Europe Duty-free Retail Market: Industry Analysis and Forecast (2024-2030)

  • Europe Duty-free Retail Market was valued at USD 21.05 billion in 2023. The Europe Duty-free Retail Market size is estimated to grow at a CAGR of 5.8 % over the forecast period.

  • Format : PDF | Report ID : SMR_1004

Europe Duty-free Retail Market Definition: 

Duty-free shopping refers to the practice of purchasing goods under certain circumstances without having to pay import, sales, value-added, or other taxes. Duty-free shopping is a seductive perk of overseas travel.


Further, the Europe Duty-free Retail is segmented by Type, Sales Channel, and geography. Based on Type, the Europe Duty-Free Retail market is segmented into Perfumes, Cosmetics, Alcohol, Cigarettes, and Others. Based on the Sales Channel, the Europe Duty-Free Retail market is segmented under the channels of Airports, Onboard aircraft, seaports, train stations, and others. By geography, the market covers the major countries in Europe Duty-free Retail i.e., Italy, Germany, United Kingdom, Russia, France, and the Rest of Europe Duty-free Retail For each segment, the market sizing and forecasts have been done based on value (in USD Billion).


Europe Duty-free Retail Market


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Europe Duty-free Retail Market Dynamics:

The resurgent travel market in Europe will be supported by focused initiatives to boost destination tourism and improve travel security.

To encourage a safe resumption of travel and tourism in Europe, four representatives—ACI Europe, Airlines for Europe, IATA, and ETRC—joined forces to develop the destination summer campaign. For non-essential travel, the campaign aims to establish a digital COVID-19 certificate and the rollout of cost-effective, dependable rapid COVID testing capabilities. The summer destination promotion promotes collaboration to expand trade and travel, which increases duty-free retail sales.


Tremendous growth is expected in Europe.

A major factor supporting the growth of the area market is rising tourist spending on luxury products. The relaxation of COVID-19 limitations has led to airports in European nations being set up to draw travelers and passengers to Duty-Free Retail stores on their route to the departure lounge, as is the case in other international markets. Such arrangements are likely to encourage passengers to make discretionary purchases, which will increase product sales in the ensuing years.


As passenger traffic decreased in 2021, European airports found it difficult to stay afloat. Nearly 200 airports in Europe, according to ACI Europe, were about to go bankrupt in October 2020. The smaller regional airports that saw five million or fewer passengers annually were mostly at risk. To prevent insolvency in October 2020, the state infused EUR300 million Money into the Berlin Brandenburg International Airport, which has been under development since 2006. Despite this, the airport is having operating problems in 2021. Birmingham Airport's growth plans were put on hold in May 2020, and a third runway at Heathrow Airport will not be added until November 2021 to fund sustainable energy projects.


The COVID-19-related economic downturn also forced the suspension of plans for the London City Airport's growth. The situation is likely to improve as vaccination drives are being conducted across Europe and governments have begun allowing the admission of visitors who have received all necessary vaccinations, which will aid in the resumption of duty-free retail sales. Duty-free merchants have also launched programs to improve visitors' ability to shop. These are designed to make in-store buying more appealing to returning customers following the lockdown.


Growing customer experience is expected to present the duty-free retail business with enormous opportunities.

Over the planning horizon, giving more services to customers and improving their experiences could open up a sizable market opportunity. Travel significantly boosts economic activity while the distribution channel provides a better buying experience.


Europe Duty-free Retail Market Segment Analysis:

By Type,

Demand for perfumes will increase due to consumers' growing preference for premium and luxury goods.

The international market is divided into categories according to kind, including cigarettes, alcohol, cosmetics, and perfumes. Throughout the period, the perfumes segment is likely to hold a majority of the market share. Luxury fragrances are distributed through well-known international networks to duty-free shops all around the world. To purchase perfumes from internationally renowned names like Giorgio Armani, Al Haramain Dazzle Intense, Belle, Signature Rose, Signature Silver, and Khulasat Al Oud, affluent international tourists frequently visit duty-free retail chains. All perfume types, including Perfume or De Perfume, Eau De Perfume (EDP), Eau De Toilette (EDT), and Eau De Cologne, are available through major distribution channels (EDC).


Europe Duty-free Retail Market


By Sales Channel,

Increasing Number of Stores at Airports Around the World to Speed Up Product Sales

According to the sales channel, the market is segmented by airports, ships, seaports, train stations, and other places. Airports account for the majority of total product sales. The growing number of local and international airports across all countries favor product sales through this distribution channel. Several developments under the "airports" category illustrate the rising number of duty-free stores in airports around the world. A duty-free shop would be established at Thiruvananthapuram International Airport by the middle of May 2022, according to a statement made in April 2022 by the Adani Group, an Indian integrated corporate conglomerate, and Flemingo, a Dubai-based operator.


