South Korea Travel Retail Market Forecast 2025-2032

South Korea Travel Retail Market Forecast 2025-2032

The South Korea travel retail market is expected to reach $18.48 billion by 2032, growing at a CAGR of 9.72% during the forecast period, 2025-2032.

The South Korean travel retail market is experiencing significant growth, driven primarily by a surge in disposable income. As per the Bank of Korea, the rise in South Korea’s gross national disposable income, reported at 651,865.6 KRW billion (~$447.91 billion) as of September 2024, has significantly bolstered the travel retail market in the country.

MARKET INSIGHTS

With increased disposable income, consumers are more willing to spend on non-essential goods and experiences, including duty-free shopping and luxury items, which form a major part of travel retail. This trend has been particularly evident in airports, downtown duty-free stores, and major tourist hubs, where premium cosmetics, electronics, and fashion brands have witnessed increased sales.

Furthermore, the rise in disposable income has fueled outbound travel, driving demand for travel-related products and services, including souvenirs, premium beverages, and travel essentials. This economic shift has also encouraged international brands to expand their presence in South Korea’s travel retail sector, capitalizing on the growing purchasing power of consumers and their appetite for global luxury goods.

South Korea welcomed 7.7 million foreign visitors in the first half of 2024, marking a 74% increase from the same period in 2023. Chinese tourists led the surge with 2.2 million arrivals, followed by Japan (1.4 million), Taiwan (680,000), and the US (640,000). A significant factor behind this growth is the resurgence of Chinese group tours, with the proportion of tourists entering on group tour visas rising to nearly 12%, comparable to pre-pandemic figures.

The recovery has also been aided by visa-free entry for Chinese nationals passing through to another destination. This influx of international tourists, particularly high-spending Chinese travelers, has substantially boosted demand for travel retail and duty-free shopping in South Korea. The return of group tours and increased visitor numbers have further driven sales of cosmetics, luxury goods, and souvenirs, reinforcing the country’s position as a major global hub for duty-free retail.

SEGMENTATION ANALYSIS

The report on the South Korea travel retail market includes a segmentation analysis based on product type and distribution channel.

Market by Product Type:
• Fashion and Accessories
• Jewelry 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 South Korea 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

Key players operating in the South Korea travel retail market include Lotte Duty Free, The Shilla Duty Free, Shinsegae Duty Free, Hyundai Duty Free, Lagardère Travel Retail Group, etc.

Shinsegae Duty Free is a major South Korean travel retailer and is a part of the Shinsegae Group. Shinsegae Duty Free operates primarily within South Korea, with key locations at Incheon International Airport, Busan, and Myeongdong in Seoul. The company functions through a network of duty-free stores across South Korea, offering a wide range of luxury goods, cosmetics, and other travel-related products to both domestic and international travelers.

Please Note: Report includes PDF + Excel