The global duty free retailing market was valued at US$ 67.74 Billion in 2018, according to Duty Free Retailing Market Report, by Product Type (Fragrances & Cosmetics, Wines & Spirits, Fashion & Accessories, Tobacco, Watches & Jewelry, Confectionary & Fine Food, Electronics & Gifts, and Others), by Sales Channel (Airport Shops, Ferries, Airlines, and Others), and by Region (North America, South America, Asia Pacific, Europe, Middle East, and Africa) .
The global duty free retailing market is projected to reach US$ 136.28 Billion by 2027, exhibiting a CAGR of 8.6% during the forecast period (2019-2027). Duty free retail market growth is attributed to increasing number of international travelers, globally. As per data from the World Bank, there were 1.34 billion international tourist arrivals in 2017, globally, showing a growth of 7.3% compared to 2016. The top destination for travelers was France, which had 86.9 million international arrivals in 2017, showing a growth of 5% compared to 2016. However, low customer interest in shopping at airports is expected to restrain growth of the duty free retailing market, owing to reasons such as lack of promotion campaigns at these stores, lack of affordable products, and high price compared to home country.
To know the latest trends and insights prevalent in this market, click the link below:
https://www.coherentmarketinsights.com/market-insight/duty-free-retailing-market-2567 Browse 24 market data tables* and 12 figures* on "Duty Free Retailing Market” - Global forecast to 2027. Key Trends and Analysis of the Duty Free Retailing Market:
- Several companies are partnering with duty free stores to launch their limited or exclusive products, which in turn is driving the market growth. For instance, in February 2018, Lindt (a Switzerland-based chocolate manufacturer) launched three new limited edition chocolates exclusively for Dufry. The new chocolates will be at all Dufry stores of major airports in Brazil. In January 2019, the two companies partnered again to launch Lindt’s limited edition Pistachio flavor chocolates made exclusively for Dufry. The product will be available at all Dufry duty free stores.
Key Takeaways of the Market:
- Among product type, wines and spirits segment is expected to gain major traction in forecast period. For instance, according to report ‘Inflight Duty & Tax Free Retail Study 2018, published by Tax Free World Association in October 2018, alcohol category accounted for the highest market share in 2018, equaling to 46%, beauty products accounted for 37%, confectionary products 28%, and Souvenirs 22%.
- Report also states that inflight duty free retiling (airlines sales channels) is more beneficial over other sales channels. Report states that 46% buyers feel it is more convenient to buy goods by inflight mode than buying them at retail stores. 28% buyers feel inflight purchases are better as buyer does not need to stand in the queue.
- Asia Pacific is expected to hold a significant market share in the forecast period. Key players are focused on opening new duty free stores in the region. For instance, in March 2018, Dufry AG revived a five-year contract for duty free stores in Hong Kong’s new railway station, serving the High Speed Rail connecting to Mainland China. The store development includes a ‘Departures shop’ covering 1,200 sq mt and an ‘Arrivals shop’ of 300 sq mt.
- Furthermore, in 2018, LOTTE Duty Free Company acquired JR Duty Free’s business in Australia and the New Zealand. Under this deal, LOTTE Duty Free Company acquired four stores in Australia and one in the New Zealand. This marked LOTTE Duty Free Company’s entry in Asian market and is expected to help the company to expand its presence in the region.
- Major players operating in the global 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.