Rural India goes hybrid: 47% embrace digital meets traditional media

The average FMCG basket size of rural Indian consumers has shown sizeable growth—from 5.88 in 2022 to 9.3 in 2024—led by high consumption in the convenience categories, such as ready to eat (RTE) and beverages. This was one of the key findings in the latest Rural Barometer Report 2024 (fifth edition) released by WPP’s media investment group, GroupM, and Kantar.

The report captures major changes in rural Indians' economic, purchase, and media consumption habits. The rise in basket size reflects the evolving lifestyle and increasing purchasing power in rural areas. States like Jammu and Kashmir (39%), Maharashtra (41%), and Odisha (26%) have shown moderate growth in rural Indians' FMCG baskets, given their lower financial worries.

The report shows a divide between rural individuals relying purely on agricultural income—who make up 19% of the population—and those with diverse income sources—the balance 81%. Those relying solely on agricultural income face higher financial concerns, affecting 82% of them, while those who have diverse income sources seem to demonstrate less stress, enjoying larger basket sizes.

“2024 Rural Barometer report shows that rural consumers are experiencing rising purchasing power and evolving lifestyles, as seen in increased basket sizes and a preference for convenience products, despite ongoing financial concerns. Regional differences in financial resilience are linked to diverse employment opportunities,” said Puneet Avasthi, director–specialist businesses – insights division, Kantar.

For a long time, India’s urban centres have been the primary focus for marketers. But now, a significant shift is underway as brands increasingly turn their attention to the vast potential of rural markets.

It’s not just about expanding reach; it’s about designing marketing strategies that resonate with the distinct needs and aspirations of these areas. Even high-end brands are tapping into rural India with great success. Rising incomes, greater awareness, and better connectivity are transforming rural consumers into a lucrative audience across a range of sectors.

For instance, confectionery brand Lotte India recently launched a Rural Van campaign to strengthen its foothold in the market. Through dynamic, on-ground activations across four major states—Bihar, Odisha, Uttar Pradesh, and Madhya Pradesh—the campaign sought to enhance the brand’s presence in tier 3 and tier 4 towns, recognising the tremendous potential these regions hold.

The 2024 Rural Barometer report also examines the impact of rising digital adoption on multiple industries in India’s rural markets. Telecom and digital platforms can provide progressive audience coverage in Hindi-speaking markets.

Digital technologies for payments, e-commerce, and gaming are seeing a growing adoption in rural markets. Moreover, a rising number of rural Indian consumers are also seen turning to online shopping for lifestyle categories including fashion, travel, and fitness.

Ajay Mehta, managing director, GroupM OOH Solutions in India, added, “The rural landscape is a digital frontier ripe with opportunities. As rural consumers embrace online platforms, brands must adapt their strategies to meet them where they are. By investing in digital initiatives that resonate with rural India’s aspirations, brands can tap into a burgeoning market that promises substantial growth.”

“We are also seeing rural media consumption shifting toward a hybrid of traditional and digital formats, though digital access remains uneven across states,” added Kantar’s Avasthi.

The report shows that rural India is increasingly adopting a hybrid media consumption model, which combines traditional and digital media. Nearly 47% of the rural Indian population is seen aligned with this trend.

The shift is pronounced in regions with better digital infrastructure. However, states like Bihar, Jharkhand, Uttar Pradesh, Madhya Pradesh, and Chhattisgarh remain less digitally connected, necessitating targeted media strategies. By understanding the evolving needs and preferences of rural consumers, brands can capitalise on the immense growth potential of this market, according to the report.