32% of non-metro India discovers products on social media: Report

India’s consumption-led growth is increasingly being driven by Tier II and Tier III cities, emerging urban clusters and small towns, according to a new report by venture capital firm Rukam Capital. The study, Beyond Metros: The Real Story of Bharat’s Next 500 Million, examines how non-metro consumers discover brands, build trust and make purchasing decisions.

The report comes as 65% of India’s population now lives in Tier II, Tier III and rural regions. It links this shift to GST-led formalisation, wider digital connectivity and the expansion of digital public infrastructure, including UPI.

The study finds that consumption patterns outside metros follow a distinct logic shaped by community influence, value-conscious spending and digital-first habits. Non-metro consumers are increasingly research-driven and trust-led rather than impulsive or advertising-led.

According to the report, digital discovery in non-metro India is video-first and social-led. About 37% of consumers rely on YouTube reviews, while 32% discover new products through social media. E-commerce platforms are used as research tools by 35% of consumers in Tier II and Tier III markets. Creator recommendations influence 23% of consumers, while celebrity influence has dropped to about 3%.

Trust plays a central role in purchase decisions. Word-of-mouth influences 22% of consumers, while 43% of Tier 3 consumers verify brands through official websites. Customer service interactions influence 32% of buyers, and 23% consider eco-friendly and sustainability claims, particularly when supported by peer feedback.

Payment behaviour reflects value discipline rather than impulse. UPI is used by 67% of consumers across Tier II and Tier III markets. While 52% of Tier II consumers track discounts and sale days, festivals remain more influential in Tier III markets. Quick-commerce adoption stands at 36% in Tier III, food delivery at 44%, and in-home services at 22%.

WhatsApp has emerged as a key digital backbone with nearly 90% penetration, serving as a communication tool, discovery channel, and commerce enabler. OTT consumption is led by JioHotstar, used by more than 54% of audiences in Tier II and Tier III markets, while 24% of Tier III users prefer vernacular OTT platforms. Music apps see over 46% adoption, and Telegram usage is also at 46% in Tier III areas.

The report notes that aspiration in Bharat is increasingly personal and grounded. About 18% of consumers prefer bespoke offerings, 13% respond to quality-led status cues, and 12% resonate with nostalgia. Pop culture influence remains limited at 4%.

Gaming has also emerged as an influence channel, with 55% of Tier II and 52% of Tier III consumers responding to in-game advertising.

Commenting on the findings of the report, Archana Jahagirdar, Founder and Managing Partner, Rukam Capital, said, “For a long time, Bharat has been spoken about through a metro lens, and that has limited how we understand its consumers. What we saw through this study is a far more confident and deliberate consumer, one who researches deeply, relies on community validation, and values consistency over hype. These consumers are not chasing aspiration; they are making informed choices that fit their lives. For founders and brands, the opportunity in Bharat lies in building trust early, designing for real use cases, and staying rooted in the local context. That is where sustainable, long-term growth will come from.”