Duty-Free Retailing Market Report 2026

The duty-free retailing market size has grown strongly in recent years. It will grow from $43.67 billion in 2025 to $47.45 billion in 2026 at a compound annual growth rate (CAGR) of 8.7%. The growth in the historic period can be attributed to rising international travel, expansion of airport infrastructure, growth of global tourism, increasing luxury product consumption, emergence of branded duty-free stores.

The duty-free retailing market size is expected to see strong growth in the next few years. It will grow to $65.78 billion in 2030 at a compound annual growth rate (CAGR) of 8.5%. The growth in the forecast period can be attributed to adoption of digital payment and e-commerce platforms, integration of AI-powered customer analytics, rise of experiential retail, growth of cruise and border retail traffic, increased focus on sustainability and eco-friendly products. Major trends in the forecast period include increasing traveler demand for tax-free luxury products, expansion of airport retail spaces, growing popularity of personalized shopping experiences, rising integration of mobile payment solutions, diversification of product offerings across regions.

The growth of the international travel and tourism industry is expected to drive the expansion of the duty-free retailing market in the coming years. This growth is fueled by increased global connectivity, rising disposable incomes, and a growing demand for unique travel experiences. Duty-free retailing benefits from international travel and tourism by offering tax-free goods at airports and border locations, attracting travelers seeking lower prices. For example, in February 2024, the International Trade Administration, a US-based government resource, projected that the number of international visitors to the United States would increase to 77.7 million in 2024, marking a rise of 10.4 million (or 15.4%) compared to the 67.3 million visitors in 2023. Therefore, the surge in international travel and tourism is contributing to the growth of the duty-free retailing market.

Leading companies in the duty-free retailing market are forming strategic partnerships to broaden their reach and improve customer experiences. Strategic partnerships involve companies leveraging each other’s strengths and resources to achieve mutual goals. For example, in May 2023, L’Occitane Group, a Switzerland-based manufacturer and retailer of beauty and wellness products, collaborated with Dufry, a Swiss travel retailer that operates duty-free and duty-paid shops, to launch Sol de Janeiro. This initiative combined both online and offline channels to boost brand visibility, connect with customers, and promote exclusive products, driving sales and strengthening brand equity. The new 360° promotional strategy also expanded touchpoints through the Red by Dufry VIP program and enhanced in-store experiences.

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 2025. 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, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the duty-free retailing market report are Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.

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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