VARUN BEVERAGES POISED FOR GROWTH

Consumption demand in the rural markets has been in distress over the last few years from the demonetization of 2016 to the liquidity crisis in 2018 and the onslaught of Covid19 epidemic in 2020.

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The rural sector has been seeing erratic growth and low consumption volume over the last few years on the back Cheen in of significant inflation impacting particularly the low-income households and demand environment. On the other hand, urban markets have been growing rapidly with premiumization as a key focus adopted by most FMCG companies. The year 2024 has turned out to be a decent year for the rural sector with after a gap of nearly six quarters, rural demand has outpaced the urban demand with many Research reports indicating a 7.6% rise in demand year on year for the three months ending March 2024.

FMCG companies have been expanding their outreach in the rural sector in broadening their product offerings by introducing new affordable and rural-specific packaging across various categories. Moreover, with the onset of moderation in inflation the demand environment is gradually picking pace and returning to normalcy.