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Duty-Free Retailing Market, by Product Type

RA00155

Duty-Free Retailing Market, by Product Type (Alcohol & Spirit, Tobacco & Cigarette, Fashion & Accessories, Personal Care & Cosmetic, Watches & Jewelry, and Others), Distribution Channel (Airport, Seaport, Onboard and Others); Regional Outlook (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2019–2026

RA00155

Pages: NA

Mar 2020

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Impact of covid-19 on Duty-Free Retailing Market

Global Duty-Free Retailing Market Insights 2026:

Duty-free retailing market accounted for $74.2billion in 2018 and is predicted to growof $139.4 billion by 2026 with a CAGR of 8.2% over the forecast period.Asia-Pacific market was $32,362.2 million in 2018 and is predicted to grow with a CAGR of 7.9% over the forecast period.Increasing tourism is predicted to be the major driving factor for the duty-free retailing market over the forecast period.

Duty free retailing is a highly regulated retail environment mainly operatingat international airports and ship terminals. Free retail shops sell productsthat are duty free and fall under different jurisdiction and rules based on the calculation, allowed restriction and many other factors. Duty-free retailing market generates vital revenue for the travel & tourism industry and aviation industry globally. The duty-free retailing market is considered to be one of the largest contributors for non-aeronautical income. A normal person cannot get access to these shops; the person should possess travel proof to access the commercial area.

Rising tourism and the availability of the price at lower prices is considered to be the major driving factor for the market

The rise in the interest of people to visit various international places is predicted to be the major driving factor for the growth of the market. With the increase in the number of travelers, the market is predicted to grow considerably in the forecast period. In addition, market consists of large number of players who offer products to customers at a very reasonable price as compared to the other retail stores. The prices of these product are considerably low due to various taxes which have been exempted. Large number of passengers prefer to buy expensive and luxurious items which are available to them at a much lower prices due to exemption of taxes; this factor is predicted to drive the market over the forecast period.

Government regulation is considered to hamper to the growth of the duty-free retail market over the forecast period

Government in various countries have imposed various rules and regulations for shopping in the retail shops which are duty free. Strict rules and regulation in adding new products particularly for the local manufacturers and small & medium enterprises (SMEs) create a hurdle for the market as these organizations cannot afford to lend a store in various duty-free retail shops area. Moreover the language barrier is also considered to be a major restraint for the duty-free retail market. The buyer and the seller won’t be able to have a healthy communication which creates a gap between them which hampers the growth of the market in the forecast period.

Rising customer experience is predicted to have an immense opportunity in the duty-free retail market

Increasing customer experiences and providing various services to the customer may create a huge opportunity in the market over the forecast period. The distribution channel offers an enhancedshopping experience, while travelling gives a huge benefit to the economic activities.

To explore more about Duty-free retailing market opportunities, get in touch with our analysts here.https://www.researchdive.com/connect-to-analyst/155

The cosmetic and personal care product type is predicted to have the highest share over the forecast period. The cosmetic and personal care product care type segment was $24,141.7 million in 2018 and is predicted to grow with a CAGR of 7.6% over the forecast period.The segment is predicted to grow due to passengers preferring expensive items which are available at a considerably lower price due to the exemption of the excise duties at various areas. Customers preferring cosmetic and personal care products for their personal care or for gifting someone is also predicted to drive the growth of the segment in the forecast period.

Airport distribution channel is predicted to grow enormously over the forecast period. The airport distribution channel segment was $51,229.0 million in 2018 and is predicted to grow with a CAGR of 8.5% over the forecast period.The airport has become one of the major places for companies to showcase and promote awareness about the brand to their customers.  The airport distribution channel also provides immense scope for retail outlets to reach customers due to the flexibility in the prices which are offered. Due to the abovementioned reasons the duty-free retailing market airport distribution channel segment is projected to grow over the forecast period.

