Allied Market Research

Global Duty-Free Liquor Market is Expected to Reach $3.7 billion by 2026


quote Development of travel & tourism industry, rapid growth in urbanization, and rise in disposable income is anticipated to drive the global duty-free liquor market. However, stringent government rules, particularly for airport retailing is anticipated to hinder the growth of the industry during the forecast period quote

According to Aniket Kadam
Research Analyst, Food and Beverages at Allied Market Research

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According to a new report published by Allied Market Research, titled, "Duty-Free Liquor Market by Type, and Channel: Global Opportunity Analysis and Industry Forecast, 2019-2026," the duty-free liquor market size was valued at $2.8 billion in 2018, and is projected to reach $3.7 billion in 2026, registering a CAGR of 9.4% from 2019 to 2026. The duty-free liquor at airport, cruise liners, border, downtown, and hotel 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.

Based on type, the whiskey segment accounted for the maximum share in 2018, owing to increase in consumer base across the globe. Furthermore, whiskey is considered as a premium product and an indication of taste and sophistication. Furthermore, strong demand for Irish whiskey from the millennial population is providing revenue growth for whiskey segment. In addition, many people buy premium and expensive whiskey from duty-free liquor stores, not for the experience of drinking it, but for the status quo.

Also, this segment is anticipated to grow with the highest CAGR of 4.1% during the forecast period. Depending on channel, the airport category garnered the highest share in 2018, due to the continuous growth in global aviation and air traffic. Also, rise in the tourism industry is one of the key factors for the growth of the duty-free liquor market. Furthermore, this segment is anticipated to witness the highest growth rate with a CAGR of 8.40% during the forecast period.

Based on region, Europe accounted for the highest revenue in 2018 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 experiencing an upward trend among Germans, which significantly contributes to the growth of the duty-free liquor market.

Asia-Pacific duty-free liquor market is anticipated to experience growth with the highest CAGR during the forecast period owing to improvement in living standards and rise in disposable income among consumers. Furthermore, expansion of affordable premium segment of liquor, cosmetics, and other products in tier-2 cities of Asia-Pacific is estimated to drive the market growth in this region.

Key Findings of the Duty-Free Liquor Market :

  • Based on region, Asia-Pacific is anticipated to lead the in terms of Duty-Free Liquor Market Share
  • Based on type, the whiskey category occupied the maximum share in Duty-Free Liquor Market Analysis in 2018
  • By channel, the airport category dominated the overall duty-free liquor market growth in 2018, and is expected to dominate the duty-free liquor market forecast

The key players operating in the global duty-free liquor industry 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. 

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quote Duty-Free Liquor Market by Type (Beer, Wine, Vodka, Cognac, and Whiskey) and Channel (Cruise liners, Airport, Railway Station, Border, downtown, and hotel shops): Global Opportunity Analysis and Industry Forecast, 2019–2026 quote

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