Travel Retail Market Size, Share & Industry Analysis, By Product Type (Cosmetics & Fragrances, Wines & Spirits, Confectionery & Fine Foods, Tobacco Products, Fashion & Accessories, and Others), By Sector (Duty Free and Duty Paid), By Sales Channel (Airport & Airline Shops, Seaport & Cruise line Shops, Border Downtown Hotel Shops, Railway Stations, and Others), By Sales Medium (Offline and Online), and Regional Forecast, 2025-2032

The global travel retail market size was valued at USD 66.30 billion in 2024. The market is projected to grow from USD 72.51 billion in 2025 to USD 145.46 billion by 2032, exhibiting a CAGR of 10.46% during the forecast period. Asia Pacific dominated the travel retail market with a market share of 51.21% in 2024.

Travel retail businesses offer a diverse range of luxury products, including beverages, outdoor essentials, fragrances, and others that elevate travelers' experience at cruises, airports, and airlines. They provide significant revenue generation opportunities to these facility operators and merchants and enhance their brand awareness among international travelers at minimal marketing costs. The rising number of businesses opening their stores or partnering with duty-free retailers to launch products at these settings across the world signifies the market’s expansion. For instance, in June 2023, Pangaia, a U.K.-based lifestyle product brand, unveiled its retail store in partnership with Lagardère Travel Retail, a French retailer, at Terminal 3 of the Dubai International Airport. At a macro level, the rising popularity of luxury goods in international airports, cruise liners, and railway stations will favor the market’s expansion over the forecast timeframe.

Key players operating in the global market include Dufry AG, Lagardere Travel Retail, China Duty Free Group Co., Ltd., DFS Group Ltd., and Lotte Duty Free.

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Impact of COVID-19

The COVID-19 pandemic severely lowered international air passengers and negatively impacted airport passengers’ spending on goods at airport facilities. To minimize the spread of the coronavirus infection, governments across the globe imposed lockdowns and other travel restrictions. This factor lowered the number of air and marine travelers, threatening the market growth rate. For instance, according to the Cruise Lines International Association, a U.S.-based trade association, the number of cruise passengers declined by 81%, from 29.7 million in 2019 to 5.8 million in 2020.

Travel Retail Market Trends

Rising Preference for Sustainable Duty-Free Products and Online Store Launches to Boost Market Growth

Many travelers globally, prefer sustainable duty-free products to minimize their environmental impact. This factor has encouraged prominent industry participants to launch sustainable and eco-friendly stores to attract eco-conscious consumers. For instance, in March 2022, Lagardère Travel Retail, a French company, introduced its Aelia Duty-Free shop at the Geneva International Airport, Switzerland. This new store staff are eco-conscious and adopt sustainability practices across various aspects including furnishing, materials, and products.

In addition, the emergence of m-commerce & e-commerce and consistent brands’ provisions of in-flight custom product purchase recommendations will likely increase the travel retail services sales. For instance, in July 2023, Lotte Duty-Free, a South Korea-based retailer, introduced an online liquor store offering products, such as brandy, wine, and Cognac, including limited edition items from over 100 brands.

MARKET DYNAMICS

Market Drivers

Rising Number of International Travelers to Drive Market Expansion

The increasing number of domestic and international travelers will drive the market growth over the forecast period. For instance, according to VisitBritain, a British Tourist Authority and non-departmental public body, the number of visits to the U.K. was expected to be 39.5 million in 2024, a 5% increase from the visits in 2023 (37.8 million).

Additionally, the rapidly evolving tourism industry of various countries across the globe will support the market’s expansion. According to the World Travel & Tourism Council's (WTTC) latest Environmental Social Research (ESR), in May 2025, the annual international visitor spending in the Middle Eastern region reached USD 194.0 billion, 24% up over the 2019 levels.

Launch of Promotional Campaigns by Major Players to Trigger Product Sales Positively

Recent years have witnessed prominent industry participants launching promotional campaigns and providing discounts & offers. These promotional campaigns are designed to encourage consumers to purchase duty-free products. Furthermore, the prominent players offer high-quality, privately labelled products to attract higher-income travelers and generate revenue streams. These factors are expected to boost the product sales through stores in the future.

For instance, in December 2023, Dubai Duty-Free, a company managing Dubai International Airport’s duty-free operations, announced various discounts, offers, and gift cards on its range of products under a promotional activity, marking its 40th anniversary.

