Resilience was the overarching theme of direct selling around the world in 2023. Following jarring supply chain disruptions in 2020, 2021 and 2022 that sent companies scrambling to keep inventory stable and source raw ingredients and packaging components, 2023 delivered elevated global inflation of 7 percent and ongoing conflicts that impacted a number of markets.
In spite of this, the World Federation of Direct Selling Associations (WFDSA) reported that global retail sales grew one percent across the past four years. It is important to take into account that this growth includes the significant spike in sales and channel engagement induced by the pandemic and the heightened interest in work-from-home opportunities that accompanied it. Global sales increased 2.2 percent to $170 billion in 2020 and by 2 percent to $173.4 billion in 2021, before beginning to level out and fall in 2022, when sales dipped one percent to $171.6 billion. Global sales totals for 2023 followed a similar trajectory, declining 2.3 percent to $167.6 billion. Even so, 2023 sales results remain above pre-pandemic levels when sales were $166.4 billion in 2019.
This year, the WFDSA report illustrated opportunities amid obstacles. And as has been our tradition for 14 years, Direct Selling News utilized the global industry statistics presented by the WFDSA to create a synopsis of the state of the global direct selling industry and list the Billion Dollar Markets.
Together, the global direct selling industry contributed more than half-a-trillion US dollars from 2020 to 2023 to the global economy, impacting local communities, providing goods and services and supporting household incomes through flexible entrepreneurship.
“The growth potential for direct selling remains substantial, given the continuing desire of people for entrepreneurial opportunities. About 60 percent of people want to have their own business, and nearly one in four are in business now or expect to be within a year. Forty percent say raising capital is the biggest obstacles in launching a new business, down from 45 percent in 2019, and 39 percent believe they have the resources to begin a business, up from 35 percent in 2019. According to the Amway Global Entrepreneurship Report (AGER), 67 percent feel starting a business is attractive after knowing someone who began one, up from 58 percent in 2019,” the WFDSA reported.
The Data
Note: All WFDSA data have been rounded throughout.
WFDSA reports global estimated retail sales of $167.7 billion (Constant US Dollars) for 2023, a decrease of 2.3 percent under 2022.
As seen in the WFDSA’s report, the direct selling industry’s resilience was particularly visible in Europe, where sales increased by 3.4 percent from 2022 and 8.6 percent since 2019. In the Americas, retail sales mirrored global sales trends, posting strong growth during the pandemic which leveled off in 2022 and declined by 3.8 percent in 2023, which remains above pre-pandemic levels. Latin and South American markets saw positive growth in 2023, while Canada (-8.5 percent) and the United States (-2.9 percent) saw declines.
Direct selling continues to be an overwhelmingly women-oriented business. Excluding those markets where reporting was unavailable, Kazakhstan is the only market that reported a male-dominated industry. All other markets reported that women make up 70 to 95 percent of the salesforce, with Malaysia (63 percent) being the only outlier in this data set. Even so, the WFDSA reported that entrepreneurial support for women was rated “unsatisfactory” in 37 out of 49 economies.
By category, Asia/Pacific held 38.6 percent of the global market share for Wellness, which was the largest category overall, capturing 31.7 percent of global product sales. Even with this strength, this was a decline for the category, which held at 36.3 percent in 2019. Household Goods and Durables, however, is on the rise, reaching 17 percent of global product sales, a near steady uptick since 11.8 percent in 2019. Cosmetics and Personal Care ranked second, with 24.2 percent of global product sales, led by the Americas, which reported 28.9 percent of product sales shares in 2023.
WFDSA reports that approximately 12 million fewer independent representatives participated in direct selling worldwide in 2023 than in 2022. This is a continued decline from 2022, which saw a nearly five million persons decrease from 2021. In 2022, the decrease was seen as a return to pre-pandemic levels after heightened engagement during the pandemic, but 2023’s numbers demonstrate a continued downward path.
