The global duty-free liquor market size was valued at $13.7 billion in 2019 and is expected to grow at a CAGR of 11.10% to reach $16.1 billion by 2027. Duty-free liquor refers to the liquor exempted from payment of national taxes and duties, and other certain local taxes. Duty-free liquor are sold to travelers travelling to some other country. Such shops or retail outlets are available at various channels such as airports, cruise liners, railway stations, and border, downtown, and hotel shops. People also buy liquor from duty-free stores to spend the surplus foreign currency before going back to their home country.
Due to the covid-19 crisis international travels has slowed down, which has affected duty free sales in large proportion. As the lockdown continues much of the world, duty free retailers have unsold stock, while some retailer are finding imaginative way to keep trading. As the travel retail sector market temporarily on hold, duty free liquor have seen crucial sales channel cutoff. Duty free liquor sales declined to large proportion due to the closure of international flight operations.
The duty-free shops have become a favorite destination for travelers who like to shop before starting their journey. This is due to the elimination of local import tax or the duties implemented by the government bodies. This results in lesser pricing of liquor or any other products such as cosmetics, perfumes, souvenir, and others, which are available at duty-free shops. The global duty-free liquor market is driven by rapid growth in urbanization. North America and Europe are among the most urbanized regions with nearly 81% and 80% urban population respectively. Africa and Asia have comparatively lower shares, with 40% and 48% urban population, respectively. As per the WHO and other organizations, Africa and Asia are the major regions that are expected to witness rapid urbanization trend and are projected to account for 56% and 64% urbanization rate, respectively, by 2050.
India and China are the two major countries with an increase in urban population and potential regions for duty-free liquor market. Furthermore, rise in the development of travel & tourism industry is also anticipated to propel the market growth during the forecast period. This is because travel & tourism includes leisure tourism, business tourism, and others.
The factors that promote the growth of the travel & tourism industry include changes in lifestyle, rise in tourism promotion, increase in number of passengers and frequent fliers, and others, which in turn are expected to fuel the growth of the duty-free liquor market. Consumers mostly tend to purchase liquor from duty-free stores located at airports, railway stations, cruise liners, and others, as it is available at a cheaper price as compared to liquors available at regular stores. Also, rise in disposable income is a crucial factor in propelling the duty-free liquor market in the upcoming years.
Improvement in economic condition and growth in disposable income are the two key factors that propel the duty-free liquor market growth. After the 2009 economic crisis in Europe, the world economy witnessed a standstill. Almost all the countries in the world were affected by this economic crisis. However, strong recovery from the crisis results in strong economic growth, especially in the developing economies, and has led to increase in disposable income among the middle-income groups, consequentially adding to the middle-class population.
In addition, disposable income of individuals in Europe and Asia-Pacific has witnessed high growth, thus driving the overall growth of duty-free liquor market. However, stringent government rules, especially for airport retailing are expected to hamper the market growth. This is due the strict baggage rules for air travel passengers that limit the baggage capacity or charge extra for excess baggage.
The global Duty-Free Liquor Market segments are categorized into type, and channel. Depending on type, the industry is divided into beer, wine, vodka, cognac, and whiskey. By channel, it is classified into cruise liners, airports, railway stations, and border, downtown and hotel shops.
In 2019, based on type, the whiskey segment accounted for the maximum share in duty-free liquor market size, owing to increase in consumer base across the globe. Furthermore, whiskey is considered as a premium product and an indication of taste and sophistication.
By Type
The Whiskey segment would witness the fastest growth, registering a CAGR of 12.20% during the forecast.
By channel, the airport category garnered the highest share in 2019, due to the continuous growth in global aviation and air traffic. Also, rise in the tourism industry is one of the key factors in the growth of duty-free liquor industry.
By Channel
Airport segment would witness the fastest growth, registering a CAGR of 12.00% during the forecast period.
By region, Europe accounted for the highest revenue in 2019 owing to the wealthy tourists from the Middle East, China, the U.S., and Russia contributing a significant part in the market. Also, love for travel is on an upward trend among Germans, which significantly contributes to the growth of the duty-free liquor market.
By Region
Europe segment would witness the fastest growth, registering a CAGR of 11.50% during the forecast period.
The key players operating in the global duty-free liquor market analysis focus on prominent strategy to overcome competition and to maintain as well as improve their share worldwide. The key players profiled in the report include Brown-Forman, Diageo, Erdington, Bacardi, Heineken, Glen Moray, Accolade Wines, Constellation Brands, Inc, REMY COINTREAU, Pernod, and Ricard.
Key Benefits For Stakeholders
- The report provides a quantitative analysis of the current industry, estimations, trends, dynamics and duty-free liquor market share from 2019 to 2027 to identify the prevailing industry opportunities.
- The key countries in all the major regions are mapped based on the duty-free liquor market trends and share.
