Wellness Products Top the Chart, contribute 57% of the Indian Direct Selling sales

The Indian Direct Selling Industry registered a healthy year-on-year growth of 28%, with the gross industry turnover at INR 16,776 crore in 2019-20 according to the Annual Survey report released by the Indian Direct Selling Association (IDSA) here today.The Survey Report highlighted that wellness and health products contributed 57% of the Indian Direct Selling sales, followed by cosmetics and personal care segmentwith a 22% contributionin sales in 2019-20. 



IDSA Annual Survey Report 2019-20, complied by Ipsos Strategy 3, was virtually released on Friday by SomParkash,Minister of State for Commerce and Industry.Releasing the survey, the minister said “Direct Selling industry is providing an opportunity to generate self-income to millions of people in the country. Creating a conducive environment for industries to thrive, is amongst the top priorities of the Ministry of Commerce and Industry. The ministry has undertaken several initiatives in this regard, and I urge the Direct Selling industry to take advantage of them.”

The report highlighted that India has made rapid progress in Direct Selling business, having recorded an18% CAGR over a period of four year. The number of active Direct Sellers in the country stood at around 7.4 million registering a 30% growth from 5.7 million in 2018-19.The industry comprised an almost equal number of male and female direct sellers in 2019-20.

Addressing a Press Conference,RiniSanyal, Chairperson, IDSA said, “The report showcases some encouraging trends in Direct Selling at a time when there is a tremendous socio-economic distress due to the pandemic across the globe. The growth trajectory of the industry has been on a surge over the years. A CAGR of 18%is a testament of the fact that Direct Selling business in the country has made a steady progress and is poised to further strengthen its position in the coming years on the back of promising regulatory framework by the government.”

“I am happy to share that India has risen to the 12th largest Direct Selling market globally, up from 15thposition in 2019. We are confident that India will break into the top-5 Direct Selling markets in the globe much sooner than the earlier estimates,” said Rajat Banerji, Vice Chairman, IDSA.

According to the 2019-20 Survey, the Northern region contributed to around 28% of the Direct Selling sales in the country in 2019-20, followed by the Eastern region with approximately 26% of the sales. Among the states, Maharashtra had the highest share of sales across the country with 12% of the gross sales in 2019-20, closely followed by West Bengal, contributing at 11% of the Direct Selling sales in the country. 

“Around 7.4million DirectSellers are employed in the Direct Selling industry in India. There has been a staggering growth of ~30% y-o-y. This shows the growing trust and confidence in the Direct Selling business,” said Mr. BhaskerCanagaradjou, India Head, Ipsos Strategy3.

According to the report,the global Direct Selling industry stood at around USD 179.3 billion in 2020 showcasing marginal degrowth of 0.1% from the industry value of USD 175.3 billion in 2019. However, this degrowth is largely due to the downfall of business in China, which has overall resulted in a decrease in global business. Among the countries, the United States had a share of 22.4% in global Direct Selling business with a sales value of USD 40,100 million in 2020. It was closely followed by China with a share of 10.7% with a total Direct Selling sales value of USD 19,183 million in 2020.

The report also highlights recent trends such as efficient use of technology, policy reforms, introduction of new products, and usage of social media. It also discusses some of the leading players operating in India, their contributions and key strategies adopted by them. Overall, the report includes market drivers, challenges, opportunities, future roadmap, investment potential, use of technologies and regulatory ecosystem.