Duty Free Retailing Market Is Estimated To Witness High Growth Owing To Increasing International Travelers
The global Duty Free Retailing Market is estimated to be valued at US$ 38.95 Billion in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Duty free retailing refers to the sale of goods that are exempt from payment of certain local or national taxes, typically at airports or other entry points into a country. The advantage of duty free shopping for consumers is that they can purchase products at lower prices compared to regular retail outlets. Duty free shops offer a wide range of products including cosmetics, alcohol, fragrances, tobacco, electronics, and luxury goods. The need for duty free retailing arises from the increasing number of international travelers who are looking for a convenient and cost-effective way to shop.
Market key trends:
One key trend in the duty free retailing market is the growing popularity of online duty free shopping. With the advancement in technology and the rise of e-commerce, more and more duty free retailers are now offering their products online. This allows travelers to conveniently browse and purchase duty free items from the comfort of their own homes or while on the go. Online duty free shopping offers benefits such as wide product selection, competitive pricing, and the ability to pre-order and pick up products at airports. Furthermore, the COVID-19 pandemic has accelerated the shift towards online shopping, as travelers prefer contactless transactions. As a result, duty free retailers are focusing on enhancing their online platforms and providing a seamless shopping experience to attract more customers.
PEST Analysis:
Political: The political factors influencing the duty-free retailing market include government regulations, trade policies, and political stability. For example, changes in import/export duties and restrictions can impact the flow of duty-free goods across borders.
Economic: The economic factors affecting the duty-free retailing market are disposable income, exchange rates, and economic growth. With increasing disposable incomes and a rise in international travel, there is a growing demand for duty-free products.
Social: Social factors include cultural norms, consumer behavior, and lifestyle trends. The duty-free retailing market is influenced by the preferences and purchasing patterns of travelers, as well as the promotion and marketing strategies employed by duty-free retailers.
Technological: The technological factors include advancements in e-commerce, automation, and digitalization. Duty-free retailers need to adopt digital platforms and technologies to enhance the customer experience and remain competitive in the market.
Key Takeaways:
The Duty-Free Retailing Market Growth is expected to witness high, exhibiting a CAGR of 8.6% over the forecast period (2023-2030). This growth can be attributed to the increasing trend of international travel and rising disposable incomes across the globe.
In terms of regional analysis, Asia Pacific is projected to be the fastest-growing and dominating region in the duty-free retailing market. The region’s growing middle-class population, expanding tourism industry, and increasing air connectivity contribute to the strong demand for duty-free products.
Key players operating in the duty-free retailing market include Dufry AG, LOTTE Duty Free Company, DFS Group Limited, Gebr. Heinemann SE & Co. KG, The Shilla Duty Free, The King Power International Group, James Richardson Corporation Pty Ltd., Duty Free Americas, Inc., Flemingo International Ltd., Dubai Duty Free, and China Duty Free Group Co., Ltd. These players dominate the market with their extensive distribution networks, strong brand presence, and strategic partnerships with airports and airlines.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
