Rural FMCG growth overtakes urban after 5 quarters

India's fast-moving consumer goods (FMCG) sector witnessed growth in rural consumption in volume terms outpace urban consumption for the first time in five quarters, in the JanuaryMarch period.

- AKSHARA SRIVASTAVA

According to a report from consumer intelligence firm NIQ, rural consumption grew at a rate of 7.6 per cent year-on-year (Y-oY) in Q1CY24, overtaking that in urban areas which stood at 5.7 per cent.

This is a notable change from Q4CY23, when rural volume growth was at 5.8 per cent, and the urban consumption rate was higher at 6.9 per cent.

The FMCG industry as a whole experienced 6.6 per cent growth in value, primarily driven by a 6.5 per cent increase in volumes.

"The FMCG industry growth continues to be driven by consumption trends in Q1CY24, with rural areas surpassing urban growth for the first time in five quarters," said Roosevelt D'Souza, head of customer success-India at NIQ.