Wednesday, September 25, 2024 The Global Duty-Free and Travel Retail Market report reveals key trends, market growth, and future opportunities from 2024-2033 for industry success. The Business Research Company recently published an in-depth report on the Global Duty-Free and Travel Retail Market, highlighting the market size and trends projected from 2024 to 2033. This analysis offers valuable insights into global market size, regional shares, and the competitive landscape, as well as key trends, future opportunities, and data vital for industry success.
The duty-free and travel retail market has seen rapid expansion. In 2023, the market was valued at $42.02 billion and is expected to grow to $48.
15 billion in 2024, marking a compound annual growth rate (CAGR) of 14.6%. Several factors contributed to this growth, including increased global travel, rising disposable incomes, the proliferation of duty-free stores, a boost in tourism, changes in regulatory allowances, and aggressive promotional discounts.
Looking ahead, the market is forecast to reach $83.50 billion by 2028, with a CAGR of 14.8%.
This growth is driven by the expansion of the middle class, enhanced airport infrastructure, the rise of experiential shopping, and evolving consumer preferences alongside regulatory changes and trade agreements. Growing international travel is expected to further drive the duty-free and travel retail market. The increasing global connectivity, affordable airfare, business expansion, and improved transportation have significantly boosted travel numbers.
For instance, in January 2024, the United Nations World Tourism Organization (UNWTO) reported that international air capacity and passenger demand had recovered to 90% of pre-pandemic levels in 2023, with accommodation occupancy rates rising to 65% by November 2023. This upward trend in travel is poised to propel the duty-free and travel retail sector. Leading companies are adopting strategic partnerships to enhance digital integration, such as the use of augmented reality (AR) and virtual reality (VR) in retail operations.
In May 2023, Coty Inc. partnered with Shilla Duty-Free to engage travelers through immersive digital shopping experiences. This collaboration aims to personalize the shopping experience, drive sales, and build customer loyalty, positioning both companies as pioneers in the digital transformation of travel retail.
Key benefits for stakeholders include access to comprehensive market insights, support for informed decision-making, competitive advantage through detailed competitor analysis, and tailored solutions that address specific business needs. The report’s global perspective allows businesses to operate successfully in diverse markets, providing essential data to stay ahead in this growing industry..
