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SOUTH KOREA TRAVEL RETAIL MARKET FORECAST 2025-2032

SCOPE OF THE REPORT

South Korea Travel Retail Market by Product Type (Fashion and Accessories, Jewellery and Watches, Wine & Spirits, Food & Confectionery, Fragrances and Cosmetics, Tobacco, Other Product Types) Market by Distribution Channel (Airports, Railway Stations, Other Distribution Channels)

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MARKET OVERVIEW

The South Korea travel retail market is expected to reach $18.48 billion by 2032, growing at a CAGR of 9.72% during the forecast period, 2025-2032.

The South Korean travel retail market is experiencing significant growth, driven primarily by a surge in disposable income. As per the Bank of Korea, the rise in South Korea’s gross national disposable income, reported at 651,865.6 KRW billion (~$447.91 billion) as of September 2024, has significantly bolstered the travel retail market in the country. With increased disposable income, consumers are more willing to spend on non-essential goods and experiences, including duty-free shopping and luxury items, which form a major part of travel retail. This trend has been particularly evident in airports, downtown duty-free stores, and major tourist hubs, where premium cosmetics, electronics, and fashion brands have witnessed increased sales. 

Furthermore, the rise in disposable income has fueled outbound travel, driving demand for travel-related products and services, including souvenirs, premium beverages, and travel essentials. This economic shift has also encouraged international brands to expand their presence in South Korea’s travel retail sector, capitalizing on the growing purchasing power of consumers and their appetite for global luxury goods.

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South Korea welcomed 7.7 million foreign visitors in the first half of 2024, marking a 74% increase from the same period in 2023. Chinese tourists led the surge with 2.2 million arrivals, followed by Japan (1.4 million), Taiwan (680,000), and the US (640,000). A significant factor behind this growth is the resurgence of Chinese group tours, with the proportion of tourists entering on group tour visas rising to nearly 12%, comparable to pre-pandemic figures. 

The recovery has also been aided by visa-free entry for Chinese nationals passing through to another destination. This influx of international tourists, particularly high-spending Chinese travelers, has substantially boosted demand for travel retail and duty-free shopping in South Korea. The return of group tours and increased visitor numbers have further driven sales of cosmetics, luxury goods, and souvenirs, reinforcing the country’s position as a major global hub for duty-free retail.

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The report on the South Korea travel retail market includes a segmentation analysis based on product type and distribution channel.

Market by Product Type:

  • Fashion and Accessories
  • Jewelry and Watches
  • Wine & Spirits
  • Food & Confectionery
  • Fragrances and Cosmetics
  • Tobacco
  • Other Product Types

Market by Distribution Channel:

  • Airports
  • Railway Stations
  • Other Distribution Channels

Inkwood Research’s report on the South Korea travel retail market provides in-depth insights as well as the market’s segmentation analysis. The detailed evaluation of the market includes PESTLE Analysis, Market Maturity Analysis, Market Concentration Analysis, Key Buying Criteria, and Competitive Landscape. 

Key players operating in the South Korea travel retail market include Lotte Duty Free, The Shilla Duty Free, Shinsegae Duty Free, Hyundai Duty Free, Lagardère Travel Retail Group, etc.

Shinsegae Duty Free is a major South Korean travel retailer and is a part of the Shinsegae Group. Shinsegae Duty Free operates primarily within South Korea, with key locations at Incheon International Airport, Busan, and Myeongdong in Seoul. The company functions through a network of duty-free stores across South Korea, offering a wide range of luxury goods, cosmetics, and other travel-related products to both domestic and international travelers.

REPORT SYNOPSIS

REPORT SCOPEDETAILS
Market Forecast Years2025-2032
Base Year2024
Market Historical Years2018-2023
Forecast Units

Revenue ($ Billion)

Segments Analyzed
Product Type and Distribution Channel
Countries AnalyzedSouth Korea
Companies AnalyzedAvolta AG (Dufry), Lagardère Travel Retail Group, Lotte Duty Free, The Shilla Duty Free, Hyundai Duty Free, Shinsegae Duty Free

