MLM business in Italy: features and perspectives

MLM business in Italy has been showing rapid growth over the past few years, and the country now ranks third among the leading network marketing markets in Europe. But what contributes to such growth of the MLM industry in the country and what legislative norms should be considered for successful operation of your network business in the Italian market? Let's figure it out.

Economic Dynamics of Italy

Italy is known as one of the most culturally and economically advanced countries in the world. The state operates a continuously growing social market economy, ranking 3rd in Europe and 8th in the world in terms of GDP size.

In April 2024, Italy's GDP reached over $2.3 trillion, with a GDP per capita of 39,580 dollars. According to data from Italy's National Institute of Statistics, the country's GDP is expected to grow by 1.1% in 2025.

Italy has a well-developed service sector, accounting for 65% of its GDP. The cornerstone of this sector is tourism - the country ranks 5th in the world in terms of visitors, with 12.6 million tourists visiting Italy in January 2024 alone. The industrial and trade sector also makes a significant contribution to the country's economy, representing about 23% of the GDP.

When it comes to the country's population, according to the World Population Review, it currently stands at over 59.2 million people. Research from Statista shows that about 15% of Italians are looking for additional income opportunities online, and over 60% of the country's population prefer online shopping. These trends create favorable conditions for the development of MLM business in Italy.

Features of the MLM Industry in Italy

Network marketing in Italy is a large market, rich in a variety of products and services. It is currently one of the largest in Europe in terms of growth rate and openness to new projects.

According to the World Federation of Direct Selling Associations (WFDSA), the sales volume of the MLM business in Italy is growing at an average annual rate of 1.2% and has already exceeded $2.9 billion. The share of this indicator in total sales in the European market is 8.3%.

There are already about 1,000 MLM companies operating in the country, and more than 650,000 Italians work as independent distributors in these companies. Analyzing the demand among the local population, we have identified the most common product categories in the Italian network marketing market:

1. food products - the leading category, with revenue exceeding $484.29 million;

2. cosmetics - revenue from the sale of natural cosmetics has increased to $364.8 million;

3. clothing and accessories - the share of this category in the MLM business in Italy is 7% or $202.37 million;

4. energy - a category with a profit of $177.64 million, which is 19.8% higher than the previous year's figure

Network marketing in Italy is clearly regulated by legislative norms and rules. The country has the Direct Selling Association (AVEDISCO), whose main goal is to protect the rights of consumers and distributors. To support the industry's development, AVEDISCO also represents the interests of Italian and foreign MLM companies in the country.

On August 17, 2005, the Italian government introduced the Law "On the regulation of the direct sales market and the protection of consumers from pyramid schemes." According to this law, rules for conducting MLM business in Italy were established. It describes the peculiarities of taxation of network projects, conditions for profit distribution to distributors, and the mandatory presence of identification cards for partners.

Italian legislation also states that distributors in the country are not "direct sellers." They are a type of intermediaries referred to as "demonstrators".

The Italian direct sales law provides that demonstrators do not purchase products for resale. They seek potential consumers and establish a connection between them and the manufacturing company, earning a profit from attracting buyers.

Leading MLM Companies in Italy

The network market in Italy is home to globally renowned MLM corporations, including Tupperware, Avon, Vorwerk Herbalife, and others. However, there is also active growth of Italian network companies today:

1. Chogan

Project website - chogangroupspa.com

Specialization: health, decorative and skincare cosmetics, perfumery

Chogan Group - the largest Italian MLM company, founded in 2013. According to Chogan, their goal is to create high-quality products at an affordable price for everyone. The company sells products based on natural ingredients under the brand names Brilhome, SuppleFit, Aurodhea, Peptilux, and Olfazeta. Chogan is gaining popularity in Europe and South America, and in 2022 sales volumes increased by 28% reaching $101 million.

2. Snep International

Project website - mysnep.com

Specialization: nutrition, cosmetics, bioactive supplements

Snep SpA was founded in 2014 by Italian Giorgio Burgalassi and is now well-known in all European countries. The company develops innovative products for beauty and health. According to Snep, new products are released to the market only after testing in laboratories to confirm their effectiveness and quality. Distributors are a key value for Snep, having the greatest impact on their development. By the end of 2022, Snep's revenue increased by 35% reaching $54 million.

3. Evergreen Life

Project Website - evergreenlife.it

Specialization: facial and body care, dietary supplements, health

Evergreen Life Products - an Italian MLM company founded by Livio Pezle in 2010. The company's development history began with the creation of OLIVUM olive leaf extract and OLIFE dietary supplement based on it. Later, the product range expanded to include body care products and healthy food products based on OLIVUM. Evergreen Life claims that their main goal is to support people's health and financial well-being. By uniting over 40,000 distributors, the company reached a revenue of $26 million in 2022.

Summary

Network marketing is a very promising industry in Italy, which opens up great opportunities for scaling existing MLM businesses and launching new projects. However, the fairly high competition requires a careful approach to choosing a product and creating an attractive compensation plan. Only by choosing the right product, developing a sound reward structure, and considering all legal requirements, you will be able to successfully grow your network business in Italy.