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.
Duty Free Retailing Market Analysis
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.
Duty Free Retailing Market Overview
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.
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Duty Free Retailing Market: Strategic Insights
Market Size Value in US$ 77.87 Billion in 2018 Market Size Value by US$ 155.30 Billion by 2027 Growth rate CAGR of 8.44% from 2019-2027 Forecast Period 2019-2027 Base Year 2019
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Duty Free Retailing Market: Strategic Insights
| Market Size Value in | US$ 77.87 Billion in 2018 |
| Market Size Value by | US$ 155.30 Billion by 2027 |
| Growth rate | CAGR of 8.44% from 2019-2027 |
| Forecast Period | 2019-2027 |
| Base Year | 2019 |
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Duty Free Retailing Market Drivers and Opportunities
Exemption of Taxes From Luxury Products to Favor Market
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.
Increasing Travel and Tourism
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.
Duty Free Retailing Market Report Segmentation Analysis
Key segments that contributed to the derivation of the duty free retailing market analysis are product type and application.
- Based on product type, the duty free retailing market is segmented into cosmetics & personal care products, alcohol, wine & spirits, tobacco & cigarettes, fashion, confectionery & food stuff, and others.
- Based on application, the duty free retailing market is segmented into airports, on-board aircraft, seaports, and others.
Duty Free Retailing Market Share Analysis by Geography
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.
Duty Free Retailing Market Report Scope
Duty Free Retailing Market News and Recent Developments
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:
- In March 2024, - Mumbai Travel Retail Private Limited (MTRPL) announced its rebranding to OSPREE. The new brand identity ‘Ospree’ serves as MTRPL’s strategy to integrate all its duty-free holdings, including Mumbai, Amritsar, Lucknow, Thiruvananthapuram, Jaipur, Ahmedabad, and Mangalore,
(Source: Mumbai Travel Retail Private Limited, Press Release, 2024)
- In January 2024, Mumbai Duty Free announced a Nappa Dori store in departures at Chhatrapati Shivaji Maharaj International Airport, marking the brand’s entry into the travel retail sector. Nappa Dori, which translates to leather and thread, is an Indian-origin brand celebrated for its handcrafted leather goods and accessories.
(Source: Mumbai Duty Free, Press Release, 2024)
Duty Free Retailing Market Report Coverage and Deliverables
The "Duty Free Retailing Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter's Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Product Type ; Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Australia, Brazil, Canada, China, Egypt, France, Germany, India, Indonesia, Israel, Italy, Japan, Malaysia, Mexico, Philippines, Russian Federation, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Thailand, Turkey, United Arab Emirates, United Kingdom, United States, Vietnam
Frequently Asked Questions
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.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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