Mumbai: WPP’s media investment group, GroupM, and Kantar, a global marketing data and analytics company, have released the fifth edition of the Rural Barometer report. This report provides insights into rural India's current sentiments, consumption patterns, and economic behaviors, along with the growing adoption of digital technologies and their impact on various sectors, offering a detailed view of the rural landscape.
The 2024 Rural Barometer highlights a 60 per cent increase in the average FMCG basket size among rural consumers, rising from 5.8 in 2022 to 9.3 in 2024, driven by a preference for convenience products. This growth reflects lifestyle changes and rising purchasing power in rural areas. States like Jammu & Kashmir (39 per cent), Maharashtra (41 per cent), and Odisha (26 per cent) show moderate FMCG basket growth despite fewer financial concerns. This trend is supported by rising rural incomes and diversified income sources, including salaried income.
The report also reveals a divide: 19 per cent of rural individuals rely solely on agricultural income, with 82 per cent of them facing financial concerns, while the remaining 81 per cent with diverse income sources report less stress and larger basket sizes.
In media consumption, rural India increasingly adopts a hybrid approach of traditional and digital media, with 47 per cent following this trend, especially in areas with better digital infrastructure. States like Bihar, Jharkhand, Uttar Pradesh, Madhya Pradesh, and Chhattisgarh, however, remain less digitally connected, requiring targeted media strategies.
GroupM OOH solutions in India MD Ajay Mehta added, “The rural landscape is no longer just a geographical space; it's a digital frontier ripe with opportunities. As rural consumers embrace online platforms, brands must adapt their strategies to meet them where they are. By investing in digital initiatives that resonate with rural India’s aspirations, brands can contribute to the nation’s development and tap into a burgeoning market that promises substantial growth.”
“2024 Rural Barometer report shows that rural consumers are experiencing rising purchasing power and evolving lifestyles, as seen in increased basket sizes and a preference for convenience products, despite ongoing financial concerns. Regional differences in financial resilience are linked to diverse employment opportunities. We are also seeing rural media consumption shifting toward a hybrid of traditional and digital formats, though digital access remains uneven across states,” said Kantar director - specialist businesses, insights division - Puneet Avasthi.
As rural India evolves, digital platforms are becoming crucial for engaging consumers. From payments and e-commerce to gaming and lifestyle content, the digital landscape is expanding. While traditional media remains important, a hybrid approach combining online and offline channels is key to reaching rural audiences. By understanding rural consumers' needs and preferences, brands can tap into this growing market.
Rural consumers are increasingly interested in lifestyle content, such as fashion, health, and travel, reflecting their desire for topics that align with their daily lives and aspirations.
The report also highlights a shift towards digital payments, now used by 42 per cent of active internet users, and e-commerce, used by 23 per cent. This indicates growing financial and digital inclusion in rural India.
Highlights:
1. Rural India has seen a marked increase in the average basket size from 5.88 in 2022 to 9.3 in 2024, driven by higher consumption in convenience categories like RTE, beverages, etc.
2. States where rural consumers have less concerns on the current financial situation, largely have shown higher growth in basket size.
3. Rural consumers with diversified income streams display the least financial concerns and have larger monthly category basket size.
4. Rural India's media consumption is increasingly hybrid, with nearly one in two of rural consumers exposed to both online and offline media.
5. Telecom and digital can be effective in providing incremental reach in Hindi-speaking markets.
6. Digital platforms for payments, e-commerce, and gaming platforms are gaining traction, while genres like fashion, travel and fitness are popular among rural online users reflecting a growing interest in lifestyle-oriented topics.
