This paper aims to highlight the changes in the consumption patterns of rural households and identify the factors driving the consumption changes, the role of rural markets and the implications for the overall well-being of rural households. The study was conducted in four villages and two rural markets of Dehradun district in Uttarakhand. Qualitative and quantitative instruments were used to capture data at the household and market level. The study found that over the past decade, the income and consumption expenditure patterns of the households have changed owing to changes in agricultural practices and migration and the penetration of mass media and technology. The rural markets have evolved in the past decade and become replicas of urban markets in terms of both infrastructure and the supply of goods and services. The demand from changing rural consumers is driving the market to evolve continually.