The size of the duty-free liquor market is expected to be worth USD 3.71 billion in 2024 and grow at a CAGR of 9.4% from 2024 to 2029 to achieve USD 5.81 billion by 2029.
Consumers tend to buy alcohol from duty-free shops located at airports, railway stations, cruise liners, and others, as it is available at a lower price than liquors in regular stores.
Rising disposable income is a crucial driver of the duty-free alcohol market in the years ahead. High growth has been seen in the disposable income of individuals in Europe and Asia-Pacific, driving the overall growth of the duty-free liquor industry. Improvement in the economic situation and growth in disposable income are the two key factors driving the growth of the duty-free liquor market. The world economy was at a standstill after the 2009 European economic crisis. This financial crisis has affected almost all countries in the world. Steady recovery from the crisis, however, has resulted in healthy economic growth, especially in developing economies, and has resulted in increased disposable income among middle-income groups, thereby adding to the middle-class population.
The presence of strict regulations at the airport, majorly for retailing at airports, and the stringent rules regarding the baggage capacity, where the airport officials charge extra for exceeded baggage limits, are estimated to hamper the duty-free liquor market expansion due to the limited adoption rate.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
9.4% |
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Segments Covered |
By Type, Channel & region. |
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Various Analyses Covered |
Global, Regional and Country Level Analysis; Segment-Level Analysis; DROC; PESTLE Analysis; Porter’s Five Forces Analysis; Competitive Landscape; Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Brown-Forman, Diageo, Erdington, Bacardi, Heineken, Glen Moray, Accolade Wines, Constellation Brands Inc, REMY COINTREAU, Pernod, Ricard. |
The category of whisky accounted for the largest share of the duty-free alcohol market due to an increase in the global consumer base. In fact, whiskey is known as a premium product and an indicator of taste and sophistication. Thanks to the continuous growth in international aviation and air traffic, the airport group achieved the highest share in 2018. In addition, the growth of the duty-free liquor industry is one of the key factors in the development of the tourism industry
India and China are the two major countries with urban population growth and future duty-free liquor industry areas. In addition, the rise in travel & tourism industry development is also anticipated during the forecast period to fuel market growth. This is because leisure tourism, corporate tourism, and others are included in travel & tourism. Chinese tourists are the most significant contributors to the sales of luxury brands, accounting for 25% of global revenue from retailers' luxury products.
Key players in the global duty-free liquor market are Brown-Forman, Diageo, Erdington, Bacardi, Heineken, Glen Moray, Accolade Wines, Constellation Brands Inc, REMY COINTREAU, Pernod, Ricard.
Consumers in Singapore can now buy tax and duty-absorbed alcohol from a particular site. The page, launched by Changi Airport and retailer DFS Group based in Hong Kong on July 30 2019, is selling over 140 varieties of wine, champagne and sake.
By Type
By Channel
By Region
Frequently Asked Questions
Duty-free liquor refers to alcoholic beverages that are sold at designated retail outlets in international airports, cruise ships, and other travel-related locations. These products are exempt from certain local or national taxes and duties, making them potentially cheaper for travelers.
Generally, duty-free liquor can be purchased by international travelers who are leaving the country or traveling to another country. Most duty-free shops require travelers to present their boarding pass and passport as proof of international travel.
The primary benefit of duty-free liquor is cost savings. Because these products are exempt from certain taxes and duties, they are often priced lower than equivalent items sold in regular retail stores. Duty-free shopping also offers travelers a wide selection of brands and products that may not be available in their home country.
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