Global Duty Free Retailing Sales Market Report 2023

Duty Free Retailing Market

The duty-free retailing market's ongoing expansion and development support transportation modes financially and promote global tourism by encouraging more foreign travel by sea, air, and land. During the forecast period, these factors are expected to increase the market size for duty-free retailing.

Due to the COVID-19 pandemic, the global Duty Free Retailing market size is estimated to be worth US$ 73060 million in 2022 and is forecast to a readjusted size of US$ 207630 million by 2029 with a CAGR of 15.9% during the forecast period 2023-2029. 

Trends Influencing the Growth of the Global Duty Free Retailing Market

The expansion of the international tourist industry, particularly in the Asia-Pacific region, along with rising consumer spending and rising disposable incomes globally is predicted to drive the duty-free retailing market opportunities during the forecast period. In the Asia-Pacific region, duty-free shoppers frequently use online platforms to make their purchases. Typically, this is done through mobile software like Alipay, Paytm, etc. One of the markets with the most potential for development for duty-free retailing globally is India. The expansion of air connectivity, inbound tourism, and the middle class's propensity for international travel are all factors contributing to the Duty-Free Retailing market development.

During the projected period, the development of the duty-free retailing market may be constrained by factors such as limited product offerings, unfavorable exchange rates, and currency fluctuations. The buying choices of consumers are significantly impacted by currency fluctuations. A weak currency drives up the price of imported goods, which is eventually passed on to the consumer. Consumers can purchase more thanks to a stable currency. The flow of shoppers is also constrained by rules regarding tax exemptions and travel restrictions for people traversing land borders.

Duty-free shopping in the city center should provide market participants with plenty of room for expansion. Retail locations in the city center offer chances to increase sales volumes because visitors can pick up items they've purchased at the airport at the conclusion of their trips. Because most airport-based duty-free operations are no longer physically constrained, consumers can now choose from a wider variety of products, which also increases sales. Additionally, operators may find that downtown duty-free shops have more choices for store size, layout, and leasing.

Duty Free Retailing Market Share

With a market share of roughly 61%, APAC is the biggest region. With a market share of about 18%, Europe is a laggard.

The major participants include King Power International Group (Thailand), The Shilla Duty-Free, China Duty-Free Group, Lagardère Travel Retail, Lotte Duty-Free, LVMH, Aer Rianta International (ARI), Gebr. Heinemann, Lagardère Travel Retail, Dubai Duty-Free, Duty-Free Americas, and Dufry. The top 3 businesses held about 35% of the industry.

By Type

• Cosmetics & Personal Care Products
• Alcohol, Wine and Spirits
• Tobacco & Cigarettes
• Fashion & Luxury Goods
• Confectionery & Food Stuff
• Others

By Application

• Airports
• Onboard Aircraft
• Seaports
• Train Stations
• Others

By Region

• United States
• Europe
• China
• Japan
• Southeast Asia
• India
• Other Regions

By Company

• Dufry
• Lagardère Travel Retail
• Lotte Duty Free
• LVMH
• Aer Rianta International (ARI)
• China Duty Free Group
• Dubai Duty Free
• Duty Free Americas
• Heinemann
• King Power International Group (Thailand)
• The Shilla Duty Free