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Resource centre on India's rural distress
 
 

Rural FMCG consumption lowest in the last 7 years: Nielsen -Suneera Tandon

-Livemint.com

* The slowdown was more pronounced in northern India
* Rural India contributes 36% to overall FMCG spends

New Delhi:
Consumption in rural India fell to a seven-year low in the September quarter, growing at a slower pace than that witnessed in urban areas, in a sign that prolonged agrarian distress, uneven rainfall spread, and stagnant rural incomes have hit sales of branded packaged goods, market researcher Nielsen said in its quarterly report on Thursday.

The slowdown was more pronounced in northern India, said Nielsen.

Rural India contributes 36% to overall FMCG spends and has historically been growing 3-5% points faster than urban. This was the first time in seven years that consumption growth in rural areas was slower compared with that of urban markets.

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