India’s Direct Selling Industry Grows at 5.3 pc Y-o-Y, Scales Rs 19,000 cr Peak in 2021-22

India’s Direct Selling Industry has scaled the Rs 19,000 crore annual sales peak, thereby recording YoY growth of 5.3 percent, as per data published in the Annual Survey 2021-22 on Direct Selling in India, released by the Indian Direct Selling Association (IDSA).

The Indian direct selling industry grew to Rs 19,020 crore in 2021-22, an increase of Rs 953 crore over the Rs 18,067 crore annual sales figure achieved in 2020-21. The financial year of 2021-22 was dominated by the deadly Delta variant wave of the COVID-19 pandemic and consequently led to restrictions on business, the ability of consumers to spend owing to depressed income and spending sentiment in the FMCG & Retail sectors. Despite severe economic and social challenges, the Direct Selling Industry of India emerged strong and resilient.

The Indian Direct Selling industry registered a Compounded Annual Growth Rate (CAGR) of 13 percent, growing from Rs 11,650 crore in 2017-18 to Rs 19,020 crore in 2021-22. The share of IDSA members in the total sales of the Direct Selling industry stood at 55 percent in 2021-22. Of this, the Wellness and Nutraceutical category contributed 59 percent of Direct Selling sales in India, followed by 22 percent revenue contribution by the Cosmetics and Personal category.

Furthermore, the number of Active Direct Sellers in the country stood at around 84 lakh, registering a growth of 6 percent from 79 lakh in 2020-21. The industry comprises 56 percent Male Direct Sellers to 44 percent Female Active Direct Sellers. This Gender Ratio has changed in favor of Male Direct Sellers from 2020-21 where it stood at 53 percent of Male and 47 percent of Female Active Direct Sellers.

Speaking on the release of the Annual Survey Report on the Status of Direct Selling in India FY 2021-22, Rajat Banerji, Chairman of India Direct Selling Association said, “India has been seen as a market that holds tremendous potential for Direct Selling, reflected in the consistent and sustainable growth over the past half a decade with a CAGR of 13 percent. I am pleased to note that the contribution of IDSA member companies remains strong a healthy 55 percent of gross industry revenues. We remain grateful to the Government - particularly the Department of Consumer Affairs - for providing policy clarity for this industry.”

The Direct Selling industry has been the one major industry vertical that has consistently provided sustainable self-employment & micro-entrepreneurship and start-up opportunities to nearly 84 lakh Indians. Wellness & Nutraceutical products category contributed nearly 59 percent of the Indian direct selling sales, followed by cosmetics and personal care which contributed 22 percent of the sales.