Duty-free Retailing Market: Current Analysis and Forecast (2022-2028)
$3999 – $6999
Emphasis on Product (Alcohol & Spirit, Tobacco & Cigarette, Fashion & Accessories, Personal Care & Cosmetics, Watches & Jewelry, Others); Distribution Channel (Airport, Seaport, Onboard, Others); Region/Country
Global Duty-free Retailing Market is expected to grow at a significant rate of around 8% during the forecast period. The duty-free retailing business is expanding as a result of ongoing expansion in the travel and tourism sector and the convergence of numerous segments, including infrastructure and hospitality, with government efforts. The World Travel and Tourism Council (WTTC) reports that the worldwide travel and tourism industry is expanding significantly, surpassing the global GDP in 2018 for the eighth year in a row. The sector generated $8.8 trillion USD in revenue in 2018 and expanded at a 3.9% YoY rate.
New airports and ports are being built all over the world as a result of the expansion of the travel and tourism industry. For example, GMR Airports Ltd. signed a contract in 2020 to construct duty-free stores at Kannur international airport in Kerala, India. Additionally, there are other airport expansion projects in development throughout Europe and North America. In order to handle the rising passenger traffic, some emerging countries are also investing in the construction of new airports.
LVMH, Duty Free Americas Inc., SHINSEGAE INTERNATIONAL, Aer Rianta International, Dubai Duty Free, China Duty Free Group Co. Ltd., Lotte Group, Dufry AG, Hyundai Department Store Group Co. Ltd., and Lagardère SA, etc., are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.
Insights Presented in the Report
“Amongst product, personal care and cosmetics generated category to witness higher CAGR during the forecast period”
Based on product, the market is segmented into Alcohol & Spirit, Tobacco & Cigarette, Fashion & Accessories, Personal Care & Cosmetic, Watches & Jewelry, and Others. The personal care and cosmetics category to witness a higher CAGR during the forecast period. This is major because passengers prefer expensive items which are available at a considerably low price due to the exemption of the excise duties in various areas. Further, the increasing preference of customers opting for personal care products for themselves, or gifting others is predicted to bolster the growth of the market sub-segment during the forecast timeframe
“Amongst distribution channel, the airport to hold a significant share in the market in 2020”
On the basis of distribution channel, the market is categorized into Airport, Seaport, Onboard, Others. Among these, the airport segment grabbed the major market share and dominated the market in 2020. This is mainly because airports are one of the major places for companies to showcase and promote awareness about their brand to customers. Moreover, the airport distribution channel also offers wide scope for retail outlets to reach customers due to the flexibility in the prices which is expected to uplift the growth of the market sub-segment over the analysis timeframe
“Asia Pacific to hold a significant share in the market”
In 2020, Asia Pacific held a significant share of the global Duty-free Retailing market. A rise in disposable income coupled with the rising number of travelers in the countries such as India, South Korea, etc., is contributing to the market growth. Moreover, the investment by the government in the airports is also acting as a growth catalyst for the market growth of the region. For instance: China’s central government announced various policies aimed at establishing the Hainan Free Trade Port (Hainan FTP) on the country’s southern coast. The government also announced its plan to make Hainan FTP an internationally renowned free trade port by 2050.
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- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
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|2.1.||Research Process of the Duty-free Retailing Market|
|2.2.||Research Methodology of the Duty-free Retailing Market|
|5||IMPACT OF COVID-19 ON THE DUTY-FREE RETAILING MARKET|
|6||DUTY-FREE RETAILING MARKET REVENUE (USD BN), 2020-2028F|
|7.1.||Alcohol & Spirit|
|7.2.||Tobacco & Cigarette|
|7.3.||Fashion & Accessories|
|7.4.||Personal Care & Cosmetic|
|7.5.||Watches & Jewelry|
|9.1.1.||The United States|
|9.1.3.||Rest of North America|
|9.2.2.||The United Kingdom|
|9.2.6.||Rest of Europe|
|9.3.4.||Rest of Asia-Pacific|
|9.4.||Rest of World|
|11||DUTY-FREE RETAILING MARKET OPPORTUNITIES|
|12||DUTY-FREE RETAILING MARKET TRENDS|
|13.1.||Demand Side Analysis|
|13.2.||Supply Side Analysis|
|14||VALUE CHAIN ANALYSIS|
|15.1.1.||Porters Five Forces Analysis|
|16.2.||Duty Free Americas Inc.|
|16.4.||Aer Rianta International|
|16.5.||Dubai Duty Free|
|16.6.||China Duty Free Group Co. Ltd.|
|16.9.||Hyundai Department Store Group Co. Ltd.|
Research Methodology for the Duty-free Retailing Market Analysis (2022-2028)
Analyzing the historical market, estimating the current market, and forecasting the future market of the global duty-free retailing market were the three major steps undertaken to create and analyze the adoption of duty-free retailing in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global duty-free retailing market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of the duty-free retailing market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the duty-free retailing market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as product and distribution channel. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the Duty-free Retailing market. Further, we conducted factor analysis using dependent and independent variables such as product and distribution channel of duty-free retailing. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Duty-free Retailing market across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global Duty-free Retailing market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2028 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the Duty-free Retailing market across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the global duty-free retailing market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global Duty-free Retailing market. Data was split into several segments & sub-segments post studying various parameters and trends in the product and distribution channel in the global Duty-free Retailing market.
The main objective of the Global Duty-free Retailing Market Study
The current & future market trends of the global Duty-free Retailing market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the Duty-free Retailing market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
- Segments in the study include areas of product and distribution channel
- Define and analysis of the regulatory framework for the Duty-free Retailing
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the Duty-free Retailing market for the major region.
- Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World.
- Company profiles of the Duty-free Retailing market and the growth strategies adopted by the market players to sustain in the fast-growing market
- Deep dive regional level analysis of the industry