Rural Buys 26 Of Premium FMCG Products

Breaking the myths of buying sentiments followed by the increasing disposable income in rural India people in India s hinterland consume 26 percent of premium segment of FMCG products
Rural Buys 26 Of Premium FMCG Products

Breaking the myths of consumer behaviour in rural markets, villagers buy 26 percent premium fast moving consumer goods (FMGC) and 17 percent of super premium FMCG goods, reveals a recent report by the global research firm Nielsen.

As per the figures revealed by the report, the metros accounts for around 40 percent of the super premium products, while Tier – I towns accounts for 25 percent, followed by semi-urban centres and rural areas 19 percent and 17 percent respectively.

The reports further states that the hinterland of the country accounts for around 26 percent of premium segment FMCG products while this share grows at the compound annual growth rate of 12 percent.

The super premium products cost more than double of the cost of normal products. The reports says, 78 percent products of this segment are sold at the local chemist, groceries and even in the paan shops. This market is estimated to be at Rs 17,683 Crore, growing at the CAGR of 9 percent. On the other hand, premium products which cost 20 to 70 percent higher than normal FMCG products, its market size is currently estimated to be worth RS 41,067 Crore, growing at a compound annual annual growth of 6 percent, lower than super premium products. These products are normally sold in the kinrana shops.


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