Travel Retail & Duty-Free Market is expected to reach USD 156.28 billion by 2030
The increasing trend of companies expanding across geographical regions to provide luxury goods coupled with the introduction of online platforms for pre-ordering is driving the growth of the travel retail & duty-free market.
The global Travel Retail & Duty-Free Market is valued at USD 64.79 billion in 2022, and is expected to reach USD 156.28 billion by 2030, with a CAGR of 10.7% from 2023 to 2030, according to new research by Next Move Strategy Consulting.
The travel retail & duty-free industry plays a significant role in supporting the global travel and tourism sector and contributing to local economies. Duty-free shops generate substantial revenue and create employment opportunities in the areas where they operate. They also serve as a gateway for promoting international brands and products, showcasing cultural diversity, and enhancing the overall travel experience.
The physical stores within airports, seaports, and border crossings have also expanded into online platforms and pre-order services. Travelers now have the convenience of browsing and pre-purchasing duty-free products before their journey, ensuring availability and facilitating a seamless shopping experience. These factors are driving the growth of the travel retail & duty-free industry worldwide.
On the contrary, the growth of the travel retail and duty-free market is restricted due to the restrictions on the purchase of alcohol and tobacco products. These limitations, such as the allowance of only 200-400 cigarettes in many countries, can hinder the market expansion. In addition, countries such as the U.S. allow travelers to buy only 1 liter of alcohol. This, in turn, restrain the market growth. However, the rapidly increasing construction of international airports across the globe presents an opportunity for the market. For instance, 423 new airports are in the planning or construction phase worldwide, with a significant portion of 223 airports situated in the Asia-Pacific region and another 58 airports in Europe.
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According to the report, leading players operating in the travel retail & duty-free market include China Duty-Free Group, Lotte Duty-Free, The Shilla Duty-Free, Dufry, Lagardère Travel Retail, Gebr Heinemann, DFS Group, Sinsegae Duty-Free, Ever Rich Duty-Free, Dubai Duty-Free, and others. These companies are adopting various business strategies to promote and expand their operations across the world.
For instance, in May 2023, Ever Rich Duty Free introduced an exciting new concept at Taoyuan International Airport by offering Taiwanese cuisine to travelers. Passengers can now savor authentic Taiwanese dishes, allowing them to indulge in local flavors and culinary delights at the airport. This initiative reflects the company's commitment to catering to the evolving preferences of modern travelers and providing them with a taste of the local culture.
Also, in May 2023, Dubai Duty Free collaborated with Butlers Chocolates to launch Butlers exclusive "Mini Bar Collection.” This collaboration brings a delightful selection of miniature chocolate bars available exclusively at Dubai Duty Free stores. Duty Free continues to enhance its offerings and provides unique and indulgent experiences for travelers.
In March 2023, DFS Group Ltd. collaborated with Hennessy and unveiled an exclusive partnership, showcasing the remarkable collaboration between the renowned cognac house and DFS. The partnership encompasses diverse limited-edition releases, exclusive offerings, and immersive activations across DFS stores.
In March 2023, Hyundai Department Store Duty Free announced its innovative plan to launch a metaverse duty-free shop, combining the virtual world with the travel retail & duty-free market. This initiative aims to provide customers with a unique and immersive shopping experience from the comfort of their own homes. The metaverse duty-free shop is set to revolutionize the way people shop for duty-free products, providing convenience and accessibility in the digital realm.
In February 2023, Lagardère Travel Retail became the master franchise partner of Costa Coffee in Poland. This strategic partnership demonstrates Lagardère Group's commitment to expanding its presence in the food and beverage sector of the travel retail market.
Key Insights from the Travel Retail & Duty-Free Market Report:
The information related to key drivers, restraints, and opportunities and their impact on the travel retail & duty-free market is provided in the report.
The value chain analysis in the market study provides a clear picture of the roles of each stakeholder.
The market share of key players in the global travel retail & duty-free market along with their competitive analysis are provided in the report.