Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has grown at a CAGR of 13.9 % over the past five years, to reach an estimated $2.8bn in 2025.
Trends and Insights
A strong rebound in travel fuels gains
- International travel collapsed during the pandemic, slashing foot traffic and sales at duty-free shops by up to 90.0%. The industry's largest business, Avolta AG, which owns the US-based Hudson Group, exhibited revenue losses of more than 70.0% in 2020 alone. While duty-free shops benefit from the strong foot traffic that passes through airports, the industry's customer base is eliminated when airports are empty.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
Duty-free retailers may endure a difficult external market
- Revised US tariffs affecting select luxury and alcohol categories will force duty-free retailers to renegotiate supplier contracts. As trade relations continue to evolve, particularly with major partners like China and the European Union, shifts in tariffs will impact product costs for these retailers. Should the US adopt more protectionist policies, duty-free shops will exhibit higher purchasing costs and lower profit.
Biggest companies in the Duty-Free Shops in the US
There are no companies that hold a market share exceeding 5% in the Duty-Free Shops in the US industry.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Wine, spirits and food, Perfumes and cosmetics and Tobacco and related products. Wine, spirits and food is the largest segment of the Duty-Free Shops in the US.
Trends and Insights
The industry relies on wine, spirits and food sales
- Food sales comprise a small share of this segment, with wine and spirits being the most popular items sold at duty-free shops. These products are heavily taxed, resulting in significant savings when customers purchase them from duty-free retailers.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Operators in this industry retail packaged alcoholic beverages, such as beer, wine and liquor, among other taxable imports such as tobacco. Duty-free shops are often located in airports.
What's included in this industry?
Products and services covered in the Duty-Free Shops industry in the United States include Retailing alcohol, Retailing tobacco and tobacco products, Retailing fragrance products and Retailing other products.Companies
Companies covered in the Duty-Free Shops industry in the United States include .Purchase this report to view all major companies in this industry.
Related Terms
Related terms covered in the Duty-Free Shops industry in the United States include .Industry Code
NAICS 445310 - Duty-Free Shops in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Premiumization offers growth opportunities despite economic uncertainty. Despite waning confidence in the economy and government, consumer willingness to spend on high-end an...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Factors that influence volatility in the industry
- Key success factors for businesses to overcome volatility
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The vast majority of revenue is generated in airports. Duty-free shops are almost synonymous with airports, as many customers eagerly anticipate the tax-free savings that the...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2025
- Product innovation level
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Purchase this report to unlock analyst insights.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2025
Tables
- Number and share of establishments in each state in 2025
- Number and share of revenue each state accounts for in 2025
- Number and share of wages each state accounts for in 2025
- Number and share of employees in each state in 2025
Detailed analysis
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Duty-free shops are insulated from competition to a degree. Competing retailers don't enjoy tax-exempt status, giving duty-free shops an inherent advantage with pricing.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2020-2025
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
More travel activity has supported industry gains. An uptick in the number of international and domestic travelers has kept spending on duty-free merchandise high.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Luxury spending supports strong profit generation. After falling in 2020 as foot traffic plummeted, profit has recovered in recent years as consumer willingness to buy high-e...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Industry Multiples (2018-2023)
- Industry Tax Structure (2018-2023)
- Income Statement (2018-2023)
- Balance Sheet (2018-2023)
- Liquidity Ratios (2018-2023)
- Coverage Ratios (2018-2023)
- Leverage Ratios (2018-2023)
- Operating Ratios (2018-2023)
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Duty-Free Shops industry in the United States in 2025?
The market size of the Duty-Free Shops industry in the United States is $2.8bn in 2025.
How many businesses are there in the Duty-Free Shops industry in the United States in 2025?
There are 7 businesses in the Duty-Free Shops industry in the United States, which has declined at a CAGR of 0.0 % between 2020 and 2025.
Has the Duty-Free Shops industry in the United States grown or declined over the past 5 years?
The market size of the Duty-Free Shops industry in the United States has been growing at a CAGR of 13.9 % between 2020 and 2025.
What is the forecast growth of the Duty-Free Shops industry in the United States over the next 5 years?
Over the next five years, the Duty-Free Shops industry in the United States is expected to grow.
What does the Duty-Free Shops industry in the United States include?
Retailing alcohol and Retailing tobacco and tobacco products are part of the Duty-Free Shops industry in the United States.
How competitive is the Duty-Free Shops industry in the United States?
The level of competition is moderate and steady in the Duty-Free Shops industry in the United States.
Related Industries
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Complementors
International industries
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Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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