South Korea Travel Retail Market Insights Forecasts to 2032

• The South Korea Travel Retail Market Size was valued at USD XX Billion in 2022.
• The Market is Growing at a CAGR of 4.8% from 2022 to 2032.
• The South Korea Travel Retail Market Size is expected to reach XX Billion by 2032.

The South Korea Travel Retail Market Size is expected to reach USD XX Billion by 2032, at a CAGR of 4.8% during the forecast period 2022 to 2032.

Market Overview

The selling of goods and services to tourists at airports, train stations, cruise terminals, and border stores is referred to as the travel retail industry. This particular sector of the retail industry makes use of travellers' disposable income and free time. Retail for travel includes a broad variety of goods, such as electronics, candy, fashion and accessories, skincare and cosmetics, luxury goods, and alcohol. One of the biggest duty-free markets in the world is found in Korea, which gains from the rise in Chinese and Japanese tourists in addition to the growing number of Korean visitors. Korea's travel retail business is dominated by beauty, cosmetics, and fashion products, with a significant downtown retail presence. Although Korean citizens are heavy consumers both abroad and at Korean airports. Due to Korea's distinct culture, marketing prowess, and entry into a wide range of domestic and international brands marketed as "K-beauty," the duty-free market in Korea is particularly competitive. In South Korea, the number of downtown duty-free stores has increased. Rather than waiting until right before departure, these stores let customers make purchases at any point during their journey. Such factors will boost market growth in the forecast period.

Report Coverage

This research report categorizes the market for South Korea travel retail market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the South Korea travel retail market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the South Korea travel retail market.

Driving Factors

The travel retail market in South Korea is expanding at the fastest rate due to the country's rising disposable income, improving lifestyle, rising living standards, and expanding tourism sector. Consumer prefer to spend more on travel and shopping as their discretionary income increases. Young, urban consumers are pushing trends in travel and tourism as well as increasingly specialized services and goods since they are looking for novel travel experiences. An increasing number of tourists are doing their entire vacation online, including planning, checking, browsing, and, in the end, making purchases. Furthermore, travelers now have more disposable cash, which increases their ability and affordability to buy upscale products. This has had a favorable effect on South Korea's travel retail market expansion.

Restraining Factors

Carry-on baggage limits have been imposed by several airlines, which may restrict the amount of merchandise that travellers can buy at travel retail stores. This may lessen consumer demand in the retail travel industry for specific product categories.

Market Segment

• In 2022, the beauty & personal care segment accounted for the largest revenue share over the forecast period.

Based on the type, the South Korea travel retail market is segmented into beauty & personal care, wines & spirits, tobacco, eatables, fashion accessories & hard luxury, and others. Among these, the beauty & personal care segment has the largest revenue share over the forecast period. Consumers become more aware of the importance of self-care and maintaining a good appearance, and they are investing in beauty and personal care products. In addition to this, the rising affluent population and increasing spending capacity have led to an increase in demand for cosmetics, skincare, hair care, fragrances, personal hygiene products, and grooming tools.

• In 2022, the airports segment accounted for the largest revenue share over the forecast period.

Based on distribution channels, the South Korea travel retail market is segmented into airports, airlines, ferries, and others. Among these, the airports segment has the largest revenue share over the forecast period. The low prices and rising living standards are predicted to increase the number of travellers, which would help the airport segment boost. The development of the retail sector in this market has also been boosted by attempts made by various airports to increase revenue from non-aeronautical resources.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the South Korean travel retail market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Lotte Duty Free
• Dongwha Duty Free
• Dufry
• The Shilla Duty Free
• Shinsegae Duty Free
• Hyundai Duty Free
• Hanwha Galleria Time World Duty Free
• JDC Duty Free
• Entas Duty Free
• City Plus Korea
• Doota Duty Free

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• On March 2023, Hyundai Department store duty-free announced that it had signed a memorandum of understanding (MOU) with OlimPlanet for the metaverse platform business.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2021 to 2032. Spherical Insights has segmented the South Korea travel retail market based on the below-mentioned segments:

South Korea Travel Retail Market, By Type

• Beauty & Personal Care
• Wines & Spirits
• Tobacco
• Eatables
• Fashion Accessories & Hard Luxury
• Others

South Korea Travel Retail Market, By Distribution Channel

• Airports
• Airlines
• Ferries
• Others