The multilevel marketing (MLM) sector, particularly its prominent players in the nutritional supplement space, is at a pivotal juncture, with recent year-end earnings reports from giants like Herbalife and Usana offering a glimmer of hope amidst a period of considerable contraction. These financial results are prompting a crucial question: is the network marketing industry, after years of gradual decline, finally poised for a resurgence?
Herbalife, the undisputed behemoth in this segment, recently unveiled its fourth-quarter earnings, reporting a robust $1.3 billion in revenue. This figure represents a significant 6.3% increase compared to the same period in the preceding year, signaling a positive momentum for the company. For the entirety of the fiscal year, Herbalife, widely recognized as the world’s largest MLM dedicated exclusively to nutritional products, achieved $5 billion in revenue. While this figure remained relatively stable in absolute terms (showing less than a 1% year-over-year increase), it demonstrated a more encouraging 2.5% gain when adjusted for currency fluctuations. This stability, especially in a challenging global economic climate, suggests a resilience in Herbalife’s established distribution network and product appeal.
Adding further weight to Herbalife’s optimistic outlook is the announcement of a substantial investment from global soccer icon Cristiano Ronaldo. Ronaldo, who has been a long-standing brand partner for Herbalife, has injected $7.5 million into the company, acquiring a 10% stake in Pro2Col Health, Herbalife’s recently acquired subsidiary. Pro2Col Health is a proprietary software platform engineered to deliver AI-driven health recommendations directly to consumers. This strategic investment not only bolsters Herbalife’s financial standing but also underscores a commitment to leveraging cutting-edge technology to enhance consumer engagement and personalized wellness solutions, a key trend in the modern health and nutrition market.
Simultaneously, Usana, another significant player in the MLM nutritional supplement arena, also reported strong financial performance for both the fourth quarter and the full year 2025. The company’s net sales for the fourth quarter reached $226 million, marking an approximate 6% year-over-year increase. For the full fiscal year, Usana’s net sales climbed to $925 million, reflecting a substantial 8% year-over-year growth. These figures suggest that Usana, while smaller than Herbalife, is also navigating the market effectively and capturing growth opportunities.
The Long Shadow of Decline: Evidence of MLMs Falling Behind
Despite the recent positive indicators from Herbalife and Usana, a comprehensive examination of the broader industry trends reveals a more complex narrative. The nutritional segment of the network marketing industry has experienced a notable contraction over the past several years, a stark contrast to the decades of consistent growth that preceded it.
Data compiled by the industry publication Direct Selling News (DSN), which annually publishes a "Global 100" list of the world’s top MLMs across all sectors, highlights this trend. In 2019, the top five MLMs primarily or exclusively focused on nutritional product sales – Amway, Herbalife, NuSkin, Usana, and Nature’s Sunshine – collectively generated $17.2 billion in annual revenue. Fast forward to 2024, and these same five companies reported a combined annual revenue of $15.4 billion. This represents a decline of approximately $1.8 billion in total revenue over a five-year period.
To contextualize this decline, global Gross Domestic Product (GDP) experienced significant growth during the same timeframe. According to the Council on Foreign Relations, world GDP expanded from $87.5 trillion in 2019 to $107.8 trillion in 2024. Had the combined annual sales growth of these top five nutritional MLM companies merely kept pace with global GDP growth, their collective annual revenue for 2024 would have been approximately $21 billion. This stark comparison underscores the extent to which the nutritional MLM sector has underperformed relative to the overall global economy, indicating a loss of market share and influence.
Is the MLM Swoon Finally Ending? A Multifaceted Outlook
The conflicting data points surrounding the long-term trends in the MLM industry necessitate a nuanced analysis. While the recent positive results from Herbalife, Usana, and Nature’s Sunshine (which, prior to its early March year-end reporting, had already indicated a strong third quarter) might suggest an end to the industry’s prolonged downturn, a closer inspection reveals significant caveats.
