+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

India Travel Retail - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020-2029

  • PDF Icon


  • 150 Pages
  • February 2024
  • Region: India
  • Mordor Intelligence
  • ID: 5458869
The India Travel Retail Market size is estimated at USD 2.03 billion in 2024, and is expected to reach USD 5.40 billion by 2029, growing at a CAGR of 21.59% during the forecast period (2024-2029).

India Travel Retail market has been growing steadily over the years. As people's income rise, India's position as a business powerhouse and tourist destination will also continue to solidify, leading to the growth and prosperity of this industry. A combination of a large and growing population, increasing air connectivity, inbound tourism, and the growing disposable incomes and propensity to travel internationally by India's middle class are some of the major factors fuelling the growth of India's travel retail market. Nearly 80% of the country's duty-free shoppers are Indians which is quite unlike other markets in the Asia Pacific, such as Korea or Thailand, where most duty-free sales are from international travelers rather than local travelers. However, this is likely to change with the growth in international tourism in the country. While India accounts for only 10.7% of the Asia Pacific region's total international tourist arrivals, its year-on-year growth rate has been well above the region's average in recent years.

The post-COVID scenario of the India Travel Retail market has seen a gradual recovery as travel restrictions have eased and people have started traveling again. However, there are still some challenges such as changing consumer behaviors and safety concerns that the industry is addressing. Retailers are implementing hygiene measures and digital solutions to cater to the evolving needs of travelers.

India Travel Retail Market Trends

Growth in Airport Retail Channels

Nearly 50% of an international airport's revenue is generated from duty-free and travel retail activities. In terms of sheer size and range offered, the duty-free retail areas at Indira Gandhi International Airport in Delhi and Chhatrapati Shivaji International Airport in Mumbai are nothing less than high-end malls.​ The largest duty-free area in India is currently operated by Mumbai Duty-Free at Mumbai International Airport Limited (MIAL), followed by New Delhi International Airport Limited (DIAL), which is operated by New Delhi Duty-Free Services (DDFS).

Data, omnichannel, and personalization define the future of airport retail. Online pre-purchase orders for airport pickup are more popular in the Indian market than anywhere else in the Asia Pacific region. There is a growing response by duty-free operators to the flexible payment, ordering pickup, and delivery needs of customers. Delhi Duty-Free's 'Shop and Collect' plan, for instance, offers an extra 10% discount to those who pre-book orders at the airport on their outbound journey and pick them up upon return.

Growth of Wines and Spirits in the India Travel Retail Market

Perfumes, liquor, and tobacco are the top three bestselling categories in duty-free stores in India; however, wines and spirits remain the highest on the to-buy list. Liquor is the key category of sales at these stores, with an increasing number of young Indians moving towards single malts and premium white spirits. Deluxe Scotch remains the biggest category and contributes significantly to the growth of the liquor business. Similarly, the cosmetics category is witnessing high growth as more women travel abroad for work and leisure.

Apart from the product variety offered at the duty-free stores, the promotional and other offers attract Indian consumers. The duty-free shops in India at airport arrivals do more business than their peers at departure, and the highest-selling category in arrivals has been liquor. This is primarily because the prices offered on liquor at duty-free shops are extremely competitive. In fact, arrivals account for the lion’s share of the business at duty-free shops as inbound travelers like to pick up items on their way back to the city.

India Travel Retail Industry Overview

The Indian travel retail market is relatively competitive, with several international and domestic brands present in the market, including Dufry, Lotte, The Shilla, Delhi Duty-Free, and Flemigo Travel Retail. The increasing focus on offering a diverse and wide range of products may enable the vendors to attract a large number of consumers and gain large market shares. The adoption of innovative promotional campaigns and attractive price offerings may help the players sustain the competition in the India travel retail market. The report covers major international players operating in this sector.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increase in Domestic Travel Driving the Market
4.3 Market Restraints
4.3.1 Restrictions on Purchases of Number of Products
4.4 Market Opportunities
4.4.1 Increase in Number of Retail Chains will Create Opportunities in the Market
4.5 Value Chain Analysis
4.6 Porter Five Forces
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Technological Innovations in the Market
4.8 Impact of COVID-19 on the Market
5.1 By Product Type
5.1.1 Fashion and Accessories
5.1.2 Wine and Spirits
5.1.3 Tobacco
5.1.4 Food and Confectionary
5.1.5 Fragrances and Cosmetics
5.1.6 Others (Stationery, Electronics, Watches, Jewellery etc.)
5.2 By Distribution Channel
5.2.1 Airports
5.2.2 Cruise Liners
5.2.3 Railway Stations
5.2.4 Other Distribution Channels
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Dufry
6.2.2 Lotte
6.2.3 The Shilla
6.2.4 Flemingo Travel Retail
6.2.5 Delhi Duty Free
6.2.6 WH Smith India
6.2.7 Travel Food Services (TFS) India
6.2.8 Cochin Duty Free
6.2.9 Hyderabad Duty Free
6.2.10 HMY
6.2.11 Relay India*