May 27, 2024
Shopping Tourism Market

Shopping Tourism Market Is Set To Gain Traction With Rising Fashion Consciousness

The shopping tourism market comprises shopping facilities, shopping outlets, brand outlets, and destination shopping centers that attract domestic as well as international tourists. With an increasing emphasis on fashion and unique shopping experiences across the world, shopping tours enable individuals to visit various destinations known for their shopping attractions. Shopping tourism promotes local vendors, artisans, and small businesses associated with unique crafts and souvenirs.

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. Key players focus on curating authentic shopping experiences aligned with local cultures for global travelers.

The growing Shopping Tourism Market Trends demand for unique shopping experiences is one of the key drivers of the market. Tourists are looking for destinations offering specialty products rather than common high-street brands. Emerging markets in Asia Pacific and Middle East regions are gaining traction as shopping hotspots.

Globally, the market is witnessing expansion owing to rising disposable incomes and growing affinity of modern travelers towards indigenous crafts and local lifestyle souvenirs. Dedicated shopping tours enable tourists to visit multiple international destinations known for their specialty products within a timeframe, driving the market’s growth globally.

Market key Trends

Personalization is one of the prominent trends in the shopping tourism market. Tour operators are focusing on curating customized itineraries for niche client segments based on their shopping interests, budget, and travel preferences. For instance, dedicated tours are organized for art shoppers, fashion shoppers, foodies, antique collectors etc. focusing on destinations and retailers relevant to respective interests. Interactive shopping tours leveraging digital aids are also gaining traction. Market players employ mobile apps, AR/VR and social media platforms to enhance tourists’ shopping experiences.

Porter’s Analysis

Threat of new entrants: High capital requirements and existing competitors makes entry difficult for new players.

Bargaining power of buyers: Buyers have high bargaining power as there are many existing players in the market offering similar products and services.

Bargaining power of suppliers: Suppliers have low bargaining power due to availability of substitute suppliers and products.

Threat of new substitutes: Threat is low as shopping tourism requires specialized services with existing infrastructure.

Competitive rivalry: Intense competition exists between existing players to attract customers.

Geographical regions: Western Europe is currently the largest geographical region for the shopping tourism market, accounting for around 30% of the total value. Countries like the UK, France, Italy and Germany attract considerable numbers of shopping tourists owing to the presence of famous shopping districts and retail brands.

The Asia Pacific region is expected to be the fastest growing geographical region during the forecast period from 2024-2031. Countries such as China, South Korea and Japan have seen double digit annual growth rates in inbound shopping tourists over the last 5 years. Developing retail hubs in major cities and tax reimbursements for international tourists are driving the Asia Pacific shopping tourism market.

Geographical Regions: Western Europe currently accounts for around 30% share of global shopping tourism market value due to presence of famous shopping districts and brands in UK, France, Italy, Germany. Asia Pacific projected to be fastest growing region during 2024-2031 forecast period with countries like China, South Korea, Japan witnessing double digit annual growth in inbound shopping tourists on back of developing retail hubs and tax reimbursements for international visitors.

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