Indian FMCG's trump card: How emerging hinterlands are driving growth

This article argues that long held stereotypes of consumption patterns across states are falling apart as the Indian consumer evolves and relocates.

  • Increased awareness, improved infrastructure, and urbanisation are all contributing to an emergence of state clusters of Madhya Pradesh and Chhattisgarh, Bihar and Jharkhand, and Orissa as potential drivers of growth in the impulse and indulgence categories.
  • Orissa alone is growing three times faster than the national average in the FMCG sector.
  • Though urbanisation is growing, moving typical household spend towards non-basic items such as vehicles and services, government initiatives have significantly improved rural areas in these regions.
  • Smartphone penetration and connectivity has led market analysts to predict an increase in aspiration, boosting the number of households in...

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