(In terms of dollar value of sales), what is the number one product purchased at duty-free shops worldwide? Is it jewelry, cameras, cigarettes, whiskey, or women's perfumes?

While tobacco products are a significant driver of sales in duty-free shops, the top spot in terms of dollar value often belongs to the perfumes and cosmetics category. In 2023, beauty and personal care products accounted for 28% of the market, and by some estimates, fragrances and cosmetics made up nearly 36% of sales. This category's dominance is fueled by the demand for luxury brands and travel-exclusive products that appeal to a global audience of travelers.

Historically, however, tobacco and liquor have been the cornerstones of duty-free retail. The primary reason for the high volume of cigarette sales is the significant price difference compared to regular domestic markets. This price advantage comes from the exemption of taxes, particularly the high excise duties typically levied on tobacco products. For many international travelers, the opportunity to purchase cigarettes at a substantially lower price is a major incentive, making it a consistently strong-selling category.

The concept of duty-free shopping itself dates back to 1947 at Shannon Airport in Ireland. It was created to generate revenue from international travelers by offering goods free of certain local or national taxes. While the product mix has evolved, with electronics, confectionery, and fashion now playing a larger role, the core appeal of saving money on highly taxed items like cigarettes and alcohol remains a key driver of the industry. Therefore, while perfumes and cosmetics may currently lead in overall revenue, the tax savings on cigarettes ensure they remain a hugely popular purchase for travelers worldwide.