Global Direct Selling Market Report and Forecast 2024-2032

Global Direct Selling Market Size

The global direct selling market reached a value of nearly USD 175.19 billion in 2023. The market is projected to grow at a CAGR of 1.7% between 2024 and 2032 to reach around USD 204.89 billion by 2032.

Direct Selling Market Outlook

• Direct selling empowers companies to directly connect with consumers, sidestepping the extra expenses and profit margins linked to intermediaries.

• Organic farmland acreage increased by 26.6% year-on-year to 96.4 million hectares in 188 countries. 

• Overall for the whole of agricultural production, China, in the year 2021, led the world's agricultural production at 1,095 million metric tonnes and strengthened its supremacy in the world agricultural industry. 

• According to direct selling market analysis, the United States followed at 605 million metric tonnes, followed by Brazil at 522 million metric tonnes.

• Amway Corp., Herbalife Nutrition Ltd., Natura & Co are a few of the major companies in the market.

• The Asia Pacific, the market for direct selling is witnessing a growing trend of increased expenditure on healthcare and cosmetic products.

Direct Selling Market Growth

Direct selling, a time-honoured approach, involves the sale of products and services directly to consumers in locations beyond the confines of a stationary retail establishment. Certain direct selling enterprises provide exclusive products that are not readily accessible in traditional retail outlets. This presents consumers with a chance to acquire distinctive and specialised products tailored to their individual needs and preferences.

Some of the factors driving the growth of the direct selling market are the growing middle-class population in developing nations, the escalating accessibility of internet services, and the rise in disposable income as well as the convenience provided by this business model.

Figure: Top 10 Direct Selling Markets, 2022 (USD Million)

Key Trends and Recent Developments

Rising awareness regarding health and beauty; high employment opportunities offered by direct selling; and rising internet penetration support direct selling market opportunities.

Global Direct Selling Market Trends

Establishing trust between a seller and a customer hinges on the provision of a customised buying experience. With the interactive nature of direct selling, businesses have the chance to offer individualised service, allowing them to gain a deeper understanding of their customers' needs, preferences, and goals.

Furthermore, the market for healthcare and wellness products is experiencing significant growth, while evolving lifestyles and an emphasis on self-care and personal appearance further contribute to capitalise on the demand for grooming products, including skincare, cosmetics, and hair care items. This is eventually contributing towards accelerating the demand of direct selling market.

Industry Outlook

The economy of wellness around the world, in 2022, stood at USD 5.6 trillion. According to the Global Wellness Institute, leading the charge were personal care and beauty at USD 1,089 billion, while healthy eating, nutrition, and weight loss trailed at USD 1,079 billion. The sector for physical activity contributed USD 976 billion, while wellness tourism contributed to the tune of USD 651 billion. This equates to USD 611 billion associated with public health, prevention, and personalized medicine, and the compendium of traditional and complementary medicine recorded expenditures totaling USD 519 billion. Mental wellness tacked on another USD 181 billion, while wellness real estate added USD 39 billion.

This further strikingly high growth of the wellness economy provides an opportunity for the direct selling demand growth to globalise. The reason is that the ongoing changing trend of direct-selling commodities involving more personalised health and beauty solutions, wellness and fitness programs to add on nutritional products, places this industry in a good position to benefit from the USD 1,079 billion nutrition market and the USD 1,089 billion personal care market. Additionally, the growing wellness tourism market, with a turnover of USD 651 billion, contributes to opening further avenues for direct selling in the wellness travel packages and experiences.

As per the International Trade Administration, Department of Commerce, United States of America, global B2C eCommerce revenues reached USD 3.64 trillion in 2022, growing steadily at 14.4% per annum from USD 1.45 trillion in 2017. The break-up of B2C is: Electronics - USD 1.18 trillion Fashion - USD 781 billion Furniture - USD 526 billion Toys, Hobby, DIY - USD 318 billion. Other major sectors were the BHPHC at 274 billion dollars, media at 222 billion dollars, beverages at 190 billion dollars, and food at 566 billion dollars.

Following this trend toward growth, it is highly predicted that the worldwide B2C e-commerce revenue would reach USD 5.56 trillion in 2027. Consumer electronics will be at the top of this list with USD 1.35 trillion, followed by Fashion at USD 1.10 trillion. Furniture will score USD 620 billion, and the Toys, Hobby and DIY sector will achieve USD 303 billion. Biohealth Pharmaceuticals (BHPHC), media, beverages and food will also grow by large magnitudes with expected revenues of USD 274bn, USD 193 bn, USD 382bn and USD 620bn.

This exponential growth in eCommerce is going to have a huge impact on the growth of direct selling industry. Since more and more consumers are being lured to online shopping, according to the International Trade Administration, this, in turn, will be providing a fertile field in which direct selling companies can grow further in terms of their digital presence. Direct sellers can tap into this projected USD 5.56 trillion market by using eCommerce platforms, thereby extending their reach and sales potential. It is here that digital strategies will strongly come in to help direct-selling businesses fully exploit the embryonic online retailing environment.

