8.44% Global CAGR for Duty Free Retailing Market to achieve US$ 155.30 Bn by 2027

DUBAI DUTY FREE, LOTTE DUTY FREE, LVMH, DUFRY AG, LAGARDÈRE TRAVEL RETAIL – PROMINENT MARKET PARTICIPANTS IN GLOBAL DUTY FREE RETAILING MARKET.

Duty-free retailing offers products to international travelers. Thus is a substantial source of income and Duty-free retailing offers products to international travelers. Thus is a substantial source of income and offers numerous marketing opportunities. The growth of the travel & tourism industry is one of the key factors bolstering the growth of the duty-free retailing market. Duty-free retailing offers temporary spaces that provide extra time to travelers after security check-in and enable them to get indulgent with the ambiance as well as the experience of shopping for international duty-free products.

Presently, vendors in the duty-free retailing market are focusing on digitalizing the retail process and adoption of advanced technologies such as AR and VR for offering enhanced customer experience, which may boost sales. Moreover, the rising demand for duty-free luxury and premium brands of several products is providing opportunities to the duty-free retailing market.

The top five market leaders in this market include Dubai Duty Free, Lotte Duty Free, LVMH, DUFRY AG, and LAGARDèRE TRAVEL RETAIL. The above listing of top players is based on multiple factors such as overall sales, current portfolio, investment in technology up-gradation, and industry activities. Companies have taken several market initiatives to expand their footprint, service portfolio across the world and to fulfill the growing demand of the market. In 2019, Dufry, signed a new contract to expand its presence at the Florianopolis International Airport, managed by Flughafen Zürich AG. The new contract comprising two duty-free and one duty-paid shop totaling 650 m2 of additional sales space in the new airport terminal, which opened in October 2019. In 2018, China Duty Free Group successfully secured the duty-free operating right on the Atlantica cruise of Costa Crociere S.p.A.(“Costa Crociere”) and signed the cooperation memorandum with the latter, thus initially reaching an agreement with its parent Carnival on future full-scale cooperation..

The players present in the duty free retailing market mainly concentrate on the contracts, partnerships, and collaboration, and product developments. Activities for the deployment of new technological solutions across the world is permitting these companies to maintain their brand name globally. Few of the important market initiatives from the industry are mentioned below:

Year

News

Region

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.

MEA

2020

Lotte Duty Free had launched a new travel retail-exclusive cosmetics brand, Sienu, developed jointly with Korean beauty house Amorepacific. Hailed as a first-of-its-kind collaboration by Lotte Duty Free, Sienu is a luxury anti-aging skin care brand that features a range of natural ingredients.

APAC

2019

Lagardère Travel Retail declared that it had completed the acquisition of International Duty Free, Belgium’s leading Travel Retail operator also present in Luxembourg and Kenya. This acquisition cements Lagardère Travel Retail’s position as the world’s third-largest operator of Duty Free airport points of sale and as the European leader in Travel Retail, bringing its annual revenue to a total of €5.3 billion1. The acquisition also enabled Lagardère Travel Retail to spread its occurrence to a leading European Hub, Brussels, with high-quality operations, while consolidating its positions in Luxembourg and in Africa with entry into Kenya. Lagardère Travel Retail will also be able to influence IDF’s experience in the fast growing Belgian premium chocolate segment to strengthen its operations in this market at the international level.

Europe

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