New Delhi, Aug 14
Easing inflation and favourable monsoon boosted rural demand in India in the April-June period this year, outpacing urban consumption once again, according to a new report.
According to the report by global research firm NielsenIQ, rural markets and small manufacturers propelled the packaged consumer goods sector in Q2 2025.
Rural markets grew twice as fast as cities, as urban areas showed signs of recovery, particularly in smaller towns.
According to the report, e-commerce also rose significantly, led by increased shopper penetration and spending, especially in home and personal care.
Home and personal care (HPC) volume growth continues to grow faster than food categories and small players are expanding faster than FMCG consumption.
Sharang Pant, head of FMCG customer success at NielsenIQ, said that with inflation easing and a favourable monsoon forecast, the outlook for consumption remains optimistic.
While urban recovery is gaining traction, particularly in smaller towns, rural demand remains the cornerstone of volume expansion, he added.