Market Restraint

High Product Pricing and Currency Fluctuations to Impede Market Growth

Businesses prioritize providing high-quality products from internationally acclaimed and well-renowned brands across the globe, including Gucci, Chanel, Burberry, Dior, Louis Vuitton, and Versace. The high cost of these products limits their sales among lower-income groups and can impede the market’s expansion. Furthermore, currency exchange fluctuations due to political, economic, and market factors such as inflation, interest rates, and recession can negatively influence travel retail market growth.

Market Challenges

Significant Operational Costs to Challenge Business Expansion in Travel Retail Environments

Significant operational costs, including labor wages & maintenance costs, and the lowering of international arrivals due to the incidences of war & natural calamities are enabling airport facility operators to increase their shop facility rents, resulting in a decline in the business expansion rate in these facilities. In addition, uncertain governmental travel-related restrictions are lowering international arrivals across many countries. According to the Korea Duty Free Association, the annual travel retail sales across South Korea dropped by 7% in October 2024, mainly due to Chinese traveler arrivals in South Korea preferring domestic destinations, including Hainan and others, due to the safety concerns and patriotic appeals from Chinese authorities.

Market Opportunities

Businesses Offering Limited Edition Products to Enable Airport Facilities to Build Services Revenues

An increasing number of businesses are launching limited edition products and collectibles, including premium spirits, skincare cosmetics, and others, and encouraging airport facility passengers to purchase such products, creating newer market growth opportunities. For instance, in June 2025, Clarins, a French multinational cosmetic company, strengthened its travel retail portfolio with the relaunch of its Extra-Firming skin firming range across the Asian airport facilities.

Segmentation Analysis

By Product Type

Increasing Demand for Cosmetics and Fragrances Among Females and Millennials Led Their Sales

Based on product type, the market is segmented into cosmetics & fragrances, wines & spirits, confectionery & fine foods, tobacco products, fashion & accessories, and others.

The cosmetic & fragrances segment dominated the travel retail market share in 2024 due to the growing interest, particularly among females and millennials in internationally acclaimed beauty and perfume cosmetics brands that are difficult to find in their native locations. In addition, the tax-free pricing of perfumes increases their demand as a gifting item among travelers. Moreover, the retailers showcase multiple brands and product types under one roof, providing travelers with more options and making the purchase easy.

The wines & spirit segment emerged as the second leading segment in 2024. International liquor brands, such as Macallan (The Macallan Global Boutiques) and Dalmore (Dalmore Store) emphasize selling products through airport shops and cruise lines to increase their sales, thereby contributing to the segment’s growth.

Furthermore, the fashion & accessories segment is likely to achieve substantial growth during the forecast timeline as fashion products are quite popular among celebrities and sportspersons.

The growing popularity of innovative e-cigarettes will increase their sales through airports and cruise shops, driving the tobacco products segment’s revenue. However, the smoking-related prohibitory rules imposed by airlines and cruises can limit the demand for tobacco products among travelers.

The increasing launch of travel-exclusive collections by confectionery and fine food brands will provide growth opportunities for the segment. For instance, in November 2023, Mondelez World Travel Retail, a U.S.-based confectionery company, introduced its travel collection, including its brands, such as Toblerone, Cadbury, Oreo, and Milka in various flavors. The collection was launched across airports in New Zealand, Australia, Greece, the U.S., Germany, Istanbul, and India.

Furthermore, the others segment includes fine arts and electronic items. The availability of a wide range of these products from various brands at these stores is expected to increase their sales in the coming years.

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By Sector

International Travelers’ Rising Demand for Duty-Free Products Drive Their Sales

Based on sector, the market is categorized into duty free and duty paid.

The duty-free segment will likely dominate the market throughout the forecast timeframe. Globally acclaimed cosmetic brands, including L'Oréal and Estee Lauder Inc., emphasize selling their products through duty free shops to boost sales. In addition, the rising number of international travelers and their demand for duty free products will accelerate the segment’s revenue.

The duty paid segment is expected to grow at a strong CAGR over the forecast period. Furthermore, key players are prioritizing expanding their business by launching new duty-paid stores at key locations.

• For instance, in July 2022, Dufry, a Switzerland-based retailer, announced plans to strengthen its South American business by opening new stores, including three duty-paid shops at the Belo Horizonte International Airport.

