Duty-Free Retailing Market Report 2024

The duty-free retailing market size has grown strongly in recent years. It will grow from $37.09 billion in 2023 to $40.32 billion in 2024 at a compound annual growth rate (CAGR) of 8.7%. The growth observed during the historic period can be attributed to several factors, the expansion of the global middle class, increased air travel connectivity, more efficient customs and immigration processes at airports, the incorporation of local culture and heritage into duty-free product selections, and the implementation of strong security measures and safety protocols.

The duty-free retailing market size is expected to see strong growth in the next few years. It will grow to $56.54 billion in 2028 at a compound annual growth rate (CAGR) of 8.8%. The anticipated growth during the forecast period can be attributed to several factors, a rise in the number of international travelers, increased global disposable incomes, favorable currency exchange rates, well-designed airport layouts, shifts in consumer demographics (such as an aging population or more millennial travelers), and a growing demand for exclusive and limited edition products. Key trends expected to drive growth include the development and expansion of airports worldwide, investments in technology and customer service enhancements, the adoption of digital technologies and online platforms, advancements in payment systems, and the integration of omnichannel retailing strategies.

The growth of the duty-free retailing market is expected to be driven by the rise in international travel and tourism. This sector is expanding due to increased global connectivity, higher disposable incomes, and a greater demand for unique travel experiences. Duty-free retailing capitalizes on this trend by offering tax-free products at airports and border locations, attracting travelers looking for lower prices. For example, UN Tourism, a Spain-based intergovernmental organization, reported in January 2024 that international tourism receipts hit USD 1.4 trillion in 2023, recovering to around 93% of pre-pandemic levels from 2019. The forecasts suggest that international tourism will not only recover fully by 2024 but will also exceed pre-pandemic levels by 2%. This growth in international travel and tourism is fueling the expansion of the duty-free retailing market.

Key players in the duty-free retailing market are investing in cutting-edge technologies, such as seamless entry and exit systems, to maintain a competitive edge. These systems use sensors, cameras, and AI to enable customers to shop without manual checkouts, providing a more convenient and efficient shopping experience. For instance, in April 2021, Hudson Group, a US-based travel retailer, launched its Hudson Nonstop concept at Chicago Midway International Airport (MDW). This store, utilizing Amazon's Just Walk Out technology, allows travelers to shop without waiting in lines. Customers simply use their credit cards to enter, pick up travel essentials such as snacks, electronics, and wellness items, and then leave.

In March 2024, Ospree International FZCO, a UAE-based duty-free retail company, acquired a 100% stake in Le Marche Duty-Free SAS (LMDF) for €5000 ($5,532). This acquisition is intended to strengthen Ospree's position and growth in the duty-free market. Le Marche Duty-Free SAS, based in France, operates in the duty-free sector.

Major companies operating in the duty-free retailing market are 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.

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. The regions covered in the duty-free retailing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries 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.

Duty-free retailing involves selling goods to international travelers at specific locations such as airports, cruise terminals, and border crossings, where these products are exempt from local taxes and duties. This system allows travelers to buy items such as electronics and luxury goods at lower prices than those found in regular retail stores, enhancing their shopping experience with both savings and access to a wide range of international brands.

The primary categories of products available in duty-free shops include perfumes and cosmetics, electronics, wine and spirits, food, confectionery and catering items, tobacco, luxury goods, and various other items. Perfumes and cosmetics cover products such as fragrances, skincare, makeup, and beauty accessories that are sold tax-free at international travel points. Ownership of these shops can be by corporate chains, independent owners, or franchises. The sales channels for duty-free goods span airports, cruise lines, railway stations, border areas, downtown locations, and hotel shops.

The duty-free retailing market research report is one of a series of new reports that provides duty-free retailing market statistics, including duty-free retailing industry global market size, regional shares, competitors with a duty-free retailing market share, detailed duty-free retailing market segments, market trends and opportunities, and any further data you may need to thrive in the duty-free retailing industry. This duty-free retailing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The duty-free retailing market consists of revenues earned by entities by providing services such as tax-free shopping experiences, travel retail consultancy, and customer support at international airports and border crossings. The market value includes the value of related goods sold by the service provider or included within the service offering. The duty-free retailing market also includes sales of fashion apparel, watches, jewelry, and health and wellness products. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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