The global direct selling market size was valued at USD 200.14 billion in 2022 and is expected to grow at a compound annual growth (CAGR) of 6.4% from 2023 to 2030. The growth of the global market is primarily driven by rising demand from consumers to check and validate a product before purchasing. New business models have emerged as a result of the internet ecosystem and shifting customer requirements, leading to the rise of direct-to-consumer (D2C) distribution channels. Direct selling is a dynamic and quickly growing route of distribution for product and service marketing. Direct selling offers a significant number of people additional income options and encourages micro-entrepreneurship.
According to the World Federation of Direct Selling Associations (WFDSA), over 125.4 million direct sellers are anticipated to be involved in the industry in 2020; and this number is expected to rise as the industry grows. Direct selling not only provides revenue opportunities but also imparts transferrable sales and management skills that can be applied outside of the direct selling business.
Over the past several years, direct selling companies have been successful in offering new items on a regular basis in order to reach the majority of the consumer base. Organizations have also been creating new product versions in order to meet the shifting wants of today's consumers. Direct selling companies have been able to appeal to a big audience with a variety of product preferences by expanding their brand range. This has attracted new consumers and contributed to the direct selling market growth.
Apart from monetary rewards, direct selling companies recognize that offering additional incentives to their direct sellers is the greatest method to drive them to expand their business successfully. As a result, many organizations have started offering extra rewards to their sellers and retailers. These extra incentives have not only assisted firms in getting employees to join the direct selling industry, but they have also kept their salesforce motivated to set higher goals and accomplish them. However, the growth of the global market is being hampered by increased demand for internet purchasing and the growth of the e-commerce industry.
During the worldwide pandemic of 2020, direct selling saw a rise in the use of online tools and video meetings, as well as a welcome boost in social connection for consumers who were isolated owing to national lockdowns. These adjustments, according to the WFDSA, were critical in assisting direct selling representatives in adapting and responding to the pandemic's problems and were a significant driver of higher sales and representative growth. According to the Direct Selling Association (DSA), the global health crisis heightened customer demand for health and wellness products; and direct selling provided home-bound entrepreneurs with a way to make required part-time or additional income.
Health & wellness segment dominated the global market with the largest market share of around 36% in 2022. The growth of the health and wellness segment is mainly driven by the increased prevalence of chronic disorders among the global population. Consumers' sedentary and hurried lifestyles have led to an increase in stress, anxiety, cancer, diabetes, and other health problems. Furthermore, a lack of a suitable diet has resulted in a lower intake of key nutrients and minerals needed for the human body's healthy and active functioning. This has resulted in a rise in the adoption of health and wellness products including vitamins & supplements, and other nutritional products.
Since the pandemic hit the world in 2020, direct selling enterprises in the health and wellness industry have witnessed strong sales, and their sales momentum appears to have continued over into 2021. The pandemic and increased customer emphasis on health, as well as the rise in adoption of health and wellness products to stay fit clearly benefited key players. As a result, the global health and wellness industry is being driven by the rapidly expanding prevalence of chronic disorders.
In the global market, the cosmetics and personal care segment is expected to witness a lucrative CAGR of 7.4% on revenue basis. Rising awareness of skincare routines, as well as new product branding and advertising methods, are major drivers propelling the growth of the segment. Growing innovations in sustainable and green cosmetics are opening up new potential for business expansion. Consumers, particularly women, prefer to utilize cosmetics items that are convenient and quick to apply when traveling or attending social gatherings. Furthermore, using organic substances for cosmetics manufacturing is a common approach used by manufacturers to attract more clients. This also aids in the growth of income for businesses in this area.
The Asia Pacific captured the largest market share of over 44% in 2022 driven by rising spending on healthcare and cosmetics products. Direct sellers are gaining traction in emerging economies, particularly in China's, India's, and Indonesia's lower-tier cities. The nature of the direct selling companies resonates well with this market group due to the lack of physical stores and a less educated population in some areas. Consumers prefer getting personalized health and beauty product recommendations from salespeople. Consumer health and beauty, as well as personal care, are the leading product categories driving development in the region. Consumers in the Asia Pacific pay more attention to their health and attractiveness. Weight loss, vitamins, and skincare with natural ingredients are just a few of the products gaining popularity among customers.
North America captured a significant market share of 23% in 2022. The growth of the region is driven by the presence of numerous players, and intensifying inclination towards direct selling for extra income opportunities. In addition, rising disposable income, together with government efforts, is likely to boost the regional market growth in the coming years. Direct selling is well known across the world for providing extra career opportunities to people with no formal education. This is one of the factors that has fueled the industry's recent growth in North America.
Direct selling has become one of the most popular occupations in the U.S. due to the benefits of flexible working hours and extra job opportunities. Additionally, the Middle East & Africa, and Central & South America are expected to showcase lucrative growth in the near future backed by rising demand for health & wellness and cosmetic products.
Key players operating in the global market are taking a variety of initiatives in order to gain a larger market share and serve consumers effectively. To support organic growth and market share, leading industry participants are investing in R&D activities. Companies are also developing new products in order to diversify and reinforce their present portfolios while also attracting new customers. To develop eco-friendly and cruelty-free products and obtain a competitive advantage over their competitors, businesses use mergers and acquisitions, as well as strategic collaborations. Some prominent players in the global direct selling market include:
Amway Enterprises Pvt. Ltd.
Herbalife Nutrition Ltd.
Natura & Co.
Nu Skin Enterprises
Tupperware Brands Corporation
Oriflame Holding AG
Mary Kay Inc.
Market size value in 2023
USD 211.55 billion
Revenue forecast in 2030
USD 328.26 billion
Growth rate, Value
CAGR of 6.4% from 2023 to 2030
Base year for estimation
2017 - 2021
2023 - 2030
Revenue in USD billion and CAGR from 2023 to 2030z
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
U.S.; Canada; Mexico; Germany; U.K.; France; Italy; China; India, Japan; Australia; Brazil; Argentina; GCC; South Africa
Key companies profiled
Amway Enterprises Pvt. Ltd., Herbalife Nutrition Ltd., Natura & Co., Vorwerk, Nu Skin Enterprises, Tupperware Brands Corporation, Oriflame Holding AG, Belcorp Corporation, Mary Kay Inc.
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This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global direct selling market report on the basis of product, and region:
Product Outlook (Revenue, USD Billion, 2017 - 2030)
Health & Wellness
Cosmetics and Personal Care
Household Goods & Durables
Regional Outlook (Revenue, USD Billion, 2017 - 2030)
Central & South America
Middle East & Africa
b. The global direct selling market was estimated at USD 200.14 billion in 2022 and is expected to reach USD 211.55 billion in 2023.
b. The global direct selling market is expected to grow at a compound annual growth rate of 11.5% from 2023 to 2030 to reach USD 328.26 billion by 2030.
b. The Asia Pacific dominated the direct selling market with a share of 44.47% in 2022. This is attributable to rising spending on healthcare and cosmetics products, rising disposable income coupled with the young generation in the region looking for extra career opportunities.
b. Some key players operating in the direct selling market include Amway Enterprises Pvt. Ltd.; Herbalife Nutrition Ltd.; Natura & Co.; Vorwerk; Nu Skin Enterprises; Tupperware Brands Corporation; Oriflame Holding AG; Belcorp Corporation; and Mary Kay Inc.
b. Key factors that are driving the direct selling market growth include rising demand from consumers to check and validate products before purchasing, growth of direct-to-consumer (D2C) distribution channels, and encouragement for micro-entrepreneurship.
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