How big is the Duty-Free Market | Value, Trends & Consumer Behavior 2025

Q: How big is the duty-free market?

The duty-free market is expected to reach USD 149.8 billion by 2031.

Q: What is the CAGR of the duty-free market?

The duty-free market is projected to grow at a CAGR of 8.4% during the forecast period.

Q: What are the top-selling product categories in duty-free stores?

Top categories include fragrances & cosmetics, alcoholic beverages, fashion accessories, and confectionery.

Q: What are the major challenges in the duty-free market?

Key challenges include currency fluctuations, strict import regulations, and competition from online retail.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

Yes, we provide customisation as per your requirements. To learn more, feel free to contact us on sales@6wresearch.com

Code: MTA5608

Publication Date: Jul 2025

How big is the duty-free market?

According to 6Wresearch internal database and industry insights, the duty-free market was valued at approximately USD 84.1 billion in 2024 and is projected to reach USD 149.8 billion by 2031, growing at a CAGR of 8.4% during the forecast period.

The growth is driven by the rising international travel and tourism, increasing demand for premium and luxury products, and expansion of airport retail infrastructure. Strategic product positioning by brands and digitalization of travel retail are further propelling the market forward, especially in emerging economies across Asia-Pacific and the Middle East.

Key Growth Factors of the Duty-Free Market

Increasing international air travel and tourism spending
Growing consumer preference for luxury and premium brands
Expansion of airport terminals and travel retail zones
Rising disposable income in emerging economies
Strategic promotional pricing and exclusive travel-only product offerings
Integration of digital retail experiences, loyalty programs, and mobile commerce

Duty-Free Market Trends

The duty-free industry is experiencing a surge in digitized shopping experiences, with many operators offering pre-order and click-and-collect services. There is a growing focus on local cultural products and sustainable packaging, catering to environmentally conscious travelers. Premiumization of product portfolios, particularly in beauty, spirits, and fashion segments, continues to dominate sales. Airports are also transforming duty-free areas into experiential retail spaces to increase dwell time and spending.

Emerging Developments in the Duty-Free Market

Retailers are adopting AI-powered personalization engines to tailor product recommendations. Integration of blockchain technology is being explored for product authenticity verification. Omnichannel retail strategies, combining in-store and digital platforms, are enhancing customer engagement. Collaborations between airlines, airport authorities, and brands are enabling exclusive product launches