Two reasons why rural FMCG basket is expanding

Digital platforms are playing an increasingly vital role in reaching and engaging consumers. From payments and e-commerce to gaming and lifestyle content, the digital landscape is expanding rapidly.

A growing preference for convenience products and hybrid media consumption, and a surge in digital engagement have led to a rise in the average basket size for fast-moving consumer goods (FMCG) among rural consumers.

The average of the rural FMCG basket saw a 60 per cent rise from 5.8 in 2022 to 9.3 in 2024 as it expanded to include convenience products like ready-to-eat packages and beverages, stated the fifth edition of the Rural Barometer Report, brought out jointly by GroupM and Kantar, which surveyed 4,376 rural adults across 20 states.

“This reflects the evolving lifestyle and rising purchasing power in rural areas.

"This positive trend in expansion of FMCG category basket is accompanied by growing rural incomes and diversity of income sources including salaried income,” the report stated.

The report further highlighted a significant divide between rural individuals with only agricultural income, who make up 19 per cent of the population, and those with diverse income sources, comprising the balance 81 per cent.

“The report shows 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,” said Puneet Avasthi, director (specialist businesses, insights division), Kantar.

“We are also seeing rural media consumption shifting towards a hybrid of traditional and digital formats, though digital access remains uneven across states,” Avasthi added.

Digital platforms are playing an increasingly vital role in reaching and engaging consumers.

From payments and e-commerce to gaming and lifestyle content, the digital landscape is expanding rapidly.

According to the report, rural India is increasingly adopting a hybrid model that combines traditional and digital media, with 47 per cent of the population engaging in this trend.

“This shift is more pronounced in regions with better digital infrastructure.

"However, states like Bihar, Jharkhand, Uttar Pradesh, Madhya Pradesh, and Chhattisgarh remain less digitally connected, necessitating targeted media strategies,” the report added.

The report underscored a significant shift in rural India towards digital payment, which now reaches 42 per cent of active internet users and e-commerce.