Direct selling industry grows 4 pc in FY24 to Rs 22 150 cr adds 1.86 lakh direct sellers

New Delhi, Apr 10 (PTI) The direct selling industry achieved a 4.04 per cent of year-on-year growth in FY24, reaching an estimated value of Rs 22,150 crore, according to the latest report released by the industry body IDSA.
     The direct selling industry, which has the participation of over 470 small and big firms in India, added about 1.86 lakh active direct sellers, bringing the total to about 88 lakh.
     "Over the past five years (2019-20 to 2023-24), the industry expanded at a CAGR of 7.15 per cent, growing from Rs 16,800 crore to Rs 22,142 crore," it said.
     As earlier, wellness & nutraceuticals remained the top-selling category, which contributed 64.15 per cent of total sales, followed by cosmetics & personal care at 23.75 per cent.
     "Together, these two categories accounted for 87.9 per cent of total direct selling sales in 2023-24," said the annual report released by IDSA in association with Ipsos Strategy3.
     Region-wise, the north led with a 29.8 per cent share for the direct selling industry, followed by the east with 24.2 per cent, in which West Bengal alone contributed 11.3 per cent to the national turnover.
     The western region accounted for 22.4 per cent of sales and the southern region contributed 15.3 per cent. The eight states in the Northeast collectively accounted for 8.3 per cent of the total sales of direct selling.
     At the state level, Maharashtra emerged as the top contributor, accounting for 13 per cent of the gross sales.
     In FY24, Maharashtra, West Bengal, Uttar Pradesh, Bihar, Karnataka, Odisha, Haryana, New Delhi, Assam, and Gujarat emerged as the top 10 states.
     "Collectively, these states accounted for 70 per cent of the total industry revenue, highlighting their dominant role in driving direct-selling growth nationwide," it said.
     Besides, the number of active direct sellers also increased to about 88.06 lakh, up 2.2 per cent, in comparison to 86.2 lakhs in 2022-23.
     "The gender composition of active direct sellers included 56 per cent males and 44 per cent females, reflecting a relatively balanced participation," it said.
     Among the 88 lakh active direct sellers, 73.2 belonged to the 25-54 age group.
     "Meanwhile, younger participants (18–24 years) formed 15.2 per cent, and seniors (54+) accounted for 11.6 per cent, highlighting a broad generational presence in the industry," it said.
     Regarding the education level of direct sellers, the IDSA report said 52 per cent of them are graduate and 26 per cent are postgraduate.
     The direct selling in-home demonstrations remain the most prevalent sales channel, however, digital platforms are increasingly playing a role. Now, 17 per cent are leveraging social media platforms such as Facebook, Instagram, etc, and 15 per cent are using WhatsApp and messaging apps for sales.
     IDSA is an autonomous, self-regulatory body for the direct selling industry in India, representing leading members as Amway, Avon, Atomy, Blulife, Herbalife, Modicare, Oriflame, Tupperware, etc.
     The direct selling concept is considered to have been kick-started in India in the late 1990s. The industry witnessed major growth with many global players entering the Indian market.

(This story has not been edited by THE WEEK and is auto-generated from PTI)