Rural continues to outpace urban market with 8.4% volume growth in June qtr of FY26
New Delhi: Rural India continued to outpace the urban market in the June quarter with 8.4 per cent volume growth, compared to a 4.6 per cent increase in urban areas, according to the latest report from data analytics firm NielsenIQ.
This is the sixth consecutive quarter when rural India has outpaced urban regions in volume growth.
However, the gap is narrowing as urban areas show signs of sequential recovery.
In value terms, India’s Fast Moving Consumer Goods industry achieved a 13.9 per cent growth, driven by sustained rural demand and a steady urban recovery.
“The market recorded a 6 per cent rise in volume alongside a 7.4 per cent increase in prices, with unit growth outpacing overall volume growth—signaling a stronger consumer preference for smaller packs,” stated the NielsenIQ, FMCG Quarterly Snapshot Q2’25.
The urban markets are now showing a resurgence, primarily driven by smaller towns, while metropolitan areas continue to experience a decline in consumption owing to channel shift, the report added.
While sharing segment-wise consumption data, the report said in the June quarter, food consumption largely remained stable at 5.5 per cent, driven by increased volumes in staples and impulse categories.
“Meanwhile, Home and Personal Care (HPC) saw stronger momentum, with 7.5 per cent consumption growth,” it said.
Over the counter categories (which mainly include some products commonly sold through pharma channels) posted a 14.2 per cent increase in value sales, which was largely driven by an 11 per cent rise in prices.
Among the sales channels, e-Commerce continued its shine, helped by fast-paced growth from hyper delivery platforms. It continued its upward trajectory, gaining ground in eight Metros on modern trade (MT) channels, which include shopping arcades and hyper malls.
“Southern metros are leading the e-commerce charge, with a higher share at 18.4 per cent, compared to 15.8 per cent in eight Metros in Q2’25,” it said.