- Porter’s five forces analysis highlights the potency of the buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
- In-depth duty-free liquor market share analysis of the industry segment and size assists to determine the prevailing industry opportunities.
- Industry player positioning segment facilitates benchmarking and provides a clear understanding of the present position of players along with the duty-free liquor market forecast.
Duty-Free Liquor Market Report Highlights
| Aspects | Details |
 By Type |
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 By Channel |
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 By Region |
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 Key Market Players | SOCIETE DES VINS ET SPIRITUEUX LA MARTINIQUAISE S.A.S., HEINEKEN HOLDING NV. (HEINEKEN N.V.) ., BACARDÍ, CONSTELLATION BRANDS, INC., PERNOD RICARD, RÉMY COINTREAU, ACCOLADE WINES., BROWN-FORMAN., DIAGEO., THE EDRINGTON GROUP LIMITED |
Analyst Review
The duty-free liquor market is experiencing growth at a significant pace, and is anticipated to continue this trend in the coming years. Travel & tourism industry is playing a vital role in revenue generation. It has been witnessed that consumers mostly tend to purchase liquor from duty-free stores located at airports, railway stations, cruise liners, and others as they can purchase it at a cheaper price as compared to liquors available at regular stores.
Travel & tourism includes leisure tourism, business tourism, and others. The factors that promote the growth of the travel & tourism industry include changes in lifestyle, rise in tourism promotion, increase in number of passengers and frequent fliers, and others, which in turn are expected to fuel the growth of the duty-free liquor market. As per the WHO and other organizations, Africa and Asia are the major regions that are expected to witness rapid urbanization trend and are projected to account for 56% and 64% urbanization rate, respectively, by 2050. India and China are the two major countries with increasing urban population and potential market for duty-free liquor
Due to the covid-19 crisis international flights and travels were banned in several countries which affected the duty free liquor market and hampered the sales of the liquors. Vaccination has started all over the world, which is expected to resume all the banned international flights and travels. Growth in vaccination practices and decrease in cases of COVID-19 are expected to favor growth of the duty free liquor market.
Improvement in economic condition and increase in disposable income are the two key factors that propel the duty-free liquor market growth. However stringent government rules, especially for airport retailing, are expected to hamper the market growth. This is due to strict baggage rules for air travel passengers that limit the baggage capacity or charge extra for excess baggage.
The global duty-free liquor market size was valued at $13.7 billion in 2019 and is expected to grow at a CAGR of 11.10% to reach $16.1 billion by 2027. Duty-free liquor refers to the liquor exempted from payment of national taxes and duties, and other certain local taxes. Duty-free liquor are sold to travelers travelling to some other country.
The forecast period in the market report is from 2021 to 2027. The duty-free shops have become a favorite destination for travelers who like to shop before starting their journey. This is due to the elimination of local import tax or the duties implemented by the government bodies. This results in lesser pricing of liquor or any other products such as cosmetics, perfumes, souvenir, and others, which are available at duty-free shops.
The market value of Duty-Free Liquor market in 2019 is $13.7 billion. The global duty-free liquor market is driven by rapid growth in urbanization. North America and Europe are among the most urbanized regions with nearly 81% and 80% urban population respectively. Africa and Asia have comparatively lower shares, with 40% and 48% urban population, respectively. As per the WHO and other organizations, Africa and Asia are the major regions that are expected to witness rapid urbanization trend and are projected to account for 56% and 64% urbanization rate, respectively, by 2050.
The key players profiled in the report include Brown-Forman, Diageo, Erdington, Bacardi, Heineken, Glen Moray, Accolade Wines, Constellation Brands, Inc, REMY COINTREAU, Pernod, and Ricard.
The top companies hold the market share in Duty-Free Liquor market are Brown-Forman, Diageo, Erdington, Bacardi, Heineken, Glen Moray, Accolade Wines, Constellation Brands, Inc, REMY COINTREAU, Pernod, and Ricard.
By channel, the airport category garnered the highest share in 2019, due to the continuous growth in global aviation and air traffic. Also, rise in the tourism industry is one of the key factors in the growth of duty-free liquor industry.
Based on type, the whiskey segment accounted for the maximum share in duty-free liquor market size, owing to increase in consumer base across the globe. Furthermore, whiskey is considered as a premium product and an indication of taste and sophistication
Improvement in economic condition and growth in disposable income are the two key factors that propel the duty-free liquor market growth. After the 2009 economic crisis in Europe, the world economy witnessed a standstill. Almost all the countries in the world were affected by this economic crisis. However, strong recovery from the crisis results in strong economic growth, especially in the developing economies, and has led to increase in disposable income among the middle-income groups, consequentially adding to the middle-class population.
By region, Europe accounted for the highest market share in 2019 owing to the wealthy tourists from the Middle East, China, the U.S., and Russia contributing a significant part in the market. Also, love for travel is on an upward trend among Germans, which significantly contributes to the growth of the duty-free liquor market.
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