With revenue of $21.51 billion and over 909,000 distributors by the end of 2022, Germany has become the largest direct sales market in Western Europe. 

In this article, we have conducted an analysis of the economic trends and peculiarities of the network marketing industry in Germany and identified the top 5 MLM companies in the country.

Economic dynamics of Germany

Germany is a European country known for its highly developed market economy, a high level of innovation, and low levels of corruption. The German economy ranks first in Europe and third globally in terms of nominal GDP.

The key sectors of the German economy today are services and trade, which constitute 68.6% of the country's GDP, industry at 30.7% and agriculture at 0.7%.

In the second quarter of 2023, Germany's GDP amounted to $4.4 trillion, with a GDP per capita of $52800. According to the forecasts of the country's Central Bank, GDP is expected to grow by 1.1% in 2024 and by 1.5% in 2025.

Due to the gradual decrease in energy prices in Germany, inflation has decreased to 4.5% in the previous month. It is expected to further decrease to 2.6% in 2024, and this should be taken into account when setting prices for your products.

Among European countries, Germany ranks 2nd in terms of population, with over 84 million people, and an unemployment rate of 5.7%.

According to a study by DIW Berlin, approximately 60% of employed Germans are dissatisfied with their income levels and are seeking additional sources of earnings. This makes it easy to attract distributors to the network marketing business in the country.

To attract more investments and stimulate the business environment, the German government provides support to small and medium-sized enterprises. Grant programs, simplified tax and financing systems, and business advisory organizations have been established in the country.

Direct sales market trends in Germany

Network marketing is a legitimate business model that has been developing in Germany for several decades. The country is among the top 10 direct sales markets globally and many foreign companies are expanding their presence here.

According to BDD forecasts, by the end of 2023, the number of distributors in the country is expected to increase to 913,000, and the overall market profitability will grow by 5.3%.

The growth of MLM companies today and positive forecasts are driven by active digitization of the industry. Despite personal meetings remaining the primary method of product promotion, 47% of projects are already conducting effective online parties and consultations.

The high level of activity of Germans on social media allows MLM businesses in Germany to find partners and customers much faster.

Among the popular niches in Germany's direct sales market, home goods account for about 11% of all companies, food products - 11%, cosmetics and personal hygiene - 10%, and health - 8%. Having quality certificates can significantly boost demand for your products in the country, as quality is paramount for Germans.

Since 1967, the Direct Selling Association (BDD) has been active in Germany. BDD has established a Code of Conduct for MLM companies to protect industry interests and prevent the development of pyramid schemes.

To foster the development of the direct sales industry in Germany, BDD has developed an online training course for the qualification enhancement of distributors and a guide for MLM project founders. The guide outlines the legal requirements for such companies and provides practical advice on scaling the business.

The German government rigorously regulates the direct sales market in the country. To establish your business here, it is essential to acquaint yourself with all legal requirements, obtain a license, and adhere to the common standards for MLM companies in Europe.

 

Top 5 MLM сompanies in Germany

The network marketing strategy is propelling German businesses to new heights. Today, many MLM companies founded in the country have become leaders in the global direct sales industry. We have identified five successful network projects in the German market:

5. Tupperware

Project website - tupperware.com

Products: cookware, kitchenware

Tupperware was founded in 1946 in the USA. The core of their product range includes plastic cookware and food storage containers. According to Tupperware, their products are made from 100% pure plastic with a long-lasting guarantee, which reduces environmental pollution. The company is known in 30+ countries and unites 1.9 million distributors.

4. LR Health & Beauty

Project website - lrworld.com

Products: cosmetics, dietary supplements

LR was founded in a small German town in 1985 and is now present in 29+ countries worldwide. LR positions itself as an expert in manufacturing beauty and health products based on natural ingredients. LR products are produced in their own laboratories and are promoted through a network of approximately 420,000 partners.

3. Herbalife

Project website - herbalife.com

Products: health products, dietary supplements

Herbalife is an international network marketing company that entered the market in the United States in 1980. By producing unique weight control supplements, sports nutrition, and body care products, Herbalife has become a leader in the health and beauty niche. The company has over 200,000 distributors, and its products are marketed in 90 countries.

2. Jafra Cosmetics

Project website - jafra.com

Products: decorative and skincare cosmetics, perfumes

Jafra was founded in the USA in 1956 and has been a subsidiary of the Vorwerk corporation since 2004. Jafra's main mission is to create high-quality cosmetic products and provide opportunities for financial independence for women around the world. The company boasts more than 400,000 partners and over 1 million satisfied customers.

1. Vorwerk

Project website - vorwerk.com

Products: household appliances, home goods

A German corporation that entered the market in 1883 and has become the most profitable network marketing company in the world. Vorwerk claims to have achieved success through the production of innovative household appliances that simplify people's lives. The company continues to expand its range and sales horizons in 70+ countries.

Network marketing in Germany has maintained a growth trajectory for over a decade, attracting entrepreneurs from around the world. If you want to create a successful MLM business, follow the link https://flawlessmlm.com/en/mlm_consulting and submit your application. Our team at FlawlessMLM will help you launch a network project that will deliver the desired results.