Online channels to drive 40% FMCG consumption by 2030
What's the story
India's fast-moving consumer goods (FMCG) industry is set for a major transformation, with online channels projected to account for 40% of all FMCG consumption by 2030. The prediction comes from a report by RUBIX, which highlights the rapid growth of quick commerce as a key driver behind this change. The report also notes that consumers are prioritizing convenience over cost, changing their purchasing habits for daily essentials.
Market shift
Quick commerce's rapid ascent
Quick commerce platforms now account for nearly 35% of FMCG companies' total e-commerce revenue, marking a major shift in the online sales landscape. Urban shoppers, aided by increased smartphone penetration and an emerging culture of online product discovery, are at the forefront of this digital transition. This trend has also paved the way for digital-first brands to grow rapidly in India.
Growth drivers
Expanding middle class and rising discretionary spending
India's booming FMCG sector is further bolstered by the rapid expansion of its middle class, which accounts for nearly 31% of the country's population. This group is expected to grow to 38% by 2031 and 60% by 2047, surpassing one billion people. With rising disposable incomes, this demographic is driving consumption growth in India. The report also highlights India's median age of just 28.4 years as a key factor contributing to increased discretionary spending among consumers.
Market expansion
Rural markets as the next growth frontier
The report also notes that rural India has emerged as a strong growth engine, consistently outpacing urban markets in recent quarters. As income levels rise and consumer awareness deepens, India is positioning itself as the most attractive frontier for long-term FMCG expansion. Currently, urban markets contribute around 65% of FMCG sector revenues, but the rural segment is rapidly catching up with its consistent growth.