Duty Free Retail Market to Grow at a CAGR of 8.77% from 2025 to 2032; Rapid Expansion of Infrastructure to Boost Market Growth

The global duty free retail market size was valued at USD 80.19 billion in 2024. The market is projected to grow from USD 86.66 billion in 2025 to USD 156.10 billion by 2032, exhibiting a CAGR of 8.77% during the forecast period. Fortune Business Insights™ presents this information in its report titled “Duty Free Retail Market Size, Share & Industry Analysis, By Type (Perfumes, Cosmetics, Alcohol, Cigarettes, and Others), By Sales Channel (Airports, Onboard Aircraft, Seaports, Train Stations, and Others), and Regional Forecast, 2025-2032”.

Duty free retail offers tax-free luxury goods to international travelers at airports, ports, and on cruises. With rising global tourists and airport expansions, these stores are thriving, driven by demand for exclusive fashion, electronics, and fragrances, and supported by favorable, tax-exempt policies in the travel retail sector.      

DFS Group Ltd.’s ‘Golden Week Shopping’ to Attract Numerous Consumers in a Brief Period

DFS Group Ltd launched its new marketing campaign in April 2025, Golden Week shopping. This new campaign solely focuses on offering special promotions and exclusive prizes for shoppers across Macau and Hong Kong. By giving a chance to win prizes that are worth over USD 385,000, the campaign plans to attract numerous shoppers and gain a notable chunk of the market.

Technological Advancements to Stimulate Market Growth

Duty free retail market is gaining momentum with the integration of advanced technologies such as AI and big data. In March 2023, Lotte Duty Free launched a hyper-personalized marketing initiative that sends automated messages to customers based on their travel plans, enhancing their shopping experience. Additionally, the use of virtual animation is boosting digital automation. In April 2022, Shiseido Travel Retail joined hands with China Duty Free Group to introduce a 3D virtual experience for Nars, allowing travelers to explore products before their journey.

However, stringent regulations imposed by airport authorities are likely to restrict the duty free retail market growth.

Major Players Focus on Partnerships to Expand their Facility

Industry participants are adopting competitive strategies such as brand collaborations and product launches to strengthen market presence. Leading companies such as Lotte Duty Free, China Duty Free, Lagardère Group, and Avolta AG are focusing on partnerships to drive growth. In April 2024, Lotte Duty Free joined hands with Taiwan’s King Car Group to launch a Kavalan whisky flagship at its Seoul downtown store.

List of Key Players Mentioned in the Report

• Avolta (Dufry AG) (Switzerland)
• DFS Group (China)
• Gebr. Heinemann SE & Co. KG (Germany)
• Lagardère Group (France)
• Dubai Duty Free (UAE)
• China Duty Free Group (China)
• Lotte Duty Free (South Korea)
• The Shilla Duty Free (South Korea)
• Shinsegae Duty Free Inc. (South Korea)
• Duty Free Americas (U.S.)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/duty-free-retail-market-106652

Key Industry Development

• July 2025: French travel retail giant Lagardère Group joined hands with Schiphol Group to unveil Today Duty Free, a new retail concept featuring cosmetics, perfumes, and sunglasses.  

Further Report Findings

• In 2024, Asia Pacific captured the key duty free retail market share due to a sharp rise in international tourism and spending. India recorded 20 million international tourist arrivals, up 2.3 million from 2019, with visitors spending rising 9%, as per WTTC. Strong travel retail sales in China are anticipated, fueled by rapid infrastructure expansion and growing demand in duty-free categories such as perfumes and apparel.
•  Tourism-led luxury spending is set to drive significant growth in Europe. Countries such as Spain, France, and Italy are witnessing a surge in travelers, fueling market growth.
• Driven by rising tourist arrivals and robust travel spending, North America’s duty-free retail market is led by the U.S. In May 2023, the U.S. welcomed 5.36 million international visitors, up 26% Y-o-Y, as per the International Trade Administration. Canada supports growth with 53 duty-free retail sites at key entry points across the country, according to CBSA. 
• In terms of sales channel, the market is fragmented into onboard aircraft, seaports, train stations, airports, and others. The airports segment holds the apex position in the market due to the rising number of international airports, particularly in developed and emerging nations.

Table of Segmentation