The duty-free and travel retail market has seen rapid expansion, growing from $42.02 billion in 2023 to $48.15 billion in 2024, with a compound annual growth rate (CAGR) of 14.6%. This growth is driven by increased global travel, rising disposable incomes, expansion of duty-free stores, growing tourism, regulatory changes in duty-free allowances, and more promotional offers. The market is expected to continue its rapid growth, reaching $83.50 billion by 2028 at a CAGR of 14.8%. The projected growth is supported by a growing middle-class population, enhanced airport infrastructure, a shift toward experiential shopping, increased international travel and tourism, evolving consumer preferences, regulatory changes, and trade agreements. Major trends include digital integration, omnichannel retailing, personalization, eco-friendly products, health and wellness offerings, and luxury items.
Major Driver In The Duty Free And Travel Retail Market
The expanding international travel market is projected to significantly fuel the growth of the duty-free and travel retail markets. International travel, driven by globalization, affordable airfares, and increased business and leisure travel, enhances the demand for duty-free goods such as alcohol, tobacco, and luxury items. The UN World Tourism Organization reported that international air capacity and passenger demand recovered to 90% of pre-pandemic levels in 2023, with global accommodation occupancy rates reaching 65% in November 2023, up from 62% in 2022. This surge in international travel is expected to accelerate growth in duty-free and travel retail markets.
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Duty Free And Travel Retail Market Competitive Landscape
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
Key Duty Free And Travel Retail Market Trend
Companies in the duty-free and travel retail sectors are forming strategic partnerships to integrate augmented reality and virtual reality into their offerings. Coty Inc. collaborated with Shilla Duty-Free in May 2023 to enhance customer engagement through advanced digital technologies, creating personalized shopping experiences that align with evolving consumer preferences in travel retail.
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Duty Free And Travel Retail Market Segmentation
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
By Geography:The regions covered in the duty free and travel retail 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 and travel retail market in 2023 and is expected to be the fastest-growing region in the forecast period.
The Duty Free And Travel Retail Global Market Report 2024 furnishes information about the global duty free and travel retail market, encompassing details like market size, projections for growth, segmentation across various sectors and regions, and an overview of competitors, including their revenues, profiles, and market shares. Furthermore, the report pinpoints potential opportunities and strategic directions derived from market trends and the strategies adopted by key competitors. The report also offers an assessment of how the COVID-19 pandemic, the Russia-Ukraine conflict, and increasing inflation have affected both global and regional markets, furnishing valuable strategic insights for businesses.
