The Canada duty-free and travel retail market size reached USD 870.71 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,221.18 Million by 2033, exhibiting a growth rate (CAGR) of 3.83% during 2025-2033. Rising international passenger traffic, higher consumer spending on luxury goods, airport retail expansion, strong demand from Asian tourists, partnerships with global brands, favorable currency exchange rates, and impulse purchases supported by attractive in-store promotions are some of the factors contributing to the Canada duty-free and travel retail market share.
Report Attribute
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Key Statistics
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Base Year
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2024 |
Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 870.71 Million |
Market Forecast in 2033 | USD 1,221.18 Million |
Market Growth Rate 2025-2033 | 3.83% |
Luxury Fragrance Experiences Expanding Airport Retail
A new push toward high-end fragrance experiences is reshaping retail at Canadian airports. The introduction of an exclusive boutique for artisanal perfumes, featuring rare ingredients and custom-crafted formulations, signals a shift in what travelers now expect from duty-free environments. With carefully designed pop-up spaces and limited-edition collections, these offerings focus on sensory engagement and premium gifting. Airports are positioning themselves not just as transit points, but as destinations for luxury encounters. This approach caters to international passengers looking for elevated retail moments during their journeys and taps into the growing demand for exclusive, hard-to-find products in accessible locations. Retailers are leveraging this shift to boost both customer experience and revenue per traveler. These factors are intensifying the Canada duty-free and travel retail market growth. For example, in November 2024, Montreal Duty Free launched Canada’s only Dior La Collection Privée pop-up boutique at YUL Montreal-Trudeau International Airport. The luxury installation showcases Dior’s artisanal fragrance line, crafted with rare ingredients and refined techniques. This exclusive retail space invites travelers to experience Dior’s signature elegance through a curated selection of scents, offering a premium gifting option and enhancing the airport’s luxury retail offering.
Offshore Retail Zones Redefining Duty-Free Access
A shift toward offshore duty-free shopping is gaining ground in Canada, signaling a move beyond traditional airport locations. Drawing from successful models in Asia, new plans aim to introduce designated retail zones outside of terminals. This setup allows travelers to make purchases ahead of departure and collect them at transit points, offering greater convenience and broader product access. The model also opens the door for international retail operators to compete for large-scale contracts. As government and industry partnerships develop, this expansion could reshape how and where duty-free transactions happen. It reflects growing interest in blending tourism, shopping, and logistics to extend the economic impact of travel retail throughout the country. For instance, in April 2024, Canada and New Zealand announced plans to introduce offshore duty-free shopping, following models in Hainan, Okinawa, and Jeju. The initiative stems from a joint fact-finding mission in 2023 and is expected to open major tender opportunities, drawing interest from global travel retailers. This marks a significant move in expanding Canada’s travel retail sector beyond airport terminals, potentially reshaping the country’s duty-free shopping landscape.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on product type and distribution channel.
Product Type Insights:
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:
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:
The report has also provided a comprehensive analysis of all the major regional markets, which include Ontario, Quebec, Alberta, British Columbia, and others.
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.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Million USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Product Types Covered | Beauty and Personal Care, Wines and Spirits, Tobacco, Eatables, Fashion Accessories and Hard Luxury, Others |
Distribution Channels Covered | Airports, Airlines, Ferries, Others |
Regions Covered | Ontario, Quebec, Alberta, British Columbia, Others |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
Key Benefits for Stakeholders: