Saudi Arabia Duty-Free and Travel Retail Market

Saudi Arabia Duty-Free and Travel Retail Market Overview:

The Saudi Arabia duty-free and travel retail market size reached USD 392.6 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 723.4 Million by 2033, exhibiting a growth rate (CAGR) of 6.40% during 2025-2033. The market is driven by the expansion of international brand partnerships, growing air travel connectivity, and investments in airport infrastructure, all of which increase retail traffic, attract high-spending tourists, and enhance the overall shopping experience for travelers.

Saudi Arabia Duty-Free and Travel Retail Market Trends:

Rise of International Partnerships and Brand Expansions

As Saudi Arabia continues to open up to international markets, global retailers and luxury brands are increasingly establishing a presence in its airports, enriching the variety of products available to people. These international partnerships enhance product variety and also bring unique offerings and deals designed specifically for the needs of travelers. The market is benefiting from a growing portfolio of international brands in sectors such as cosmetics, perfumes, fashion, and electronics, all of which attract high-spending tourists looking for premium goods. In 2024, Chalhoub Group officially launched The Visitor, its first travel retail flagship store at King Abdulaziz International Airport in Jeddah, Saudi Arabia. Spanning 400 sqm, it offered over 200 luxury brands across various categories. The store aimed to enhance the regional travel retail experience, aligning with Saudi Arabia's goal to attract 150 million visitors by 2030. As more partnerships are formed and international brands continue to expand, the Saudi Arabia duty-free and travel retail market is poised to cater to a more diverse and affluent user base, encouraging higher spending and continued growth.

Expanding Air Travel Connectivity and Airline Growth

The rise in air travel connectivity, both within the country and abroad, is bolstering the growth of the market. The emergence of national airlines, along with enhanced international flight routes, is resulting in a growing influx of travelers at Saudi Arabia's airports, thereby increasing retail activity in these locations. The ongoing investment of the governing body in airport facilities, combined with efforts to improve passenger experiences, further bolsters the expansion of travel retail stores. The rising number of flight paths connecting Saudi Arabia to international locations is resulting in a consistent stream of travelers coming in and going out, leading to enhanced chances for retail expenditure. In October 2024, Riyadh Airports and Lagardère Travel Retail opened Saudi Arabia's first arrivals duty-free stores at King Khalid International Airport. The stores, located in Terminals 3 and 4, offered a variety of high-quality products to arriving passengers. This initiative aimed to enhance the airport's attractiveness and boost tourism and the local economy. This initiative corresponds with the larger trend of growing air travel, where additional flights and passengers generate new retail prospects, further driving the expansion of the market.

Saudi Arabia Duty-Free and Travel Retail Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on product type and distribution channel.

Product Type Insights:

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

The report has provided a detailed breakup and analysis of the market based on the product type. This includes beauty and personal care, wines and spirits, tobacco, eatables, fashion accessories and hard luxury, and others.

Distribution Channel Insights:

• Airports
• Airlines
• Ferries
• Others

A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes airports, airlines, ferries, and others.

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Duty-Free and Travel Retail Market News:

• In March 2025, Saudi Arabia's Public Investment Fund (PIF) introduced Al Waha Duty Free Operating Co., the inaugural duty-free firm owned by Saudis. This action seeks to gain a greater portion of the travel retail market and enhance the tourism industry. Al Waha plans to provide luxury goods and distinctive items, aiding Saudi Arabia's objective to bring in 150 million tourists by 2030.
• In October 2024, Gebr. Heinemann, alongside Jordanian duty-free Shops and Astra, obtained a duty-free agreement for 11,500 sq m of retail area at King Abdulaziz International Airport (KAIA) in Jeddah. The area concentrated on fragrances, beauty products, sweets, tobacco, and regional items. The expansion sought to improve retail options and address the increasing need for travel retail services in Saudi Arabia.

Saudi Arabia Duty-Free and Travel Retail Market Report Coverage:

Key Questions Answered in This Report:

• How has the Saudi Arabia duty-free and travel retail market performed so far and how will it perform in the coming years?
• What is the breakup of the Saudi Arabia duty-free and travel retail market on the basis of product type?
• What is the breakup of the Saudi Arabia duty-free and travel retail market on the basis of distribution channel?
• What is the breakup of the Saudi Arabia duty-free and travel retail market on the basis of region?
• What are the various stages in the value chain of the Saudi Arabia duty-free and travel retail market? 
• What are the key driving factors and challenges in the Saudi Arabia duty-free and travel retail?
• What is the structure of the Saudi Arabia duty-free and travel retail market and who are the key players?
• What is the degree of competition in the Saudi Arabia duty-free and travel retail market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia duty-free and travel retail market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia duty-free and travel retail market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia duty-free and travel retail industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.