“While the general sentiment on expectations for 2024 among the DSAs is for flat sales or modest increases, the growth potential for direct selling remains substantial, given the continuing desire of people for entrepreneurial opportunities, despite or even because of the turmoil and change of recent years. About 60 percent of people want to have their own business, and nearly one in four are in business now or expect to be within a year (AGER).
A common theme among the DSAs sharing insights on their local markets is that direct selling is about relationships. Selling based on relationships can be in-person or through various media and can be called by various names, but it is still direct selling. If relationships remain the north star/bedrock value of the channel, direct selling will not only survive, but thrive,” the WFDSA reported.
/ The Americas /
The Americas—North and South/Central—reported a combined $62.6 billion in estimated retail sales in 2023. This region experienced a fall of 3.8 percent in year-over-year sales. After a strong three-year CAGR of 4 percent in 2022, the Americas experienced a 0.9 percent decrease overall. The Americas represents 37.3 percent of global direct selling sales.
Seven Billion Dollar Markets are included in the North and South/Central America region. Wellness and Cosmetics run nearly even in their product category popularity at 27 and 29 percent, respectively. Household Goods and Durables remains third at 12 percent. More than 27.1 million independent representatives were affiliated with direct selling brands in 2023. This number reflects the global pattern, and is a continued drop from 2022, which saw 2.5 million fewer people than 2021.
Regional data for the Americas reported together. However, the Americas are split here to better understand each of the distinct markets.
North America
While its $36.6 billion in sales generated solidified its number one ranking in the world marketplace, the US experienced a challenging year. Year-over-year sales dropped by 9.5 percent and its CAGR dipped 2.9 percent.
Canada’s pandemic-era sales growth of 26 percent posted in 2020 all but slipped away with 2021’s flat performance and 2022’s decline of 18.4 percent. In 2023, the market continued this pattern, posting $2.3 billion in sales with a CAGR of -8.5 percent.
Wellness overtook Cosmetics this year and reported Services revenue surpassed Wellness in the US. Household Goods and Durables fell slightly in popularity to 14 percent.
Independent representative numbers for North America continued their decline following pandemic highs with a regional total of 14.1 million independent representatives, encompassing 12.9 million partners in the United States and 1.1 million in Canada.
South/Central America (LATAM)
The South/Central America region told a mixed story which included high-end sales performance, flat lines and losses.
Argentina continued its trend of top-end sales growth and posted a 114.5 percent increase. While it’s important to note the highly inflationary aspects of Argentina’s market, these increases continue to stand out and represent a country CAGR of 72 percent. Brazil’s growth was particularly notable at 4.6 percent following its sizeable downturn in sales performance in 2021 that led to a nearly $800 million loss and then flat-line performance in 2022.
LATAM’s estimated retail sales showed significant momentum following the previous year’s 2.5 percent year-over-year gains. In 2023, the region saw sales totaling $23.6 billion, a 6.8 percent sales boost from 2022 sales of $22.1 billion, with a regional CAGR of 3.5 percent.
Individual country market statistics are: Brazil ($7.9 billion, -2.0 percent CAGR), Mexico ($6.8 billion, 2.5 percent CAGR), Colombia ($2.3 billion, 10.8 percent CAGR), Peru ($2.1 billion, 6.2 percent CAGR), and Argentina ($1.7 billion, 72 percent CAGR). Inflationary economies like Argentina typically report restated data later in the year.
Cosmetics and Personal Care products once again dominated regional sales at 59 percent, a slight increase from 2022, but significantly lower than 2017’s 67 percent high. Wellness ranked second at 18 percent, while Household Goods and Durables slotted third at 10 percent. Independent representative numbers declined in 2023 to just over 13 million, down from nearly 14.2 million in 2022.
