Understanding the rural market
Before embarking on any business venture, it’s crucial to conduct research to understand the characteristics of the local market.
Demographics of the rural market
As of July 2023, Around 10 million people live in rural areas – and the more rural the areas, the older the average age (and the faster this average age is increasing). A mix of retirees enjoy a peaceful lifestyle in rural areas, as well as younger families seeking a slower pace. Overall, ‘white’ is the majority ethnic group in both rural and urban areas, however urban areas tend to be more ethnically diverse.
In terms of net internal migration, it leans towards predominantly rural areas, and the rate of this migration has grown since 2011; the exception to this is amongst those aged 17-20 who are leaving predominantly rural areas in search of education and training opportunities.
Unique characteristics of rural markets
Rural markets are characterised by tight-knit communities, where word-of-mouth recommendations heavily influence consumer choices. With lower population densities, dispersed settlements, limited access to amenities and a strong reliance on agriculture and local businesses, local marketing strategies are not just a nice-to-have, but a necessity.
Rural markets are witnessing a shift towards sustainable living and eco-friendly initiatives. Prioritising tradition and heritage, rural dwellers are also driving demand for locally sourced goods and agritourism experiences.
Interestingly, two sectors have been identified by the Government as the joint largest based in predominantly rural areas in England:
- The first is distribution, transport, accommodation and food (19%)
- The second is public administration, education and health (19%).
- Agriculture, forestry and rural affairs contributed 2% of rural England’s total economic output. The rural economy’s reliance on agriculture and primary industries does result in seasonal fluctuations.
Current market trends in rural areas
There’s a growing emphasis on sustainability, with increased demand for locally sourced products, eco-friendly initiatives and ethical practices across various sectors, including agriculture, tourism and retail. City residents are also moving to rural homes in their quest to live more sustainably. Rural homes often come with the potential to harness renewable energy sources such as solar and wind power, to grow your own food and live a life more in tune with nature’s rhythms. As the climate change drum beats louder, being able to reduce your own carbon footprint by living off the land is an enticing concept for many conscientious consumers. We can’t see this trend budging any time soon as climate change will only continue to become a more and more pressing issue.
Despite challenges like digital connectivity issues in rural areas, there’s been a rise in remote working and digital connectivity – prompting some urban dwellers to relocate to greener and more pleasant lands. This has driven a surge in property sales and investment in rural infrastructure. The global pandemic undoubtedly altered views on the traditional work environment, with remote work becoming not just a necessity but a sustainable option for many.
Agritourism is also gaining traction, with more farms diversifying their revenue streams by offering experiences such as farm stays, tours and workshops, catering to the growing interest in rural lifestyles and agricultural education.
There’s also a rising awareness and appreciation for rural arts, crafts, and cultural heritage, leading to increased support for local artisans, festivals and community events – all successfully fostering a sense of pride and identity within rural communities.