Kanvic Consulting’s Post

📈 Rural FMCG Market on the Rise! 🌾 🌟 This morning, I came across a fascinating piece in the Times Business section, shedding light on an intriguing shift in the FMCG sector. Key takeaways: 🚀 For the first time in over 2 years, rural FMCG demand has outpaced urban, marking a significant pivot in consumption trends. 💪 Rural volume growth stands strong at 7.6%, surpassing urban’s growth, which has slowed down to 5.7%. 📊 Notably, staples like oils, rice, atta, and salt continue to dominate rural consumption despite economic pressures, with a growth figure of 6.8%. 🛒 Personal care and home products have seen a robust 32% contribution to the FMCG sales, highlighting consumer priorities in rural areas. 💬 What does this mean for marketers and businesses focusing on rural economies? #FMCG #RuralMarketing #BusinessTrends #EconomicShifts

🚀 Rural demand lifts FMCG Sector Growth in Q3 amid urban slowdown 🚀 📈 Sector Growth : FMCG industry grew by 5.7% in value and 4.1% in volume. Despite consumption headwinds, the sector shows resilience. 📊 Price Dynamics : Price growth was moderate at 1.5%, with rural volume growth (6%) surpassing urban areas for the third consecutive quarter. 🌾 Rural Market Strength : Rural demand continues to lead, showing sequential growth (6%, up from 5.2% last quarter), outpacing urban growth of 2.8%. 🍲 Category Growth : Packaged foods grew by 3.4% in Q3, despite price pressures in edible oils, wheat flour, and spices. Household products remained steady with 6% growth. 📉 Urban Demand Trends : HUL reports slowing growth in urban areas but notes a gradual rural recovery. Higher crude palm oil prices may drive future price adjustments. 🏢 Small vs. Large Manufacturers : Smaller manufacturers rebounded strongly in volume, particularly in food, while larger players trailed in value growth compared to Q1 2024. As consumer spending patterns evolve, the FMCG sector is showing great adaptability, especially in rural markets. By the way, today is my 10th day of deep diving into the FMCG industry and I will be sharing insights from this industry on a regular basis. Please follow me (Pratyush Jindal) for more such insights! #FMCG #retail #ConsumerGoods #equityresearch #connections #business

FMCG Sector: Urban Slowdown vs. Rural Demand Lift The Fast-Moving Consumer Goods (FMCG) sector is experiencing a dual dynamic. Urban areas are seeing a slowdown due to inflationary pressures and reduced discretionary spending, particularly in premium segments. Consumers are prioritizing essential goods over luxury items, impacting sales growth in cities. On the other hand, rural markets are emerging as a bright spot, driven by improving agricultural income, government support schemes, and increasing penetration of smaller pack sizes. With affordable product options and targeted distribution strategies, FMCG companies are successfully tapping into rural demand. This shift highlights the importance of rural markets in sustaining growth, as companies adapt their portfolios to cater to price-sensitive consumers, balancing between affordability and value. While urban demand may take time to recover, the rural uplift offers a strong growth cushion for the FMCG sector.

Rural markets are projected to clock about 6.1 per cent volume growth in the #FMCG sector outpacing urban growth in FY25, according to Kantar. This projection excludes wheat and atta segments. https://trib.al/P1DV7cC

|| For FMCG, Rural Markets Finally Deliver Some Cheer || ***Exciting times for the FMCG sector! According to the latest Nielsen report, rural demand for FMCG products has outpaced urban markets for the first time in 15 months. This growth is a promising sign, reflecting resilience and potential in rural economies.*** Key insights from the report: 1. Rural vs Urban Growth: Rural markets have shown a stronger recovery compared to urban areas, driven by increased agricultural income and government support schemes. 2. Consumer Behavior: There's a noticeable shift in consumer behavior, with rural consumers now prioritizing branded products, indicating rising aspirations and purchasing power. 3. Future Outlook: The trend suggests sustained growth in rural demand, providing a vital boost to the overall FMCG market. For FMCG brands, this is a pivotal moment to focus on rural expansion strategies and tap into this burgeoning market segment. 🔗 Read more on LiveMint - https://lnkd.in/dmZsce_7 #FMCG #RuralMarket #ConsumerTrends #MarketGrowth #NielsenReport #BusinessGrowth #EconomicTrends #BrandStrategy

Hello connections, 👨💼 recently I went through an article on FMCG rural impacts and growth and really found it to be useful to share my insights on it. 👩💻 The article is generally based on reports 📒 published by Kantar Worldpanel which states that "Rural market likely to report 6.1 pc volume growth in FY25" 📈 What comes to our mind when we hear the term rural? 😬 Many of us neglect the rural population and create a false imagination in terms of their spending 💵 ,but the fact is ,rural is leading urban in terms of growth by 0.2% for FMCG products. 📈 The report also predicts that in the near future, rural volumes will catch up with urban growth, which is currently bigger. Doesn't this sound interesting? ✅ We can categorize rural market into three categories such as Importance, Challenges & Emerging trends 📶 ✅ Importance - Half of the volume and value of the FMCG industry comes from the rural market, which makes a substantial contribution. Population growth is the main factor driving FMCG expansion in rural areas. ✅ Challenges - stagnant consumption in rural regions as a result of financial constraints. Following the epidemic, rural markets had a series of declines before recently recovering. ✅ Emerging Trends - Rural consumers are moving towards higher-end goods in search of a better experience. Focused goods are becoming more popular since they make daily life easier and save time. Also,There is a growing need for better substitutes such as dark chocolate, whole grains, sweeteners, and healthy oils. ⭐ FMCG companies are eyeing this opportunity 🏃♂️ so they are putting lots of effort 💪 to ensure their products are preferred the most by rural people 👨👨👦 For more information you can go through the article below #FMCG #SalesMarketing #Trends

The FMCG sector is facing challenges despite positive growth from rural areas. #Day17 of 90, covering FMCG The mega ₹5 trillion domestic FMCG sector is still facing hurdles on its path to recovery. Despite rural support, the major companies have reported lower single-digit growth this quarter. Data source from NislenIQ stated, the rural recovery was witnessed and has outperformed urban regions by 150-200 bps during Q4 in terms of volume growth. Experts say the reason for the growth was the lower base and price cuts taken by the companies. 📰How long will it continue? Kantar (tracking household consumption across 90 different categories and sub-categories) said the recovery in the sector won't be witnessed before Sept 2024, all thanks to the global slowdown and growing weather concerns on agriculture output and incomes. The research house also mentions that the annual purchase (excluding atta) of households has stagnated at 117kg since 2021. This may not recover to its old level before H22024. There was overall 2% growth in the sector where urban sales declined by 0.4% and rural increased by 2.3%. What are your thoughts on this?? Follow for more updates Aryan Mahi ------------------------------------------------------------------------------- #finance #news #india

FMCG sector: Rural demand growth for daily essentials outstrips urban sales fast-moving consumer goods (FMCG) in villages outpaced that in cities for the first time in nearly three years, an early indication of demand recovery, helped by a lower base and price cuts to offset hyperlocal competition. Rural markets grew 6.5% by volume in both December and January, and by 11.1% in February, according to executives citing NielsenIQ data. Urban markets, in comparison, grew 6.1% in December, 4.7% in January and 8.7% in February, data showed.

Rural consumption grows double than urban market in Sep qtr: NielsenIQ #RuralMarket #Urban #Rural #Q2Results #Q2FY25 #FMCG NielsenIQ

FMCG growth at 6.6% in March quarter; Rural outpaces urban volume growth for first time in 5 years: NIQ https://trib.al/ycV9PdS