Rural markets will continue to be an engine of growth in 2025: Rajeev Jain

The Indian economy and the FMCG sector saw considerable shifts, demanding agility, foresight, and adaptability, in 2024. The year gone by presented a unique blend of challenges and opportunities that have shaped the business landscape, and the FMCG sector has been particularly affected by several key developments.

Looking ahead to 2025, the trends that shaped 2024 are expected to intensify. In conversation with Adgully, Rajeev Jain, Senior Vice President, Corporate Marketing, DS Group, looks ahead into 2025 and the trends that will shape the industry in the year ahead. He sees a surge in phygital marketing, and states that AR and VR will transform the retail landscape. Jain also sees new opportunities in moment marketing, contextual advertising, and interactive campaigns.

Crystal Gazing into 2025: Trends and Focus Areas

Inflationary pressures are likely to persist, compelling companies to focus on pricing strategies that offer both value and quality. Rural markets will continue to be an engine of growth, driven by deeper digital penetration. In urban markets, consumers will increasingly demand hyper-personalized, premium experiences.

The future will also see a surge in phygital marketing, where physical and digital experiences converge seamlessly. Augmented Reality (AR) and Virtual Reality (VR) will transform the retail landscape, providing consumers with the ability to virtually try on products or visualize how items would look in their homes. Smart mirrors and interactive storefronts will become commonplace, while online and offline loyalty programs will merge to offer consumers rewards across multiple channels.

Generative AI will streamline content creation and targeting, while connected TV (CTV) will further solidify its role as a powerful advertising medium. Sustainability will move beyond being a trend, becoming a competitive differentiator embedded in product design and brand narrative.

Challenges & Opportunities in 2025

However, challenges remain. The content environment is saturated, and capturing meaningful consumer attention across devices remains a significant hurdle. Multi-device usage complicates engagement strategies, requiring brands to focus on creating compelling, contextually relevant campaigns that cut through the noise.

New opportunities lie in moment marketing, contextual advertising, and interactive campaigns, which promise to capture consumer interest in innovative ways.

To stay relevant and drive growth, brands will need to balance tradition with innovation, embrace regulatory frameworks, and prioritize data integrity while leveraging emerging technologies such as AR/VR and CTV.

In conclusion, the lessons learned in 2024 will serve as a foundation for the strategies that will define 2025. By staying ahead of the curve and continuously adapting to consumer needs and technological advancements, brands will be well-positioned to thrive in an ever-evolving marketplace.

How 2024 shaped the FMCG sector

Rural Consumption Resurgence: One of the most significant shifts in 2024 was the resurgence of rural demand. According to NielsenIQ data, rural India has now outpaced urban markets in FMCG consumption growth for the first time in five quarters. This marked a dramatic reversal of trends, as companies increasingly recognized the potential of rural markets in driving growth.

Premiumization in Urban Markets: While rural India focused on value-driven products, urban consumers leaned towards premium offerings. The rise in high-net-worth individuals (HNIs) and evolving consumer lifestyles gave rise to the ‘trading-up’ trend. Urban consumers have shown a growing preference for health-conscious, indulgent, and specialized products, creating opportunities for FMCG brands to cater to a more discerning customer base.

Digital Revolution in Retail and Payments: The digital transformation in India, fueled by innovations such as the Unified Payments Interface (UPI) and the growth of e-commerce and quick-commerce platforms, has had a profound impact on the FMCG retail environment. This year saw the rise of “shoppable content” and direct-to-consumer (D2C) strategies, which allowed brands to leverage online platforms for faster distribution. Many FMCG companies launched products specifically designed for online consumption, such as limited-edition SKUs, and personalized offerings powered by AI have emerged as significant differentiators in this space.

Sustainability as a Core Differentiator: With increasing environmental consciousness among consumers, sustainability has moved from a nice-to-have to a core value for brands. Regulatory pressures around single-use plastics, combined with consumer demand for eco-friendly packaging and ethical sourcing, have pushed companies to focus on reducing their environmental footprint.

Urbanization and Convenience Categories: The increasing pace of urbanization and fast-paced lifestyles have spurred growth in convenience-driven categories. Instant foods, single-serve beverages, and on-the-go nutrition saw strong demand as busy consumers sought convenient solutions to fit their modern, fast-moving lifestyles.

AI and Tech-Driven Marketing: AI and data-driven insights have revolutionized marketing in 2024. Digital ad spend has seen a sharp increase, with brands using advanced AI algorithms to personalize campaigns, fine-tune product recommendations, and capture hyper-local trends. This allowed companies to cater to both cost-conscious rural consumers and premium-seeking urban buyers simultaneously.

DS Group’s Performance and Milestones

DS Group has been at the forefront of this changing landscape, particularly in the premium FMCG space. The company has invested heavily in crafting premium, high-quality products that appeal to discerning consumers, strengthening its position in this competitive market. Through advanced analytics and consumer insights, DS Group has been able to identify emerging taste profiles and create products that cater to these evolving preferences.

In 2024, the company introduced several upscale product lines, from artisanal chocolates to premium offerings across different categories, which resonated strongly with both upwardly mobile urbanites and quality-conscious Gen Z consumers. This product innovation was complemented by the strategic use of micro-influencers and immersive digital experiences, which helped build a deeper emotional connection with consumers.

Sustainability has remained a core part of DS Group’s ethos. Eco-friendly sourcing and responsible packaging have become key components of the company’s premium positioning. The result has been a year marked by strong growth, deeper customer loyalty, and enhanced consumer trust, solidifying DS Group’s standing as a leader in the FMCG sector.

To sum up, 2024’s complexities and lessons will inform 2025’s strategies.