 22-23, down by almost 20%. This is despite a close to 80% rise in crude oil prices from 2010 to 2023, a consequence of schemes like Ujwal Bharat, according to the report.

The report notes that monthly expenditure of the East and heartland regions is lower than the national average, indicating price sensitivity and value consciousness. States such as Goa, Uttarakhand and Rajasthan, top tourism draws, tend to have the higher monthly expenditures, indicating the importance of alternative and ancillary industries in developing a more empowered consumer class.

According to the report, Lakshadweep is the only part of India with higher monthly expenditure than other regions. In the eastern parts of Bharat, Bihar has maximum monthly expenditure, while Orissa has maximum spend disparity between its India and Bharat regions, it notes.