The FMCG sector is expected to register 6.1 per cent volume growth in the rural market this fiscal, a report from Kantar Worldpanel said, depicting a strong positive outlook.
This volume growth in the rural market stood at 4.4 per cent a year ago, while the urban volume growth is likely to remain flat at 4.2 per cent, it added.
"Rural market is going to see a seismic shift once there is stability in the macro market," said the report titled 'The Rural Challenge'.
The report also predicts that in the near future, rural volumes will catch up with urban growth, which is currently bigger.
Now, the rural market is a big and important part of the Indian FMCG industry as it generates half of the FMCG volume and value.
The report also pointed out that "FMCG growth is majorly led by population, and not consumption" in rural areas.
Stagnation in consumption in the rural market is on account of factors like inflationary pressures, decline in rural household size, higher spending on utilitie
