Rural Indian consumers reduce spending amid income pressure

A report from WPP Media and Kantar indicates that rural Indian consumers are becoming increasingly cautious with their spending due to rising costs and pressure on household incomes. The share of rural adults reporting a rise in monthly household income fell from 29 per cent in 2025 to approximately 14 per cent in June 2026.

Despite this general trend of caution, rural Gen Z consumers aged 18-29 have emerged as a significant growth segment. This demographic is expanding its shopping baskets, purchasing an average of 19.1 product categories per month. Notable increases in spending among younger consumers include health and wellness products, which rose by 36 per cent, and convenience foods, which expanded by 27 per cent.

Personal grooming is also seeing an uptick among Gen Z and women, with purchases rising by 9 per cent even as the broader category remains flat across rural India. Additionally, the influence of digital media is growing, with 40.9 per cent of rural Gen Z following online influencers.