TABLE OF CONTENTS

  1. RESEARCH SCOPE & METHODOLOGY
    1. STUDY OBJECTIVES
    2. METHODOLOGY
    3. ASSUMPTIONS & LIMITATIONS
  2. EXECUTIVE SUMMARY
    1. MARKET SIZE & ESTIMATES
    2. COUNTRY SNAPSHOT
    3. COUNTRY ANALYSIS
    4. SCOPE OF STUDY
    5. CRISIS SCENARIO ANALYSIS
    6. MAJOR MARKET FINDINGS
      1. DEMAND FOR PREMIUM AND EXCLUSIVE PRODUCTS
      2. FREQUENT INTERNATIONAL TRAVEL FUELS CONSISTENT DUTY-FREE SHOPPING DEMAND
      3. STRATEGIC POSITIONING OF DUTY-FREE STORES IN HIGH-TRAFFIC AREAS
  3. MARKET DYNAMICS
    1. KEY DRIVERS
      1. SURGE IN DISPOSABLE INCOME IN SOUTH KOREA 
      2. RISE IN INTERNATIONAL AND DOMESTIC TOURISM 
      3. SHIFT IN PREFERENCE TOWARDS DUTY-FREE GOODS
    2. KEY RESTRAINTS
      1. HIGH COMPETITION IN THE TRAVEL RETAIL MARKET
      2. STRINGENT GOVERNMENT REGULATIONS 
      3. FLUCTUATION IN LOCAL TRAVEL PREFERENCES
  4. KEY ANALYTICS
    1. KEY MARKET TRENDS
      1. THE RESURGENCE OF HIGH-SPENDING CHINESE GROUP TOURS IS BOOSTING DUTY-FREE RETAIL IN SOUTH KOREA
      2. GLOBAL POPULARITY OF KOREAN CULTURE, ENCOMPASSING K-POP, K-DRAMAS, AND K-BEAUTY
      3. GROWING PREFERENCE FOR INTERNATIONAL BRANDS
    2. PESTLE ANALYSIS
      1. POLITICAL
      2. ECONOMICAL
      3. SOCIAL
      4. TECHNOLOGICAL
      5. LEGAL
      6. ENVIRONMENTAL
    3. PORTER’S FIVE FORCES ANALYSIS
      1. BUYERS POWER
      2. SUPPLIERS POWER
      3. SUBSTITUTIONS
      4. NEW ENTRANTS
      5. INDUSTRY RIVALRY
    4. GROWTH PROSPECT MAPPING FOR SOUTH KOREA
    5. MARKET MATURITY ANALYSIS
    6. MARKET CONCENTRATION ANALYSIS
    7. KEY BUYING CRITERIA 
      1. BRAND REPUTATION & AUTHENTICITY
      2. DIGITAL INTEGRATION
      3. PRODUCT DIVERSITY
      4. CONVENIENCE
      5. PRICE COMPETITIVENESS
  5. MARKET BY PRODUCT TYPE
    1. FASHION AND ACCESSORIES
      1. MARKET FORECAST FIGURE
      2. SEGMENT ANALYSIS
    2. JEWELRY AND WATCHES
      1. MARKET FORECAST FIGURE
      2. SEGMENT ANALYSIS
    3. WINE & SPIRITS
      1. MARKET FORECAST FIGURE
      2. SEGMENT ANALYSIS
    4. FOOD & CONFECTIONERY
      1. MARKET FORECAST FIGURE
      2. SEGMENT ANALYSIS
    5. FRAGRANCES AND COSMETICS
      1. MARKET FORECAST FIGURE
      2. SEGMENT ANALYSIS
    6. TOBACCO
      1. MARKET FORECAST FIGURE
      2. SEGMENT ANALYSIS
    7. OTHER PRODUCT TYPES
      1. MARKET FORECAST FIGURE
      2. SEGMENT ANALYSIS
  6. MARKET BY DISTRIBUTION CHANNEL
    1. AIRPORTS
      1. MARKET FORECAST FIGURE
      2. SEGMENT ANALYSIS
    2. RAILWAY STATIONS
      1. MARKET FORECAST FIGURE
      2. SEGMENT ANALYSIS
    3. OTHER DISTRIBUTION CHANNELS
      1. MARKET FORECAST FIGURE
      2. SEGMENT ANALYSIS
  7. COMPETITIVE LANDSCAPE
    1. KEY STRATEGIC DEVELOPMENTS
      1. MERGERS & ACQUISITIONS
      2. PRODUCT LAUNCHES & DEVELOPMENTS
      3. PARTNERSHIPS & AGREEMENTS
      4. BUSINESS EXPANSIONS 
    2. COMPANY PROFILES
      1. AVOLTA AG (DUFRY)
        1. COMPANY OVERVIEW
        2. PRODUCTS
        3. STRENGTHS & CHALLENGES
      2. LAGARDÈRE TRAVEL RETAIL GROUP 
        1. COMPANY OVERVIEW
        2. PRODUCTS
        3. STRENGTHS & CHALLENGES
      3. LOTTE DUTY FREE 
        1. COMPANY OVERVIEW
        2. PRODUCTS
        3. STRENGTHS & CHALLENGES
      4. THE SHILLA DUTY FREE 
        1. COMPANY OVERVIEW
        2. PRODUCTS
        3. STRENGTHS & CHALLENGES
      5. HYUNDAI DUTY FREE 
        1. COMPANY OVERVIEW
        2. PRODUCTS
        3. STRENGTHS & CHALLENGES
      6. SHINSEGAE DUTY FREE
        1. COMPANY OVERVIEW
        2. PRODUCTS
        3. STRENGTHS & CHALLENGES

