Duty Free Retailing market size to grow at a CAGR of 15.9% by 2029, says report
By Retail4Growth Bureau | October 13, 2023
The global Duty-Free Retailing market size was estimated to be worth USD 73060 Million in 2022 and is forecast to a readjusted size of USD 207630 Million by 2029 with a CAGR of 15.9% during the forecast period 2023-2029, says a report by industry research company Valuates.
The global Duty-Free Retailing market size was estimated to be worth USD 73060 Million in 2022 and is forecast to a readjusted size of USD 207630 Million by 2029 with a CAGR of 15.9% during the forecast period 2023-2029, says a report by industry research firm Valuates.
According to the report, the rise in international travel and the simplicity and cost advantages of duty-free shopping have led to a growth of duty-free services.
TRENDS INFLUENCING THE GROWTH OF DUTY-FREE RETAILING MARKET
The demand for alcohol has increased significantly in recent years, especially in Asia. The increased demand can be attributed to changing consumer purchasing patterns, a sharp rise in foreign visitor numbers, and rising middle-class spending by locals and tourists. Global consumer interest in duty-free alcohol is increasing due to the increased demand for premium spirits.
Significant changes have also occurred in the alcohol market recently, most notably new debuts. Over the course of the projected period, the rising retail demand will increase sales of various product categories, such as fashion accessories, and duty-free alcohol. Due to the easing of travel restrictions and the reopening of international borders, recent trends have seen a notable rise in aviation travel. The increase in local and international passenger traffic has increased the number of prospective clients for duty-free shops. With a wide selection of items to meet the various demands of travelers, the duty-free retailing sales market is taking advantage of the rise in air travel.
Duty-free shops are putting more of an emphasis on luxury and premium products to draw in high-spending tourists. It will become increasingly popular to buy high-end, unique goods without paying taxes. The quality and exclusivity of these luxury goods, which include clothing, cosmetics, technology, and alcoholic drinks, attract tourists. Additionally, introducing unique product releases inside the duty-free retail environment is one of the primary methods employed by duty-free merchants. Retailers and companies are working together to introduce items that are only sold in duty-free stores. Travelers are enticed to make purchases they may not otherwise make by this strategy's sense of urgency and excitement.
Governments throughout the world are beginning to understand how crucial the duty-free retail industry is to fostering both tourist and economic growth. Incentives and regulatory assistance are being given to promote duty-free enterprises. These laws foster an atmosphere that is favorable for market growth and will help duty-free commerce thrive.
DUTY FREE RETAILING MARKET SHARE ANALYSIS
APAC is the largest region, accounting for over 61% of the market. Europe is a market laggard with a share of roughly 18%.
King Power International Group (Thailand), The Shilla Duty-Free, China Duty-Free Group, LVMH, Aer Rianta International (ARI), Gebr. Heinemann, Lagardère Travel Retail, Dubai Duty-Free, Duty-Free Americas, and Dufry are some of the prominent participants. The top 3 companies controlled around 35% of the market.
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