Direct Selling in the United States 2022
Innovation, adaptation, and resilience propel growth amidst challenges
As the calendar flipped to the beginning of 2022, it not only marked the start of a new year but also a chance to tie up loose ends from 2021 in the United States. Inarguably, the year 2021 resembled a rollercoaster ride presenting a range of challenges, accomplishments, and high-priority concerns that continued to demand attention and resolution as the nation progressed.
Though the world continued to grapple with uncertainties brought by the global pandemic and the shifting sands of consumer preferences, direct selling in the United States continued to show remarkable resilience and growth throughout 2022.
DSA Reports: Record-breaking Sales Figure
According to MLM statistics, the industry saw an impressive annual sales increase of 5% from 2019 to 2022, surpassing a 30-year average growth rate of 4.03%. This growth can be attributed to the industry's ability to leverage e-commerce, social media, and other digital tools effectively.
The salesforce also saw a healthy growth rate of 3.93%, showcasing the industry's adaptability over three decades, regardless of changes in business, the economy, or society.
But in 2022, U.S. direct retail sales experienced a 5% decrease, amounting to $40.5 billion. Nevertheless, it marked the second-highest level of U.S. direct retail sales ever recorded.
The United States has accounted for 24% of the global market and salesforce over the past three decades, generating an astounding $3.7 trillion in worldwide sales. It underscores the contribution of the direct selling fraternity and its ability to rise above adversity.
Pandemic challenges and changing attitudes of Americans were notable factors. Amidst these unprecedented leaps, direct selling companies in the United States continued to display impressive endurance. The adaptation model that these companies chose not only safeguarded jobs but also introduced a new generation of entrepreneurs to the direct selling model.
To gauge the size and breadth of the industry within the U.S. market, the Direct Selling Association (DSA) undertakes an annual study. This year's findings shed light on the positive aspects of the direct selling industry, particularly during the challenging times brought about by the ongoing pandemic. Notably, the direct sales wellness sector leads the way with a 34.7% share, followed closely by the services sector at 30.7%. Other categories that received considerable attention include home care, family care, personal care, education, clothing, jewelry and accessories, among others.
Reflecting on the deep scars that COVID19 left behind, individuals across all age groups have placed a significant emphasis on health and wellness. Their investment focused more on improving their lifestyles, self-care products, preventive healthcare, fitness, weight management, and dietary supplements.
Direct Selling’s Data-driven Impact
Direct selling in the USA is all about the experiences of 6.7 million direct sellers who generated $6,045 in retail sales over the year, highlighting their substantial contribution to the industry.
In the same year, a total of 41 million preferred customers and discount buyers made purchases through this channel, excluding the individuals who have not yet entered into agreements with direct selling companies.
The survey results have clearly made some important impressions. Direct selling retail sales remained stable, although there was a slight decrease in the total number of direct sellers. Furthermore, the demand for products and services within the direct selling sector continued to undergo transformation and evolution in 2022.
Demographic Insights and Hispanic Ethnicity
Direct selling champions women's empowerment, with 75% of direct sellers and discount buyers being women. The rest 25% comprises men. Additionally, the share of the members between the age groups 35 to 44 accounts for 26%, and again there is a growing proportion of individuals aged 55 and above in the salesforce. The industry's flexibility and personal development opportunities have attracted individuals from different walks of life.
The statistics reveal a slight uptick in the representation of Hispanics within the salesforce in 2022, reaching 23%. In comparison, the U.S. Census Bureau reported that 18.9% of the U.S. population was Hispanic in 2021.
Creating a Better Tomorrow
2022 was a year where direct selling in the USA demonstrated its ability to delivering not just products but also the promise of a brighter future to countless individuals, embodying the spirit of resilience and commitment to progress.
What truly set direct selling apart was its profound impact on these direct sellers. The success stories of network marketing legends go beyond selling products; it’s all about forming a community of entrepreneurs, offering guidance, and serving as the means to turn their aspirations into reality.
Change maybe challenging, but with proven marketing strategies, the direct selling industry is on its way to shaping a promising future.