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Europe Duty Free Retailing Market Size, Sector Analysis, Consumer and Retail Trends, Competitive Landscape and Forecast, 2021-2025

The European duty-free market was valued at $5.0 billion in 2020 and is forecasted to grow at a CAGR of more than 2% during the forecast period of 2021-2025. Europe will see a slow pickup of sales as travel restrictions are yet to be fully eased and travel within the region involves additional paperwork like EU travel certificates which people are reluctant to use. Vaccine passports, travel bubbles, and a pent-up desire to travel will lead to growth in the region, though sales will not reach pre-COVID levels in the forecast period. The declining market in 2020 has been exacerbated by its main spenders Asian, especially Chinese, tourists being unable to travel, with their expenditure shifting to the APAC region. As travel restrictions ease and tourism returns, things will improve fueled by the continued appeal of European brands and luxury products.

The duty-free market is in flux due to the recurring waves of the virus. The rapid rise of the Omicron variant is expected to create further disruption in the return of duty-free spending. Duty-free players have not been able to fully recover and put long-term strategies in place as they continue to be occupied battling new obstacles affecting travel and tourism. Thus, GlobalData’s duty-free channel forecasts are being revised on a monthly basis – to provide a clearer and updated scenario taking into consideration the most recent developments – which can be accessed via our market analyzers, through our subscription service. Cosmetics and toiletries were the largest category in 2020 and is set to remain so through the forecast period. However, this category will not grow beyond its 2019 sales value and will register a declining CAGR of more than 2% due to reduced demand from overseas consumers. The drinks category is set to be the fastest-growing area in Europe’s duty-free market as consumers concentrate purchases on discretionary items.

Overview of the European duty-free retailing market

Overview of the European duty-free retailing market

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What are the market dynamics of the European duty-free retailing market?

Duty free retail in Europe will be driven by recovering tourism assisted by targeted efforts to increase destination tourism and increase travel safety. The destination summer campaign has been created by four representatives, ACI Europe, Airlines for Europe, IATA and ETRC that came together to promote a safe return to travel and tourism in Europe. The campaign is aimed at restoring freedom of movement in the EU via implementation of a digital COVID-19 certificate, and the roll out of affordable and reliable rapid COVID testing capacities to drive non-essential travel. The destination summer campaign encourages cooperation to open international trade and travel thereby boosting duty free retail sales.

European airports struggled to stay afloat as passenger traffic dwindled in 2020. According to ACI Europe, nearly 200 airports in Europe were on the brink of insolvency in October 2020. Airports at risk were mainly the smaller regional ones with five million or fewer travelers per year. The Berlin Brandenburg International airport has been under construction since 2006 and was injected with EUR300 million funding by the state in October 2020 to avoid bankruptcy, yet it is facing operational issues in 2021. In May 2020, expansion plans for Birmingham airport were halted and Heathrow Airport’s expansion plan for a third runway has been put on hold as of November 2021 to focus spending on clean energy initiatives. Plans for expansion of the London city airport were also paused indefinitely due to the economic slump caused by COVID-19. The situation is likely to get better as vaccination drives are underway across Europe and governments have started allowing entry of fully vaccinated travelers which will help restart duty-free retail consumption. Duty-free retailers have also undertaken initiatives that enhance the shopping experience for visitors. These are intended to increase the appeal for in-store shopping amongst returning consumers post lockdown.

What are the key sectors of the European duty-free retailing market?

The key sectors in Europe’s duty-free sales are cosmetics & toiletries, drinks, food, tobacco, jewelry & watches, accessories, womenswear, communications equipment, menswear, printed media, and others. Cosmetics & toiletries, drinks, and food are the largest sectors of the European duty-free sales market. Moreover, the food, drink, luggage & leather goods sectors are the fastest-growing categories of the European duty-free retailing market during 2021-2025.

European duty-free retailing market, by key sectors

European duty-free retailing market, by key sectors

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Who are the key players in the European duty-free retailing market?

World Duty Free, Heinemann, DUFRY, Aelia Duty Free, Travel Retail Norway, Hellenic Duty-Free Shops, The Loop, Logas Francas de Portugal, DFS, ATU, and B&S Shop Fly are the key players in the European duty-free retailing market. European duty-free retailers must make strategic changes such as cost-cutting measures, increasing shopping convenience for tourists returning after successful vaccination programs, leveraging cruise duty-free, and taking advantage of international sports events and summer travel as an opportunity to bounce back.

European duty-free retailing market, by key players

European duty-free retailing market, by key players

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Market report scope

Market size (year – 2020) $5.0 billion
Growth rate (CAGR) >2%
Base estimation year 2020
Forecast period 2021-2025
Key sectors Cosmetics & Toiletries, Drinks, Food, Tobacco, Jewelry & Watches, Accessories, Womenswear, Communications Equipment, Menswear, Printed Media, and Others
Key companies World Duty Free, Heinemann, DUFRY, Aelia Duty Free, Travel Retail Norway, Hellenic Duty-Free Shops, The Loop, Logas Francas de Portugal, DFS, ATU, and B&S Shop Fly

Scope

This report provides an overview of European duty-free retailing which includes key trends, retailer reactions, and post Covid-19 outlook.

Reasons to Buy

  • Gain a comprehensive view of the Europe Duty-Free market and forecasts to 2025.
  • Explore new opportunities that will allow you to align your product offerings and strategies to meet demand following the impact of Covid-19 on the Europe Duty-Free market.
  • Investigate current and forecast trends in the market to identify the opportunities offering the most potential.
  • Understand who the main competitors are in the market and their price positioning.
  • Analyze the recommended actions to align your marketing strategies with the crucial trends influencing consumer behavior.

Key Players

World Duty Free

Heinemann

DUFRY

Aelia Duty Free

Travel Retail Norway

Hellenic Duty Free Shops

The Loop

Lojas Francas de Portugal

DFS

ATU

B&S Shop fly

Table of Contents

Table of Contents

Executive Summary

Regional Analysis

Country Analysis

Sector Analysis

Consumer Behaviour

Tourism Landscape

Key Trends

Key Retail Innovations

Competitive Landscape

New Opportunities

Appendix

About GlobalData

Frequently Asked Questions

The European duty-free market was valued at $5.0 billion in 2020.

 

 

 

The European duty-free retailing market is forecasted to grow at a CAGR of more than 2% during the period 2021-2025.

The key sectors in the European duty-free retailing market are cosmetics & toiletries, drinks, food, tobacco, jewelry & watches, accessories, womenswear, communications equipment, menswear, printed media, and others.

World Duty Free, Heinemann, DUFRY, Aelia Duty Free, Travel Retail Norway, Hellenic Duty-Free Shops, The Loop, Logas Francas de Portugal, DFS, ATU, and B&S Shop Fly are the key players in the European duty-free retailing market.

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