Asia-Pacific region for the duty-free retailing market is predicted to have the highest market share across the globe. Asia-Pacific market was $32,362.2 million in 2018 and is predicted to grow with a CAGR of 7.9 % over the forecast period. The market in Asia-Pacific region is predicted to grow due to a rise in the disposable income with the increasing middle-class population. In addition, the presence of large number of global players in the retail sector is predicted to boost the market in the region over the forecast period. Europe region for the duty-free retailing market is predicted to grow enormously over the forecast period. Europe market was $18,779.0 million in 2018 is predicted to grow with a CAGR of 8.8% over the forecast period.The market for the region is predicted to grow owing to the rise in the number of the international tourists and cost-efficient airlines across the region.

The major key players in the duty-free retailing market areDuty Free Americas, SHINSEGAE DUTY FREE, Aer Rianta International, Dubai Duty Free, China Duty Free Group Co.,Ltd., LOTTE HOTEL., DUFRY AG, HYUNDAI DEPARTMENT STORE DUTY FREE, Lagardère group, and LVMH among others.

Porter’s Five Forces Analysis for Duty-Free Retailing Market:

  • Bargaining Power of Suppliers: The switching cost from one supplier to another isprojected to be low.
    The bargaining power of suppliers is very Low.

  • Bargaining Power of Consumers: In this market, the concentration of buyers is high. 
    The bargaining power of consumers is High.

  • The threat of New Entrants: Huge initial investments are essential to start a new duty-free retailing market.
    The threat of new entrants isLow.

  • The threat of Substitutes: This market has numerous alternatives of products;moreover,technology alsooffers high switching costs for clients. 
    The threat of substitutes is High.

  • Competitive Rivalry in the Market: The duty-free retailing market has only major players to sell their products and it becomes difficult for small and medium enterprises and local manufacturer to get into the market. Many major players are following several strategies, and product differentiation among them.
    The competitive rivalry in the industry isHigh.

Aspect

Particulars

  Historical Market Estimations

  2018-2019

  Base Year for Market Estimation

  2018

  Forecast timeline for Market Projection

  2019-2026

  Geographical Scope

  North America, Europe, Asia-Pacific, LAMEA

  Segmentation by Product

  • Alcohol & Spirit
  • Tobacco & Cigarette
  • Fashion & Accessories
  • Personal Care & Cosmetic
  • Watches & Jewelry
  • Others

  Segmentation by Distribution Channel

  • Airport
  • Seaport
  • Onboard
  • Others

  Key Countries Covered

U.S., Canada, Mexico Germany, France, UK, Italy, Japan, China, India, South Korea, Australia, Latin America, Middle East, Africa

  Key Companies Profiled

  • Duty Free Americas
  • SHINSEGAE DUTY FREE
  • Aer Rianta International
  • Dubai Duty Free
  • China Duty Free Group Co.,Ltd.
  • LOTTE HOTEL.
  • DUFRY AG
  • HYUNDAI DEPARTMENT STORE DUTY FREE
  • Lagardère group
  • LVMH

 


FREQUENTLY ASKED QUESTIONS?
 

A. The global Duty-free retailing market size was over 74.2 billion in 2018 and is predicted to grow with a CAGR of 8.2% over the forecast period.

A. Dubai Duty Free and LVMH are some of the key players in the global Duty-free retailing market.

A. Europepossesses great investment opportunities for the investors to witness the most promising growth in the coming years.

A. EuropeDuty-free retailing market is projected to grow at 8.8% CAGR during the forecast period.

A. Product development is the key strategies opted by the operating companies in this duty-free retailing market.

A. SHINSEGAE DUTY FREE is the company investing more on R&D activities for developing new products and technologies.

1.Research Methodology

1.1.Desk Research
1.2.Real time insights and validation
1.3.Forecast model
1.4.Assumptions and forecast parameters

1.4.1.Assumptions
1.4.2.Forecast parameters

1.5.Data sources

1.5.1.Primary
1.5.2.Secondary

2.Executive Summary

2.1.360° summary
2.2.Product trends
2.3.Distribution channel trends

3.Market overview

3.1.Market segmentation & definitions
3.2.Key takeaways

3.2.1.Top investment pockets
3.2.2.Top winning strategies

3.3.Porter’s five forces analysis

3.3.1.Bargaining power of consumers
3.3.2.Bargaining power of suppliers
3.3.3.Threat of new entrants
3.3.4.Threat of substitutes
3.3.5.Competitive rivalry in the market

