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 USD 73.060 Million in 2022 and is forecast to a readjusted size of USD 207.630 Million by 2029 with a CAGR of 15.9% during the forecast period 2023-2029. The rise in international travel and the simplicity and cost advantages of duty-free shopping have led to a growth of duty-free services.
A large variety of luxury items are available at duty-free shops, and these benefits lure more tourists and customers. Additionally, in order to improve the shopping experience for travelers, duty-free businesses are implementing cutting-edge marketing and sales methods including special product releases and promotions.
Trends Influencing the Growth of Duty-Free Retailing Market
The demand for alcohol has increased significantly in recent years, especially in Asia. The increased demand can be attributed to changing consumer purchasing patterns, a sharp rise in foreign visitor numbers, and rising middle-class spending by locals and tourists. Global consumer interest in duty-free alcohol is increasing due to the increased demand for premium spirits.
Significant changes have also occurred in the alcohol market recently, most notably new debuts. Over the course of the projected period, the rising retail demand will increase sales of various product categories, such as fashion accessories, and duty-free alcohol.
Due to the easing of travel restrictions and the reopening of international borders, recent trends have seen a notable rise in aviation travel. The increase in local and international passenger traffic has increased the number of prospective clients for duty-free shops. With a wide selection of items to meet the various demands of travelers, the duty-free retailing sales market is taking advantage of the rise in air travel.
Duty-free shops are putting more of an emphasis on luxury and premium products to draw in high-spending tourists. It will become increasingly popular to buy high-end, unique goods without paying taxes. The quality and exclusivity of these luxury goods, which include clothing, cosmetics, technology, and alcoholic drinks, attract tourists.
Additionally, introducing unique product releases inside the duty-free retail environment is one of the primary methods employed by duty-free merchants. Retailers and companies are working together to introduce items that are only sold in duty-free stores. Travelers are enticed to make purchases they may not otherwise make by this strategy’s sense of urgency and excitement.
Governments throughout the world are beginning to understand how crucial the duty-free retail industry is to fostering both tourist and economic growth. Incentives and regulatory assistance are being given to promote duty-free enterprises. These laws foster an atmosphere that is favorable for market growth and will help duty-free commerce thrive.
Market Share Analysis and the Top Companies
APAC is the largest region, accounting for over 61% of the market. Europe is a market laggard with a share of roughly 18%.
King Power International Group (Thailand), The Shilla Duty-Free, China Duty-Free Group, LVMH, Aer Rianta International (ARI), Gebr. Heinemann, Lagardère Travel Retail, Dubai Duty-Free, Duty-Free Americas, and Dufry are some of the prominent participants. The top 3 companies controlled around 35% of the market.
