The China travel retail market has witnessed remarkable growth in recent years, fueled by rising disposable incomes, increased tourism, luxury brand expansion, and government-backed duty-free policies. As one of the world's largest travel retail markets, China continues to shape the future of global duty-free shopping and premium consumer experiences.

The China travel retail market is projected to grow from an estimated USD 25.80 billion in 2025 to USD 67.99 billion by 2030, registering a compound annual growth rate (CAGR) of 21.39% during the forecast period (2025–2030

Key Growth Drivers of the China Travel Retail Market

1. Hainan Free Trade Port & Duty-Free Expansion

Hainan’s offshore duty-free policy has transformed the province into a global shopping hub, attracting millions of domestic tourists and boosting sales for luxury brands.

2. Growing Chinese Middle-Class & Luxury Demand

China’s affluent consumer base is driving demand for high-end cosmetics, fashion, and electronics, making travel retail an essential channel for premium brands.

3. Airport & High-Speed Rail Infrastructure Growth

With ongoing expansions in international airports (Beijing, Shanghai, Guangzhou) and railway stations, travel retail is seeing increased footfall and spending.

4. Digitalization & Omnichannel Shopping Experiences

Retailers are leveraging WeChat, Alipay, and online duty-free platforms to enhance the consumer journey, offering pre-order and seamless digital transactions.

5. Rebound in International & Domestic Tourism

Post-pandemic travel recovery has led to increased tourist spending at duty-free stores, particularly in key locations such as Hong Kong and Hainan.

Challenges in the Market

Global competition from duty-free hubs like South Korea and Dubai.

Regulatory complexities in duty-free licensing and import duties.

Changing consumer preferences with a shift toward sustainable luxury.

Counterfeit risks & parallel trading, impacting brand authenticity.

Future Outlook

The China travel retail market is poised for continued growth, driven by:

Further policy incentives for duty-free expansion in Hainan.

Luxury brand investments in personalized and digital-first retail experiences.

Integration of AI, data analytics, and VR shopping to enhance consumer engagement.

As Chinese travelers continue to dominate global luxury spending, the market presents significant opportunities for brands, retailers, and investors in the evolving travel retail landscape.

For a detailed overview and more insights, you can refer to the full market research report by Mordor Intelligence: https://www.mordorintelligence.com/industry-reports/china-travel-retail-market