South Korea Travel Retail Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 12.60 Billion |
| Market Size (2029) | USD 16.07 Billion |
| CAGR (2024 - 2029) | 5.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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South Korea Travel Retail Market Analysis
The South Korea Travel Retail Market size is estimated at USD 12.60 billion in 2024, and is expected to reach USD 16.07 billion by 2029, growing at a CAGR of greater than 5% during the forecast period (2024-2029).
Korea is one of the world’s largest duty-free markets, and its duty-free market benefits from the growth of Korean travelers, as well as increasing numbers of Chinese and Japanese travelers. With a strong downtown retail presence, Korea’s travel retail market is focused on beauty, cosmetics, and fashion products. While increasingly affluent Mainland Chinese travelers have boosted Korea’s duty-free market, Korean nationals are high spenders overseas and at Korean airports. The Korean duty-free market has unique competitiveness by entering various domestic and global brands represented by 'K-beauty' and Korea's unique culture and marketing capabilities. There has been an increase in downtown duty-free shops in South Korea. These shops allow travelers to purchase goods anytime during their trip instead of just before departure. Seoul has a significant number of downtown duty-free stores.
Luxury brands are increasingly important to the Asia-Pacific region’s travel retail market, reflecting the growing affluence of travelers. This is especially the case in already established duty-free markets such as Korea. For example, the new terminal at Incheon International Airport features the flagship stores of international luxury brands such as Chanel, Dior, Sulwhasoo, Lancome, SK2, and Estee Lauder84. It also includes renowned liquor and tobacco brands such as Ballantyne's, Johnnie Walker, Royal Salute, Hennessy, KT&G, and IQOS. The post-COVID scenario of the South Korea travel retail market is gradually improving. With the easing of travel restrictions and the resumption of international tourism, there is a growing demand for duty-free shopping and travel-related products. The market is adapting to the new normal by implementing safety measures and offering attractive promotions to attract travelers.
South Korea Travel Retail Market Trends
Growing Disposable Income is Driving the Market
South Korea's travel retail market is growing at the fastest rate owing to improved living standards, a rise in disposable income, progress in lifestyle, and the development of the tourism industry. Once people have more disposable income, they tend to spend more on travel and retail. Young and urban consumers seek new travel experiences, driving travel and tourism trends and more targeted services and products. More and more travelers are making the whole journey digitally, from researching the trip and checking, browsing, and, ultimately, purchasing products. In addition, an upsurge in disposable income has increased the traveler's capacity and affordability to purchase exclusive products. This has created a positive impact on the expansion of the travel retail market in South Korea.
South Korea is one of the World’s Most Exciting Beauty Markets
South Korea is one of the world’s most exciting beauty markets. Appearance and beauty are significant in Korean culture. Hence, a high demand for beauty products and surgeries that help people attain the right look. New beauty trends and innovations featuring sophisticated ingredients and aesthetically appealing packaging are constantly displayed. In retail, South Korean consumers purchase beauty and personal care products not only from online retailers but also via duty-free shops. South Korean beauty consumers are constantly looking for something new and are willing to pay a premium for it. The global beauty brands are choosing South Korea duty-free as their point of entry into the Asian market. Brands such as Helena Rubinstein, Fenty Beauty, and Gucci Beauty decided to launch duty-free instead of other channels when they entered the South Korean market.
South Korea Travel Retail Industry Overview
South Korea Travel Retail is highly fragmented, with many players in the market. The report covers major international players operating in the South Korean travel retail industry. Regarding market share, some major players, such as Lotte Duty Free, The Shilla Duty Free, Shinsegae Duty Free, Hyundai Duty Free, and Dufry, currently dominate the market. However, with technological advancement and product innovation, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping new markets.
South Korea Travel Retail Market Leaders
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Lotte Duty Free
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The Shilla Duty Free
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Shinsegae Duty Free
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Hyundai Duty Free
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Dufry
*Disclaimer: Major Players sorted in no particular order
South Korea Travel Retail Market News
- July 2022: Dufry AG, the world’s largest duty-free operator, acquired Autogrill SpA, the motorway and airport catering company, from the Benetton Family.
