The study says that demand for luxury goods, such as high-end fashion, accessories, cosmetics and spirits, heavily influences the travel retail and duty-free industry
Luxury goods and global travel is forecast to drive remarkable growth in the travel retail and duty-free market to 2030, suggests latest studies.
According to a report by Dublin-based analytics firm ResearchAndMarkets, the travel retail and duty-free market size was valued at USD 64.79 billion in 2022, and is predicted to reach USD 156.28 billion by 2030. It will grow at a CAGR of 10.7 pc during the forecast period of 2023-2030.
The study says that demand for luxury goods, such as high-end fashion, accessories, cosmetics and spirits, heavily influences the travel retail and duty-free industry. It adds that purchasing power and preferences of luxury consumers significantly impact the product mix and sales performance of duty-free stores.
According to the study, Europe dominates the market share and is expected to maintain its position till 2030. A widespread demand for luxury cosmetics from some prominent brands such as Estee Lauder, MAC Cosmetics, and L’Oreal Paris drives the growth of the travel retail and duty-free industry, furthered by its strong reputation in the fashion and luxury goods industry.
For example, Italian fashion brands such as Gucci, Prada, Armani, and Versace are highly sought after worldwide. Duty-free shops here allow travellers to purchase these luxury products at tax-free prices. The allure of Italian fashion and luxury goods contributes to the growth of the travel retail and duty-free market in Italy. All of these factors drive the market growth in this region.
Among the key players in the global travel retail and duty-free market, as per the analysis, include China Duty-Free Group, Lotte, Shilla, Dufry, Lagardere Travel Retail, Gebr Heinemann, DFS Group, Shinsegae, Ever Rich Duty-Free and Dubai Duty-Free.
However, the study says that duty-free operators are expected to restrain the market growth during the forecast period. On the contrary, the duty-free industry has significant opportunities due to the increasing number of middle-class individuals in emerging economies, rising disposable income, growing desire for international travel and the expansion of international airports worldwide.
