FMCG in India Rural markets have become ahead of urban markets in the sale of FMCG (Fast Moving Consumer Goods) products. FMCG products include packaged food, household and personal care products etc. According to the report, buyers of consumer goods (FMCG) such as soap and soft drinks in rural India have increased rapidly compared to urban areas and India’s rural area has once again come ahead in terms of purchasing these products. Market experts say that its effect will be seen on the stock of FMCG companies. Stocks of good companies may rise.
Hopes of revival increased in India
According to a report by consulting firm Kantar, consumer goods (FMCG) sales are expected to grow at a faster pace in rural areas than in urban areas in the quarter of 2024. The report says that there is hope of revival in rural India and now rural India is being called a ‘shining star’ for FMCG companies. There is a possibility of ‘revival’ in it in 2024. In such a situation, the rural area can strengthen its position in the second quarter of the year.
Due to this the demand is expected to increase further
This growth in rural areas has been boosted by the sector-specific measures announced by the government in the interim budget earlier this year, which has brought stability to it. The report also said that the expected populist measures in some of the states going to polls this year are also expected to increase the demand for these consumer goods (FMCG) in the rural sector.
Rural development outpaces urban development
According to Kantar’s report, ‘2024 has started on a great note for rural areas, with rural growth outpacing urban growth and moving ahead at a faster pace.’ The report also states that the urban market has not seen growth for three consecutive quarters. Generally speaking, the rural sector contributes around 35 to 37 per cent to the sale of FMCG products.
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