North America duty-free retail Market: Industry Analysis and Forecast (2024-2030)

North America duty-free retail Market Definition:

Duty-free shopping is the practice of being able to buy a product under specific conditions without having to pay import, sales, value-added, or other taxes. One alluring benefit of international travel is duty-free shopping.

 

Further, the North American market is segmented by Type, Sales Channel, and geography. Based on Type, the North America Duty-Free Retail market is segmented into Perfumes, Cosmetics, Alcohol, Cigarettes, and Others. Based on the Sales Channel, the 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 North America i.e., the US, Canada, and Mexico. For each segment, the market sizing and forecasts have been done based on value (in USD Billion).

 

 

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North America duty-free retail COVID 19 Insights:

The COVID-19 pandemic has damaged the growth of the North American duty-free retail business. The sudden decline in air traffic, most notably in 2021, hampered both aeronautical and non-aeronautical revenue as carriers reduced their capacity and customers postponed foreign trips. a Canadian-based international platform for promoting airport standards and market practices, total airport revenues fell by 35% to USD 14 billion in the first quarter of 2021 and by 90% to USD 39 billion in the second quarter. Due to trade tensions and trade protectionism between China and Australia, the United States, and other trading partners, duty-free sales between these countries are likely to suffer soon. To reduce social tensions or any unrest caused by the COVID-19 pandemic's effects on employment and social inequality, governments are likely to adopt a protectionist trade policy. The COVID-19 crisis has had a particularly negative impact on the tourism market. In the first three months of 2021, China International Travel Service (CITS), a Chinese travel agency business, reported a decrease of % to USD 1.08 billion (7.63 billion yuan), going from a profit of USD 0.36 to a net loss of USD 18.89 million (120.14 million yuan).

 

North America duty-free retail Market Dynamics:

The main factors propelling the market are considered to be increasing tourism and the availability of goods at lower prices.

People's growing desire to travel to different international locations is expected to be the main factor fueling the market's growth. The market is anticipated to expand significantly throughout the period due to an increase in passengers. Additionally, there are a lot of companies on the market who sell their goods to customers for a very low cost when compared to other retail outlets. Due to numerous taxes being waived, some products' costs are remarkably low. The market is expected to be driven by the large number of travelers who want to purchase pricey and opulent things that are available to them at considerably reduced prices due to tax exemption.

 

Government regulation is considered to hamper the growth of the duty-free retail market over the period

Various laws and regulations have been implemented by governments in different nations regarding shopping in duty-free retail stores. Strict restrictions and regulations regarding the addition of new products, particularly for local producers and small and medium-sized businesses (SMEs), present a barrier to the market because these businesses cannot afford to rent a store in various duty-free retail stores areas. The language barrier is also thought to be a significant hurdle for the duty-free retail business. Due to the inability of the buyer and seller to communicate effectively, there will be a gulf between them, which will impede the market's growth during the expected period.

 

Restraining factors:

The North Americas International exchange rates affect duty-free markets. North Americans are impacted by market changes even if they operate across numerous nations and frequently transact in different currencies, including the exact exchange rates for the Euro, Dollar, and British Pound. These currencies are converted using the current exchange rate. Depending on the fluctuating exchange rate, North American duty-free retail firms, in particular retail chains that sell luxury products, may face positive or negative consequences from market currency exchange fluctuations. One of the primary external elements driving economic inflation is the fluctuating currency markets brought on by the COVID-19 epidemic.

 

North America duty-free retail Market Segment Analysis:

By Type, the North American duty-free retailing market is divided into many categories depending on the type of product: cosmetics and personal care; alcohol, wine, and spirits; tobacco and cigarettes; clothing and accessories; confectionary and food items; and others. Electronics, dietary supplements, toys, watches, books, and fine literature are included in the "others" category. The tendency is being fueled by the chance to buy the goods for a significantly lower price, which is having a beneficial effect on the growth of the duty-free retailing business. Onboard shopping and pre-boarding shopping are two new services that airlines have recently introduced to improve the flying experience for passengers. As a result, these services are helping to fuel the growth of the duty-free retailing business.

 

 

By Sales Channel, the North American duty-free retailing market is divided into airports, onboard aircraft, seaports, and others based on application. The segment for airports commands the biggest market share, followed by the segments for others, seaport, and on-board. The airport duty-free retailing facility facilitates the pre-ordering of duty-free goods, giving customers the option of receiving their purchases at the airport or on a flight. By enabling travelers to travel with less luggage, the possibility of paying an over baggage tax is further diminished.

 

North America 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 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 North American duty-free retail market to the stakeholders in the industry. The report provides trends that are most dominant in the North American 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 North American 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 North America duty-free retail market report is to help understand which market segments, rand, 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 North American duty-free retail market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the North American duty-free retail 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 North American duty-free retail market. The report also analyses if the North American duty-free retail market is accessible for a new player 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 North American duty-free retail market. Economic variables aid in the analysis of economic performance drivers that have an impact on the North American duty-free retail market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the North American duty-free retail market is aided by legal factors.

 

North America Duty-Free Retail Market Scope:

North American duty-free retail Market
Market Size in 2023	USD 27.13 Bn.
Market Size in 2030	USD 43.01 Bn.
CAGR (2024-2030)	6.8%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	By Type Perfumes Cosmetics Alcohol Cigarette Others
	By Sales Channel Airport Onboard aircraft seaport Train stations Others
Country Scope	United States Canada Mexico

 

North America duty-free retail Market Key Players: 

• Dufry AG (Switzerland)
• DFS Group (China)
• Gebr. Heinemann SE & Co. KG (Germany)
• Shinsegae Duty-Free Inc. (South Korea)
• The King Power International Group (Thailand)
• Lagardère Group (France)
• Dubai Duty-Free (UAE)