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Direct Selling Industry Segmentation

Global Direct Selling Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

On the basis of type, the market is divided into:

• Single-Level Marketing

• Multi-Level Marketing

On the basis of application, the market is segmented into:

• Wellness

• Cosmetics

• Household Goods

• Others

On the basis of region, the market is segregated into:

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Direct Selling Market Share

Multi-level marketing is expected to hold significant direct selling market share as it relies on individuals rather than traditional retail outlets

The MLM model places the selling responsibility in the hands of independent distributor networks. In the MLM structure, these distributors are not considered company employees; rather, they function as independent business owners who build and manage their distributor networks to facilitate product sales.

Meanwhile, in single-level marketing, independent sales representatives act as distributors for brands. As per direct selling industry analysis, this model of marketing is expected to streamline and revolutionise the direct selling market landscape in the forecast period.

The demand for wellness products from direct selling is significantly rising amid rising disposable incomes

Wellness products are anticipated to hold a significant share in the direct selling market due to increasing global disposable income and rising health-consciousness. According to direct selling industry statistics from Global Wellness Economy, the wellness economy is expected to reach USD 7.0 trillion in 2025, with a 9.9% average annual growth. Some of the leading wellness direct-selling companies are Amway, Herbalife, Infinitus, PM-International, Melaleuca, Nu Skin, Young Living, and Forever Living amongst others.

Moreover, the sales of cosmetics from direct selling are likely to increase in the forecast period as key players in the market focus on personalisation, research and development, and premiumisation.

Direct selling is a must in wellness, personal care, nutrition, home care, and fashion.

• Ongoing innovation in digital platforms and e-commerce technologies lead to efficient operations and lower costs.

• Vast territories, like the United States, China, and India, provide a loyal base of customers to support international markets and bolster the demand of direct selling market.

• Personalised service and custom products that develop through direct selling create loyal customers and a sustainable market.

There are high dependencies on both network marketing and personal sales, which may reduce scalability or be competitive.

• Quiet stringent regulatory frameworks and anti-pyramid scheme laws add operational costs and drive compliance burdens up.

• A massive percentage of worldwide direct selling is centralised in only a few markets. Prominently These markets include the USA and China.

• High investment in training and development for sales staff may be a prohibiting factor for direct selling demand.

• The massive growth of digitalization and social media presents enormous growth opportunities.

• Advancements in product development enable new applications in personalised wellness and beauty solutions, thus aiding the direct selling market growth.

• Increased focus on entrepreneurship and flexible work encourages the use of direct selling models.

• Collaborations and strategic partnerships drive innovation and efficiency in distribution and marketing operations.

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Direct Selling Market Regional Analysis

The direct selling industry in Asia Pacific is anticipated to hold a dominant position in the direct selling market. South Korea is the 2nd largest market globally, accounting for 11% of the market. According to the WFDSA 2022 statistics, the market has approximately 8 million independent representatives in retail sales. Factors contributing to the rise in the demand for direct selling across the region include rising incomes, a heightened awareness of health and beauty concerns, and the expanding middle-class population.

The direct selling market share in North America is driven by the growing health and wellness trend among Americans. According to the Direct Selling Association (DSA), the USA had over 6.7 million direct sellers in 2022, over 75% of which were female. The country has over 6.2 million individuals working as part-time direct sellers and 0.5 million working as full-time direct sellers.

Competitive Landscape

Key market players are making investments in a mix of innovation, strategic partnerships, aggressive marketing, and comprehensive training programs to strengthen their position and enhance their market share in the highly competitive global direct selling market.

Amway, established in 1959 and headquartered in the United States, being a market leader for this industry, it would concern itself with a wide variety of high-quality products that are backed by a formidable global distribution network. Great effort and resources are put into innovation and product development to answer the many needs of consumers. Its competitive strategy engages in rigorous training of distributors, strategic cooperation, and constant market expansion to boost its geographical presence worldwide.

Avon Products, established in 1886 and headquartered in the United Kingdom, leverages the great brand equity and vast beauty and personal care product range. The company emphasises its direct-to-consumer selling model through thousands of independent representatives. Competitive strategies pursued by Avon Products include incessant product innovation, using digital platforms for selling and marketing operations, and strategic alliances to penetrate untapped markets.

Herbalife Nutrition, established in 1980 and headquartered in the United States, is oriented to nutrition, with weight management and health enhancement products. The competitive strategy of the company features scientifically-supported products, extensive training for the distributor network, and a community that creates a support system. Herbalife puts great emphasis on personal wellness coaching and personalised customer service to drive sales and loyalty.

Mary Kay, established in 1963 and headquartered in Texas, lays an emphasis on training and the development of these consultants, and the use of digital tools to optimise customer engagement and therefore optimal sales represent part of the competitive strategy of the company. Skincare and cosmetic products in which the company deals are directly sold through an individual sales force of independent beauty consultants.

Tupperware, established in 1946 and headquartered in Massachusetts, fuels its sales on in-home parties to give personalised service. Its competitive strategies are based on the continuation of product innovation, environmental sustainability, and the enhancement of its sales force through education and support.

Other key players in the direct selling market report include Forever Living Products, Vorwerk, and Young Living., among others.

Key Highlights of the Report

Direct Selling Market Report Snapshots

Direct Selling Market Size

Direct Selling Market Growth

Direct Selling Market Share

Direct Selling Market Trends

Direct Selling Market Regional Analysis

Direct Selling Companies