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

  • South America Duty-free Retail Market was valued at USD 18.71 billion in 2023. The South America Duty-free Retail Market size is estimated to grow at a CAGR of 4.3 % over the forecast period.

  • Format : PDF | Report ID : SMR_1119

South America 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 South American market is segmented by product type, sales channel, and geography. Based on type, the South American 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 South America i.e., Brazil, Columbia, Venezuela, Chile, and the Rest of South America for each segment, the market sizing and forecasts have been done based on value (in USD Billion).


South America Duty-free Retail Market


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South America Duty-free Retail Market Dynamics:

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

in South America Four representatives—ACI South America, Airlines for South America, IATA, and ETRC—joined forces to create the destination summer campaign to promote a secure resumption of travel and tourism in South America. The campaign's objectives for non-essential travel include the establishment of a digital COVID-19 certificate and the introduction of dependable, affordable rapid COVID testing facilities. The summer destination campaign encourages cooperation to improve commerce and travel, which boosts retail sales of duty-free goods.


Tremendous growth is expected in South America.

The increased tourist expenditure on luxury goods is a significant factor promoting the expansion of the local market. Airports in South American countries have been constructed to entice travelers and passengers to Duty-Free Retail outlets on their way to the departure lounge, as is the case in other international markets, as a result of the relaxation of COVID-19 restrictions. Such arrangements are probably going to encourage travelers to spend their own money, which will boost goods sales over the next years.


The economic slowdown spurred by COVID-19 also prompted the cancellation of growth plans for the London City Airport. The situation is expected to get better as vaccination drives are held throughout South America and governments have started permitting travelers who have gotten all required vaccinations to enter the country, which will help with the restoration of duty-free retail sales. Duty-free shops have also started initiatives to make it easier for customers to shop. Following the lockdown, these are intended to encourage repeat consumers to make in-store purchases.


The duty-free retail market is expected to benefit greatly from the growing consumer experience.

Giving customers more services and enhancing their experiences could create a large market opportunity over the planning horizon. While the distribution channel offers a better shopping experience, travel considerably increases economic activity.


South America Duty-free Retail Market Segment Analysis:

By Type,

The increased preference of customers for high-end and luxury goods will lead to an increase in the demand for perfumes.

The South American market is segmented by types, such as cigarettes, alcohol, cosmetics, and perfumes. The perfumes market is expected to dominate the market over the period. Through well-known international networks, high-end fragrances are sold at duty-free stores all over the world. Affluent foreign travelers commonly go to duty-free retail chains to buy perfumes from well-known international brands including Giorgio Armani, Al Haramain Dazzle Intense, Belle, Signature Rose, Signature Silver, and Khulasat Al Oud. All perfume varieties, such as Perfume or De Perfume, Eau De Perfume (EDP), Eau De Toilette (EDT), and Eau De Cologne, can be purchased through significant distribution channels (EDC).


South America Duty-free Retail Market


By Sales Channel,

Increasing the Number of Stores at Airports Internationally to Boost Product Sales

The market is divided into segments based on airports, ships, seaports, train stations, and other locations, according to the sales channel. The majority of all goods sales are made at airports. Product sales through this distribution channel are favored by the rising number of local and international airports in all nations. The increasing number of duty-free shops in airports around the world is illustrated by several advancements under the "airports" category. According to a declaration made in April 2022 by the Adani Group, an Indian integrated corporate conglomerate, and Flemingo, a Dubai-based operator, a duty-free shop would be created at Thiruvananthapuram International Airport by the middle of May 2022.


This tactical step (new establishment) also draws attention to the escalating rivalry in the market. Seaports are also essential for the distribution of duty-free goods, particularly in South American markets. Like airports, ports help brands of various items become more visible on the market. The South American 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 major seaports by the year 2023. Recent innovations relating to ports offer potential market participants with enticing commercial options.


 South 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 South America 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 South America Duty-free Retail market to the stakeholders in the industry. The report provides trends that are most dominant in the South America 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 South America 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 South America 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 South America 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 South America 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 South America Duty-free Retail market. The report also analyses if the South America 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 South America Duty-free Retail market. Economic variables aid in the analysis of economic performance drivers that have an impact on the South America Duty-free Retail market understanding the impact of the surrounding environment and the influence of environmental concerns on the South America Duty-free Retail market is aided by legal factors.


South America Duty-Free Retail Market Scope:

South America Duty-free Retail Market Scope

Market Size in 2023

USD 18.71 Bn.

Market Size in 2030

USD 25.12 Bn.

CAGR (2024-2030)


Historic Data


Base Year


Forecast Period


Segment Scope

by Type

  • Perfumes
  • Cosmetics
  • Alcohol
  • Cigarette
  • Others

by Sales Channel

  • Airport
  • Onboard aircraft
  • seaport
  • Train stations
  • Others

Country Scope

 Rest of South America


South America Duty-free Retail Market Key Players: 

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

Frequently Asked Questions

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

  1. Scope of the Report
  2. Research Methodology
    • Research Process
    • South American Transportation Composites Market: Target Audience
    • South American Transportation Composites Market: Primary Research (As per Client Requirement)
    • South American Transportation Composites Market: Secondary Research
  3. Executive Summary
  4. Competitive Landscape
    • Stellar Competition matrix
      • South America 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. South American Transportation Composites Market Segmentation
    • South American Transportation Composites Market, by Type (2023-2030)
      • Perfumes
      • Alcohol
      • Cigarette
      • Others
    • South American Transportation Composites Market, By Sales Channel (2023-2030)
      • Airport
      • Onboard aircraft
      • Seaport
      • Train stations
      • Others
    • South American Transportation Composites Market, by Country (2023-2030)
      • Italy
      • France
      • Russia
      • United kingdom
      • Rest of South America
  6. Company Profiles
    • Key Players
        • Company Overview
        • Product Portfolio
        • Financial Overview
        • Business Strategy
        • Key Developments
      • Lagardere
      • Dufry
      • The loop
      • Travel Retail Norway
      • Hellenic Duty-free shops
      • Logas Frances
      • DFS
      • ATU
  7. Key Findings
  8. Recommendations

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