The global duty free retail market size was valued at 42.65 billion in 2023. The market is projected to grow from 46.67 billion in 2024 to USD 78.78 billion by 2032, exhibiting a CAGR of 6.76% during the forecast period. The rising demand for alcohol in several economies especially in Asia owing to increasing spending capacity of middle class people, changing consumer habits, and growing international tourist arrivals has elevated the demand for premium duty free liquor worldwide. Strategic developments and innovations in the sector will further propel duty free alcohol sales, thus aiding market expansion. This information is provided by Fortune Business Insights, in its report titled, “Duty Free Retail Market, 2024-2032.”
Top Leading Companies Covered in the Duty Free Retail 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)
Information Source: https://www.fortunebusinessinsights.com/duty-free-retail-market-106652
Segments:
Perfumes Segment to Lead Owing to Availability of Variety of Internationally Reputed Brands
As per type, the market is split into perfumes, cosmetics, alcohol, cigarettes, and others. Among these, the perfumes segment captured the largest market share in 2022. Affluent global travelers usually visit retail chains that offer perfumes of internationally reputed brands, including Hugo Boss, Prada, Gucci, Al Haramain Dazzle Intense, Giorgio Armani, Belle, Signature Silver, Signature Rose, and Khulasat Al Oud. They offer several types of perfumes, including Eau De Perfume (EDP), Perfume or De Perfume, Eau De Toilette (EDT), and Eau De Cologne (EDC) in one place, which is contributing to segment growth.
Airports Segment to Capture Significant Share Due to Rising Number of Duty Free Retail Stores
According to sales channel, the market is divided into airports, onboard aircraft, seaports, train stations, and others. Among these, the airports segment dominated the global market in 2022. The growing number of international and domestic airports in several economies is attributed to segment expansion. The increasing number of duty free retail stores across airports worldwide will further drive segment growth in the coming years.
Geographically, the market is segregated into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
Report Coverage:
The report includes:
- Drivers, restraints, opportunities and threats influencing market dynamics in the coming years.
- List of key market players along with strategic developments undertaken in the past five years.
- Market share, growth rate, and valuation projections for each region and segment.
- Impact of COVID-19 on the global economy.
Drivers and Restraints:
Rising Number of Airports in Several Countries to Aid Market Expansion
The construction of new airports in several economies and rising investments to expand existing ones will generate many opportunities for market growth. For example, in February 2021, the Airport Authority of India (AAI), an Indian governmental body that operates 125 airports, issued a construction permit worth USD 135.07 million (INR 987 crore) for the first phase of an international airport named ‘Dholera’ in Gujarat. According to Global Aviation Summit 2019, the Civil Aviation Ministry of India aims to have 190-200 operational airports by 2040 under the ‘Indian Aviation Vision 2040’. Mumbai and Delhi will each have three international airports, while the top 31 Indian cities will have two operating airports.
On the other hand, fluctuations in currency exchange rates will hinder market augmentation in the forthcoming years.
Regional Insights:
Asia Pacific to Capture Significant Share Stoked by Innovative Product Launches
Asia Pacific held majority of the duty free retail market share in 2022 backed by strategic developments in Asian economies, which will facilitate the launch of innovative products in the region. For example, in its master plan dated June 1st, 2020, China’s central government announced various policies aimed at establishing the Hainan Free Trade Port (Hainan FTP) on the country’s southern coast. The government also announced its plan to make Hainan FTP an internationally renowned free trade port by 2050. This strategic move will elevate the expansion of domestic retail chains that offer a wide variety of retail products in the coming years.
Meanwhile, the Europe market is slated to grow substantially over the forecast period due to rising expenditure on luxury goods by tourists. After the easing of COVID-19 restrictions, airports in European countries have taken measures to attract tourists/passengers to retail stores that are duty free. This, in turn, will boost sales and aid regional market expansion.
The North America market is driven by travel spending in the U.S. and the growing number of tourists. Canada is one of the key contributors to the North America market. According to the Canada Border Services Agency (CBSA), duty free stores operate in approximately 53 locations across Canada, including land border locations and international airports.
Competitive Landscape:
Launch of New Duty Free Stores by New Entrants and Existing Players to Drive Market Proliferation
Industry leaders are launching new duty free retail stores or investing funds in expanding existing ones to strengthen their position in the global market. For instance, in June 2022, Mumbai Travel Retail Pvt Ltd. ((MTRPL), an Indian private travel retailer, unveiled its new outlet at the Thiruvananthapuram International Airport in Kerala, India. The new store is a part of the company's Duty Free (TDF) stores covering approximately 2,450 sq ft. These travel retail stores offer a broad spectrum of products, from branded perfumes, travel accessories to imported confectionery. This strategic move opens up new business opportunities for prospective travel retail operators across Indian states, including Kerala and Karnataka.
Key Industry Development:
January 2023: Foreo, a Sweden-based connected beauty brand, launched a new store in Manila, Philippines, in collaboration with Duty Free Philippines. The new store (Luxe Duty Free) contributed to Duty Free Philippines' expansion strategies within the country.
Comments
0 comment