The duty free retailing market accounted for US$ 77.87 Bn in 2018 and is anticipated to grow at a CAGR of 8.44% to reach US$ 155.30 Bn by 2027.
Constant development in the travel & tourism industry, coupled with the integration of several segments including hospitality & infrastructure with government initiatives, enhance the travel & tourism industry, resulting in the growth of the duty-free retailing market. According to the World Travel and Tourism Council (WTTC), the global travel & tourism sector is witnessing a significant growth with a surpassing global GDP in 2018 for the eighth year consecutively. The industry grew at 3.9% YoY and accounted for US$ 8.8 Trillion in 2018.
The high growth in the travel & tourism industry is attributed to the rising middle-class population worldwide coupled with low-budget travel packages offered by several travel package providers.
The growth in the travel & tourism industry is also resulting in the construction of new airports and ports worldwide. For instance, in 2020, GMR Airports Ltd signed a contract to build duty-free shops at Kannur international airport in Kerala, India. Also, several airport expansion projects are underway in North America and the European region. Moreover, several developing nations are investing in building new airports to handle the increasing passenger traffic. The capacity within terminals enables specific brand outlets to create their individual retail space, and for larger duty-free shops to build branded spaces within a larger store, supporting higher-value sales. Furthermore, several cruise lines are also opening duty-free stores. For instance, in 2018, Carnival Cruise Line, an international cruise line, and Heinemann introduced a duty-free shopping experience for its customers’ onboard Carnival Liberty. Also, Heinemann’s APAC arm also announced the opening of its duty-free store onboard vessel Carnival Spirit based in Sydney. According to Cruise Lines International Association (CLIA), the number of cruise tourists increased globally from 17.8 Mn passengers in 2009 to an anticipated 30 Mn in 2019. The association also expects that the cruise industry will witness further growth owing to the expansion of new destinations. The growth in the construction of new airports, as well as the cruise industry, is anticipated to drive the overall growth of the travel & tourism industry, thus boosting the duty-free retailing market
Lucrative Regions for Duty Free Retailing Market
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Market Insights
Moving Trend from Desktop to Mobile, Voice, and Bots
The notable trend is being witnessed among customers moving from a traditional desktop system to mobile, voice, and Chabot’s. The retail sector is witnessing a rise in mobile e-commerce, due to which there is rapid adoption of simple and enhanced processes which makes product selection, booking, and payment instantaneous.
With the advancement in technology, voice assistants are getting better at understanding the human voice. Besides voice, digital travel assistance such as Chabot’s are significantly enhancing customer’s experience. Introduction of AI in technologies are anticipating traveler’s needs in real-time. With the implementation of advanced technologies and application based shopping, the duty-free retailing is expected to witness significant demand during the forecast period.
Product Type Market Insights
Based on product type, the duty-free retailing market is segmented into cosmetics and personal care; alcohol, wine and spirits; tobacco and cigarettes; fashion and accessories; confectionery and food stuff; and others. The others segment consists of electronics, health supplements, toys, watches, books, and fine writings. The opportunity to purchase the products at a much lesser cost is catalyzing the trend, which is impacting positively on the growth of the duty-free retailing market. Additionally, airlines always lookout for impressive services to enhance passenger flying experience, and onboard shopping and pre-boarding shopping is one of the new services rolled out by airlines, which is, in turn, driving the growth of the duty free retailing market.
Duty Free Retailing Market, by Product – 2018 and 2027
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Application Market Insight
Based on Application, the duty-free retailing market is segmented into Airports, Onboard Aircraft, Seaports, and Others. Airports segment holds the largest market share, followed by others, seaport, and on-board segment. The airport duty-free retailing facility offers a pre-booking of duty-free products, which allows the customers to choose the product delivery at the airport or on-board. This facility allows passengers to carry less luggage, which further reduces the risk of incurring excess baggage fees.
