Asia has entered a new phase of tourism expansion. Visitor numbers are rising across destinations – in 2024 APAC contributed over half of global passenger traffic growth according to IATA figures4. As the region shapes up to be the primary growth engine for global brands, consumer behaviour is becoming more sophisticated, and travellers are now more intentional about how they shop and spend.
According to Fortune Business Insights, the global travel retail market is forecast to more than double to reach a market potential of S$235.55b (US$182.61b) by 2034, up from S$93.54b (US$72.51b) in 20251. As a result, consumer brands are evolving to meet rising demand for exclusive products, personalised experiences, and more immersive retail engagements.
In May 2026, businesses and thought leaders across the global travel retail space convened in Singapore for the annual Tax-Free World Association (TFWA) Asia Pacific Exhibition and Conference. Here are the highlights of their discussions on the trends shaping travel retail and the new opportunities these present:
1. TWO TRENDS SHAPING APAC’S TRAVEL RETAIL GROWTH
China and India remain dominant forces in Asia’s travel story, according to Todd Handcock2, global chief commercial officer and Asia-Pacific executive chair, Collinson International.
- China is projected to lead the global travel retail market through to 2030 and will continue to be a priority market for many brands.
- India has emerged as the fastest-growing travel retail market in the region, projected to grow at a staggering CAGR of over 12 per cent through 2031 as more Indians join the ranks of the country’s growing middle class.
But Southeast Asia is fast becoming an emerging powerhouse, Handcock notes, with annual travel spend in countries like Singapore, Malaysia and Thailand quickly outpacing Asia-Pacific’s average of US$4,763 per person. This has been fuelled by:
- New airports, terminal expansions and new air routes – APAC nations are aggressively deploying mega-build projects to capture global long-haul and passenger transfer traffic. This includes mega-builds like Singapore's upcoming Changi Terminal 5 (adding passenger capacity by more than 55 per cent, from 90 million currently to 140 million)3. Together, these projects are expected to serve nearly 11 billion passengers by 2053, almost triple the traffic from 3.9 billion passengers in 2024.
- A burgeoning middle class with greater spending power and rising travel aspirations – six of the top 10 countries with highest contribution to absolute passenger air traffic growth from now to 2040 are from APAC – #1 China (21%), #3 India (9%), #4 Indonesia (5%), #5 Vietnam (3%), #7 Thailand (2%), #10 Japan (2%)4.
2. “PHYGITAL” EXPERIENCES ARE REDEFINING APAC TRAVEL RETAIL
Today’s travellers are more intentional in how they shop and spend, marking a clear shift in expectations. Personalisation is key, and shoppers want differentiated retail moments that go beyond traditional duty-free and cannot be easily replicated online.
At the same time, consumers are becoming more discerning and value conscious. With 47 per cent of travellers actively seeking more immersive experiences5, this has led brands and retailers to rethink how they engage consumers. Instead of relying on transactional sales, they are designing seamless, highly personalised, and experience-led journeys across cohesive “phygital” (physical + digital) touchpoints.
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KOL-led Activations: Estée Lauder launched its limited-edition InCharge Collection6 in Singapore through a series of curated events, starting with an intimate luncheon with designer Diane von Furstenberg and five local female Key Opinion Leaders (KOLs) from the various industries. The activation debuted at Changi Airport's Terminal 1 Departure Transit Hall - bringing the campaign's message of empowerment directly to travellers.
"Travel is often a moment of transition and self-reflection, which makes it a powerful setting to celebrate the InCharge message," said Lina Ly, Senior Vice President of Travel Retail Asia-Pacific, The Estée Lauder Companies.
By launching a limited-edition travel kit within a broader cultural narrative and amplifying it through local KOLs, the brand showed how experience-led activations can resonate emotionally while driving sales.
