FMCG Rural consumption has increased, led to combination of increasing incomes and higher aspiration levels. The rural market in India is expected to grow to US$ 220 billion by 2025 from US$ 23.6 billion in FY18.
In FY18, FMCG’s rural segment contributed an estimated 10% of the total income and it is forecasted to contribute 15-16% in FY19. Another major factor pushing the demand for food services in India is the growing youth population, primarily in the country’s urban regions. India has a large base of young consumers who forms most of the workforce due to their busy schedule they barely get time for cooking which increases the demand in this sector.
Online portals are expected to play a key role for companies trying to enter the market. The Internet plays a vital role and has contributed in a big way, facilitating a cheaper and more convenient means to increase a company’s reach.
It is estimated that 40% of all FMCG consumption in India will be online by 2020. The online market is forecasted to reach US$ 45 billion in 2020 from US$ 20 billion in 2017. The number of online users in India is expected to cross 850 million by 2025.
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