3.4.Market dynamics

3.4.1.Drivers
3.4.2.Restraints
3.4.3.Opportunities

3.5.Technology landscape
3.6.Regulatory landscape
3.7.Patent landscape
3.8.Pricing overview

3.8.1.By product
3.8.2.By Distribution channel

3.9.Market value chain analysis

3.9.1.Stress point analysis
3.9.2.Raw material analysis
3.9.3.Manufacturing process
3.9.4.Distribution channel analysis
3.9.5.Operating vendors

3.9.5.1.Raw material suppliers
3.9.5.2.Product manufacturers
3.9.5.3.Product distributors

3.10.Strategic overview

4.Lottery Market, by product

4.1.Alcohol & Spirit

4.1.1.Market size and forecast, by region, 2018-2026
4.1.2.Comparative market share analysis, 2018 & 2026

4.2.Tobacco & Cigarette

4.2.1.Market size and forecast, by region, 2018-2026
4.2.2.Comparative market share analysis, 2018 & 2026

4.3.Fashion & Accessories

4.3.1.Market size and forecast, by region, 2018-2026
4.3.2.Comparative market share analysis, 2018 & 2026

4.4.Personal Care & Cosmetic

4.4.1.Market size and forecast, by region, 2018-2026
4.4.2.Comparative market share analysis, 2018 & 2026

4.5.Watches & Jewelry

4.5.1.Market size and forecast, by region, 2018-2026
4.5.2.Comparative market share analysis, 2018 & 2026

4.6.Others

4.6.1.Market size and forecast, by region, 2018-2026
4.6.2.Comparative market share analysis, 2018 & 2026

5.Lottery Market, by Distribution channel

5.1.Airport

5.1.1.Market size and forecast, by region, 2018-2026
5.1.2.Comparative market share analysis, 2018 & 2026

5.2.Seaport

5.2.1.Market size and forecast, by region, 2018-2026
5.2.2.Comparative market share analysis, 2018 & 2026

5.3.Onboard

5.3.1.Market size and forecast, by region, 2018-2026
5.3.2.Comparative market share analysis, 2018 & 2026

5.4.Others

5.4.1.Market size and forecast, by region, 2018-2026
5.4.2.Comparative market share analysis, 2018 & 2026

6.Lottery Market, by region

6.1.North America

6.1.1.Market size and forecast, by product, 2018-2026
6.1.2.Market size and forecast, by distribution channel, 2018-2026
6.1.3.Market size and forecast, by country, 2018-2026
6.1.4.Comparative market share analysis, 2018 & 2026
6.1.5.U.S.

6.1.5.1.Market size and forecast, by product, 2018-2026
6.1.5.2.Market size and forecast, by distribution channel, 2018-2026
6.1.5.3.Comparative market share analysis, 2018 & 2026

6.1.6.Canada

6.1.6.1.Market size and forecast, by product, 2018-2026
6.1.6.2.Market size and forecast, by distribution channel, 2018-2026
6.1.6.3.Comparative market share analysis, 2018 & 2026

6.1.7.Mexico

6.1.7.1.Market size and forecast, by product, 2018-2026
6.1.7.2.Market size and forecast, by distribution channel, 2018-2026
6.1.7.3.Comparative market share analysis, 2018 & 2026

6.2.Europe

6.2.1.Market size and forecast, by product, 2018-2026
6.2.2.Market size and forecast, by distribution channel, 2018-2026
6.2.3.Market size and forecast, by country, 2018-2026
6.2.4.Comparative market share analysis, 2018 & 2026
6.2.5.Germany 

6.2.5.1.Market size and forecast, by product, 2018-2026
6.2.5.2.Market size and forecast, by distribution channel, 2018-2026
6.2.5.3.Comparative market share analysis, 2018 & 2026

6.2.6.UK

6.2.6.1.Market size and forecast, by product, 2018-2026
6.2.6.2.Market size and forecast, by distribution channel, 2018-2026
6.2.6.3.Comparative market share analysis, 2018 & 2026