This strategic move (new establishment) also highlights the intensifying competition in the Indian market. Additionally, especially in European markets, seaports are crucial for the distribution of duty-free goods. Seaports assist brands of various goods in increasing their market visibility, just like airports do. Recent innovations relating to ports provide potential market participants with appealing commercial options, for instance, the European a Tourism Development Corporation Ltd (ITDC), a division of the Ministry of Tourism, announced in November 2017 that it planned to open duty-free shops in all of the main seaports by the year 2021.


 Europe Duty-free Retail Market Key Players Insights:

The market is characterized by the existence of several well-known firms. These companies control a large portion of the market, have a wide product portfolio, and have a global presence. In addition, the market comprises small to mid-sized competitors that sell a limited variety of items, some of which are self-publishing organizations.


The market's major companies have a significant impact because most of them have extensive global networks through which they can reach their massive client bases. To drive revenue growth and strengthen their positions in the Europe Duty-free Retail market, key players in the market, particularly in this region, are focusing on strategic initiatives such as acquisitions, new collection launches, and partnerships.


The objective of the report is to present a comprehensive analysis of the Europe Duty-free Retail market to the stakeholders in the industry. The report provides trends that are most dominant in the Europe Duty-free Retail market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Europe Duty-free Retail   Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.


The qualitative and quantitative data provided in the Europe Duty-free Retail market report is to help understand which market segments, and regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Europe Duty-free Re l   market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the Europe Duty-free Reta  market.


The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals exist, who they are, and how their product quality is in the Europe Duty-free Retail market. The report also analyses if the Europe Duty-free Retail market is accessible for new players to gain a foothold in the market, do they enter or exit the market regularly if the market is dominated by a few players, etc.


The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Europe Duty-free Retail market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Europe Duty-free Retail market understanding the impact of the surrounding environment and the influence of environmental concerns on the Europe Duty-free Retail market is aided by legal factors.


Europe Duty-Free Retail Market Scope:

Europe Duty-Free Retail Market 

Market Size in 2023

USD 21.05 Bn.

Market Size in 2030

USD 31.24 Bn.

CAGR (2024-2030)


Historic Data


Base Year


Forecast Period


Segment Scope

By Type

  • Perfumes
  • Cosmetics
  • Alcohol
  • Cigarette
  • Others

By Sales Channel

  • Airport
  • On board aircraft
  • seaport
  • Train stations
  • Others

Country Scope

  • UK 
  • France
  • Germany
  • Italy 
  • Spain 
  • Sweden
  • Austria
  • and Rest of Europe


Europe Duty-free Retail Market Key Players: 

  • World duty-free
  • Heinemann
  • Dufry
  • Travel retail Norway
  • Hellenic Duty-free shops
  • The loop
  • Logas Frances
  • DFS
  • ATU

Frequently Asked Questions

The segments covered in the Europe Duty-free Retail Market report are based on Type, Sales Channel.

  1. Scope of the Report
  2. Research Methodology
    • Research Process
    • European Transportation Composites Market: Target Audience
    • European Transportation Composites Market: Primary Research (As per Client Requirement)
    • European Transportation Composites Market: Secondary Research
  3. Executive Summary
  4. Competitive Landscape
    • Stellar Competition matrix
      • Europe Stellar Competition Matrix
    • Key Players Benchmarking: - by Product, Pricing, Investments, Expansion Plans, Physical Presence, and Presence in the Market.
    • Mergers and Acquisitions in Industry: - M&A by Region, Value, and Strategic Intent
    • Market Dynamics
    • Market Drivers
    • Market Restraints
    • Market Opportunities
    • Market Challenges
    • PESTLE Analysis
    • PORTERS Five Force Analysis
    • Value Chain Analysis
  5. European Transportation Composites Market Segmentation
    • European Transportation Composites Market, by Type (2023-2030)
      • Perfumes
      • Alcohol
      • Cigarette
      • Others
    • European Transportation Composites Market, By Sales Channel (2023-2030)
      • Airport
      • Onboard aircraft
      • Seaport
      • Train stations
      • Others
    • European Transportation Composites Market, by Country (2023-2030)
      • Italy
      • France
      • Russia
      • United kingdom
      • Rest of Europe
  6. Company Profiles
    • Key Players
      • world duty-free
        • Company Overview
        • Product Portfolio
        • Financial Overview
        • Business Strategy
        • Key Developments
      • Heinemann
      • Dufry
      • The loop
      • Travel Retail Norway
      • Hellenic Duty-free shops
      • Logas Frances
      • DFS
      • ATU
  7. Key Findings
  8. Recommendations

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