China Travel Retail Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 21.25 Billion |
| Market Size (2029) | USD 56 Billion |
| CAGR (2024 - 2029) | 21.39 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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China Travel Retail Market Analysis
The China Travel Retail Market size is estimated at USD 21.25 billion in 2024, and is expected to reach USD 56 billion by 2029, growing at a CAGR of 21.39% during the forecast period (2024-2029).
The Chinese travel retail industry has emerged as a rapidly growing sector, driven by several key factors. Firstly, the rising disposable income and increasing affluence of Chinese consumers have led to a surge in domestic and international travel, creating a robust demand for retail products and services at transportation hubs such as airports, train stations, and major tourist destinations. This trend is further fueled by the expansion of transportation infrastructure, including airports and high-speed rail networks, facilitating greater accessibility and convenience for travelers, thereby boosting passenger traffic and retail sales. Additionally, the Chinese government's supportive policies promoting duty-free shopping, particularly in Hainan Province, have contributed to the growth of the travel retail industry by attracting Chinese tourists with tax-free incentives and an extensive range of luxury and premium products.
Furthermore, integrating e-commerce platforms with travel retail channels has revolutionized the shopping experience for Chinese travelers, allowing them to pre-order products online and pick them up at airports or other travel hubs, thereby enhancing convenience and driving sales. Moreover, the industry's focus on luxury and premium brands aligns with the preferences of Chinese consumers, who have shown a strong inclination towards high-end products in categories such as fashion, cosmetics, and electronics. Despite the COVID-19 setback, the Chinese travel retail industry has demonstrated resilience and adaptability, with the gradual easing of travel restrictions leading to a recovery in passenger traffic and retail sales.
China Travel Retail Market Trends
Expansion of Duty-Free Shopping Driving the Market
Duty-free shopping in China refers to the practice of purchasing goods at designated retail outlets located in specific areas, such as airports, seaports, train stations, and border crossings, where travelers can buy certain products without paying import duties, value-added tax (VAT), or other taxes typically levied on retail goods. The Chinese government regulates duty-free shopping in China and is subject to specific policies and regulations.
One of China's most prominent duty-free shopping destinations is Hainan Province, which has become known as a duty-free shopping paradise. The Chinese government expanded the duty-free shopping policy in Hainan by implementing the "Hainan Free Trade Port" initiative. Under this initiative, the annual duty-free shopping quota for travelers visiting Hainan was significantly increased, and the range of eligible products was expanded to include additional categories such as electronic appliances, sports equipment, and healthcare products. The duty-free shopping quota was further increased, allowing travelers to purchase a higher value of duty-free goods during their visit to Hainan.
The expansion of duty-free shopping in Hainan has contributed to the province's growing reputation as a premier tourist destination and shopping hub in China. It has attracted many domestic and international tourists, driving retail sales and stimulating economic growth in the region.
Rise of Domestic Tourism Boosting the Market Growth
The surge in domestic tourism has significantly increased passenger traffic at transportation hubs such as airports, train stations, and major tourist destinations across China. This influx of domestic travelers has resulted in higher footfall and consumer spending within travel retail outlets, driving sales and revenue growth for retailers and brands operating in these locations.
The Chinese government's policies supporting duty-free shopping, particularly in Hainan Province, have contributed to the growth of domestic tourism and the travel retail market. Domestic tourists visiting duty-free shopping destinations like Hainan could enjoy tax-free shopping incentives and a wide range of duty-free products, driving consumer spending and stimulating economic activity in these regions.
Travel retail outlets in China have increasingly integrated with tourism experiences, offering value-added services such as guided tours, cultural activities, and entertainment options to attract domestic tourists. This integration enhances the overall travel experience for domestic travelers, encouraging them to spend more time and money within travel retail environments.
China Travel Retail Industry Overview
Chinese travel retail market is characterized by a diverse range of players competing to capture a share of the growing consumer demand within transportation hubs. China's travel retail market is highly competitive, with a mix of international and domestic players vying for the attention of Chinese travelers. The competitive landscape is characterized by offering a wide range of products, providing unique shopping experiences, and leveraging digital technologies to enhance convenience and engagement for travelers. Some of the major players in the market include China Duty-Free Group Co. Ltd, Sunrise Duty-Free, China National Service Corporation, Lagardere Travel Retail, and DFS Group.