By Sales Channel

Airports & Airline Shops Became Major Sales Channels Due to Availability of Wide Variety of Products

Based on sales channel, the market is segmented into airport & airline shops, seaport & cruise line shops, border downtown hotel shops, railway stations, and others.

The airport & airline shops segment dominated the market in 2024, backed by the provision of a wide variety of products, including liquor and cosmetics from several international and niche brands by airport retailers. Moreover, the rising in-flight Wi-Fi trend offers online shopping opportunities for air passengers, thereby increasing the segment’s growth.

Railway station & others segment emerged as the second leading segment in 2024. Government initiatives to increase passenger traffic at railways will likely create growth opportunities for the segment. For instance, in June 2023, Ashwini Vaishnaw, minister of the Indian railways, announced plans to increase passenger traffic to 11 billion a year by eliminating waiting tickets.

The seaport & cruise line shops segment will likely grow rapidly in the coming years. The surging number of travelers through sea routes will benefit the seaport & cruise line shops segment. For instance, according to Cruise Lines International (CLIA), 28 million individuals traveled on ships and cruises in 2018; this figure was expected to cross the 30 million mark in 2019. In addition, the rising trend of purchasing fragrances and chocolates as gift items from border downtown hotel shops will increase the product’s sales from these channels. The border downtown & hotel shops segment is forecast to witness a strong growth in the forthcoming years.

By Sales Medium

Higher Airport Travelers' Preference for In-person Shopping Results in Dominance of Offline Segment

Based on sales medium, the global market is bifurcated into offline and online.

The offline segment exhibited a leading global market share due to the higher preference for in-person shopping at specialty retailers in airports. Travelers extensively shop duty-free products of luxury brands at specialty retailing shops, including skincare shops, gifting shops, wine shops, electronic stores, and others. In addition, the rise of experiential retail, including interactive spaces and pop-ups utilizing AI & VR technologies for the personalized shopping experience of the passengers, favors offline segmental growth.

In comparison to the offline segment, the online segment is slated to grow faster during the forecast period. The online segment is mainly driven by consistent facility operations, the provision of personalized inflight and at-airport shopping experiences, the utilization of AI-based mobile applications and digital kiosks. Furthermore, increasing online retailers offering sustainable goods, including eco-friendly skincare cosmetics, sustainable fashion accessories, and local handmade artisanal products, will build the online segment’s growth.

TRAVEL RETAIL MARKET REGIONAL OUTLOOK

On the basis of region, the market is studied across North America, Asia Pacific, Europe, South America, and the Middle East & Africa.

Asia Pacific

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Asia Pacific dominated the global market in 2024 and has benefitted from the increasing spending of domestic and international travelers on duty-free products, notably in China and South Korea. The China duty free and travel retail market has recovered considerably from the negative influence of the COVID-19 pandemic, with increasing footfall across airports. Furthermore, travel companies, including MakeMyTrip and Yatra providing holiday packages, including hotel reservations and airline & rail tickets, will favor the regional market’s expansion.

Recent years have witnessed retailers collaborating with airports in Asia Pacific countries to expand their operations in the region. For instance, in December 2023, Kansai Airports Retail & Services, operating Kansai Airports Group and managing three airports across Kansai, Japan, collaborated with Lagardère Travel Retail, a French retailer, to supply products to the new duty-free shop at Terminal 1, Kansai International Airport.

A rising number of international visitors exploring the purchasing of newer K-pop and Korean beauty products at Lotte Duty Free, The Shilla Duty Free, Shinsegae Duty Free, and other travel retailing shops favor market expansion across South Korea. According to the Invest Korea Organization, the number of foreign tourist arrivals in South Korea increased from 967,000 in 2021 to 3,198,000 in 2022.

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Europe

As the second leading regional market, Europe is witnessing robust growth backed by the growing development of tourism-related infrastructural settings, such as hotels, restaurants, and amusement parks across the U.K, France, and Spain. This move will likely increase travel to these countries in the coming years. For instance, in July 2023, Wyndham Hotels & Resorts, a U.S.-based hotel company, announced plans to launch its Super 8 by Wyndham in the U.K. The new 41-room hotel will provide accommodation to travelers around the North Wales and Greater Manchester areas of the country.

North America

The rising number of international brands expanding their presence in the Canadian and Mexican duty-free industries, which involves opening newer stores across airport facilities skyrocket the duty-free goods’ sales in these countries. For instance, in June 2025, Avolta, a Dufry AG brand, opened a new, 170 sq. m. Toronto Duty Free store in Terminal 3 of Toronto Pearson International Airport.