A substantial portion of Usana’s recent sales growth, for instance, can be attributed to its direct-to-consumer supplement subsidiaries, which operate outside the traditional MLM framework. The company’s core MLM business, the engine that has historically driven its operations, has demonstrated stagnant growth, raising questions about the sustainability of its MLM model in its purest form. This diversification strategy, while financially beneficial, blurs the lines of what constitutes "MLM growth" and highlights a strategic pivot rather than a uniform industry recovery.
NuSkin’s recent performance paints a more somber picture. The company’s 2025 full-year revenue fell by more than 16% compared to its 2024 figures, a significant setback that directly contradicts any notion of a widespread industry revival. This decline suggests that not all major MLM players are benefiting from the same market conditions, and that individual company strategies and market positioning play a crucial role in their financial outcomes.
Amway, a privately held entity, has historically provided an annual earnings statement, typically in mid-March. While official figures for 2024 are anticipated, past statements have consistently shown a pattern of steady earnings erosion. In 2024, Amway reported annual revenue of approximately $7.4 billion, a 3% decrease from 2023. This decline is particularly noteworthy considering that Amway once commanded nearly $12 billion in annual revenue, as documented by the DSN Global 100 list. This historical trajectory for Amway further reinforces the argument that the MLM sector, at least in its traditional form, faces significant headwinds.
The Shifting Landscape: Technological Integration and Consumer Preferences
Several underlying factors are likely contributing to the challenges faced by the traditional MLM model. One significant factor is the evolving consumer landscape and the increasing preference for direct-to-consumer (DTC) channels. Consumers now have access to a vast array of products through online marketplaces and brand websites, often bypassing the need for a personal sales representative. This shift is amplified by the rise of e-commerce platforms and social media marketing, which allow brands to reach consumers directly and efficiently.
Furthermore, the inherent complexities and perceived drawbacks of the MLM business model, such as the emphasis on recruitment over product sales for some distributors and the potential for financial strain on participants, have faced increasing scrutiny. Regulatory bodies in various countries have heightened their oversight of MLM operations, leading to more stringent compliance requirements and, in some cases, investigations into alleged pyramid schemes.
The investment by Cristiano Ronaldo in Herbalife’s Pro2Col Health subsidiary is a clear indicator of how forward-thinking companies are adapting. The integration of AI-driven technology and personalized recommendations addresses a key consumer demand for data-backed wellness solutions. This strategic move suggests that future success in the nutritional supplement market, whether through MLM or other channels, will likely depend on embracing technological innovation and offering tangible, science-backed value to consumers, rather than relying solely on traditional network marketing strategies.
Future Outlook: Adaptation and Diversification as Keys to Survival
The recent financial reports from Herbalife and Usana offer a nuanced perspective on the state of the MLM industry. While they signal potential pockets of resilience and growth, they also underscore the critical need for adaptation and diversification. The industry is not uniformly experiencing a resurgence; rather, individual companies are demonstrating varying degrees of success based on their strategic choices, product innovation, and ability to navigate a rapidly changing consumer and regulatory environment.
The broader trend indicates a contraction of the traditional MLM model, particularly in the nutritional supplement sector, which has struggled to maintain pace with global economic growth. Companies that are successfully weathering this storm appear to be those that are either diversifying into DTC channels, investing in technological advancements, or adapting their core MLM strategies to better align with contemporary consumer expectations and regulatory frameworks.
The long-term viability of MLMs in the nutritional supplement space may hinge on their capacity to evolve beyond historical models. The integration of sophisticated technology, a commitment to transparent product efficacy, and a focus on genuine customer value, rather than purely recruitment-driven incentives, will be crucial. As the market continues to shift, the companies that demonstrate agility and a willingness to innovate are most likely to secure their future and potentially lead a new, more sustainable iteration of network marketing. The coming years will undoubtedly reveal which MLM players have the foresight and adaptability to thrive in this dynamic landscape.