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The direct selling market is poised to grow by USD 78.81 million accelerating at a CAGR of 5.04% between 2022 and 2027. Additionally, the market is fragmented in nature and shows a YOY growth of 4.56%. The report covers diverse dimensions such as the market size of forecast and historic data, influential drivers, analysis of prominent vendors, and evolving trends, presenting a comprehensive outlook on the global market scenario.
Rapid growth in social media is a key factor driving the market growth. The comprehensive report of the direct selling market offers crucial insights of the industry's changing dynamics, helping businesses to identify growth opportunities in the constantly evolving digital retail landscape.
The market is Segmented as
1. Type- The type segment is classified into single-level marketing and multi-level marketing.
2. Product- The product segment is classified health and wellness, cosmetics and personal care, household goods and durables, and others.
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The rapid growth in social media is notably driving the market growth.
Social media platforms such as Facebook, Twitter, Instagram, and YouTube allow website advertising of individuals or organizations on a larger scale than most other advertising media such as television advertisements. Social media has positively impacted the growth of the direct selling market by providing a platform for companies to reach out to customers and independent distributors. Direct selling companies are using these platforms to engage with customers, showcase their products, and provide training and support to their distributors.
Moreover, new strategies are adopted by social media such as live streaming, influencer marketing, and social commerce, to increase sales and expand their customer base. Travel restrictions and lockdowns imposed during the COVID-19 pandemic increased the time spent on social media platforms in countries such as the US, the UAE, Italy, India, and China. Hence, an increase in social media usage will drive the demand for direct-selling markets and influence the overall growth of the direct-selling market during the forecast period.
The increasing focus on personalized customer experience is a key trend in the market.
Factors such as offering personalized experiences help companies to find the needs and preferences of their customers, ultimately driving brand loyalty, customer satisfaction, and long-term profitability. Furthermore, direct-selling companies can build stronger relationships with customers, improve communication and tailor their products and services to meet specific customer needs based on their individual preferences. This will lead to higher customer satisfaction and the likelihood of repeat business.
Moreover, technological advances such as AI can help direct selling companies gather and analyze consumer behavior data, providing insights to further refine their marketing and customer engagement strategies. Personalized experience can also empower direct sellers, by improving the efficiency of building and maintaining customer relationships. Thus, the above-mentioned factors will have a positive impact on the growth of the global direct selling market during the forecast period.
The single-level marketing segment is estimated to witness significant growth during the forecast period. Single-level marketing (SLM) is a direct selling model where products are sold directly to customers without building a sales team. It is commonly seen in the health and wellness, beauty, and home appliances industries. SLM has several advantages such as low start-up costs compared to multi-level marketing (MLM), low risk, and flexibility. Additionally, SLM allows individuals to work on their own schedule and helps companies to reach a broader customer base and increase their sales without having to build a sales team, increasing profits.
The single-level marketing segment was the largest segment and was valued at USD 187.71 million in 2017. Despite the benefits of SLM, it is expected to experience slow growth during the forecast period due to the e-commerce platforms which help consumers shop online and receive delivery without any physical interaction. Another reason for the slow growth of SLM is the lack of scalability and being limited the number of people who are willing to work as independent sales representatives. Thus, due to the above-mentioned factors, the SLM segment is expected to witness low growth and will lose its share of other marketing models, such as MLM, in the global direct selling market.
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APAC is estimated to contribute 33% to the growth of the global market during the forecast period.The direct selling market in the APAC region was the largest regional market in 2022, it has shown tremendous growth in the last five years and is expected to continue expanding during the forecast period. The major contributors to the growth of the regional market are China, India, Japan, and South Korea, among others due to increasing consumer awareness and acceptance of direct selling. Besides, the direct selling market in the region has seen significant changes such as online sales and MLM compared to the traditional model. This has ensured a wider reach of products and diversified revenue channels for the network of direct selling companies. Overall, the APAC direct selling market is expected to grow due to increasing consumer awareness, technology adoption, and the growing middle class in the region.
Mary Kay Inc. - The company offers direct selling such as Belara Eau de Parfum and Mary Kay CC cream.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
The competition from e-commerce platforms is challenging the market growth.
E-commerce platforms have created an increasingly competitive environment for the global direct selling market and made it challenging to maintain and grow their market share. They provide consumers with an alternative option for online purchases, with detailed product information, and often at lower prices.
Furthermore, they offer quicker and easier access to an extensive product selection from various brands and price comparisons without the need for traveling and negotiating with sellers. This may result in difficulty for direct selling companies to appeal to younger demographics who prefer digital channels of communication and interaction. Moreover, direct selling products have less transparency in pricing which could lead to price discrimination, with some consumers paying more for the same products. Therefore, the above-me
The data presented is comprehensive, reliable, and a result of extensive research - both primary and secondary. The market research reports provide a complete competitive landscape and an in-depth vendor selection methodology and analysis using qualitative and quantitative research to forecast accurate market growth. For details analysis BUY FULL REPORT.
Direct Selling Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2018 - 2022 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.04% |
Market growth 2023-2027 |
USD 78.81 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.56 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 33% |
Key countries |
US, China, South Korea, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amway Corp., ATOMY Co. Ltd., BELCORP CORPORATE SERVICES S.A.C, BETTERWARE DE Mexico S.A.P.I. DE C.V, DXN Holdings Bhd, eXp World Holdings Inc., Herbalife International of America Inc., Mary Kay Inc., Medifast Inc., Natura and Co Holding SA, Netmarble Corp., Nu Skin Enterprises Inc., Oriflame Cosmetics S.A., PM International AG, Primerica Inc., Scentsy GB PTY Ltd., Telecom Plus PLC, Tupperware Brands Corp., USANA Health Science Inc., and Vorwerk Deutschland Stiftung and Co. KG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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