Urban consumers spend half their food budget on packaged foods: Report

Urban consumers allocate nearly 50 per cent of their food budgets to packaged and prepared foods, giving a significant boost to the FMCG sector, said a recent Deloitte-FICCI report.

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The report further adds that the rural Fast-Moving Consumer Goods (FMCG) volumes experienced a 6 per cent growth in the third quarter of the financial year 2024 (Q3 FY24).

"Urban elites increasingly spend 50 per cent of their food budget on packaged foods, dining out and deliveries, while rural consumption is shifting from cereals to beverages and processed foods," the report added.

The agriculture and food processing sector, representing nearly 30 per cent of the national food market, is gaining momentum due to rising rural demand, digital advancements and strong policy support.