The increasing number of travelers to the U.S. will support the North American market growth. According to the International Trade Administration, a U.S.-based government agency, the number of foreign visitors to the U.S. increased by 128.3% and reached 22.3 million in 2022.

South America

The growing number of international travelers exploring culture & natural wonders and their preference for duty-free shopping will increase revenues across Brazil and Colombia. Furthermore, the increasing number of businesses expanding their travel retail presence in the Latin American countries, including Chile, Venezuela, Peru, and Colombia, accelerates product revenues in these countries. For instance, in September 2024, Giromondo, an American FMCG company, acquired Duty Free LATAM operations to offer a wide range of premium-based products to travelers in Chile, Peru, and Colombia.

Middle East & Africa

Governmental support in building airport & metro infrastructural facilities and the increasing number of middle class population will increase the sales of goods sold through these travel retailing facilities, skyrocketing the market growth in the Middle Eastern region. The rising number of international travelers and spending on luxury goods in South Africa and Nigeria favor market growth in these countries.  

COMPETITIVE LANDSCAPE

Key Industry Players

Key Market Players Focus on Opening Stores with Advance Features to Gain Competitive Advantage

Key industry participants are adopting various strategies, such as store launches, product launches, and introduction of promotional discounts & offers to accelerate their product’s sales. They are also opening stores featuring advanced technologies to increase the customer base for travel retail, enhance consumer engagement, and gain a competitive advantage. For instance, in April 2023, Lagardère Travel Retail, a French retailer, launched its new store near gate 24, Hong Kong International Airport. The new autonomous shop features computer vision technology and an AI system assisting travelers in buying products without waiting for checkout.

Dufry AG, Lagardere Travel Retail, China Duty Free Group Co., Ltd., DFS Group Ltd., and Lotte Duty Free are the leading players operating in the market with these players collectively exhibiting around 35% share of the global market in 2024.

List of Key Travel Retail Companies Profiled in the Report

• Lagardere Travel Retail (France)
• Dufry AG (Switzerland)
• King Power International Group (Thailand)
• Aer Rianta International (Ireland)
• Delhi Duty Free Services Pvt. Ltd. (DDFS) (India)
• Lotte Duty Free (South Korea)
• Gebr. Heinemann SE & Co. KG (Germany)
• China Duty Free Group Co., Ltd. (China)
• Abu Dhabi Duty Free (UAE)
• DFS Group Ltd. (France)

KEY INDUSTRY DEVELOPMENTS

• September 2024: Lagardère Travel Retail partnered with TAV Airports to introduce its Relay brand in Croatia and Kazakhstan.
• April 2024: Amber Beverage Group (ABG), a global spirit company, partnered with Distribution Spirits Company (DISC), a Caribbean distribution company, to broaden its beverage sales across the Caribbean region.
• November 2023: Lagardère Travel Retail, a French company, announced plans to open three new stores after winning the electronics tender at the Frankfurt Airport. The new Tech2go shops in Terminal 1, covering a 200 sq. m. area, will offer electronic products.
• July 2023: Coty Travel Retail Europe, the European travel retail subsidiary of beauty brand Coty, collaborated with Dufry, a Switzerland-based retailer, to introduce Burberry Goddess Eau De Parfum. The fragrance was launched by Burberry, a U.K.-based luxury brand, at the London Heathrow airport.
• June 2023: Ritter Sport, a German chocolate brand, announced plans to launch Mini Rainbow Crunchies Tower, its limited edition product, exclusively through channels with Dufry, a Switzerland-based retailer.
• January 2023: Lotte Duty-Free, a South Korean company, opened a store for NONFICTION, a Korean beauty brand. To mark the launch, the company offered consumers free goods through both offline and online channels when purchasing NONFICTION products.
• January 2023: Lagardère Travel Retail Belgium and Atos, a French IT service and consulting company, partnered to launch an automated duty-free point of sales at the Brussels Airport. The companies launched the automated POS to offer travelers a new and unique travelling experience.

REPORT COVERAGE

The report provides a detailed travel retail market analysis and focuses on key aspects, such as leading companies, product types, sectors, sales channels, and sales medium. Moreover, the report offers, insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the market research report encompasses several factors that have contributed to the growth of the market in recent years.

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