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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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Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
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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The players operating in the enterprise content management market focus on strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:
- In July 2020, Dubai Duty Free opened a new Arrivals Shop in Terminal 3 of Dubai International Airport. The new Dubai Duty Free Arrivals Shop structures a total retail space of 1,100sqm, which is an important increase over its previous retail area of 660sqm. The additional area is mainly in front of the demise line of the old shop, and the new shop is designed to expressively improve the visibility of the shop to arriving passengers within the large baggage hall.
- In November 2019, Bacardi Global Travel Retail joined with Dubai Duty Free during the launch of Aberfeldy 19YO Exceptional Cas. Available from 1 November 2019 at 13 Dubai Duty Free stores across Dubai International Airport, ABERFELDY 19YO Exceptional Cask Small Batch is presented in special edition packaging, consisting bottle numbering that celebrates its newly at Dubai International and offers an thrilling proposition for single malt connoisseurs and collectors as well as tempting new generations of adult whisky drinkers..
Global Duty Free Retailing Market Segments:
Duty Free Retailing Market – By Product Type
- Cosmetics and Personal Care Products
- Alcohol, Wine and Spirits
- Tobacco and Cigarettes
- Fashion
- Confectionery and Food Stuff
- Others
Global Duty Free Retailing Market – By Application
- Airports
- On-board Aircraft
- Seaports
- Others
Duty Free Retailing Market – By Geography
North America
- U.S.
- Canada
- Mexico
Europe
- France
- Germany
- Italy
- Spain
- UK
- Rest of Europe
Asia Pacific (APAC)
- Australia
- China
- India
- Japan
- Rest of APAC
Middle East & Africa (MEA)
- Saudi Arabia
- UAE
- South Africa
- Rest of MEA
South America (SAM)
- Brazil
- Rest of SAM
Companies
- Aer Rianta International (ARI)
- China Duty Free Group Co.,Ltd.
- Dubai Duty Free
- Duty Free Americas
- Gebr. Heinemann
- King Power International Group
- Lotte Duty Free
- Shinsegae Duty Free
- The Shilla Duty Free
- LVMH
- LAGARDèRE TRAVEL RETAIL
- Hyundai Duty Free
- DUFRY AG
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
In the APAC region, presence of a considerable number of duty-free retail stores across the region, and high inbound and outbound travelers purchasing these products from hotels, airports, and borders. Additionally, increasing disposable income and growing middle-class population are also fueling the sales of duty-free products in APAC.
Other factors contributing to the market growth include growing number of new air routes, introduction of LCC carriers, and rise in the consumption and purchasing power in China and India. Further, the introduction of cheap destination travel packages by companies such as Cleartrip, MakeMyTrip, and GoIbibo is anticipated to drive the growth of the global duty-free and travel retail market.
The cosmetics and personal care products segment of the duty-free retailing market has substantially gained prominence in recent years. The primary driver for the beauty product segment is increasing leisure travel.
Intending to allow passengers to purchase cosmetics and personal care products from international brands at a discounted price, the airlines are increasingly offering passengers to surf and buy these products during ticket booking. Also, passengers can purchase a variety of cosmetics and personal care products on-board, which is another ancillary revenue generation stream.
The notable trend is being witnessed among customers moving from a traditional desktop system to mobile, voice, and Chabot’s. The retail sector is witnessing a rise in mobile e-commerce, due to which there is rapid adoption of simple and enhanced processes which makes product selection, booking, and payment instantaneous.
With the advancement in technology, voice assistants are getting better at understanding the human voice. Besides voice, digital travel assistance such as Chabot’s are significantly enhancing customer’s experience. Introduction of AI in technologies are anticipating traveler’s needs in real-time. With the implementation of advanced technologies and application based shopping, the duty-free retailing is expected to witness significant demand during the forecast period.
The List of Companies - Global Duty Free Retailing Market
- Aer Rianta International (ARI)
- China Duty Free Group Co.,Ltd.
- Dubai Duty Free
- Duty Free Americas
- Gebr. Heinemann
- King Power International Group
- Lotte Duty Free
- Shinsegae Duty Free
- The Shilla Duty Free
- LVMH
- LAGARDèRE TRAVEL RETAIL
- Hyundai Duty Free
- DUFRY AG
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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