\u201cCurrently, about 26% of the FMCG volumes come from the unbranded segment in urban India… they are strong in categories like atta, rice, spices, edible oils, and floor cleaners. Price plays a big role in picking up unbranded products in segments like floor cleaners, and inflation likely nudged more metro shoppers to shift to unbranded goods. However, unbranded doesn’t always mean it is cheap. In categories such as coffee, while unbranded is relatively a smaller portion, people go for unbranded for its taste and aroma,\u201d said Manoj Menon, director, commercial at Kantar Worldpanel, South Asia, in a statement to TOI.<\/p>\n
Volume growth for 22 listed FMCG companies stood at just 2.1% in urban areas, reflecting how traditional players are losing ground in cities, even as rural demand rises.<\/p>\n
\u201cMore prominently in urban India, consumers are trading up across categories. They are growing out of FMCG brands of the past. Product discovery is happening online, and many of the new-age brands are not yet available in general trade,\u201d TOI quoted Mayank Rastogi, markets leader, strategy and transactions practice at EY India, as saying.<\/p>\n \u201cD2C new-age brands with their succeed or fail-fast DNA are quick to change product formulations, packaging,\u201d Rastogi added.<\/p>\n Brands like Slurrp Farm, which focused early on millet-based products, have gained momentum from online demand. \u201cQuick commerce now contributes 35\u201340% of total sales,\u201d said co-founders Meghana Narayan and Shauravi Malik to TOI.<\/p>\n Big FMCG\u2019s twin strategyLarge FMCG players are now deploying dual strategies: One for digital-savvy urban shoppers and another for rural buyers.<\/p>\n![\"ET](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/06\/118783427.cms.png\")
Live Events
Rural India’s trust in legacy brandsOn the other hand, branded FMCG companies like Nestl\u00e9, Dabur<\/a>, HUL<\/a>, and ITC<\/a> are continuing to gain rural market share. Distribution strength and deep penetration have helped legacy firms grow volumes by 5.1% in rural India, according to TOI, citing NielsenIQ data for the March quarter.\u201cThe rural consumers across all income segments are exhibiting a marked propensity towards spending on premium, high-quality products which are backed by strong brand values, even at a high price,\u201d said Mohit Malhotra, CEO of Dabur.Dabur has been expanding its rural footprint with affordable, rural-specific packaging. Similarly, Britannia<\/a> and ITC have been tailoring rural outreach through wider distribution and product innovations, even as they test urban launches through quick commerce and digital-first channels.New-age brands tap urban appetiteCity shoppers, driven by access to mobile phones and a culture of online product discovery, are fuelling the rise of digital-first brands.<\/p>\n