Pune, India, May 17, 2022 (GLOBE NEWSWIRE) — The global duty-free retail market size has been pegged at USD 35.87 billion in 2021. The market is expected to grow from USD 39.08 billion in 2022 to USD 72.23 billion by 2029 at a CAGR of 9.17% during the forecast period. Fortune Business Insight™ elaborated on these contributions in his latest research report, titled “Duty Free Retail Market, 2022-2029.”
According to the analysis, duty-free retailing will enjoy considerable traction thanks to the growing penetration of tourism, aviation and other travel-related industries. Duty-free goods will continue to be sought after with the growing demand for premium liquor. For example, in December 2021, Diageo partnered with Shenzhen Duty Free to roll out its innovative whiskey e-store.
Impact of COVID-19
Reduced air traffic growth prospects
Industry players have been grappling with the onslaught of the COVID-19 pandemic following the decline in product demand. In particular, the fall in air traffic in 2020 did not bode well for the outlook for the duty-free retail industry. Canada-based Airports Council International (ACI) claimed that airport sales fell 90% to $39 billion in the second quarter of 2020. Additionally, the prevalence of trade protectionism in China, the United States States and Australia hurt sales of duty-free baskets. some products. Additionally, a decline in the tourism sector has had a noticeable influence on the outlook for the industry.
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Fortune Business Insights™ lists all companies in the Duty Free Retail market currently working to reduce the impact of the 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)
- King Power International Group (Thailand)
- Lagardère Group (France)
- Dubai Duty Free (UAE)
Scope and Segmentation of the Duty Free Retail Market Report:
| Report cover | Details |
| Forecast period | 2022-2029 |
| Forecast Period 2022 to 2029 CAGR | 9.17% |
| 2029 value projection | $72.23 billion |
| base year | 2021 |
| Market size in 2021 | $35.87 billion |
| Historical data for | 2018 to 2020 |
| Number of pages | 186 |
| Segments Covered | By type, by sales channel, by region |
| Growth engines | Launch of innovative products to drive market growth in Asia-Pacific |
| Leading Players Prioritize Collaboration to Strengthen Their Footprint | |
| Fragrances will remain dominant following demand from affluent customers | |
| Pitfalls and Challenges | Currency Fluctuations Hamper Global Commodity Demand |
Report cover
The report offers a comprehensive perspective of market size, share, revenue, and volume. He also delved into Porters Five Forces Analysis and SWOT Analysis. Both quantitative and qualitative assessments have been used to provide an overall view of the market. Primary interviews validate assumptions, conclusions, and prevailing business scenarios. The report also includes secondary resources such as annual reports, press releases, white papers and journals.
Airports will remain a leading hub for propelling product offerings
Based on sales channel, the market is divided into seaports, airports, stations, aircraft on board and others. The airport segment is going to grow at a significant CAGR owing to the growing number of international and domestic airports. The growing number of duty-free shops will bode well for the industry.
Geography-wise, the market spans North America, Asia-Pacific, Europe, Middle East & Africa, and South America.
Drivers and Restrictions
Increased number of air routes to accelerate industry growth
A notable adoption of new airports in emerging economies, including China, will propel the duty-free retail market share. The Global Times claimed that China plans to launch a new round of airport construction projects in 2022. The expansion of airport construction bodes well for business prospects. The major players are ready to explore the opportunities for the possible growth of the tourism sector. To illustrate, in February 2021, the Airports 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, the potential fluctuation in exchange rates, such as the dollar, euro and pound sterling, could prompt large companies to expand their portfolios.
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Regional outlook
Launch of innovative products to promote Asia-Pacific Market growth
Industry forecasts in Asia-Pacific will be strong thanks to the rollout of innovative products and services in China, Australia and India. For example, in June 2020, China reportedly announced policies to establish the Hainan Free Trade Port (Hainan Free Trade Port) on the southern coast. Besides, the government is planning to make Hainan FTP a world famous free trade port by 2050. With the increasing footfall of alcohol and perfume in China, major players are likely to inject funds in the landscape.
The United States and Canada are set to bank on the growth of the tourism sector, travel spending has skyrocketed in recent years. According to the US Travel Association, domestic travel in the United States increased by 1.7% in 2019, with an estimated 2.3 billion people trips compared to 2018. Canada is likely to play an invaluable role in promoting the growth in the North American duty-free retail market. The Canada Border Services Agency (CBSA) has suggested that duty-free shops operate at approximately 53 locations across Canada, such as international airports and land border crossings.
Stakeholders expect Europe to account for a considerable share of the global market owing to the growing footprint of luxury goods spending. With increased discretionary spending in the UK, France, Germany and Italy, stakeholders are expected to inject funds into the landscape. Duty-free retailing will continue to grow with increasing penetration of cigarettes and perfumes.
segments
Fragrances will remain dominant following demand from affluent customers
In terms of type, the market is segmented into cosmetics, perfumes, cigarettes, alcohol and others. The fragrance segment will notably contribute to the global market thanks to the growing footfall of affluent travelers. Well-established distribution channels are likely to invest in fragrances to increase their return on investment (RoI).
Competitive landscape
Leading Players Prioritize Collaboration to Strengthen Their Footprint
Stakeholders are expected to invest in technological advancements, product launches, mergers and acquisitions, and R&D activities. Additionally, larger companies could invest more in organic and inorganic strategies to expand their footprint.
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Detailed Table of Contents:
- Introduction
- Search scope
- Market segmentation
- Research Methodology
- Definitions and assumptions
- Summary
- Market dynamics
- Market factors
- Market constraints
- Market opportunities
- key ideas
- Parent market overview
- Industry SWOT Analysis
- Supply chain and regulatory landscape
- Market analysis and overview (in relation to 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, Outlook and Forecast, 2018 – 2029
- Main results/summary
- Market size estimates and forecasts
- By type
- Perfumes
- Beauty products
- Alcohol
- Cigarettes
- Others
- By sales channel
- Airports
- On board planes
- Seaports
- Stations
- Others
- By region
- North America
- Europe
- Asia Pacific
- South America
- Middle East and Africa
- By type
TOC Continued…!
Development of key industry
- March 2022 – Qatar Duty Free (QDF) announced a collaboration with Samsonite International SA to deploy the latter’s first duty free store in the Middle East.
Take a look at related research information:
COVID-19 Travel Retail Market Size, Share & Impact Analysis & Regional Forecast, 2022-2029
Perfume Market Size, Share, Trend and Geography to 2021-2028
Luxury Goods and COVID-19 Market Size, Share & Impact Analysis & Regional Forecast, 2020-2027
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