The duty-free retailing market has experienced strong growth recently, with its size rising from $37.09 billion in 2023 to $40.32 billion in 2024, reflecting a compound annual growth rate (CAGR) of 8.7%. This growth is attributed to the expanding global middle-class demographic, increased air travel connectivity, streamlined customs and immigration procedures at airports, integration of local culture and heritage into duty-free offerings, and robust security measures. The market is expected to continue growing, reaching $56.54 billion by 2028 at a CAGR of 8.8%. This anticipated growth is driven by increasing international travel, higher disposable incomes, favorable currency exchange rates, well-designed airport layouts, changing consumer demographics, and demand for exclusive and limited edition products. Key trends for the forecast period include the development and expansion of airports, investments in technology and customer service improvements, adoption of digital technologies and online platforms, advancements in payment systems, and integration of omnichannel retailing strategies.
Global Duty Free Retailing Market Key Driver
The surge in the international travel and tourism industry is expected to propel the growth of the duty-free retailing market going forward. The international travel and tourism industry is growing due to increased global connectivity, rising disposable incomes, and a growing desire for unique travel experiences. Duty-free retailing leverages international travel and tourism by offering tax-free goods at airports and border locations, attracting travelers seeking lower prices. For instance, in January 2024, according to UN Tourism, a Spain-based intergovernmental organization, international tourism receipts reached USD 1.4 trillion in 2023, recovering to approximately 93% of pre-pandemic levels from 2019. The projections indicate that international tourism will not only fully recover by 2024 but will also surpass pre-pandemic levels by 2%. Therefore, the surge in the international travel and tourism industry is driving the growth of the duty-free retailing market.
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Global Duty Free Retailing Market Segments
The duty-free retailing market covered in this report is segmented –
1) By Product Type: Perfume And Cosmetics, Electronics, Wine And Spirits, Food, Confectionery And Catering, Tobacco, Luxury Goods, Other Types
2) By Ownership: Corporate Chains, Independent Owners, Franchises
3) By Sales Channel: Airports, Cruise Liners, Railway Stations, Border, Down-Town And Hotel Shop
By Geography:The regions covered in the duty-free retailing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Asia-Pacific was the largest region in the duty-free retailing market in 2023. North America is expected to be the fastest-growing region in the forecast period.
Major Duty Free Retailing Industry Players
Qatar Airways, Lotte Corp., Lagardere SA, Avolta AG, SHINSEGAE INTERNATIONAL, China International Travel Service Co. LTD., Hyundai Department Store Group Co. Ltd., Gebr. Heinemann SE and Co. KG, Dubai Duty-Free, James Richardson Group, Duty-Free Americas Inc., DFS Group Ltd., Japan Airport Terminal Co. Ltd., Changi Airport Group Singapore Pte. Ltd., Duty Free Philippines Corp., 3Sixty Duty Free, Ever Rich Duty Free Shop, Flemingo International, King Power Group, Delhi Duty-Free Services Pvt. Ltd., Mumbai Duty-Free, The Shilla Duty free
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Duty Free Retailing Market Overview
Duty-free retailing refers to the sale of goods to international travelers at locations such as airports, cruise terminals, and border crossings, where products are exempt from local taxes and duties. This allows travelers to purchase items such as electronics, and luxury goods at reduced prices compared to regular retail outlets, enhancing their shopping experience with savings and a diverse range of international brands.
Duty Free Retailing Global Market Report 2023 provides data on the global duty free retailing market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The duty free retailing market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
