Few retail sectors were hit has hard by the pandemic as the duty-free and travel amenity shops in such places as airports, rail stations and ferries. When travel shut down, so did the customer streams flowing by stores targeting in-transit consumers.
But a new study from Mordor Intelligence estimates the global duty-free and travel retail market will rebound to $68.84 billion in sales this year – and will then proceed to hit $110.21 billion by 2028.
“Duty-free and travel retail provides temporary spaces that offer extra time to end users after security check-in and allow them to get entertained and indulgent with the ambiance and experience of shopping for international products,” notes the Mordor study. “The increasing focus on digitalizing the retailing process, so that companies can maximize their profits, may boost sales in the market. The growing demand for retail chains that offer luxury and premium brands of various products is augmenting the growth of the duty-free and travel retail market.”
Several companies are partnering with duty-free stores to launch their limited or exclusive product, which is also driving market growth. By product type, the wines and spirits segment is expected to gain a major share during the forecast period.
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