Market Size of South Korea Travel Retail Industry
| 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.