6.2.7.France

6.2.7.1.Market size and forecast, by product, 2018-2026
6.2.7.2.Market size and forecast, by distribution channel, 2018-2026
6.2.7.3.Comparative market share analysis, 2018 & 2026

6.2.8.Spain

6.2.8.1.Market size and forecast, by product, 2018-2026
6.2.8.2.Market size and forecast, by distribution channel, 2018-2026
6.2.8.3.Comparative market share analysis, 2018 & 2026

6.2.9.Italy 

6.2.9.1.Market size and forecast, by product, 2018-2026
6.2.9.2.Market size and forecast, by distribution channel, 2018-2026
6.2.9.3.Comparative market share analysis, 2018 & 2026

6.2.10.Rest of Europe

6.2.10.1.Market size and forecast, by product, 2018-2026
6.2.10.2.Market size and forecast, by distribution channel, 2018-2026
6.2.10.3.Comparative market share analysis, 2018 & 2026

6.3.Asia Pacific

6.3.1.Market size and forecast, by product, 2018-2026
6.3.2.Market size and forecast, by distribution channel, 2018-2026
6.3.3.Market size and forecast, by country, 2018-2026
6.3.4.Comparative market share analysis, 2018 & 2026
6.3.5.China

6.3.5.1.Market size and forecast, by product, 2018-2026
6.3.5.2.Market size and forecast, by distribution channel, 2018-2026
6.3.5.3.Comparative market share analysis, 2018 & 2026

6.3.6.India 

6.3.6.1.Market size and forecast, by product, 2018-2026
6.3.6.2.Market size and forecast, by distribution channel, 2018-2026
6.3.6.3.Comparative market share analysis, 2018 & 2026

6.3.7.Australia 

6.3.7.1.Market size and forecast, by product, 2018-2026
6.3.7.2.Market size and forecast, by distribution channel, 2018-2026
6.3.7.3.Comparative market share analysis, 2018 & 2026
6.3.8.Rest of Asia Pacific

6.3.8.1.Market size and forecast, by product, 2018-2026
6.3.8.2.Market size and forecast, by distribution channel, 2018-2026
6.3.8.3.Comparative market share analysis, 2018 & 2026

6.4.LAMEA

6.4.1.Market size and forecast, by product, 2018-2026
6.4.2.Market size and forecast, by distribution channel, 2018-2026
6.4.3.Market size and forecast, by country, 2018-2026
6.4.4.Comparative market share analysis, 2018 & 2026
6.4.5.Latin America 

6.4.5.1.Market size and forecast, by product, 2018-2026
6.4.5.2.Market size and forecast, by distribution channel, 2018-2026
6.4.5.3.Comparative market share analysis, 2018 & 2026

6.4.6.Middle East 

6.4.6.1.Market size and forecast, by product, 2018-2026
6.4.6.2.Market size and forecast, by distribution channel, 2018-2026
6.4.6.3.Comparative market share analysis, 2018 & 2026

6.4.7.Africa

6.4.7.1.Market size and forecast, by product, 2018-2026
6.4.7.2.Market size and forecast, by distribution channel, 2018-2026
6.4.7.3.Comparative market share analysis, 2018 & 2026

7.Company profiles

7.1.Duty Free Americas

7.1.1.Business overview
7.1.2.Financial performance
7.1.3.Product portfolio
7.1.4.Recent strategic moves & developments
7.1.5.SWOT analysis

7.2.SHINSEGAE DUTY FREE

7.2.1.Business overview
7.2.2.Financial performance
7.2.3.Product portfolio
7.2.4.Recent strategic moves & developments
7.2.5.SWOT analysis

7.3.Aer Rianta International

7.3.1.Business overview
7.3.2.Financial performance
7.3.3.Product portfolio
7.3.4.Recent strategic moves & developments
7.3.5.SWOT analysis

7.4.Dubai Duty Free

7.4.1.Business overview
7.4.2.Financial performance
7.4.3.Product portfolio
7.4.4.Recent strategic moves & developments
7.4.5.SWOT analysis

7.5.China Duty Free Group Co Ltd.,

7.5.1.Business overview
7.5.2.Financial performance
7.5.3.Product portfolio
7.5.4.Recent strategic moves & developments
7.5.5.SWOT analysis

