Pune, India, June 08, 2023 (GLOBE NEWSWIRE) -- The global duty free retail market size was valued at USD 39.08 billion in 2022 and is projected to grow from USD 42.65 billion in 2023 to USD 70.75 billion by 2030, exhibiting a CAGR of 7.50% during the forecast period. The rising demand for alcohol in several economies especially in Asia owing to the 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, 2023-2030.”
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List of Key Players Profiled in the Duty Free Retail Market Report:
- 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)
Report Scope & Segmentation:
| Attributes | Details |
| Forecast Period | 2023-20230 |
| Forecast CAGR | 7.50% |
| 2030 Value Projection | USD 70.75 Billion |
| Market Size in 2022 | USD 39.08 Billion |
| Historical Data | 2019-2021 |
| No. of Pages | 186 |
| Report Coverage | Revenue Forecast, Company Profiles, Competitive Landscape, Growth Factors and Latest Trends |
| Segments Covered |
|
| Regions Covered |
|
| Duty Free Retail Market Growth Drivers | Rapidly Expanding International Tourism Market to Favor Market Expansion |
| Increasing Number of New Air Routes in Asian Countries to Encourage Entry of New Players |
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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.
COVID-19 Impacts:
Decline in Air Travel and fall of Tourism Industry Inhibited Market Expansion amid the Pandemic
The sudden fall in air traffic owing to the rising number of COVID-19 cases and imposition of travel restrictions severely impacted the duty free retail market growth. Airlines were cutting down on operations as individuals preferred to stay at home to stay safe from the virus. As per the Airports Council International (ACI), a Canada-based international platform for representing industry practices and airport standards, total airport sales dropped by 35% in the first quarter of 2020 and by 90% in the second quarter of 2020. The substantial decline in the tourism industry hindered the demand for duty free retail, thus affecting market expansion negatively.
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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 & 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.
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Detailed Table of Content:
- Introduction
- Research Scope
- Market Segmentation
- Research Methodology
- Definitions and Assumptions
- Executive Summary
- Market Dynamics
- Market Drivers
- Market Restraints
- Market Opportunities
- Key Insights
- Overview of the Parent Market
- Industry SWOT Analysis
- Supply Chain and Regulatory Landscape
- Market Analysis and Insights (in Relation with COVID-19)
- Impact of COVID-19 on the Market
- Supply Chain Challenges due to the Pandemic
- Potential Opportunities to Support the Market
- Global Duty Free Retail Market Analysis, Insights and Forecast, 2019-2030
- Key Findings / Summary
- Market Size Estimates and Forecast
- By Type
- Perfumes
- Cosmetics
- Alcohol
- Cigarettes
- Others
- By Sales Channel
- Airports
- Onboard Aircraft
- Seaports
- Train Stations
- Others
- By Region
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa
- By Type
- TOC Continued...!
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.
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