The duty free retailing market size is projected to reach US$ 86.32 billion by 2031 from US$ 41.25 billion in 2023. The duty free retailing market is expected to register a CAGR of 9.67% in 2023–2031. The increasing fade of luxury products and one-stop shopping.
Growing Investment and development of the travel & tourism industry, coupled with the integration of segments including hospitality & infrastructure with government support to enhance the travel & tourism industry, resulting in the growth of the duty-free retailing market.
The duty free retaining refers to the outlets containing goods exempted from the payment of certain national as well as local taxes; this tax exemption lowers the prices as compared to regular retail stores. Duty-free retail outlets allow travellers the opportunity to save money on various products, such as liquor, perfume, tobacco, cosmetics, electronics, and more. The savings can be significant, particularly for high-priced luxury items. These duty-free shops are strategically located within international airport terminals, making them easily accessible to travellers departing or arriving from other countries. So, if passengers need to shop for items they might need during their journey or buy souvenirs and gifts for friends and family, they can do so easily at these duty-free stores.
The duty free items enable consumers to purchase luxury and high-end goods at duty free prices. With busy lifestyles, consumers prefer one-stop shopping, and such duty free retailing helps them to shop better and luxury goods. Luxury goods such as perfumes, watches, cigars, premium alcohol, fashion jewellery, and others are the most attractive items at duty free shops at cheaper prices, which attracts consumers. Moreover, various countries are opening duty free luxury retail outlets. For example, in November 2021, Louis Vuitton, a duty free luxury item shop, opened on the luxury island hub of Hainan. Thus, such inclination towards duty free luxury products drives the growth of the duty free retailing market.
According to the first United Nations World Trade Organization (UNWTO) World Tourism Barometer of the year, international tourism ended 2023 at 88%, with an estimated 1.3 billion international arrivals. The latest UNWTO World Tourism Barometer provides a complete overview of the sector's performance in 2023, tracing recovery by global region, sub-region, and destination. International tourism receipts reached US$ 1.4 trillion in 2023, according to preliminary estimates. Further, Chinese outbound and inbound tourism is estimated to accelerate in 2024 due to visa facilitation and improved air capacity. China is applying for visa-free travel for citizens of France, Italy, Germany, the Netherlands, Spain, and Malaysia for a year to 30 November 2024. Europe is anticipated to drive results again in 2024. In March, Romania and Bulgaria joined the Schengen area of free movement, and Paris will host the Summer Olympics in July and August 2024. Such favors to increasing travel and tourism will increase international traveling, which will create opportunities for the growth of the duty free retailing market.
Key segments that contributed to the derivation of the duty free retailing market analysis are product type and application.
The geographic scope of the duty free retailing market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. The global duty free retailing with the increasing travel & tourism and growth in airport infrastructure. In August 2023, Airports Council International (ACI) World forecasts an average annual growth of 5.8% in passenger traffic between 2022 and 2040. By 2040, more than 19 billion passengers will travel through world airports each year. In November 2023, the Airport Council International reported that the Asia-Pacific region has a significant potential for aviation, as 57% of the 300 planned airports globally are coming up in this region.Thus, such growth in airports and passenger traffic creates a lucrative opportunity for the growth of the duty free retailing market.
The regional trends and factors influencing the Duty Free Retailing Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Duty Free Retailing Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
Report Attribute | Details |
---|---|
Market size in 2023 | US$ 41.25 billion |
Market Size by 2031 | US$ 86.32 billion |
Global CAGR (2023 - 2031) | 9.67% |
Historical Data | 2021-2022 |
Forecast period | 2024-2031 |
Segments Covered |
By Product Type
|
Regions and Countries Covered | North America
|
Market leaders and key company profiles |
The Duty Free Retailing Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Duty Free Retailing Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The duty free retailing market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market:
(Source: Mumbai Travel Retail Private Limited, Press Release, 2024)
(Source: Mumbai Duty Free, Press Release, 2024)
The "Duty Free Retailing Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
The global duty free retailing market was estimated to be US$ 41.25 billion in 2023 and is expected to grow at a CAGR of 9.67% during the forecast period 2023 - 2031.
Exemption of taxes from luxury products is the major factors that propel the global duty free retailing market.
Growing demand for premium goods is anticipated to play a significant role in the global duty free retailing market in the coming years.
The key players holding majority shares in the global duty free retailing market Aer Rianta International (ARI), China Duty Free Group Co., Ltd., Dubai Duty Free, Duty Free Americas, and Gebr. Heinemann.
The global duty free retailing market is expected to reach US$ 86.32 billion by 2031.