China Travel Retail Market Report by Product Type, Distribution Channel, City and Company Analysis, 2025-2033

China Travel Retail Market Size & Forecast 2025-2033

China Travel Retail Market is expected to grow at a substantial rate, rising from US$ 21.65 Billion in 2024 to US$ 116.40 Billion in 2033. The expansion is an impressive Compound Annual Growth Rate (CAGR) of 20.55% from 2025 to 2033. The causes for this growth are expanding disposable incomes, improved overseas travel, and changing customer tastes for luxury and branded goods.

China Travel Retail Market Outlook

Travel retail, also known as duty-free shopping, refers to selling products to international tourists in places like airports, seaports, and other travel points. Growing outbound Chinese tourists have greatly increased demand for travel retail. Chinese travelers going abroad are increasing in numbers, and they look for quality products and luxury items that are usually cheaper in duty-free stores.

Besides, increased disposable income among China's middle class has created more demand for premium products and experiences. This demographic trend has made unique local products and luxury goods extremely desirable, further increasing the attractiveness of travel retail.

In addition, the exclusivity and convenience provided by travel retail, coupled with marketer-generated marketing efforts targeted at particular traveler profiles, have made it even more popular in China. Interactive shopping experiences and exclusive offers also add to the industry's expansion, making it a key component of the travel experience for a majority of Chinese consumers.

Growth Drivers in the China Travel Retail Market

Increasing Outbound and Domestic Tourism

China became the biggest market for international tourism in 2023, with 101 million outbound tourists and expenditures of $196.5 billion. Recovery in China's outbound tourism is robust, as reflected in 60.71 million tourists during the first half of 2024. This is an increase of 50.4% from the same period last year and accounts for 74.7% of 2019 levels. China's fast-expanding outbound and domestic tourism are key drivers of its travel retail market. Millions of Chinese tourists move through international airports, train stations, and duty-free shops every year, driving strong demand for luxury items, cosmetics, and daily necessities. Official efforts to develop domestic tourism, like building Hainan as a duty-free shopping destination, also lend support to the market. As young generations become more interested in travel experiences, consumer retail opportunities linked to tourism are expanding fast. Travel retail not only caters to international luxury demand but also fulfills domestic consumer aspirations, making it a vital channel in China's evolving consumption landscape. In 2024, China recorded a total of 5.61 billion domestic travel trips, which reflects a 14.8-percent increase from the previous year, according to the Ministry of Culture and Tourism.

Expanding Middle-Class and Luxury Spending

China's sharp growth of the middle class, along with growing disposable incomes, has spurred demand for premium products via travel retail. Fashion items, luxury accessories, beauty treatments, and wines are the most sought-after among Chinese travelers who connect travel retail to exclusivity and authenticity. Duty-free shops are strategically tapped by brands to target wealthy consumers who value convenience and tax exemptions. Shanghai and Beijing airports have emerged as luxury shopping hubs on a global scale, reinforcing the position of travel retail as a conduit for global brands. The growth in purchasing power is predicted to drive long-term growth in the industry. China was ranked third globally in 2022 in terms of high-net-worth individuals, with around 780,000 individuals with investable assets over USD 1 million. These consumers account for 42% of Chinese luxury sales, and 56% intend to boost their personal luxury spending in the coming three years.

Government Support and Policy Initiatives

Government policies facilitating duty-free growth are yet another major force behind China's travel retail expansion. The best case in point is the policy of Hainan Free Trade Port, permitting duty-free shopping by both international and domestic travelers, stimulating regional tourism and retail consumption. Regulatory encouragement of global and domestic brands to increase travel retail operations further fuels market penetration. Investment in top-class airports, railway terminals, and free-trade zones improves the infrastructure for retail establishments. These efforts not only entice global brands but also push domestic players to extend their reach in travel retail, making it an essential part of China's consumption economy. The threshold for departure tax refunds has been lowered to 200 yuan ($27.8) from 500 yuan so more specialty and souvenir stores can join in. The government aims to increase the number of tax refund stores within shopping areas, scenic spots, airports, and hotels. These stores are encouraged to provide more products, such as time-honored brands, Chinese consumer products, intelligent devices, and cultural crafts.

Challenges in the China Travel Retail Market

Intense Competition Among Global and Local Players

China's travel retail sector faces significant competition, with global luxury brands, local retailers, and duty-free operators vying for consumer attention. International companies bring strong brand reputations, but local retailers often compete on pricing and tailored assortments. The race to secure prime airport and railway station retail spaces intensifies rivalry, while e-commerce platforms add another competitive layer. April 2025, The threshold for departure tax refunds under the new policy was lowered to 200 yuan ($27.8) from 500 yuan. The move will also allow more specialty stores, souvenir shops and gift shops with lower average transaction sizes to become members of the tax refund program. The government is also increasing the number of departure tax refund outlets, with additional locations to be added in major shopping districts, tourist spots, airports, hotels and other prime areas. The outlets are encouraged to increase product ranges to include time-honored brands, Chinese well-known consumer products, intelligent devices, intangible cultural goods, handicrafts and specialty items, among others.

Regulatory Complexity and Policy Uncertainty

Though government assistance has proved helpful, regulatory complexity is still an issue for Chinese travel retail. Highly prescriptive conditions on licensing, duty-free operations, and product assortment frequently pose barriers to entry for new entrants. Furthermore, policy changes-like duty-free quota or tax rule modifications-can directly affect volume of sales. Retailers have to remain responsive to changing regulations on an ongoing basis, adding to operational uncertainty. This challenge is particularly pronounced for international players unfamiliar with China's regulatory landscape. Maintaining compliance while scaling operations requires significant resources, creating hurdles for both global and domestic market participants.

