The Indian direct selling industry crossed the US $3.25 billion in retail sales in 2021 and maintained its 12th place in global rankings among direct sellers worldwide, a report released by the World Federation of Direct Selling Associations (WFDSA) said.

India reported the highest compound annual growth rate at 15.7 % over a three-year period among the top 15 direct selling countries, the report said. India also registered the highest year-on-year growth of 7.7 %. The report noted that India despite Covid-induced disruptions and challenges, showed resilience, and reported the highest annualized growth among countries with retail sales over the US $3 billion.

According to the report, India was placed sixth in the Asia Pacific region, with the top five positions held by Korea, China, Japan, Malaysia, and Taiwan. The US continues to lead the list in the global direct selling industry with a 23% share, with sales of US $42.67 billion.

Overall, the Indian direct selling industry reported marginal growth of 1.5%.

“India’s direct selling market is growing steadily and will likely be among the top five international markets in the next decade,” the Indian Direct Selling Association (IDSA) said in a statement.

“The growth reaffirms the industry’s commitment while protecting consumer interests and those of the direct sellers,” IDSA chairman Rajat Banerji said. Direct selling companies in India include Amway, Oriflame, Tupperware, Modicare, and Herbalife, among others.

The government released new rules for the direct selling industry under the Consumer Protection (Direct Selling) Rules 2021 in December last year, banning pyramid and money circulation schemes. The move was aimed at separating legitimate players from Ponzi scheme operators.

The domestic industry had an active distributor workforce of 7.9 million last financial year, up 6.3% over 2019-20, a previous report by the IDSA said. Sales stood at about Rs 18,067 crore in 2020-21, an increase of 7.7% from a year earlier.