China Travel Retail Market Leaders
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Lagardere Travel Retail
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DFS Group
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Sunrise Duty-Free
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China National Service Corporation
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China Duty Free Group Co. Ltd
*Disclaimer: Major Players sorted in no particular order
China Travel Retail Market News
- February 2024: DFS Group partnered with Douyin Life Service, a short video platform in China. The partnership aims to improve international travel retail shopping experiences.
- June 2023: DFS entered a strategic partnership with Ctrip Global Shopping and Unipay International. These partnerships aim to strengthen digitalization in the travel retail market.
China Travel Retail Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Rise of Duty-Free Shopping
- 4.2.2 Government Policies Supporting Tourism
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4.3 Market Restraints
- 4.3.1 Luggage Restrictions
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4.4 Market Opportunities
- 4.4.1 Integration of E-commerce with Travel Retail
- 4.4.2 Growing Focus on Luxury and Premium Segments
- 4.5 Value Chain Analysis
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4.6 Industry Attractiveness: Porter's Five Forces Analysis
- 4.6.1 Threat of New Entrants
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Bargaining Power of Suppliers
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
- 4.7 Impact of COVID-19 on the market
- 4.8 Insights into Technological Advancements in the Industry
5. MARKET SEGMENTATION
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5.1 By Product Type
- 5.1.1 Fashion and Accessories
- 5.1.2 Jewelry and Watches
- 5.1.3 Wine & Spirits
- 5.1.4 Food & Confectionery
- 5.1.5 Fragrances and Cosmetics
- 5.1.6 Tobacco
- 5.1.7 Others
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5.2 By Distribution Channel
- 5.2.1 Airports
- 5.2.2 Railway Stations
- 5.2.3 Others
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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6.2 Company Profiles
- 6.2.1 China Duty Free Group Co Ltd
- 6.2.2 Lagardere Travel Retail
- 6.2.3 DFS Group
- 6.2.4 Sunrise Duty-Free
- 6.2.5 China National Service Corporation
- 6.2.6 L'Oreal
- 6.2.7 Starbucks
- 6.2.8 Samsung Electronics
- 6.2.9 Huawei Technologies
- 6.2.10 Haagen-Dazs China*
- *List Not Exhaustive
7. FUTURE MARKET TRENDS
8. DISCLAIMER AND ABOUT US
China Travel Retail Industry Segmentation
The Chinese travel retail market refers to the retail sector that operates within transportation hubs such as airports, train stations, major tourist destinations, and border crossings, catering to the needs of travelers. China's travel retail market is segmented by product type and distribution channel. By product type, the market is segmented into fashion and accessories, jewelry and watches, wine & spirits, food & confectionery, fragrances and cosmetics, tobacco, and others (stationery, electronics, etc.). By distribution channel, the market is segmented into airports, railway stations, and others (Border crossings, Downtown). The report offers market size and forecasts for the China travel retail market in value (USD) for all the above segments.
| By Product Type | Fashion and Accessories |
| Jewelry and Watches | |
| Wine & Spirits | |
| Food & Confectionery | |
| Fragrances and Cosmetics | |
| Tobacco | |
| Others | |
| By Distribution Channel | Airports |
| Railway Stations | |
| Others |
China Travel Retail Market Research FAQs
How big is the China Travel Retail Market?
The China Travel Retail Market size is expected to reach USD 21.25 billion in 2024 and grow at a CAGR of 21.39% to reach USD 56 billion by 2029.
What is the current China Travel Retail Market size?
In 2024, the China Travel Retail Market size is expected to reach USD 21.25 billion.
Who are the key players in China Travel Retail Market?
Lagardere Travel Retail, DFS Group, Sunrise Duty-Free, China National Service Corporation and China Duty Free Group Co. Ltd are the major companies operating in the China Travel Retail Market.
What years does this China Travel Retail Market cover, and what was the market size in 2023?
In 2023, the China Travel Retail Market size was estimated at USD 16.70 billion. The report covers the China Travel Retail Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the China Travel Retail Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Travel Retail Industry Report
Statistics for the 2024 China Travel Retail market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Travel Retail analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
