May 18, 2024
Shopping Tourism Market

Shopping Tourism Market is Estimated to Witness High Growth Owing to Increasing Demand for Multicultural Shopping Experiences

The shopping tourism market has grown significantly over the past decade owing to the growing desire of travelers to not just sightsee but also experience unique multicultural shopping destinations. Shopping tourism allows travelers to immerse themselves in the culture, cuisine, and most importantly, the unique shopping experiences that different cities and countries have to offer. Mega shopping malls, specialty retail markets, outlet villages have become major attractions for tourists visiting places like Dubai, Singapore, London, New York or Bangkok.

The global shopping tourism market is estimated to be valued at US$ 497.97 Bn in 2024 and is expected to exhibit a CAGR of 9.3% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the shopping tourism market are Japan Deluxe Tours, Trafalgar Tours, EF Educational Tours, The Shopping Sherpa, Luxury Escapes, Costco Travel, AAA Vacations, Travel + Leisure, Context Travel, Intrepid Travel, Tauck Tours, Backroads, Country Walkers, G Adventures, World Expeditions, AdventureSmith Explorations, Esquire Travel, and Abercrombie & Kent. Shopping tourism trips catering to niche interests like designer outlets, vintage shopping, local handicrafts are gaining popularity. Major tourist destinations are focusing on developing world-class infrastructure and convenience for international shoppers to boost revenues from shopping tourism. Countries across Asia Pacific, Europe, Middle East and North America are strengthening their shopping tourism offering through improved connectivity, currency-friendly policies and dedicated shopping precincts to tap the opportunities in this lucrative segment.

Market Drivers

The Shopping Tourism Market Trends growing middle-class population and rising disposable incomes in emerging economies is driving demand for premium shopping experiences while traveling. Developing world-class retail infrastructure in major tourist destinations by governments is boosting shopping tourism arrivals. The proliferation of dedicated shopping tours and online retailers offering overseas merchandise is further propelling the growth of the shopping tourism industry. Social media influence and rising popularity of vlogging has enhanced the appeal of multifaceted travel experiences including shopping.

PEST Analysis

Political: The shopping tourism market is influenced by certain political factors like duty-free limits on purchases, visa requirements or restrictions for international travelers from certain countries.

Economic: Economic conditions like GDP growth, disposable incomes, currency exchange rates impact consumer spending power and demand for shopping tourism.

Social: Changing consumer preferences and tastes, increased interest in experiential travel are positively impacting the social factors. Growing middle class in developing markets also contributes.

Technological: Advanced technologies like virtual/augmented reality, AI are enhancing the online shopping experience. Digital marketing platforms help promote destinations and offers. Social media influences travel decisions and reviews.

Geographical regions with high market concentration

North America remains the largest regional market for shopping tourism, driven by growing domestic and international spending. Western Europe follows with major consumer economies like Germany, France and UK among top destinations. Asian countries like China, Japan and South Korea have emerged as important outbound shopping markets. Middle Eastern nations attract significant tourist spending due to duty-free offers.

Fastest growing regional market

The Asia Pacific region excluding Japan is forecasted to grow the fastest through 2031. Emerging economies like China and India have a burgeoning middle class with rising disposable incomes, contributing to increased outbound trips and tourism spending in the coming years. Southeast Asian destinations also aim to develop their retail and shopping infrastructure to tap the opportunity.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.