THE CONFERENCE PROCEEDINGS - IFEAT

Rising UrbanizationIndia has 70% of its populationliving in rural areas. With risingurbanization, more people willhave exposure to modernproducts and brands and thusshift to branded and packagedgoods and products.Demand- Side Drivers – Rising UrbanizationRising UrbanizationBy 2015, an additional 75million consumers will havemoved into cities, not onlybuying FMCG products forthemselves but also serving as aconduit for information andgoods to their families still inrural India.Source : Technopak AnalysisIncreasing Discretionary SpendsAnother encouraging factor is the falling spends on basic food items, which frees up consumer incomefor other categories of FMCG products. This trend is noticeable among both urban and ruralconsumers.Demand- Side Drivers – Increasing Discretionary IncomeShare of WalletSource : Technopak Analysis30