The report said direct selling marketselling to customers without the use of intermediarieswas valued at Rs 3,300 crore last fiscal and will grow at 10-15% for the next 1-2 years.
This is expected to take the overall, direct selling industry, excluding insurance to Rs 5,320 crore by 2012-2013, the report said.
The E&Y report attributed the robust growth of the sector to expansion by several direct selling companies to tier I and II as well as the rural areas.
It said health, comprising of products related to nutrition, wellness and supplements, has emerged as the leading category, contributing 32% to the overall revenues of the direct selling companies.
At this time of the slowdown, this market has grown because of the good growth of the health sector, which is largely recession free. Besides, it has also become a source of employment for several people, Indian direct selling association chairman and managing director Oriflame India Fredrick Widell said.