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Direct Selling Report

The global direct-selling establishments market has experienced significant growth since 2017, reaching a value of nearly $207,687 million in 2022 with a compound annual growth rate (CAGR) of 3.6%. By 2027, the market is expected to increase to $265,121 million, reflecting a CAGR of 5.0%. By 2032, the market is projected to grow at a CAGR of 5.0%, attaining a value of $338,635 million.

Factors that led to growth in the historic period were the strong economic growth in emerging markets, rise in disposable income, increasing desire among consumers to authenticate products before purchase, and growing need for additional income opportunities. However, the rapid growth of e-commerce was an adverse factor that negatively affected growth in the same period.

Looking ahead, government support, rising urbanization, low cost of starting an MLM start-up, and rising population are the primary factors driving the growth of the direct selling establishments market. Nonetheless, the industry faces potential challenges that could hamper growth prospects in the future. These challenges include more stringent regulations and growing customer demand for online shopping.

The direct selling establishments market comprises two segments: multi-level marketing and single-level marketing. Over the years, multi-level marketing has emerged as the larger segment, accounting for 81.0% of the total market share in 2022. This segment is expected to experience the fastest growth at a CAGR of 5.0% between 2022 and 2027.

Regarding product type, the wellness market is the largest segment, with a market share of 38.2% in 2022. The wellness segment is also projected to grow the fastest until 2027, with a CAGR of 5.6%. Other direct-selling establishments’ market segments include cosmetics & personal care, household goods & durables, clothing & accessories, books, toys, stationery, foodstuff & beverages, and financial services.

The direct-selling establishments market is significant and comprises several segments. One of these is the price range, further divided into premium, mid-range, and economy categories. In 2022, the premium segment was the largest, accounting for 59.7% of the market. During 2022-2027, it is projected to be the fastest-growing segment, with a CAGR of 5.09%.

Asia-Pacific dominates the market regionally, with 42.7% of the total in 2022. North America follows in second place, with other regions behind. The Middle East and Africa are expected to grow the fastest in terms of growth, with CAGRs of 14.1% and 10.1%, respectively. Asia-Pacific and North America are also projected to grow at CAGRs of 7.7% and 6.0%, respectively.

Many players operate in the direct selling establishments market, leading to fragmentation. The top ten competitors comprised 18.47% of the total market in 2021. Specifically, Amway Corp led with a 4.78% share of the market, followed by Herbalife Nutrition Ltd, Natura, Vorwerk & Co. KG, Nu Skin Enterprises Inc, Mary Kay Inc, Coway, PM-International, Tupperware Brands Corporation, and Oriflame.

To maximize sales, opportunities exist across different segments. Multi-level marketing is one opportunity in type segmentation and is projected to gain $47,006.6 million by 2027. In type of product segmentation, the wellness segment is predicted to achieve maximum sales, reaching $24,962.1 million. Finally, in terms of price range, the premium segment is forecast to reach sales of $34,900.4 million by 2027.

Market-trend-based tactics for the direct selling establishments market include investments, artificial intelligence (AI), geographic expansions, tackling disinformation in the industry, and mergers and acquisitions.

Players are adopting two key strategies to gain an edge in the direct selling industry. The first strategy involves investing in digital experience to provide customers with an unrivaled online experience. The second strategy focuses on expanding operational capabilities through strategic acquisitions.

This informative report includes coverage of the following chapters:

Introduction and Market Characteristics: This chapter briefly introduces the market segmentations discussed in the report, as well as definitions and explanations regarding the direct selling establishments market.

Key Trends: In this section, significant trends shaping the global direct-selling establishments market, as well as likely future developments, are highlighted.

Global Market Size and Growth: The report provides historic (2017-2022) and forecast (2022-2027) market values and drivers and restraints that support and control growth in the historic and forecast periods.

Regional Analysis: Market values and growth and market share comparison by region are presented for historic (2017-2022) and forecast (2022-2027) periods. All regions and major countries within each area (Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa) are included.

Market Segmentation: This section contains market values (2017-2032) and analysis for each segment by type, product, and price range in the market.

Regional Market Size and Growth: Information on regional market size (2022), as well as historic (2017-2022) and forecast (2022-2027) market values and growth, and market share comparison of countries within the region, is provided.

Competitive Landscape: Details on the market’s competitive landscape, estimated market shares, and company profiles of the leading players are included.

Key Mergers and Acquisitions: Information on recent mergers and acquisitions in the market, including key financial details, is presented.

Market Opportunities And Strategies: Descriptions of market opportunities and strategies based on research findings, including growth opportunities across countries and segments and strategies to be followed in those markets.

Conclusions And Recommendations: Recommendations for direct selling establishments providers regarding product/service offerings, geographic expansion, marketing strategies, and target groups are provided.

The companies mentioned in this report include Amway Corp, Herbalife Nutrition Ltd, Natura, Vorwerk & Co. KG, and Nu Skin Enterprises Inc.

Direct Selling Report

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March 22, 2023 - Rodan + Fields (R+F) just celebrated its 15th birthday, and it's been making waves in the skincare industry ever since! Founded in 2008 by two Stanford-trained dermatologists, Dr. Katie Rodan and Dr. Kathy Fields, this direct sales skincare company has revolutionized the market with its dermatology-created products. They've even expanded into haircare, and their independent consultant community is growing like crazy.

R+F has received many accolades, including being named the #1 Premium Skincare Regimen Brand in the U.S. for four consecutive years! With over 15 proprietary technologies and recognition from top beauty publications like Allure and Elle, it's no wonder they're leading the pack.

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4Life has taken a significant step forward in its manufacturing strategy by constructing a new manufacturing building in Vineyard, Utah. The new facility, which encompasses 58,300 square feet, is situated next to the existing 48,500 square foot manufacturing plant and boasts state-of-the-art equipment capable of substantially increasing production capacity.

The new equipment made available as a result of 4Life’s expansion includes a bulk powder fill line for NutraStart and Pro-TF, a 150-cubic-foot blender for 4Life Transfer Factor, and a production line that can count and load four variations of vitamins for products like RiteStart Men and RiteStart Women. With these cutting-edge tools, 4Life is well-positioned to continue its commitment to manufacturing excellence, quality, and customer satisfaction.

According to 4Life President & CEO Danny Lee, “This new combination of complex machinery will help us continue our commitment to excellence in manufacturing, quality, and customer satisfaction.”

Completing this second phase in the company’s manufacturing strategy marks a significant milestone in 4Life’s evolution as a leader in the health and wellness industry. With the addition of the new manufacturing facility, 4Life is poised to increase its production further and meet the growing demand for its products worldwide.

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