Duty Free and Travel Retail Market Report 2024

The duty free and travel retail market size has grown rapidly in recent years. It will grow from $42.02 billion in 2023 to $48.15 billion in 2024 at a compound annual growth rate (CAGR) of 14.6%. The growth during the historic period can be attributed to the rise in global travel, increasing disposable income, expansion of duty-free stores, growing tourism, changes in duty-free allowances regulations, and more frequent promotional offers and discounts.

The duty free and travel retail market size is expected to see rapid growth in the next few years. It will grow to $83.5 billion in 2028 at a compound annual growth rate (CAGR) of 14.8%. The growth in the forecast period can be attributed to the expanding middle-class population, improved airport infrastructure, a rising trend toward experiential shopping, increased international travel and tourism, evolving consumer preferences, regulatory changes, and new trade agreements. Major trends anticipated during this period include digital integration, omnichannel retailing, personalization and customization, the growing popularity of eco-friendly products, a focus on health and wellness items, and the emergence of luxury and premium offerings.

The rise in international travel is expected to drive the growth of the duty-free and travel retail markets in the future. International travel involves crossing borders for tourism, business, or personal reasons. This increase in global travel is supported by factors such as globalization, lower airfare, business expansion, digital nomadism, and the appeal of cultural exploration, all made possible by advancements in transportation and technology. Duty-free and travel retail services enable travelers to buy items such as alcohol, tobacco, and luxury goods at reduced prices, often without taxes, enhancing their travel experience. For example, the United Nations World Tourism Organization (UNWTO) reported in January 2024 that international air travel capacity and passenger demand had recovered to 90% of pre-pandemic levels by 2023. Additionally, global accommodation occupancy rates reached 65% in November 2023, up from 62% in November 2022. Consequently, the expanding international travel market is expected to boost the duty-free and travel retail sectors.

Key players in the duty-free and travel retail markets are forming strategic partnerships to better integrate augmented reality (AR) and virtual reality (VR) technologies and expand their market presence. Strategic partnerships involve collaborative relationships between organizations to combine resources and expertise to achieve mutual goals. For instance, in May 2023, Coty Inc., a US-based beauty company, teamed up with Shilla Duty-Free, a South Korean travel retail firm, to explore new ways to engage travelers. This collaboration aims to enhance the shopping experience by incorporating AR and VR technologies into retail operations, creating a more interactive and personalized environment. The goal is to boost sales and build customer loyalty by offering a seamless and engaging shopping experience that meets the evolving needs of travelers and duty-free shoppers, positioning both companies as pioneers in digital transformation within the travel retail industry.

In March 2024, Adani Enterprises, an India-based company with interests in energy, infrastructure, and logistics, acquired Le Marche Duty-Free SAS for an undisclosed amount. This acquisition is intended to strengthen Adani Enterprises' presence in the duty-free sector and support its expansion plans for Mumbai Travel Retail Private Limited. It also aims to enhance Adani's global presence in travel retail. Le Marche Duty-Free SAS is a France-based company that operates in the duty-free retail sector, offering tax-free goods to travelers.

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.

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.

The countries 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.

Duty-free and travel retail refers to the sale of products to travelers that are exempt from certain local or national taxes and duties. These transactions typically take place in international zones such as airports, border shops, cruise ships, and onboard international flights, offering travelers a convenient shopping experience with tax savings.

The main product categories in duty-free and travel retail include beauty and personal care, tobacco, edibles, wines and spirits, fashion accessories, hard luxury items, and others. Beauty and personal care products in this sector include skincare items, cosmetics, perfumes, and personal hygiene products that travelers often buy to enhance their appearance or enjoy luxury grooming while traveling. The types of travel encompass both leisure and business, with distribution channels including airports, airlines, ferries, and other locations.

The duty free and travel retail market research report is one of a series of new reports that provides duty free and travel retail market statistics, including duty free and travel retail industry global market size, regional shares, competitors with an duty free and travel retail market share, detailed duty free and travel retail market segments, market trends and opportunities, and any further data you may need to thrive in the duty free and travel retail industry. This duty free and travel retail 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 and travel retail market includes revenues earned by entities by providing product selection and merchandise, promotions and discounts, personal shopping assistance, and tax and duty calculation. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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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