India's Direct Selling Industry Witnesses 5.4% Growth, Ranked 11th Globally

While the global industry shrank by 1.5% in 2022 to $172.89 billion, India's direct selling sector grew by 5.4% over 2021 retail sales. According to a World Federation of Direct Selling Association (WFDSA) report, India has risen to 11th place in the ranking of top direct selling markets, with retail sales of $3.23 billion (approximately Rs 26,852 crore) in 2022.

The Indian market achieved the highest Compounded Annual Growth Rate of more than 13.3% in the last three years, it added.

The top market on the list was the United States, with $40.52 billion, a 5% decrease from 2021. Korea was followed by Germany, China, Japan, and Malaysia.

According to Rajat Banerji, chairman of the Indian Direct Selling Association (IDSA), "India's direct selling market is steadily growing and has the potential to place itself in the top five global markets over the next decade."

With the publication of the Consumer Protection (Direct Selling) Rules 2021 and subsequent amendments, the Indian direct selling industry should see stability, which may inspire investor confidence as well as interest from large global direct selling companies, he added.

"Only three of the top ten (sellers) are currently in India, and we would like to see them all start their businesses in India," Rajat added.