Indian and South Korean Travel Retail Growth to Rise
The Asia-Pacific retail market aims to reduce reliance on Chinese consumers through new growth segments.
Updated on Oct. 26, 2026 in Asia
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Travel retail in the Asia-Pacific region is shifting away from its historical dependence on Chinese consumers as new demographics emerge. Indian and South Korean travelers are expected to become major drivers of retail growth through the next decade.
Why it matters
Retailers must adapt to a rapidly expanding affluent consumer base and younger travelers to capture value previously lost. Shifting luxury spending and uncompelling airport propositions require firms to prioritize product exclusivity and data collaboration.
Indian travelers are projected to account for 20% of future travel retail growth, while South Korean consumers are expected to comprise 10%. This comes as Chinese consumer contributions to retail growth decline from a historical 65% to 40%.
The details
Retailers have missed an estimated $5 billion in potential value despite capturing 71% of footfall and 67% of tourism spending since borders reopened. Executives are now looking to innovation as a critical priority, though only 7% have deployed AI applications so far.
Timeline
2025-2035 is the projected period for a quadrupling of Indian travel retail spending.
The next decade will see a significant decline in the Chinese consumer contribution to retail growth.
Travel Outlook
This pivot reflects a major structural shift away from the historical reliance on Chinese tourism spending in the Asia-Pacific travel retail sector. The industry is moving to balance its portfolio by cultivating emerging markets to mitigate regional volatility.
Travelers from India and South Korea may see more personalized duty-free offerings tailored to their specific product preferences, such as beauty and fashion items. Shopping habits are evolving, with Indian consumers increasingly focusing on duty-free purchases made upon arrival.
The takeaway
The travel retail sector is transitioning toward a more diversified model driven by emerging affluent populations. Travelers should anticipate more exclusive product collaborations and digital innovations at major regional airport hubs.
Further reading
Learn more about evolving market trends in the Asia travel section.
Source note: This article includes information reported by Consultancy.
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