By the end of 2023, the size of the global direct sales market will approach $300 billion. According to analysts' forecasts, further growth is expected from 2024 to 2030, averaging 5% annually -  by 2030 to reach $470 billion in size. In this article, we have conducted an analysis of the global direct sales market and explored the key trends in the MLM industry for the current year.

Global direct sales dynamics

The direct sales industry began its development as early as 1933 and has since been dynamically evolving, opening new horizons for businesses. Over the past few years, the industry has faced several challenges, including the COVID-19 pandemic, economic instability, and global inflation. Nevertheless, the industry has demonstrated resilience and adaptation to these new conditions.

According to the WFDSA (World Federation of Direct Selling Associations) research, the global direct sales market has grown by 2.8% in dollar terms and has maintained a 0.9% compound annual growth rate (CAGR) from 2019 to 2022.

During the pandemic period, network marketing sales increased to $175.554 million, and in 2022, they amounted to $172.891 million, which is 1.5% less than the previous year. Despite this slight decrease in sales in 2022, the beginning of 2023 already showed active growth, which continues to be observed.

The network marketing industry is developing unevenly across different continents and countries. In terms of sales volume in 2022, among the most significant markets in regional distribution:

  1. Asia

Direct sales in the region account for 41.2% of the global market and have reached $71,718 million. Among the countries in the continent, South Korea has the highest industry revenue at $18.4 billion. Kazakhstan shows great potential for MLM business, with the market of the country growing by 28% in 2022, followed by Singapore at 13.9%, and Vietnam at 11.7%.

  1. America

MLM industry sales for 2022 amounted to $65,217 million, representing 37.7% of the global total. The most developed industry is in the North American region, with sales volume exceeding $43.1 million. The United States leads the market in America, contributing to more than $40 billion in industry revenue.

  1. Europe

With sales reaching $34,700 million, the continent's share in global direct sales stands at 20.1%. Among European countries, the network marketing industry is actively expanding in Germany with a market volume of $17,986 million, France at $4,620 million, and Italy with $2,914 million.

  1. Africa

The continent's network marketing sales for 2022 reached $1,266 million, accounting for 0.7% of the global market. The network marketing industry is most developed in South Africa, with their revenue nearing $600 million.

 

Distributors in network structures

Even under the influence of a complex economic environment and other negative factors, the total number of distributors in the direct sales industry continues to grow.

According to Statista, by the end of 2022, the network marketing market had engaged 180.5 million distributors worldwide. By September 2023, their number had already increased by 0.9% to reach 182.1 million people.

The continuous expansion of distributor networks is facilitated by overall digitization, simplifying the processes of education, partner searching, and product sales. Entry into MLM business is also encouraged by the desire to improve one's financial situation – over 40% of people worldwide are dissatisfied with their income.

75.5% of distributors work in direct sales to earn additional income. For the remaining 24.5% of people, MLM serves as their primary source of income.

Among all distributors, 132.5 million are women, which makes up 72.8% of the total. This trend is due to the fact that network marketing allows women to work from home with a flexible schedule, easily balancing work with household responsibilities. Additionally, women are motivated by their desire to become financially independent and build their own businesses.

According to research from Direct Selling News, in the regional distribution by the number of distributors, Asia leads with 74 million people, an increase of 2.5% from the previous year. The second region in terms of MLM partner involvement is America with 64 million people (an increase of 1.2%), and Europe takes the third place with 42.5 million distributors (an increase of 0.9%).

Popular product categories in MLM

Network marketing offers businesses the opportunity to boost sales without significant advertising expenses, which is why more and more companies are adopting this strategy to sell their products and services. Direct selling promotes approximately 100 product categories, with the most popular ones being:

  • Wellness

Dietary supplements, vitamins, and various nutritional additives are the most popular product category in the direct selling market, constituting 30% of the global volume. Sales of wellness products are led by Asia, where they hold a 42% share, and Europe with 18%. Among countries, the United States has the largest share in this category at 20.1% of the market, followed by India at 17.8%.

  • Cosmetics and Personal Care

Decorative cosmetics, perfumes, as well as facial, body, and hair care products make up 22.6% of industry sales. The highest volumes in this category are found in America, representing 23% of the region's industry, and in Europe at 15%. Cosmetic products are widely popular in Germany, accounting for 27.1% of the country's market, and Italy at 22%.

  • Home goods

Household appliances, kitchenware, household chemicals, and other home products make up 14.9% of global MLM sales. A significant share of this category's market is in Europe, representing 25% of the total volume, and in America, it's at 20%. Home and living products have a strong demand in Germany, accounting for 28% of all sales, the United States at around 27%, and the United Kingdom at 25.9%.

  • Travel and leisure

Tour organization, ticket sales, hotel or car rentals, and other travel services cover approximately 7% of the network marketing market. The largest share of the industry is in Europe, comprising 12%, and Asia at 10%. MLM travel companies are highly sought after in China, making up 20% of the industry's turnover, and in France, it's 10%.

  • Real estate

Real estate sales, rental services, and attracting investments in construction make up 5% of the direct sales industry. It thrives best in North America, comprising 10% of the market, followed by Europe at approximately 7%, and Asia at 5%. In the United States, real estate constitutes 15% of the MLM market turnover, while in Turkey, it's 10%.

The network marketing industry continues to grow in 2023, helping businesses effectively scale their operations on all continents. It's important to understand that building a profitable business in this sector requires a deep understanding of its specifics and peculiarities. The FlawlessMLM team has been assisting its clients in creating and launching successful MLM companies for 20 years. If you want to build your business in the direct sales industry, follow the link https://flawlessmlm.com/en/mlm_consulting to get answers to all your questions.