GroupM and Kantar 2024 Rural Barometer Shows Digital Shifts in India

The fifth edition of the Rural Barometer Report by GroupM and Kantar has revealed key insights into the changing economic landscape, digital adoption, and media consumption patterns in rural India. The report highlights an increase in purchasing power, a preference for convenience products, and a rise in digital engagement among rural consumers.

One of the key findings from the 2024 report is a 60% increase in the average FMCG basket size among rural consumers, from 5.8 in 2022 to 9.3 in 2024. This growth is attributed to a shift towards more convenience products, with rural consumers showing greater financial resilience and lifestyle evolution. Despite this positive trend, regional disparities exist, with states like Jammu & Kashmir (39%), Maharashtra (41%), and Odisha (26%) showing moderate growth, even in the face of lower financial concerns.

The report also reveals a significant divide between rural households dependent solely on agricultural income (19% of the population) and those with diverse income sources (81%). Among the latter, financial concerns are lower, and consumers tend to have larger FMCG baskets. In contrast, 82% of those dependent on agriculture report heightened financial concerns.

When it comes to media consumption, 47% of rural India is adopting a hybrid model, engaging with both traditional and digital media. This shift is more prominent in regions with better digital infrastructure, but areas like Bihar, Jharkhand, Uttar Pradesh, Madhya Pradesh, and Chhattisgarh still face connectivity challenges, which require more targeted media strategies.

Ajay Mehta, Managing Director, GroupM OOH Solutions in India, said, “The rural landscape is no longer just a geographical space; it’s 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 contribute to the nation’s development and tap into a burgeoning market that promises substantial growth.”

Puneet Avasthi, Director- Specialist Businesses, Insights Division, Kantar, added, “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. We are also seeing rural media consumption shifting toward a hybrid of traditional and digital formats, though digital access remains uneven across states.”

The digital shift in rural India is also evident in growing usage of digital payments and e-commerce. According to the report, 42% of active internet users in rural India are using digital payments, while 23% are engaged in e-commerce. This shift reflects a broader trend of financial and digital inclusion in rural areas, contributing to the rapid growth of these sectors.

Additionally, rural consumers are becoming more interested in lifestyle-focused content, such as fashion, health, and travel, indicating a shift in consumer interests towards topics that align with their evolving aspirations.

The report concludes that a hybrid media strategy is essential for brands looking to connect with rural audiences effectively. By leveraging both traditional and digital media, companies can engage with rural consumers and tap into a rapidly expanding market.