China Travel Retail Market Forecast 2025-2032
The China travel retail market is expected to prosper with a CAGR of 20.56% over the forecast period 2025-2032. The market was valued at $21.29 billion in 2024 and is predicted to reach a revenue of $60.73 billion by 2032.
MARKET INSIGHTS
The China travel retail market is witnessing substantial growth, primarily driven by shifts in domestic consumption trends. The COVID-19 pandemic presented challenges to the sector, with the market demonstrating resilience, supported by policy-driven measures and shifting consumer preferences. Notably, government initiatives, including the promotion of domestic tourism and the establishment of the Hainan Free Trade Port, have been pivotal in driving the growth of the travel retail industry. During the 2022 Spring Festival, travel retail sales in Hainan Province’s offshore duty-free stores reached RMB 2.13 billion (~$316 million), underlining the increasing prominence of luxury brands in the duty-free shopping sector.
Another key driver of the market is the rise of the ‘bleisure’ trend, as business and leisure travel intersect due to the growing prevalence of remote working. Industry sources indicate that more than 60% of business travelers are anticipated to blend work and personal trips during the forecast period. This shift has led to a heightened demand for flexible travel options, boosting the appeal of local duty-free shopping and leisure destinations.
The China duty-free retail market has also gained from the growth of digitization and innovative marketing strategies. Lockdown measures and travel restrictions accelerated the shift to digital platforms, loyalty programs, and targeted advertising, allowing retailers to better engage with consumers. Digital advertising, a key component of China's marketing strategy, has experienced rapid growth and is projected to reach RMB 963 billion (~$132 billion) by 2024, further fueling the expansion of the travel retail industry.
The future outlook for China’s travel retail market is promising, driven by strategic developments such as the Hainan Free Trade Port and new duty-free shopping centers outlined in the 14th Five-Year Plan. Investments in multi-functional retail spaces, like the Shanghai International Cruise Tourism Resort, reflect the shift towards ‘retail-tainment,’ blending shopping, entertainment, and cultural experiences. As these trends continue to evolve, China is inclined to strengthen its position as a global leader in travel retail, offering a wide range of integrated consumer experiences.
SEGMENTATION ANALYSIS
The report on the China travel retail market includes a segmentation analysis based on product type and distribution channel.
Market by Product Type:
• Fashion and Accessories
• Jewellery and Watches
• Wine & Spirits
• Food & Confectionery
• Fragrances and Cosmetics
• Tobacco
• Other Product Types
Market by Distribution Channel:
• Airports
• Railway Stations
• Other Distribution Channels
Inkwood Research’s report on the China travel retail market provides in-depth insights as well as the market’s segmentation analysis. The detailed evaluation of the market includes PESTLE Analysis, Market Maturity Analysis, Market Concentration Analysis, Key Buying Criteria, and Competitive Landscape.
COMPETITIVE INSIGHTS
Some of the prominent players in the China travel retail Market are China Tourism Group Duty Free Corporation Limited, Lagardère Travel Retail Group, etc.
China Tourism Group Duty Free Corporation Ltd is a leading provider of tourism and retail services. The company offers a wide range of travel solutions, including services for domestic, inbound, and outbound tourism. Its portfolio includes group and individual tours, corporate travel, leisure activities, sports events, sightseeing trips, study tours, conventions, and specialized niche-interest tours. The company also manages individual travel bookings and operates online tourism platforms and travel agency services. Headquartered in Beijing, China, China Tourism Group has operations across China, Macao, Cambodia, Taiwan, and Hong Kong.