LIST OF TABLES

TABLE 1: MARKET SNAPSHOT – TRAVEL RETAIL

TABLE 2: SOUTH KOREA TRAVEL RETAIL MARKET, BY PRODUCT TYPE, HISTORICAL YEARS, 2018-2023 (IN $ BILLION)

TABLE 3: SOUTH KOREA TRAVEL RETAIL MARKET, BY PRODUCT TYPE, FORECAST YEARS, 2025-2032 (IN $ BILLION)

TABLE 4: SOUTH KOREA TRAVEL RETAIL MARKET, BY DISTRIBUTION CHANNEL, HISTORICAL YEARS, 2018-2023 (IN $ BILLION)

TABLE 5: SOUTH KOREA TRAVEL RETAIL MARKET, BY DISTRIBUTION CHANNEL, FORECAST YEARS, 2025-2032 (IN $ BILLION)

TABLE 6: LIST OF MERGERS & ACQUISITIONS

TABLE 7: LIST OF PRODUCT LAUNCHES & DEVELOPMENTS

TABLE 8: LIST OF PARTNERSHIPS & AGREEMENTS

TABLE 9: LIST OF BUSINESS EXPANSIONS & DIVESTITURES

LIST OF FIGURES

FIGURE 1: KEY MARKET TRENDS

FIGURE 2: PORTER’S FIVE FORCES ANALYSIS

FIGURE 3: GROWTH PROSPECT MAPPING FOR SOUTH KOREA

FIGURE 4: MARKET MATURITY ANALYSIS

FIGURE 5: MARKET CONCENTRATION ANALYSIS

FIGURE 6: KEY BUYING CRITERIA

FIGURE 7: SOUTH KOREA TRAVEL RETAIL MARKET, GROWTH POTENTIAL, BY PRODUCT TYPE, IN 2024

FIGURE 8: SOUTH KOREA TRAVEL RETAIL MARKET, BY FASHION AND ACCESSORIES, 2025-2032 (IN $ BILLION)

FIGURE 9: SOUTH KOREA TRAVEL RETAIL MARKET, BY JEWELRY AND WATCHES, 2025-2032 (IN $ BILLION)

FIGURE 10: SOUTH KOREA TRAVEL RETAIL MARKET, BY WINE & SPIRITS, 2025-2032 (IN $ BILLION)

FIGURE 11: SOUTH KOREA TRAVEL RETAIL MARKET, BY FOOD & CONFECTIONERY, 2025-2032 (IN $ BILLION)

FIGURE 12: SOUTH KOREA TRAVEL RETAIL MARKET, BY FRAGRANCES AND COSMETICS, 2025-2032 (IN $ BILLION)

FIGURE 13: SOUTH KOREA TRAVEL RETAIL MARKET, BY TOBACCO, 2025-2032 (IN $ BILLION)

FIGURE 14: SOUTH KOREA TRAVEL RETAIL MARKET, BY OTHER PRODUCT TYPES, 2025-2032 (IN $ BILLION)

FIGURE 15: SOUTH KOREA TRAVEL RETAIL MARKET, GROWTH POTENTIAL, BY DISTRIBUTION CHANNEL, IN 2024

FIGURE 16: SOUTH KOREA TRAVEL RETAIL MARKET, BY AIRPORTS, 2025-2032 (IN $ BILLION)

FIGURE 17: SOUTH KOREA TRAVEL RETAIL MARKET, BY RAILWAY STATIONS, 2025-2032 (IN $ BILLION)

FIGURE 18: SOUTH KOREA TRAVEL RETAIL MARKET, BY OTHER DISTRIBUTION CHANNELS, 2025-2032 (IN $ BILLION)

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