{"id":5521,"date":"2025-08-15T23:10:18","date_gmt":"2025-08-15T23:10:18","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/08\/15\/rural-india-powers-fmcg-growth-in-q1-urban-markets-pick-up-pace-economy-news\/"},"modified":"2025-08-15T23:10:18","modified_gmt":"2025-08-15T23:10:18","slug":"rural-india-powers-fmcg-growth-in-q1-urban-markets-pick-up-pace-economy-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/15\/rural-india-powers-fmcg-growth-in-q1-urban-markets-pick-up-pace-economy-news\/","title":{"rendered":"Rural India Powers FMCG Growth In Q1; Urban Markets Pick Up Pace | Economy News"},"content":{"rendered":"


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FMCG volumes in rural areas grew 8.4% year-on-year in the June quarter, compared with 4.6% growth in urban markets<\/h2>\n
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Rural India and smaller manufacturers drove the revival of packaged consumer goods in the April\u2013June quarter, with villages outpacing cities for the sixth straight quarter and recording growth nearly twice as fast, according to NielsenIQ\u2019s quarterly update on Wednesday.<\/p>\n

\u201cWhile urban recovery is gaining traction, particularly in smaller towns, rural demand remains the cornerstone of volume expansion,” said Sharang Pant, head of FMCG customer success at NielsenIQ. \u201cWith inflation easing and a favourable monsoon forecast, the outlook for consumption remains optimistic.”<\/p>\n

FMCG volumes in rural areas grew 8.4% year-on-year in the June quarter, compared with 4.6% growth in urban markets. The gap, however, narrowed as cities posted sequential recovery\u2014up 2.6%\u2014aided by demand from smaller towns.<\/p>\n

Overall, value sales rose 13.9% in the quarter, driven by sustained rural demand and steady urban gains, while volumes were up 6% y-o-y, with consumers opting more for smaller packs.<\/p>\n

Soap, tea, snacks, and edible oil makers pointed to improving macro factors\u2014favourable monsoons, income tax cuts, and easing inflation\u2014in their June-quarter earnings. Hindustan Unilever posted 4% volume growth, beating expectations on sales and profits, citing government incentives and weather forecasts. ITC, Godrej Consumer Products, Marico, and Nestl\u00e9 also flagged demand recovery in coming quarters.<\/p>\n

NielsenIQ noted that e-commerce growth continued in the top eight metros, though smaller towns were the main driver of the resurgence, with metros seeing a consumption decline due to channel shift. \u201cThe rapid rise of small manufacturers outpacing overall industry growth highlights shifting market dynamics and intensifying competition,” Pant said, warning that sustained momentum will require deeper channel engagement and sharper, value-led propositions.<\/p>\n

Prices rose 7.4% in the quarter, with unit growth outpacing overall volume growth, signalling a tilt toward smaller packs. Small and regional players\u2014along with D2C brands\u2014gained share in categories like noodles, biscuits, tea, and cosmetics, leveraging lower pricing, faster innovation, and last-mile reach through quick commerce and e-commerce.<\/p>\n

E-commerce, including quick commerce, gained share against modern trade in metros. Although it accounts for only 11\u201313% of FMCG value share in these markets, it already delivers over half of omnichannel growth. \u201cDespite the pullback of quick commerce dark stores, Q2 2025 consumption in e-commerce surged\u2014driven by higher shopper penetration and consistent spending, even among new shoppers,” the report said.<\/p>\n

Among categories, home and personal care led with 7.5% consumption growth, ahead of food at 5.5%.<\/p>\n

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Aparna Deb<\/a><\/p>\n

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

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Last Updated:August 14, 2025, 12:32 IST FMCG volumes in rural areas grew 8.4% year-on-year in the June quarter, compared with 4.6% growth in urban markets FMCG Rural India and smaller manufacturers drove the revival of packaged consumer goods in the April\u2013June quarter, with villages outpacing cities for the sixth straight quarter and recording growth nearly…<\/p>\n","protected":false},"author":1,"featured_media":5522,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-5521","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/5521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=5521"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/5521\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/5522"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=5521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=5521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=5521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}