Retail
May 15, 2025

Unlocking Growth in the Duty-Free and Travel Retail Market: A Case Study

Growth Strategies for the Duty-Free and Travel Retail Sector - Case Study

Client Background 

The client is a global leader in the travel retail sector with a strong presence across international airports and major transport hubs. To refine its long-term business strategy, the company sought a strategic understanding of how the duty-free and travel retail market is evolving post-pandemic. The goal was to identify macro-level growth patterns, emerging consumer trends, and regional opportunities that could shape future investments and product positioning. 

Client's Challenge 

The client required high-level, insight-driven intelligence on the global duty-free and travel retail market, without relying on proprietary datasets or confidential industry sources. The main objective was to extract actionable trends from secondary data and industry publications to guide business decisions.  

Key challenges included understanding how post-pandemic travel recovery was reshaping purchase behavior, pinpointing the fastest-growing regions and product categories, and evaluating how technology and sustainability were redefining the travel retail experience. The client needed synthesized, strategic insights that could inform executive planning and operational focus without necessitating a full-scale market report. 

How Mordor Intelligence Helped 

Mordor Intelligence provided a customized research approach tailored to the client's need for high-level industry insights. 

  • Qualitative Market Analysis: Delivered a strategic overview based on secondary research, leveraging government publications, industry associations, and market reports. 
  • Key Market Trends Assessment: Identified growth drivers, emerging consumer behaviors, and product categories with increasing demand. 
  • Geographical Insights: Highlighted high-growth regions such as Asia-Pacific and the Middle East, where increased travel and infrastructure investments are shaping the industry. 
  • Technology and Innovation Trends: Provided insights on the growing importance of digital innovations, including contactless payments, mobile commerce, and augmented reality experiences. 
  • Sustainability in Retail: Assessed the rising demand for eco-friendly products and sustainable business practices within the travel retail sector. 

Key Findings 

  • Market Recovery and Resilience: Global duty-free and travel retail markets have rebounded strongly, supported by rising air travel volumes and airport infrastructure investments. 
  • Category Performance: Luxury goods, beauty products, and premium spirits continued to dominate sales, with wellness and lifestyle categories gaining ground. 
  • Consumer Behavior: Travelers showed a clear shift toward experiential retail, digital engagement, and premiumization of everyday products. 
  • Technology Enablement: Contactless payments, digital loyalty platforms, and AR-enabled shopping experiences became critical to improving conversion rates. 
  • Sustainability Focus: Eco-friendly packaging, ethical sourcing, and locally inspired products emerged as key differentiators influencing brand loyalty. 
  • Regional Hotspots: Asia-Pacific and the Middle East were identified as growth accelerators, driven by rising disposable incomes, airport expansions, and tourism recovery. 

Impact Created 

  • Sharper Strategic Direction: The insights enabled the client to realign business priorities toward high-growth regions and product categories, ensuring better allocation of marketing and investment resources. 
  • Enhanced Customer Experience: Guided by technology and behavior insights, the client introduced digital payment options, loyalty programs, and AR-based retail touchpoints to deepen traveler engagement. 
  • Portfolio Optimization: The client diversified its assortment to include wellness-oriented and sustainable products, aligning with evolving consumer expectations and strengthening brand relevance. 
  • Sustainable Growth Pathway: Data-backed visibility into recovery patterns and emerging markets supported long-term planning and strategic expansion into Asia-Pacific and the Middle East. 

Our Industry Coverage 

Mordor Intelligence has conducted extensive research in the global retail industry, helping clients navigate evolving market trends and consumer behaviors. Our expertise includes: 

  • Market Entry & International Expansion: Assisting brands in understanding new market opportunities and expansion strategies. 
  • Consumer Behavior Analysis: Providing insights into shopping patterns and preferences to tailor marketing strategies. 
  • Competitor Assessment: Benchmarking competitors to identify differentiation opportunities and strategic positioning. 
  • Technology Scouting: Evaluating emerging digital retail solutions to enhance customer experiences and operational efficiency. 
  • Sustainability and Regulatory Insights: Helping businesses align with sustainability trends and comply with evolving regulatory landscapes. 

With deep expertise in global retail and consumer intelligence, Mordor Intelligence equips organizations with the insights needed to anticipate market shifts, adapt to evolving shopper behavior, and capture opportunities in the fast-growing travel retail sector. 

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