Particle.news

Download on the App Store

Rural India Leads Q2 FMCG Revival: Small Brands, E-Commerce Gain Share

Easing inflation plus strong monsoon forecasts are underpinning rural volume growth.

Overview

  • Rural FMCG volumes rose 8.4% year-on-year in Q2 2025, almost double urban growth of 4.6%.
  • Value sales jumped 13.9% while unit sales growth outpaced volume as consumers shifted toward smaller pack sizes.
  • Home and personal care topped category gains at about 7.5%, compared with roughly 5.5% growth in food.
  • Small regional manufacturers and D2C brands continued to capture share through competitive pricing and last-mile distribution.
  • E-commerce, including quick commerce, delivered over half of omnichannel growth in metros despite accounting for just 11–13% of FMCG value.