Archive · 5 Jan 2026
Rural FMCG demand outpaces urban in December quarter
In the last three months of the year, people in villages bought more fast-moving consumer goods (FMCG) like snacks, toiletries, and household items than people in cities.
This happened even though there were big festivals and tax cuts during this time.
Companies like Dabur and Parle Products said that villages are growing faster than cities.
They are trying to reach more villages to sell their products.
Experts also said that the gap between village and city buying is getting bigger.
Companies are hopeful that things will get better in the next few months because prices are going down and farmers are doing well.
Marico, a big FMCG company, also did well.
They sold more things and made more money.
Some of their products, like Parachute oil, sold a little less, but other products did really well.
They think things will keep getting better.
Rural FMCG demand grew faster than urban demand in the December quarter.
GST disruptions have settled, leading to an uptick in demand.
Companies are focusing on expanding their rural footprint and last-mile connectivity.
Urban demand growth is primarily driven by modern trade and e-commerce.
FMCG sector witnessed steady demand trends in Q3FY26, with optimism for future improvement.
- Who
- FMCG companies, rural and urban consumers
- What
- Rural demand for FMCG products outpaced urban demand in the December quarter
- When
- December quarter, with effects expected to continue
- Where
- India, with a focus on rural markets
- Why
- Due to targeted initiatives by FMCG companies and GST rate cuts
Rural Growth
Urban Growth
Demand Growth
Rural Growth
Rural demand grew at 5.7%, outpacing urban demand which grew at 2.5%.
Urban Growth
Urban demand growth is primarily driven by modern trade and e-commerce.
- Rural demand growth
- 5.7%
- Urban demand growth
- 2.5%
- Village coverage by Dabur
- 1.33 Lakh villages
- GST rate cuts impact
- Expected to be visible in March quarter
- FMCG sector demand trend
- Steady in Q3FY26
- Marico revenue growth
- 27% YoY
- Marico Ebitda growth
- 10% YoY
- Parachute volume growth
- 2% decline YoY
- VAHO portfolio growth
- 22% YoY
- International business growth
- 22% YoY in constant currency terms
Sources
Rural continued to outpace urban demand for FMCG industry in December quarter
D2C acquisitions by FMCG companies set to continue in 2026
Marico shares at Rs 865? Nuvama says buy after Q3 update
5 reasons why Marico is managing strong volumes despite 60% price hike in select products
Dabur India expects consolidated revenues to grow in mid-single digits in Q3