Indian Rural FMCG Market : Present Status and Prospects

  • Manoj Kumar Trivedi Government Degree College, Unnao


The fast-moving consumer goods (FMCG) sector is an important contributor to India’s GDP and it is the fourth largest sector of the Indian economy. Globally, the FMCG sector has been successful in selling products to the lower and middle income groups, and the same is true in India. Over 70% of sales are made to middle class households today and over 50% is in rural India. India's rural fast moving consumer goods (FMCG) market is expected to grow at a compounded annual growth rate of 14.6 per cent and reach $220 billion by 2025, This is because of rural population using e-commerce and digital connectivity services due to high penetration of smart phones, credit and debit cards, and online banking. This demand is shaped by factors such as, noticeable shift in demographics with rising income middle class, rise in number of smaller towns entering consumption bandwagon, emergence of new channels like e-commerce, proliferation of the internet connectivity, demand driven by digital media."The sector is excited about a burgeoning rural population whose incomes are rising and which is willing to spend on goods designed to improve lifestyle. Also with a near saturation and cut throat competition in urban India, many producers of FMCGs are driven to chalk out bold new strategies for targeting the rural consumer in a bigway. FMCG Industry in India is witnessing a change – a change in the pattern in which it is growing –


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