Rural Market Growth Continues to Outpace Urban for FMCG Players in Jan-March Quarter

Quick Commerce Sees Exceptional Growth

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NEW DELHI: Rural market growth continued to outpace that from the urban market for the FMCG industry in the March quarter, and margins remained under pressure as prices of some key commodity inputs remained at peak levels, according to business updates by leading players.

Besides, on the channel side, traditional trade (Kirana shops) continued to be under pressure, while modern trade channels, e-commerce and quick commerce maintained their growth momentum, said listed FMCG companies like Dabur, Marico and AWL Agri Business (formerly Adani Wilmar) in their quarterly updates.

The persistent food inflation continues to impact demand in the urban market, which contributes nearly two-thirds of the total FMCG sales.

However, FMCG companies are hopeful of a profitable growth in FY’26 despite the current headwind, banking on factors which include moderating retail and food inflation as well as forecasts of a normal monsoon.