China Duty Free Group 2024–2025: What Consumption Whitepaper Reveals About China’s Evolving Duty-Free Market

As global travel retail continues its post-pandemic recovery, China Duty Free Group (CDFG) has released its 2024–2025 Consumption Whitepaper, offering a detailed snapshot of how Chinese consumer behaviour, policy reform, and digital innovation are reshaping the global duty-free landscape. Beyond CDFG’s performance, the findings illustrate the broader transformation of China’s premium consumption ecosystem, with implications for brands, retailers, and tourism partners alike.

A Resurgent Global Market Led by Asia-Pacific

In 2024, the global duty-free and travel retail market reached USD 74.13 billion, recovering to 85.8% of pre-pandemic levels. Growth has been fuelled by the rebound of international travel, supportive government policies, and the acceleration of digital retail channels.

Asia-Pacific remains the key growth engine, with Europe following close behind. New opportunities are also emerging in the Middle East and Africa as duty-free infrastructure expands. The convergence of digitalisation, sustainability, and experiential retail is defining this next growth cycle.

China: The Core of Global Duty-Free Expansion

China continues to drive global duty-free growth. In 2024, inbound visitors increased by 60.8% and spending by 77.8%, supported by visa-free entry, improved tax refund systems, and mobile payment integration.

The optimisation of Hainan’s offshore duty-free policy, now allowing “Mail Delivery”, “Island Pickup Upon Return”, “Pickup on Guarantee”, and “Buy and Go”, has enhanced convenience and spending potential. Meanwhile, the rollout of downtown duty-free stores in cities such as Shenzhen, Guangzhou, and Xi’an is broadening access beyond airports, developing a complementary ecosystem that enhances duty-free exposure and purchasing diversity.

Together, these developments position China to become the world’s largest duty-free market by 2025, with long-term implications for retail tourism, logistics, and brand distribution.

Market Concentration and Competitive Landscape

CDFG remains the dominant market leader with a 78.7% of China’s duty-free and travel retail share, followed by state-affiliated competitors such as Hainan Development Holdings (7.1%), Hainan Tourism Duty Free (4.6%), and Shenzhen Duty Free (3.8%).

This “One Superpower, Many Strong Players” structure is supported by policy coordination and complementary market positioning. While CDFG remains the national leader, the overall ecosystem is diversifying, combining airport, downtown, and online retail channels to create an increasingly integrated and competitive retail network.

The Consumer Landscape: Nine Archetypes Redefining Travel Retail

With over 100 million users, CDFG’s consumer base reflects China’s evolving consumption landscape.

Female make up the majority (74%) of the user base, though men (26%) are expanding faster and lead in high-end spending. Age-wise, the consumer base spans both young urban explorers and mature high-spenders, representing a dual-track structure of “youthful base and mature customers’ high-luxury consumption.”

CDFG categorises its 81 million members into nine representative consumer types, each defined by spending patterns, lifestyle values, and category preferences:

• Self-Care Connoisseurs: 31-45 years old professionals from Tier 1 and 2 cities focused on high-quality skincare and luxury goods.

• Luxury Lifestyle Connoisseurs: high-net-worth consumers aged 36–60 from Tier 1 and new Tier 1 cities who prioritise jewellery, watches, and other high-end goods.

• Aspiring Upgraders: 26-45 years old pragmatic yet quality-conscious shoppers from lower-tier cities.

• Spirits Aficionados: 31-50 years old male professionals from Tier 1 and 3 cities, who connect social identity with fine liquor and collecting culture, having strong demand for limited edition

• Tech Adventurers: 21-35 years old digital natives from Tier 1, 2 and 3 cities who value innovation and brand ecosystems.

• Trend-Driven Stylists: 16-30 years old users from tier 1 and 2 cities, whose purchases are heavily influenced by social media platforms to build personal trendsetter

• Senior Quality Seekers: 60+ retirees from Tier 1 and 2 cities focused on rational elegance and wellness.

• Performance Athletes: 26-45 years old professionals from Tier 1 and 2 cities investing in high-performance gear and active lifestyles.

• Foreign Travellers: 30 + years old inbound visitors originating from Southeast Asia, Europe, America and more, seeking both international brands and authentic Chinese experiences.

This segmentation reflects a clear trend: the diversification of premium consumption — from traditional luxury to lifestyle, health, and digital technology. Precision targeting matters more than ever — aligning product design, pricing, and experience with segmented emotional drivers will define competitive advantage.

Category Trends: From Beauty to Food and General Merchandise

• Perfumes and Cosmetics

Beauty remains the largest and most stable category, accounting for over half of total duty-free sales. Skincare continues to dominate in the category, while perfumes and make-up grew approximately 10% respectively, driven by foreign travellers and young consumer group.

