Rapid growth in travel and tourism industry, coupled with global rise in per capita disposable income, push global duty-free liquor sales. The global duty-free liquor market size was valued at $2.8 billion in 2018 and is expected to reach $3.7 billion by 2026.
According to the report by Allied Market Research, duty-free liquor market (beer, wine, vodka, cognac and whiskey) was estimated at $2.94 billion in 2019 and mostly dominated by whisky (by type) and airports (by channel). The growth of the travel & tourism industry, changes in lifestyle, rise in tourism promotion, increase in number of passengers and frequent fliers are all expected to fuel the growth of the tax free liquor market.
Based on type, the whisky segment ruled with more than one-third of the global duty-free liquor sales in 2019 and is expected to lead throughout 2019–2026. The report attributes this to rising consumer base across the globe as well as growing popularity of whisky among the millennial population.
Airports dominate the sales
Based on channel, the airport segment accounted for nearly three-fourths of the global duty-free liquor market revenue in 2019 and is anticipated to rule the roost during 2019–2026. The fact that consumers mostly prefer to buy premium brands of liquor at airports has resulted in the outstripped sales of finest brands at air stations.
Unsurprisingly, Europe garnered the major share in 2019, holding nearly two-fifths of the global duty-free liquor market. And, the region is expected to dominate followed by Asia-Pacific and North America. Germans’ never-ending love for travel, as well as growing tourist numbers from other regions such as China and Middle East have all contributed to Europe’s lead.