Antonio Santos del Valle
Global shopping tourism outlook (2024-2031)
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Antonio Santos del Valle
Global shopping tourism outlook (2024-2031)
Last Tuesday, a webinar organized by the Tourism and Society Think Tank was held, with the participation of leading representatives from various sectors related to shopping tourism. Among the attendees were executives from shopping malls, tourist destinations, credit card companies, well-known brands, as well as colleagues from different universities.
During the event, these international experts shared their valuable perspectives on the present and future of shopping tourism. Below is a summary of the most relevant ideas and trends that were discussed:
Innovation in the shopping experience: the importance of integrating advanced technology into shopping malls and tourist destinations to enhance the customer experience was highlighted. From augmented reality to personalized mobile apps, technological innovations are transforming the way tourists interact with stores and products.
Sustainability and social responsibility: panelists highlighted the growing consumer demand for sustainable practices and eco-friendly products. They discussed how tourism brands and destinations can adopt responsible and sustainable policies to attract a more environmentally conscious public.
Impact of globalization and market diversification: experts analyzed how globalization has broadened the scope of shopping tourism, allowing tourists to access a wider variety of products from different cultures and regions. They also discussed the diversification of emerging markets that are showing remarkable growth in this sector.
Marketing and loyalty strategies: various marketing strategies and loyalty programs were explored that are proving effective in attracting and retaining buying tourists. Personalization of offers and the creation of unique experiences were identified as keys to success.
All present agreed that the global shopping tourism market is poised for significant growth, with an estimated value of US$267.21 billion in 2024, and is forecast to reach US$497.97 billion by 2031. This represents a solid compound annual growth rate (CAGR) of 9.3% over the forecast period.
Key factors behind this growth include rising disposable incomes and the availability of financing options. The expanding middle class and their growing desire to enjoy leisure travel and shopping are major contributors. Destinations are capitalizing on this trend by promoting unique shopping experiences and offers to attract tourists. Social media influencers also play a crucial role in driving the market through their endorsement of favorite shopping destinations. However, challenges such as international political uncertainties and currency fluctuations could pose risks for market players.
Drivers of market growth
Rising disposable incomes: as the global economy grows, so does the disposable income of people around the world. Many developing economies in Asia, Africa and South America have experienced substantial reductions in poverty levels, leading to increased spending on leisure activities, including shopping tourism.
Higher wages and lower costs of consumer goods have made shopping trips abroad more affordable. Countries such as China and India, in particular, have a growing number of shoppers seeking branded goods in international destinations.
Chinese travel abroad: one of the biggest opportunities lies in attracting Chinese tourists, who are known for their propensity to make big purchases when traveling abroad. With more than 150 million departures in 2016, China's outbound travel market is the largest in the world. By catering to this market with customized services, such as Mandarin-speaking guides, unique shopping complexes and apps, destinations can tap into this lucrative segment.
Emerging markets: tourism from emerging markets has gained significant importance in the global economy, with India in particular standing out as a crucial player in this area. As India's middle class continues to grow and the purchasing power of its citizens increases, the country is becoming a vital source of international tourists. This flow of tourists not only boosts the economies of host destinations through spending on accommodation, food and recreational activities, but also fosters cultural exchange and diversification of tourism offerings. In addition, Indian tourists, known for their extended stays and tendency to spend on luxury shopping and experiences, represent a highly desirable segment for various tourism destinations around the world.
India, with its vast young and technologically connected population, presents enormous potential for global tourism. Destinations that manage to capture the attention of these travelers often benefit from their loyalty and word-of-mouth promotion through social networks and other digital media. Also, Indian tourists' interest in exotic destinations and their growing expectations for personalized services are forcing the industry to continually innovate and improve its offerings. This dynamic not only supports economic growth, but also drives healthy competition among tourism destinations, leading to an overall increase in the quality of services and infrastructure globally. In short, tourism in emerging markets, with India at the forefront, represents a golden opportunity for sustainable development and diversification of the international tourism sector.