• Luxury Goods and Accessories

Luxury consumption showed structural polarisation in 2024. The ultra-high-end segment (above RMB 100,000) doubled in sales, even as mid-range luxury slowed. This “dual-track” pattern highlights resilient high-net-worth spending amid cautious mass-market behaviour.

• Watches and Jewellery

Watches and jewellery category is mainly dominated by women, but men lead in high-end spending. While high-income mature customers sustain stronger spending power, youthful buyers are upgrading consumption, shifting from investment-focused gold to design-oriented, wearable luxury pieces.

• Wines and Spirits

Liquor emerged as one of the year’s standout categories, with number of members’ purchases by 61.4%. Whisky led the surge, supported by collector demand and lifestyle positioning. The category’s transformation from transactional to experiential is exemplified by immersive spaces such as CDFG’s Whisky Museum, which combine culture, education, and retail.

• Food and General Merchandise

Food and general merchandise market spending remained stable with electronics maintaining its dominance. Meanwhile, Gen Z’s emotional consumption and the rise of “Character Goods Economy” are reshaping the retail demand, as seniors’ growing focus on health and anti-aging drives premium wellness spending.

The Digital and Omnichannel Revolution

CDFG’s “Capital + Technology” strategy reflects a broader industry pivot toward data-driven, omnichannel retail. Through AI-powered CRM, supply chain analytics, and online–offline integration, the group has reduced acquisition costs by 40% and increased repurchase rates by 30%.

Consumers can browse online, reserve via app, and collect at airports or city stores, a model now being replicated by other retailers. The fusion of social commerce and physical experience is transforming travel retail into a continuous consumer ecosystem rather than a one-time purchase moment.

Omnichannel collaboration is becoming a baseline expectation — integrating influencer engagement, digital campaigns, and in-store activations ensures consistency across travel and lifestyle contexts.

Policy Momentum and Market Access

Policy continues to underpin the duty-free sector’s expansion:

• Hainan Free Trade Port: further liberalisation of duty-free quotas and collection options.

• Downtown duty-free stores: expanding domestic access and encouraging overseas spending repatriation.

• Inbound tourism facilitation: streamlined tax refund procedures and cross-border payment systems.

These developments underline China’s long-term vision for a liberalised, consumer-oriented retail ecosystem, where travel retail acts as a key vehicle for inbound and domestic growth. The policy environment favours early movers who integrate into Hainan or downtown duty-free ecosystems, particularly those aligning with cultural tourism and localised retail experiences

Sustainability and Governance: A New Industry Benchmark

Beyond sales performance, the Consumption Whitepaper underscores CDFG’s achievements in corporate governance and sustainability. The group’s inclusion in the Central SOE ESG Pioneer Index and consistent Grade A rating for disclosure highlight an institutional focus on transparency and long-term value creation.

This aligns with a broader national shift toward green logistics, ethical sourcing, and brand accountability, increasingly demanded by both consumers and partners. ESG alignment is becoming a prerequisite in China’s premium retail partnerships, environmental and social responsibility now form part of brand perception and government relations.

The Future Outlook: Lifestyle Integration and Global Reach

China’s duty-free market is projected to continue to expand through lifestyle diversification, digital transformation, and internationalisation.

CDFG’s strategic roadmap, emphasising “duty-free + taxed retail + lifestyle complexes”, global store expansion, and AI-driven personalisation, illustrates where the industry is heading. Travel retail is evolving from a niche channel into a cultural and experiential platform that connects shopping, tourism, and brand storytelling.

For businesses, this signals an era of hybrid retail, where physical spaces, digital ecosystems, and cross-border logistics converge to define the next wave of consumer engagement.

Strategic takeaways for brands and retailers

1. Integrate with CDFG’s ecosystem: Collaborate through pop-up experiences, exclusive launches, and omnichannel activations in Hainan and downtown stores.

2. Segment and personalise: Tailor campaigns to the nine CDFG consumer tribes—from Gen Z’s emotional resonance to silver consumers’ trust economy.

3. Leverage digital storytelling: Use social commerce and immersive technologies (AR/AI) to convert browsing into belonging.

4. Go “glocal”: Blend Chinese aesthetics with international standards, embracing cultural identity as a driver of premiumisation.

5. Invest in experience: Beyond discounts, design retail spaces and campaigns that evoke emotion, identity, and connection.

The 2024–2025 CDF Consumption Whitepaper underscores more than one company’s success — it captures the trajectory of China’s entire travel retail sector as it matures into a data-driven, experience-led, and globally connected marketplace.

As China edges toward becoming the world’s largest duty-free economy, understanding these trends — from consumer segmentation and omnichannel strategy to policy reform and ESG priorities — will be crucial for anyone aiming to engage with the country’s evolving premium consumption ecosystem. Reach out to us, if you’d like to explore how your brand can engage China’s evolving consumer landscape, from high-value travellers to digital-first millennials.