Duty Free Retail Market Size, Future Trends, Growth Key Factors, Demand, Share, Application, Scope, and Opportunities Analysis by Outlook 2029
The global duty free retail market size was pegged at USD 35.87 billion in 2021. The market is anticipated to rise from USD 39.08 billion in 2022 to USD 72.23 billion by 2029 at a 9.17% CAGR during the forecast period. Fortune Business Insights™ has deep-dived these inputs in its latest research report, titled, “Duty Free Retail Market, 2022-2029.”
According to the analysis, Duty-Free Retail will gain considerable traction from the rising penetration of tourism, aviation, and other travel-related industries. Duty free goods will continue to be sought with the rising demand for premium liquor. For instance, in December 2021, Diageo joined hands with Shenzhen Duty Free to roll out its innovative whisky e-boutique.
Reduction in Air Traffic Dented Growth Prospect
Industry players grappled with the onslaught of the COVID-19 pandemic following the dip in product demand. Prominently, the plunge in air traffic in 2020 did not augur well for the Duty Free Retail industry outlook. Canada-based Airports Council International (ACI) asserted that airport sales dipped by 90% to USD 39 billion in the second quarter of 2020. Moreover, the prevalence of trade protectionism in China, the U.S., and Australia dented the sales of hamper duty free products. Moreover, a dip in the tourism sector had a notable influence on the industry outlook.
Fortune Business Insights™ lists out all the Duty Free Retail market companies that are presently striving to reduce the impact of Covid-19 pandemic on the market:
- China Duty Free Group (China)
- Lotte Duty Free (South Korea)
- The Shilla Duty Free (South Korea)
- Dufry AG (Switzerland)
- DFS Group (China)
- Gebr. Heinemann SE & Co. KG (Germany)
- Shinsegae Duty Free Inc. (South Korea)
- The King Power International Group (Thailand)
- Lagardère Group (France)
- Dubai Duty Free (UAE)
The report offers a comprehensive perspective of the market size, share, revenue, and volume. It has also delved into Porters’ Five Force Analysis and SWOT analysis. Quantitative and qualitative assessments have been used to provide a holistic view of the market. Primary interviews validate assumptions, findings, and the prevailing business scenarios. The report also includes secondary resources such as annual reports, press releases, white papers, and journals.
Airports to Remain a Prominent Hub to Propel Product Offerings
On the basis of sales channel, the market is segregated into seaports, airports, train stations, onboard aircraft, and others. The airports segment will grow at a significant CAGR owing to the rising number of international and domestic airports. The soaring number of duty free stores will bode well for the industry.
With respect to geography, the market covers North America, Asia Pacific, Europe, the Middle East and Africa, and South America.
Drivers and Restraints
Soaring Number of Air Routes to Expedite Industry Growth
A notable uptake of new airports across emerging economies, including China will propel the Duty Free Retail market share. The Global Times claimed that China was contemplating starting a new round of airport construction projects in 2022. Prominently, expansion of airport construction has boded well for the business outlook. Major players are poised to explore opportunities from the possible growth of the tourism sector. To illustrate, in February 2021, the Airport Authority of India (AAI) reportedly sanctioned USD 135.07 million (INR 987 crore) for the first phase of an international airport named ‘Dholera’ in Gujrat, India.
Meanwhile, potential fluctuation in currency rates, such as Dollars, Euro, and Pound, could challenge leading companies to expand their portfolios.
Launch of Innovative Products to Foster Asia Pacific Market Growth
The Asia Pacific industry forecast will be strong on the back of the rollout of innovative products and services across China, Australia and India. To illustrate, in June 2020, China was reported to have announced policies to establish Hainan Free Trade Port (Hainan FTP) on the southern coast. Besides, the government contemplates making Hainan FTP a globally renowned free trade port by 2050. With the rising footfall of alcohol and perfumes in China, major players are likely to inject funds into the landscape.
The U.S. and Canada are poised to bank on the growth of the tourism sector, travel spending has soared over the past few years. According to the U.S. Travel Association, U.S. domestic travel rose by 1.7% in 2019, with approximately 2.3 billion person trips compared to 2018. Canada is likely to play an invaluable role in fostering North America Duty Free Retail market growth. Canada Border Services Agency (CBSA) suggested that duty-free stores operate in around 53 locations across Canada, such as international airports and land border locations.
Stakeholders anticipate Europe to account for a considerable share of the global market due to the increasing footprint of luxury goods expenditure. With a surge in discretionary spending across the U.K., France, Germany, and Italy, stakeholders are expected to inject funds into the landscape. Duty Free Retail will continue to receive an uptick with the increasing penetration of cigarettes and perfumes.
Perfumes to Remain Dominant Following the Demand from Opulent Customers
In terms of type, the market is segmented into cosmetics, perfumes, cigarettes, alcohol, and others. The perfumes segment will contribute notably toward the global market on the back of the rising footfall of affluent travelers. Well-established distribution channels are likely to invest in perfumes to boost their Return on Investment (RoI).
Prominent Players Prioritize Collaboration to Bolster Footprint
Stakeholders are slated to invest in technological advancements, product launches, mergers & acquisitions, and R&D activities. Moreover, major companies could further invest in organic and inorganic strategies to expand their footprint.
Key Industry Development
- March 2022 – Qatar Duty Free (QDF) announced a collaboration with Samsonite International S.A. to roll out the latter’s first duty free shop in the Middle East.
Browse Detailed Summary of Research Report: