How Is The Global Duty Free And Travel Retail Market Defined?
Duty-free and travel retail refer to the sale of products to travelers that are exempt from certain local or national taxes and duties. These sales typically occur in international zones such as airports, border shops, cruise ships, and onboard international flights. It offers a unique shopping experience focused on convenience and tax savings for international travelers.
Duty Free And Travel Retail Global Market Report 2024 provides data on the global duty free and travel retail market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The duty free and travel retail market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
How Is The Global Duty Free And Travel Retail Market Size Expected To Expand, And At What Annual Growth Rate?
The duty-free and travel retail market has experienced rapid growth, rising from $42.02 billion in 2023 to $48.15 billion in 2024 at a compound annual growth rate (CAGR) of 14.6%. Historical growth drivers include an increase in global travel, rising disposable incomes, expansion of duty-free stores, growing tourism, regulatory changes, and promotional offers. The market is forecast to grow to $83.50 billion in 2028 at a CAGR of 14.8%. Factors contributing to future growth include an expanding middle class, improved airport infrastructure, greater focus on experiential shopping, and changes in consumer preferences. Key trends involve digital integration, omnichannel retailing, a focus on eco-friendly products, personalization, health-oriented offerings, and the rise of luxury goods.
What Are The Key Drivers Fueling Growth In The Duty Free And Travel Retail Market?
The increase in international travel is expected to boost the growth of the duty-free and travel retail markets. International travel, which includes tourism, business, and personal trips, is rising due to globalization, affordable airfares, and technological advances. Duty-free and travel retail services offer travelers the opportunity to purchase goods such as alcohol, tobacco, and luxury items at lower, often tax-free prices, enhancing their travel experience. For instance, the United Nations World Tourism Organization reported in January 2024 that international air capacity and passenger demand recovered to 90% of pre-pandemic levels in 2023, with global occupancy rates in accommodations rising to 65% in November 2023, up from 62% in November 2022. This growth in international travel is driving the duty-free and travel retail markets.
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What Are The Principal Market Segments In The Global Duty Free And Travel Retail Industry?
The duty free and travel retail market covered in this report is segmented –
1) By Product Type: Beauty And Personal Care, Tobacco, Eatables, Wines And Spirits, Fashion Accessories, Hard Luxury, Other Product Types
2) By Travel Type: Leisure, Business
3) By Distribution Channel: Airports, Airlines, Ferries, Other Distribution Channel
Which Emerging Market Trends Are Altering The Duty Free And Travel Retail Market?
Companies in the duty-free and travel retail sectors are forming strategic partnerships to incorporate augmented and virtual reality technologies, enhancing customer experiences and expanding market reach. Strategic partnerships pool resources and expertise to achieve shared goals. In May 2023, Coty Inc., a U.S.-based beauty company, collaborated with Shilla Duty-Free, a South Korean travel retailer, to integrate AR and VR into retail environments. This partnership aims to provide immersive and personalized shopping experiences, driving customer engagement and fostering loyalty while positioning both firms as leaders in digital transformation within travel retail.
What Is The Leading Region In The Duty Free And Travel Retail Market?
Asia-Pacific was the largest region in the duty free and travel retail market in 2023 and is expected to be the fastest-growing region in the forecast period. The regions covered in the duty free and travel retail market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
