KT&G Expanded Duty-Free Tobacco Sales Internationally
The South Korean company launched new airport retail operations in Bahrain, Kyrgyzstan, and Turkey in August 2026.
Updated on Oct. 5, 2026 in Business Travel
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KT&G extended its global reach by establishing duty-free tobacco sales at airports in Bahrain, Kyrgyzstan, and Turkey. This expansion included launching five Esse brand products at Istanbul Airport in August 2026.
Why it matters
The company is leveraging growth in the global travel retail market, which is projected to reach $13.47 billion by 2029, to diversify its international revenue streams. By securing shelf space in high-traffic airports, the firm aims to capture higher spending from international travelers.
KT&G recorded 557.7 billion won in overseas revenue for the second quarter, an 18.9 percent increase. Esse brand products alone generated 2 trillion won in total sales during 2025.
The players
KT&G
This South Korean corporation is a major global tobacco manufacturer that has historically dominated the duty-free retail space.
The details
KT&G utilized trade exhibitions in Singapore, Germany, and the TFWA World Exhibition in Cannes to build relationships with international buyers. This strategy builds on the company's long-term presence at Incheon Airport, where it has maintained sales operations since 2001.
Timeline
KT&G began selling cigarettes at Incheon Airport in March 2001.
Foreign tourist arrivals to South Korea reached 10.7 million in the first half of 2026.
KT&G launched five Esse products in Istanbul in August 2026.
The TFWA World Exhibition took place in Cannes from September 27 to October 1, 2026.
Travel Outlook
This move follows the industry trends showcased at the TFWA World Exhibition, where major tobacco brands increasingly prioritize high-traffic international transit hubs. It marks a shift toward capturing global duty-free market share amidst rising international tourism.
International travelers at airports in Istanbul, Bahrain, and Kyrgyzstan may now find a broader selection of tobacco products in terminal duty-free shops. These retail updates reflect ongoing efforts to standardize premium brand availability across global travel corridors.
The takeaway
Companies are aggressively targeting international transit hubs to sustain growth as tourism numbers recover globally. Diversifying retail presence beyond domestic airports helps insulate brands from local market volatility.
Further reading
Learn more about the latest trends in Business Travel.
Source note: This article includes information reported by The Korea Herald.
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Is the expansion of global tobacco brands into international airports a positive development?