/ ASIA/PACIFIC /
Eight Billion Dollar Markets are located in the Asia/Pacific region and comprise 40.3 percent of the global retail sales for 2023. The region generated an estimated $67.5 billion in estimated retail sales in 2023, a 3.7 percent downturn from $71.5 billion generated in 2022. In 2022, Asia/Pacific boasted 48.7 percent of global retail sales and an almost flat (+0.2 percent) sales growth. While static in nature, that incremental growth represented the first regional increase in five years. In 2023, however, the region’s decrease in sales is a sharp contrast, led by Australia, which saw a 35.8 percent decline in sales and a -15.1 percent CAGR.
The Asia/Pacific region continued to see an exodus of independent representatives. In 2022, the region saw a loss of more than 6.5 million independent representatives, leaving 67.6 million. In 2023, that number dwindled even further to 58.9 million representatives who remain affiliated and sell primarily Wellness (39 percent) products. Cosmetics and Personal Care (17 percent) and Household Goods and Durables (25 percent) are also popular.
As in years past, China continues to impact Asia/Pacific’s regional statistics due to its population size, turbulence in the direct selling marketplace and post-pandemic recovery. From 2019 to 2022, China experienced a decline in its estimated retail sales for four consecutive years. In 2023, that descent halted, as the market posted a flat sales growth of 0.0 percent. While this is not forward momentum, it does signal an optimistic direction.
China posted just over $15 billion in sales in 2023, representing a striking contrast to 2018 when the country seemed poised to overtake the number one ranking of Billion Dollar Markets. It remained fourth for the third year with a CAGR of -7 percent. Independent representative numbers held steady at slightly below 3 million.
Vietnam fell off the Billion Dollar Markets list this year after making its inaugural appearance in 2022. After five years of double-digit growth and a 21st ranking on the list in 2022, the country saw a 19 percent decline in year-over-year sales in 2023, producing an estimated $958 million in estimated retail sales and a reported CAGR of 3.7 percent.
The Asia/Pacific market is enormous and intricate in nature, thus innately volatile due to cultural, environmental and governmental differences. For example, Vietnam’s striking descent contrasts sharply with significant growth in country markets like India, which saw an 11.8 percent sales increase, and Kazakhstan, which saw an astonishing 30.4 percent increase and $708 million in sales.
Smaller emerging markets, like New Zealand, which posted $117 million in sales and experienced a 6.7 percent sales increase, make the market attractive to companies seeking expansion, even as the region experiences challenges. After being the only regional market worldwide to experience growth in 2022, Asia/Pacific sales declined greater than the average global sales rate, dipping 3.7 percent.
Kazakhstan proved to be the region’s surprise standout, while Australia lost significant ground. After a notable but single-digit decline of 7.8 percent in 2022, Australia lost 35.8 percent in sales in 2023. In fact, twice as many countries in Asia/Pacific experienced negative sales than those that saw positive growth.
Asia/Pacific Billion Dollar Markets data reports as follows: Australia ($747 million, -15.1 percent CAGR), China ($15.0 billion, -7.0 percent CAGR), India ($3.4 billion, 8.3 percent CAGR), Indonesia ($1.2 billion, -6.0 percent CAGR), Japan ($10.6 billion, -3.2 percent CAGR), South Korea ($16.2 billion, 0.5 percent CAGR), Malaysia ($9.5 billion, 8.1 percent CAGR), Philippines ($994 million, -7.6 percent CAGR), Taiwan ($4.5 billion, 2.3 percent CAGR), Thailand ($2.1 billion, -6.6 percent CAGR) and Vietnam ($958 million, 3.7 percent CAGR).
/ EUROPEAN UNION & THE REST OF EUROPE /
The whole of Europe, which encompasses countries inside and outside the European Union, is responsible for 21.6 percent of global direct sales. Six countries within this region qualify as Billion Dollar Markets. Europe experienced a rebound year in 2023, posting a 3.4 percent increase in sales and positive 2.2 percent CAGR after a decline of 1.1 percent in 2022 with estimated retail sales of $34.7 billion and a regional CAGR of 1.6 percent.
