The global duty-free retailing market is slated to grow at a CAGR of 8.56 per cent during the period 2017-2021.
The report covers the present scenario and the growth prospects of the global duty-free retailing market for 2017-2021. To calculate the market size, the report considers the revenue generated from the retail sales of various consumer products to individual customers at duty-free retail stores globally.
The latest trend gaining momentum in the market is APAC: Region with the highest growth rate. APAC is the fastest-growing region in the global duty-free space, primarily due to the increasing airport traffic and thriving tourism industry. In 2015, the number of international travelers to the region, in terms of international tourist arrivals, reached above 279 million. This number represented a growth of more than 5.5 per cent compared with the previous year.
Northeast Asia is the largest contributor, having close to 50 per cent contribution of the number of international travelers. In line with this, the tourism industry in APAC is also growing significantly.
According to the report, one of the major drivers for this market is premium product offerings and exemption of excise duties. Duty-free retailing is mostly concentrated on the sales of luxury brands of fashion goods, accessories, hard luxury items, cosmetics, fragrances, and wines and spirits.
Within these categories, fashion goods, accessories, hard luxury items, cosmetics, and fragrances accounted for 64.43 per cent of the total revenue generated in the global market in 2016. This data indicates that premium categories play a pivotal role in determining sales in the duty-free retailing space.
Further, the report states that one of the major factors hindering the growth of this market is lesser focus on shopping at travel points. The limited vacation time for many tourists compels them to focus more on traveling rather than spending time on related activities like shopping.
While analyzing the daily footprint data of travelers in any given busy international airport, it was found that only 5 per cent – 10 per cent of the total number of travelers tend to visit duty-free retail stores within the airport.