China Travel Fashion and Accessories Retail Market

Fashion and accessories lead the travel retail space in China, fueled by people's demand for luxury bags, watches, and clothing. Shanghai, Beijing, and Hainan airports are now hubs for global fashion brands, with their own exclusive ranges and tax-free prices. Chinese tourists consider travel retail as a means of buying genuine luxury products at reduced prices compared to mainland shops. Increased brand awareness, especially among younger consumers, has also added more strength to this category. Seasonal offerings and special-edition products designed for travel retail contribute to exclusivity, boosting appeal. With a growth in global travel and luxury expenditure, fashion and accessories continue to form the foundation of China's travel retail expansion.

China Travel Wine & Spirits Retail Market

Wine and spirits constitute another significant building block of China's travel retail landscape. Duty-free alcohol retailing draws local and international consumers looking for premium products at cheaper prices. Chinese consumers, especially high-income middle-class and young professionals, are increasingly looking for fine wines, imported spirits, and high-end liquors. Retailers generally push gifting culture, especially holidays, to increase sales. Special airport promotions and brand alliances with duty-free shops drive demand. Regulatory curbs on alcohol retailing and import duties could be challenges. Rising consumption patterns and premiumization guarantee consistent growth in this segment despite these.

China Travel Food & Confectionery Retail Market

Food and confectionery items in travel retail serve customers seeking convenience, gift, and souvenir. Best-selling categories include pre-packaged snacks, chocolates, typical confectionery, and international food products. Seasonal packaging and travel-exclusive limited-edition products increase impulse purchasing. Railway stations and airports are the points of sale, providing impulse-to-buy products to domestic as well as international passengers. The segment is also increasing because of increased demand for premium chocolates as well as healthier snack options. Cultural habits, like gifting sweets on festivals, also increase sales. Confectionery and food continue to be a significant category for generating retail diversity and expanding size of baskets.

China Airports Travel Retail Market

Airports control China's travel retail market, offering centres of luxury shopping and premium consumer experiences. Major overseas airports such as Beijing Capital, Shanghai Pudong, and Guangzhou Baiyun have large duty-free areas with fashion, cosmetics, jewelry, and liquor. Airport surroundings, with consumers in "spending mode," contribute to high sales, especially for luxury and high-priced products. Tax-benefits along with airport-only exclusive collections lure outgoing, as well as domestic, travelers. With continuous growth initiatives and government actions, airports will continue to hold a pivotal position in China's travel retail environment.

China Railway Stations Travel Retail Market

Railway stations are increasingly playing a key role in China's travel retail market as high-speed rail networks are expanding. These stations handle millions of passengers each day, presenting retail opportunities in food and beverages, fashion accessories, and travel essentials. Retail facilities within large stations are made to replicate airport-like shopping, providing convenience and impulse purchase categories. Domestic travel has picked up and rail provides affordable alternatives to flights, making this segment accelerate considerably. The emphasis in this segment is on convenience, affordability, and rapid-purchase items, as opposed to luxury. However, the size of passenger traffic makes retail within railway stations an important growth driver.

Shanghai Travel Retail Market

Shanghai serves as a major hub for China's travel retail, featuring one of the busiest airports (Pudong International) and a high density of luxury retail shops. The international positioning of the city makes it appealing to global brands entering China's travel retail. Shanghai tourists, who possess high purchasing power, tend to look for upscale fashion, cosmetics, and accessories. The city also enjoys robust tourism, which boosts its retail performance. With ongoing investment in infrastructure, Shanghai continues to be a hub of China's travel retail.

Beijing Travel Retail Market

Another pillar of China's travel retailing is Beijing, with a base in Beijing Capital International Airport and Daxing International Airport. These airports receive millions of visitors per year, generating demand for luxury items, wines, and sweets. Beijing is also the political capital and features business travelers, supplementing retail potential. Premium brand store and duty-free store counts in Beijing have grown, making it a key market for global and domestic retailers alike.

Tianjin Travel Retail Market

Tianjin, being a port city and transport hub close to Beijing, has been increasing its travel retail profile. Tianjin Binhai International Airport and its expanding railway system are hubs for retail expansion. The market here is enhanced by increasing tourism and closeness to Beijing, drawing in both leisure and business travel. Retail options tend to be wider-ranging, appealing to both mid-range and luxury segments. With increasing modernization of infrastructure and tourism development, the travel retail industry in Tianjin will become a growing contributor to local development in the region.

Market Segmentations

Product Type

• Fashion and Accessories
• Jewelry and Watches
• Wine & Spirits
• Food & Confectionery
• Fragrances and Cosmetics
• Tobacco
• Others

Distribution Channel

• Airports
• Railway Stations
• Others

Top 10 States

• Shanghai
• Beijing
• Shenzhen
• Chongqing
• Guangzhou
• Suzhou
• Chengdu
• Hangzhou
• Tianjin
• Rest of Others

All companies have been covered with 5 Viewpoints

• Overviews
• Key Person
• Recent Developments
• SWOT Analysis
• Revenue Analysis

Key Players Analysis

1. China Duty Free Group Co Ltd

2. Lagardere Travel Retail

3. DFS Group

4. Sunrise Duty-Free

5. China National Service Corporation

6. L'Oreal

7. Starbucks

8. Samsung Electronics

9. Huawei Technologies

10. Haagen-Dazs China