What Has Been the Growth of the Duty Free And Travel Retail Market So Far?
The duty free and travel retail market has seen considerable growth due to a variety of factors.
• The duty-free and travel retail market has grown rapidly in recent years. It is expected to rise from $48.15 billion in 2024 to $55.33 billion in 2025, reflecting a CAGR of 14.9%.
This growth is fueled by an increase in global travel, higher disposable income, expanded duty-free stores, rising tourism, regulatory changes, and more promotional offers and discounts.
What Is the Forecasted Market Size and Growth Rate for The Duty Free And Travel Retail Market Size In The Coming Years?
The duty free and travel retail market is expected to maintain its strong growth trajectory in upcoming years.
• The duty-free and travel retail market is forecasted to reach $95.66 billion by 2029, with a CAGR of 14.7%.
This growth is driven by a growing middle-class population, better airport infrastructure, experiential shopping trends, rising international travel, and changing consumer preferences. Trends include digital integration, omnichannel retailing, eco-friendly products, health and wellness offerings, and luxury goods.
What Factors Are Driving Growth In The Duty Free And Travel Retail Market?
The surge in international travel is expected to support the growth of the duty-free and travel retail markets. International travel is driven by globalization, affordable airfares, business growth, and increased cultural exploration. Duty-free and travel retail outlets cater to travelers by offering goods like alcohol, tobacco, and luxury items at discounted, often tax-free prices. According to the UNWTO in January 2024, international air capacity and passenger demand had recovered to 90% of pre-pandemic levels by 2023, indicating that growth in travel will drive the duty-free and travel retail sectors.
What Are The Main Segments Of The Global Duty Free And Travel Retail Market?
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
Subsegments:
1) By Beauty And Personal Care: Skincare Products, Hair Care Products, Fragrances, Cosmetics And Makeup, Oral Care Products
2) By Tobacco: Cigarettes, Cigars, Smokeless Tobacco Products, Tobacco Accessories
3) By Eatables: Confectionery, Snacks, Chocolates, Gourmet Foods, Healthy And Organic Snacks
4) By Wines And Spirits: Whisky, Vodka, Wine, Rum, Gin, Liquor And Liqueurs
5) By Fashion Accessories: Handbags And Wallets, Sunglasses, Jewelry And Watches, Belts And Scarves, Hats And Gloves
6) By Hard Luxury: High-End Watches, Jewelry, Luxury Pens, Premium Leather Goods
7) By Other Product Types: Electronics And Gadgets, Souvenirs And Gifts, Travel Essentials, Home And Lifestyle Products, Health And Wellness Products
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What Trends Are Shaping The Duty Free And Travel Retail Market?
Companies in the duty-free and travel retail markets are forming strategic partnerships to integrate augmented reality (AR) and virtual reality (VR) into their retail experiences. In May 2023, Coty Inc. partnered with Shilla Duty-Free to enhance customer engagement through AR and VR simulations, aiming to personalize the shopping experience and boost customer loyalty.
Who Are the Key Players In The Duty Free And Travel Retail Market?
Major companies operating in the duty free and travel retail market are:
• China Duty Free Group Co Ltd
• Avolta AG
• Lagardère Travel Retail
• Dufry AG
• Lotte Duty Free
• Gebr Heinemann SE & Co. KG
• DFS Group
• Duty Free Americas Inc
• Ever Rich Duty Free
• Dubai Duty Free
• James Richardson Group
• WH Smith PLC
• Shinsegae Duty Free
• Aer Rianta International cpt
• King Power International Group
• Starboard Cruise Services
• Qatar Duty Free
• Tallink Duty Free AS
• Gulf Air Duty Free
• 3Sixty Duty Free & More
• Flemingo International Ltd
• Lotte Duty Free
• The Shilla Duty Free
• Sky Connection Ltd
• Blue Water Bridge Duty Free Inc
What Is The Most Dominant 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.