7.6.LOTTE HOTEL

7.6.1.Business overview
7.6.2.Financial performance
7.6.3.Product portfolio
7.6.4.Recent strategic moves & developments
7.6.5.SWOT analysis

7.7.DUFRY AG

7.7.1.Business overview
7.7.2.Financial performance
7.7.3.Product portfolio
7.7.4.Recent strategic moves & developments
7.7.5.SWOT analysis

7.8.HYUNDAI DEPARTMENT STORE DUTY FREE

7.8.1.Business overview
7.8.2.Financial performance
7.8.3.Product portfolio
7.8.4.Recent strategic moves & developments
7.8.5.SWOT analysis

7.9.Lagardère group

7.9.1.Business overview
7.9.2.Financial performance
7.9.3.Product portfolio
7.9.4.Recent strategic moves & developments
7.9.5.SWOT analysis

7.10.LVMH

7.10.1.Business overview
7.10.2.Financial performance
7.10.3.Product portfolio
7.10.4.Recent strategic moves & developments
7.10.5.SWOT analysis

In retail industry, the concept of duty free retailing has expanded from a small luxury shops to one of the highest-earning sectors. Airports have become prominent places that are often equipped with shops and amenities for travelers & tourists to buy necessary goods. This is emphasizing airports as well as airlines to increase their revenues through the sale of airport and onboard amenities.

Duty free retailing is buying of products at shops located at airports, ferries, and cruise, where no tax is levied on the products purchased. The travelers and tourists tend to purchase products at duty free retail shops to avoid taxes at international borders. Some of these products include cosmetics, personal care products, perfumes, food & beverages, fashion & accessories, and electronics. The duty free retailing market is considered to be one of the largest contributors for non-aeronautical income. A person with travel proof can only get access to avail the products at duty free stores.

Recent Developments

The revenue surge in the duty free retailing market is driven by the release of excise duty on quality products. The majority of sales in the industry is generated through accessories, luxury brands that offer fashion goods, hard luxury items, fragrance, cosmetics, and alcohol and spirits. This products when sold at duty free shops excludes excise and customs duty, which significantly helps in lowering their price. Over the recent years, China has become a major contributing country for providing duty free retailing products. The vendors of the global duty free retailing market are focusing on opening novel duty free retail outlets to attract travelers and international tourists.

As per Research Dive blog,  a number of companies in the duty free retail industry are collaborating with duty free stores to launch their exclusive or limited products. In February 2018, there new chocolates of limited edition were launched by Lindt, solely for Dufry. The novel edition of chocolates were made available at all stores of Dufry at major airports in Brazil. The two companies partnered again in January 2019, to launch new limited edition chocolates of Lindt with pistachio flavor.

In 2015, Dufry acquired more than 50% stake in an Italy-based retailer company, World Duty Free SpA. The acquisition helpedDufry AG to increase its global presence and expand its product portfolio.

An inflight e-commerce website was launched by AirAsia in 2018 by partnering with Plaza Bali Duty & Tax Free. The website is named ‘OURSHOP’, where customers can explore various products with having multiple delivery options from downtown, onboard, and airport to home delivery.

Potential Future of Duty Free Retailing Market

Global duty free retailing market  is estimated to witness a positive growth during the forecast period. Increasing shopping experiences of customers and several services provide to them by major market players of the industry is predicted to drive the demand for the market from 2019 to 2026. The duty free retailing market is also considered as one of the largest contributors for non-aeronautical income. However, strict regulations of governments in various countries for duty free retailing on products is considered to be a major factor restricting the growth of duty free retailing market.

Availability of duty free products at decreased process and rising tourism activities are some of the significant factors giving substantial uplift to the growth of the global market in the near future. As per the Research Dive report statistics, the global duty free retailing market is likely to reach up to $139.4 billion by the end of 2026. Geographically, the Asia Pacific duty free retailing market is likely to dominate the industry owing to a rise in the disposable income and increasing middle-class population in this region. Additionally, the report profiles top gaining players operating in the global market who are focusing more on product development and R&D activities to increase their market size in the global duty free retailing industry.
 

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