Please Note: Report includes PDF + Excel
- 1. Research Scope & Methodology
- 1.1. Study Objectives
- 1.2. Methodology
- 1.3. Assumptions & Limitations
- 2. Executive Summary
- 2.1. Market Size & Estimates
- 2.2. Country Snapshot - China
- 2.3. Country Analysis - China
- 2.4. Scope Of Study
- 2.5. Crisis Scenario Analysis
- 2.5.1. Impact Of Covid-19 On The China Travel Retail Market
- 2.6. Major Market Findings
- 2.6.1. Demand For Premium And Exclusive Products
- 2.6.2. Rising Infrastructure Investments
- 2.6.3. Increased Global Brand Partnerships
- 3. Market Dynamics
- 3.1. Key Drivers
- 3.1.1. Growth In Domestic Travel Trends
- 3.1.2. Policy-driven Growth
- 3.1.3. Shift In Preference Toward Duty-free Goods
- 3.1.4. Development Of Multi-functional Retail Spaces
- 3.2. Key Restraints
- 3.2.1. High Investments In Premium Retail Spaces
- 3.2.2. Fluctuation In Local Travel Preferences
- 3.2.3. Uncertainty Due To Travel Restrictions And Intermittent Lockdowns
- 4. Key Analytics
- 4.1. Key Market Trends
- 4.1.1. Integration Of Business And Leisure Travel
- 4.1.2. Pop-up Retail And Hunger Marketing To Attract Young Customers
- 4.1.3. Evolution Of Experiential Shopping
- 4.2. Pestle Analysis
- 4.2.1. Political
- 4.2.2. Economical
- 4.2.3. Social
- 4.2.4. Technological
- 4.2.5. Legal
- 4.2.6. Environmental
- 4.3. Porter’s Five Forces Analysis
- 4.3.1. Buyers Power
- 4.3.2. Suppliers Power
- 4.3.3. Substitution
- 4.3.4. New Entrants
- 4.3.5. Industry Rivalry
- 4.4. Growth Prospect Mapping For China
- 4.5. Market Maturity Analysis
- 4.6. Market Concentration Analysis
- 4.7. Key Buying Criteria
- 4.7.1. Brand Reputation & Authenticity
- 4.7.2. Digital Integration
- 4.7.3. Product Diversity
- 4.7.4. Convenience
- 4.7.5. Price Competitiveness
- 5. Market By Product Type
- 5.1. Fashion And Accessories
- 5.1.1. Market Forecast Figure
- 5.1.2. Segment Analysis
- 5.2. Jewellery And Watches
- 5.2.1. Market Forecast Figure
- 5.2.2. Segment Analysis
- 5.3. Wine & Spirits
- 5.3.1. Market Forecast Figure
- 5.3.2. Segment Analysis
- 5.4. Food & Confectionery
- 5.4.1. Market Forecast Figure
- 5.4.2. Segment Analysis
- 5.5. Fragrances And Cosmetics
- 5.5.1. Market Forecast Figure
- 5.5.2. Segment Analysis
- 5.6. Tobacco
- 5.6.1. Market Forecast Figure
- 5.6.2. Segment Analysis
- 5.7. Other Product Types
- 5.7.1. Market Forecast Figure
- 5.7.2. Segment Analysis
- 6. Market By Distribution Channel
- 6.1. Airports
- 6.1.1. Market Forecast Figure
- 6.1.2. Segment Analysis
- 6.2. Railway Stations
- 6.2.1. Market Forecast Figure
- 6.2.2. Segment Analysis
- 6.3. Other Distribution Channels
- 6.3.1. Market Forecast Figure
- 6.3.2. Segment Analysis
- 7. Competitive Landscape
- 7.1. Key Strategic Developments
- 7.1.1. Mergers & Acquisitions
- 7.1.2. Product Launches & Developments
- 7.1.3. Partnerships & Agreements
- 7.1.4. Business Expansions & Divestitures
- 7.2. Company Profiles
- 7.2.1. China Tourism Group Duty Free Corporation Limited
- 7.2.1.1. Company Overview
- 7.2.1.2. Products
- 7.2.1.3. Strengths & Challenges
- 7.2.2. Lagardère Travel Retail Group
- 7.2.2.1. Company Overview
- 7.2.2.2. Products
- 7.2.2.3. Strengths & Challenges
- 7.2.3. Dfs Group
- 7.2.3.1. Company Overview
- 7.2.3.2. Products
- 7.2.3.3. Strengths & Challenges
- 7.2.4. Sunrise Duty Free Group Limited
- 7.2.4.1. Company Overview
- 7.2.4.2. Products
- 7.2.4.3. Strengths & Challenges
- 7.2.5. Avolta Ag (Dufry)
- 7.2.5.1. Company Overview
- 7.2.5.2. Products
- 7.2.5.3. Strengths & Challenges
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