Duty-free retail has emerged as one of the important sources of income and marketing opportunities for various businesses around the globe. Airlines and airports are emphasizing increasing revenues through the sale of amenities on-board and in airport facilities.

The success of the duty-free retail channel is fundamentally attributed to the rise of global tourism and aviation. New airport terminals are designed with consideration for large and vibrant retail spaces. Considering the income they generate, duty-free retail shops play a vital role in modern airport terminals.

Self-service solutions such as kiosks have empowered travelers with choices and control over purchases, and thus are driving duty-free retailing worldwide. The convenience provided by self-service solutions is resulting in more satisfied customers thus reinforcing their loyalty toward airline services.

Many manufacturers consider this retailing channel as a cost-effective route to advertise new products to an international audience. Additionally, expensive items such as cosmetics, fragrances, wines and liquor, and fashion accessories are available at much lower prices due to zero excise duties at airports.

The duty-free retail market is segmented on the basis of product, location and geography. The market by product is further segmented into beauty and personal care, wines and spirits, tobacco, eatables, fashion accessories and hard luxury.