Direct sales in India grew 12% in 2022-23, crosses Rs 21,000 crore in turnover: Survey
According to a report released by the Indian Direct Selling Association (IDSA) on Wednesday, the direct sales sector in India experienced a notable growth of over 12% in the fiscal year 2022-23, reaching a turnover of Rs 21,282 crore. Direct sales, which involve transactions directly between a brand and the end-user without intermediaries, showed significant improvement across all sectors compared to the previous year, which was affected by the pandemic.
The survey, conducted by market research firm KANTAR, revealed that the Northern region led in turnover with 30%, followed by the East with 25%, the West with 22%, the South with 15%, and the North East with 9%. Maharashtra emerged as the top state with a 12% turnover, followed by West Bengal and Uttar Pradesh, each with 10%.
The wellness and nutraceutical products category remained the most popular, constituting 73.5% of the total turnover, while cosmetics and personal care products accounted for 11.3%.
Over the past four years, the industry has shown a Compound Annual Growth Rate (CAGR) of 8.3%, with the number of active direct sellers increasing from 84 lakh to approximately 86 lakh.
Vivek Katoch, Chairperson of IDSA, expressed optimism about the industry’s growth trajectory, citing a steady CAGR of 8.3% and anticipating India’s entry into the top five global direct selling markets sooner than previously estimated. Harish Pant, Vice Chairman of IDSA, highlighted the significant increase in the number of active direct sellers, indicating growing trust and confidence in the direct selling business.
The IDSA serves as a self-regulatory body for the direct selling industry in India, bridging the gap between the industry and government policy-making bodies to support its interests.