Emerging trends
Experiential and niche shopping: modern tourists are looking for more than transactional shopping; they want experiences. Destinations are responding with retail therapy, lifestyle shopping and specific themes. Selected shopping tours, workshops and classes in artisanal stores allow visitors to engage deeply with local culture. Pop-up stores and temporary "boutiques" with celebrity designers create unique shopping experiences. Events focusing on fashion, art, antiques or gourmet food also add novelty, making shopping a multifaceted experience.
Shoppertainment: combining retail with food, beverage and entertainment, "shoppertainment" is gaining popularity. This concept enhances the shopping experience, offering a combination of activities that appeal to millennials looking for Instagram moments rather than mundane stores.
Regional outlook
North America: The North American region, comprising the U.S., Canada and Mexico, is a key shopping tourism market due to its high concentration of shopping malls and renowned tourist destinations. The United States, with iconic cities such as New York, Los Angeles and Miami, leads the region by offering diversified, luxury shopping experiences. Canada, meanwhile, stands out for its world-class shopping malls and unique shopping events. Mexico, with its rich cultural heritage and traditional markets, attracts both domestic and international tourists.
Europe: Europe is a diverse region that includes tourism powerhouses such as Germany, the United Kingdom, France, Italy, Russia and Spain, as well as the rest of Europe. This region is famous for its historic cities, luxury boutiques and local markets. London, Paris and Milan are favorite destinations for fashion and luxury lovers, while cities such as Berlin and Barcelona offer unique cultural experiences that complement shopping tourism. Russia and the rest of Europe also contribute significantly with their mix of tradition and modernity in retail.
Asia-Pacific: This region encompasses emerging and developed economies such as China, India, Japan, Singapore, Australia, New Zealand and the rest of APAC. China and Japan are leaders in technology and fashion, attracting millions of tourists each year. India stands out for its vibrant consumer goods and handicrafts market. Singapore and Australia offer high-end shopping experiences and exclusive products. The region's cultural and economic diversity makes it an attractive destination for a wide range of tourists.
South America: In South America, Brazil and Argentina are the main players, complemented by the rest of the region. Brazil, with its growing middle class and events such as Carnival, is a magnet for shopping tourists. Argentina, known for its leather goods and wines, attracts visitors in search of unique items and gastronomic experiences. Other South American countries are also gaining recognition for their local markets and artisanal products.
Middle East and Africa: this region includes countries such as Turkey, Saudi Arabia, Iran, United Arab Emirates and the rest of MEA. The UAE, especially Dubai, is famous for its luxurious shopping malls and shopping festivals. Turkey combines its rich history with modern shopping malls, while Saudi Arabia and Iran are beginning to emerge as emerging shopping tourism destinations. Africa, with its rich cultural diversity and local markets, offers unique experiences that are capturing the attention of a growing number of tourists.
Detailed analysis of the regional outlook and comprehensive assessment of the shopping tourism market demonstrates the importance and dynamism of this sector globally. Each region, with its unique characteristics and competitive advantages, contributes significantly to the growth and diversification of the market. From the luxury shopping malls of North America and Europe to the vibrant local markets of Asia-Pacific, South America, and the Middle East and Africa, shopping tourism continues to evolve, adapting to emerging trends and changing consumer expectations.
For manufacturers, retailers and investors, understanding these dynamics and keeping abreast of changes in the macroeconomic and geopolitical environment is essential to capitalize on opportunities and mitigate risks. Innovation in the shopping experience, the adoption of sustainable practices, and the ability to attract tourists from emerging markets such as India are key factors that will determine future success in this sector.
Author: Antonio Santos del Valle
President of TSTT
International consultant
The authors are responsible for the choice and presentation of the facts contained in this document and for the opinions expressed therein, which are not necessarily those of Tourism and Society Think Tank and do not commit the Organization, and should not be attributed to TSTT or its members.
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