India’s Direct Selling Industry has scaled the Rs. 19000 Crores annual sales peak, thereby recording YoY growth of 5.3%, as per data published in the Annual Survey 2021-22 on Direct Selling in India, released by the Indian Direct Selling Association (IDSA) earlier today.
The Indian direct selling industry grew to Rs. 19,020 Crores in 2021-22, an increase of Rs. 953 Crores over the Rs. 18,067 Crores annual sales figure achieved in 2020-21. The financial year of 2021-22 was dominated by the deadly Delta variant wave of the COVID19 pandemic and consequently led to restrictions to business, ability of consumers to spend owing to depressed income and spend 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%, growing from INR 11,650 Crores in 2017-18 to INR 19,020 Crores in 2021-22. The share of IDSA members in the total sales of the Direct Selling industry stood at 55% in 2021-22. Of this the Wellness & Nutraceutical category contributed ~59% of Direct Selling sales in India, followed by 22% revenue contribution by the Cosmetics and Personal category.
Furthermore, the number of Active Direct Sellers in the country stood at around 84 lakhs, registering a growth of ~6% from 79 lakhs in 2020-21. The industry comprises 56% Male Direct Sellers to 44% Female Active Direct Sellers. This Gender Ratio has changed in favour of Male Direct Sellers from 2020-21 where it stood at 53% of Male and 47% of Female Active Direct Sellers.
Speaking on the release of Annual Survey Report on the Status of Direct Selling in India FY 2021-22 , Mr. Rajat Banerji, Chairman – 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%. I am pleased to note that the contribution of IDSA member companies remains strong a healthy 55% 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% of the Indian direct selling sales, followed by cosmetics and personal care which contributed 22% of the sales.
Ipsos Strategy3 has been knowledge partner of this annual report, for the past three financial years.
The Indian Direct Selling Association (IDSA) is an autonomous, self-regulatory body for the direct selling industry in India. The Association acts as an interface between the industry and policy-making bodies of the Government facilitating the cause of the Direct Selling Industry in India. IDSA strives to create and further an environment conducive to the growth of the direct selling industry in India, partnering industry and government alike through advisory and consultative activities. IDSA catalyzes change by working closely with the government on policy issues, enhancing efficiency and ushering in desired credibility, clarity & confidence in Direct Selling.