Canada Duty-Free and Travel Retail Market

Canada Duty-Free and Travel Retail Market Overview:

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.

Canada Duty-Free and Travel Retail Market Trends:

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.

Canada 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 country and regional levels 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:

• Ontario
• Quebec
• Alberta
• British Columbia
• Others 

The report has also provided a comprehensive analysis of all the major regional markets, which include Ontario, Quebec, Alberta, British Columbia, and others.

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.

Canada Duty-Free and Travel Retail Market News:

• In June 2025, Dufry, part of Avolta AG, launched the Toronto Duty Free store at Pearson International Airport’s Terminal 3. This 1,851 ft² shop offers Canadian-made goods, local wines, maple syrup, and global duty-free brands like Johnnie Walker and Lindt. It marks the start of a larger partnership with the Greater Toronto Airports Authority to enhance retail at Canada’s busiest airport, which welcomed 46.8 Million passengers in 2024.

Canada Duty-Free and Travel Retail Market Report Coverage:

Key Questions Answered in This Report:

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