2023 statistics show 12.7 million independent representatives, a slight uptick from 12.6 million in 2022. This is particularly noteworthy since the region saw a drop of just over three million representatives between 2021 and 2022. Of the region’s 12.7 million representatives, 5.2 million reside within the European Union and 7.4 million in the Rest of Europe. These numbers show a shift of interest from the European Union to the Rest of Europe as numbers within the EU fell by 0.8 million representatives while the Rest of Europe saw almost one million new representatives since 2022.
By category, 32 percent of products sold in Europe are designated Wellness (30 percent, EU); Cosmetics and Personal Care (23 percent, 16 percent EU); Home Improvement (14 percent, 18 percent EU); and Household Goods/Durables (14 percent, 16 percent EU).
European Union
France, Germany, Italy and Poland comprise the EU Billion Dollar Markets and reported $28.5 billion in estimated retail sales in 2023, down from $30 billion in 2022.
Sales saw positive momentum in Austria (3.8 percent), Belgium (13.9 percent), Bulgaria (29.1 percent), Cyprus (2.9 percent), Czech Republic (0.2 percent), Estonia (2.1 percent), Germany (7.0 percent), Greece (3.1 percent), Ireland (5.5 percent), Latvia (1.4 percent), Lithuania (3.0 percent), and Slovenia (6.4 percent). Germany led the region with $19.7 billion in estimated retail sales, establishing a CAGR of 5.1 percent. This is an increase from 2022 when sales were $18 Billion with a CAGR of 3.1 percent.
After suffering a decline of 5 percent in 2022, both France and Poland held steady at a flatlined 0.0 percent sales growth. France posted $4.7 billion in estimated retail sales with a CAGR of -1.0 percent, while Poland reported $1 billion in sales with a CAGR of 1.0 percent.
Rest of Europe
The outlook in the Rest of Europe is a mixed bag. Russia saw another year of decline, albeit a less steep descent. In 2022, the country experienced a 22.6 percent loss in sales. That number lessened to -7.3 percent in 2023. Sales in the country were $1.2 billion with a CAGR of -11.7 percent. The United Kingdom also felt painful declines of 10.0 percent, but this too was a softer landing than 2022, which posted 21 percent losses. Even so, the United Kingdom held onto the Billion Dollar Markets list, reporting $1.1 Billion in sales.
Product category reporting is unreliable for the Rest of Europe as a whole; however, 52 percent of Russia’s 4.6 million independent representatives sell Cosmetics and Personal Care products, while Wellness is the focus of 28 percent. United Kingdom reports 45 percent Wellness and 44 percent Cosmetics and Personal Care. There are just over 320,000 independent representatives affiliated with direct selling companies in the UK.
One key revenue number not reflected in the WFDSA report is the remarkable numbers posted by Utility Warehouse (UW) in the United Kingdom. For the fiscal year ending March 31, 2024, the company reported revenue of $2.6 billion with a record profit of $451 million, a 16 percent increase over the previous year.
Want to know more? Read the full report.
About the Research
This collaborative, global data collection effort of the World Federation of Direct Selling Associations, Seldia (The European Direct Selling Association), and local direct selling associations and their member companies around the world, depicts the state of the global direct selling industry for 2023.
Compiled annually, this collection of statistics is a result of more than 5,000 person hours completed in collaboration with independent third-party vendor Paul Bourquin of The Cadmus Group, who was responsible for direct contact between DSAs and member companies to ensure confidential handling of data and strict confidential protocols. Individual market data is listed in local currency figures, which are converted into US dollars using current year constant dollar exchange rates to eliminate the impact of currency fluctuation. All statistics are based on estimated retail sales and in some instances may be restated using actual sales data as they become available. Statistics for some markets represent direct selling association member companies only and not the entire industry in that country. Other statistics are WFDSA research estimates.
From the October 2024 issue of Direct Selling News magazine.
