LONDON--(EON: Enhanced Online News)--According to the latest market study released by Technavio, the global duty-free retailing market is expected to grow at a CAGR of close to 9% during the forecast period.
This research report titled ‘Global Duty-free Retailing Market 2017-2021’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.
The global duty-free retailing market is expected to grow to USD 114.53 billion by 2021, mainly driven by the increasing number of international travelers. This increase in number is indicative of the fact that the major consumer base for duty-free products belongs to the airport visitors' category. Overall, airports account for more than three-fifths of the total revenue generated from this market.
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Based on the product category, the report categorizes the global duty-free retailing market into the following segments:
- Fashion, accessories, and hard luxury products
- Cosmetics and perfumes
- Wines and spirits
- Confectionery and fine foods
The top three revenue-generating product categories in the global duty-free retailing market are discussed below:
Fashion, accessories, and hard luxury products
“In 2016, the fashion, accessories, and hard luxury segment dominated the global market with a share of almost 34%. Key products in this category are precious jewelry, briefcases, handbags, and shoes. With increasing disposable income and growing influence of the fashion goods industry on consumers' purchase decisions, the adoption of luxury apparel and accessories is mounting,” says Poonam Saini, one of the lead analysts at Technavio for retail goods and services research.
Chinese travelers are the highest contributors to the sales of luxury brands, who account for 25% of the global revenue of luxury products' retailers. Michael Kors, Armani, Fossil, Gucci, and Burberry are some of the top brands in this market space.
Cosmetics and perfumes
Cosmetics and perfumes are one of the largest segments in the duty-free retailing space due to an increase in international travel, luxury foreign spending, growing disposable income of middle-class travelers, and rapid urbanization. Some of the top selling cosmetics and perfume brands are Chanel, Christian Dior, Estée Lauder, and Guerlain.
L'Oréal, one of the largest cosmetics and perfumes manufacturers, has a division only for duty-free retail, describing the division as the Sixth Continent. Similarly, Estée Lauder expanded its brands' presence by opening a boutique in emerging countries like the UAE and in Detroit Metro Airport, the US, which acts a primary gateway to Asian countries for procuring duty-free cosmetics and perfumes. Such moves by top brands are driving the growth of this segment.
Wines and spirits
“Most consumers prefer buying premium alcoholic beverages through duty-free retail, as the sector offers these premium products at a lower price. Innovations in store layouts, well-trained staff, more limited editions, and technological innovations, which help customers to compare prices with duty-paid shops, are some of the key drivers in this category,” says Poonam.
Johnnie Walker, Diageo's Scotch brand, continues to be the top-selling brand, followed by Absolut, Jack Daniel's, Chivas Regal, and others. Despite limitations on the quantity of alcohol that can be procured, the global duty-free retailing market for wines and spirits is estimated to showcase significant growth through the forecast period.
The top vendors highlighted by Technavio’s research analysts in this report are:
- Lotte Shopping
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