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In India’s CPG sector, Rural Demand Growth Outperforms Urban Demand

In India’s CPG sector, Rural Demand Growth Outperforms Urban Demand

The Indian consumer packaged goods  industry experienced significant growth in the recent quarter with rural growth outpacing urban markets.

Rural markets,  showed a remarkable recovery with a 7.6% growth in demand. This outperformed urban markets.

 

India Consumer Goods market

Home and personal care (HPC) categories outpaced food categories in the quarter. While food categories saw higher unit purchases, the growth in HPC was largely attributed to the popularity of larger pack sizes.

In the retail sector, modern trade(big box retail) channels exhibited strong double-digit volume growth at 14.7%. Traditional trade (small one location stores)  also showed stable growth, with volumes. The growth in both modern and traditional trade channels, coupled with the strong performance of non-food categories, indicates a broad-based recovery in consumer demand across various segments and geographies.

Last updated: December 26th, 2025

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Amritt Inc. is a management advisory service facilitating trade between the world and India. Amritt was founded in 2003 and since then it has provided guidance to western companies in entering new markets, global strategy execution, finding and managing supplier partners, and establishing overseas offices. Our primary focus is in helping American, Canadian and European executives to attain success in India.

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