- April 2022: South Korea Lotte Duty Free has partnered with Korean Seven, the operator of the 7-Eleven convenience store chain, to expand local market sales of so-called domestic customs-cleared duty-free goods.
South Korea 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 INSIGHTS AND DYNAMICS
- 4.1 Market Overview
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4.2 Market Drivers
- 4.2.1 Beauty Products, Jewellery, Fashion and Accessories are Faster Developing Segments in the Market
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4.3 Market Restraints
- 4.3.1 Rising Fuel Prices Impacting Travel Costs
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4.4 Market Opportunities
- 4.4.1 Collaborating with Airlines and Travel Agencies to Create Exclusive Retail Experiences
- 4.5 Industry Value Chain Analysis
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4.6 Porter's Five Forces Analysis
- 4.6.1 Bargaining Power of Suppliers
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Threat of New Entrants
- 4.6.4 Threat of Substitute Products
- 4.6.5 Intensity of Competitive Rivalry
- 4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 Product Type
- 5.1.1 Beauty and Personal Care
- 5.1.2 Wines and Spirits
- 5.1.3 Tobacco
- 5.1.4 Eatables
- 5.1.5 Fashion Accessories and Hard Luxury
- 5.1.6 Other Types
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5.2 Distribution Channel
- 5.2.1 Airports
- 5.2.2 Airlines
- 5.2.3 Ferries
- 5.2.4 Other Channels
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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6.2 Company Profiles
- 6.2.1 Lotte Duty Free
- 6.2.2 The Shilla Duty Free
- 6.2.3 Shinsegae Duty Free
- 6.2.4 Hyundai Duty Free
- 6.2.5 Dongwha Duty Free
- 6.2.6 Dufry
- 6.2.7 Entas Duty Free
- 6.2.8 City Plus Korea
- 6.2.9 Doota Duty Free
- 6.2.10 Hanwha Galleria Time World Duty Free
- 6.2.11 JDC Duty Free
- 6.2.12 The Grand Duty Free*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. DISCLAIMER
South Korea Travel Retail Industry Segmentation
Travel Retail is commonly used to describe the duty-free retail industry and all retail activities dedicated to travelers and tourists. A complete background analysis of the market, including the estimation of market size and forecast, market shares, industry trends, growth drivers, and vendors, is provided. The study also includes insights into market segmentation by product type and distribution channel. Additionally, the report features qualitative and quantitative assessments by analyzing the data gathered from industry analysts and market participants across key points in the industry’s value chain.
The Market is segmented by product type (beauty and personal care, wines and spirits, tobacco, eatables, fashion accessories and hard luxury, and other types), by distribution channel (airports, airlines, ferries, and other distribution channels).
The report offers market size and forecasts for the South Korea travel retail market in terms of value (USD) for all the above segments.
| Product Type | Beauty and Personal Care |
| Wines and Spirits | |
| Tobacco | |
| Eatables | |
| Fashion Accessories and Hard Luxury | |
| Other Types | |
| Distribution Channel | Airports |
| Airlines | |
| Ferries | |
| Other Channels |
South Korea Travel Retail Market Research FAQs
How big is the South Korea Travel Retail Market?
The South Korea Travel Retail Market size is expected to reach USD 12.60 billion in 2024 and grow at a CAGR of greater than 5% to reach USD 16.07 billion by 2029.
What is the current South Korea Travel Retail Market size?
In 2024, the South Korea Travel Retail Market size is expected to reach USD 12.60 billion.
Who are the key players in South Korea Travel Retail Market?
Lotte Duty Free, The Shilla Duty Free, Shinsegae Duty Free, Hyundai Duty Free and Dufry are the major companies operating in the South Korea Travel Retail Market.
What years does this South Korea Travel Retail Market cover, and what was the market size in 2023?
In 2023, the South Korea Travel Retail Market size was estimated at USD 12 billion. The report covers the South Korea Travel Retail Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the South Korea Travel Retail Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Korea Travel Retail Industry Report
Statistics for the 2023 South Korea Travel Retail market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Korea 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.
