Retail Tourism Trends SMEs Should Watch in 2025
Shopping has always been an integral part of tourism.
It can include buying luxury goods from Paris’ Champs-Élysées or picking up cosmetics and trendy fashionable outfits from Myeongdong, Seoul.
In 2025, retail tourism is no longer just limited to buying souvenirs. It has become one of the essential factors on which travelers choose their destination.
According to American Express, more than half of Millennials and Gen Z travelers intentionally select destinations where they can purchase authentic, locally made goods.
Back in 2023, the global travel retail market was estimated to be $60 billion and by 2030, it is projected to be worth more than $174 billion.
For SMEs, this presents huge opportunities. Adapting to retail tourism trends means tapping into a growing segment of travelers who want memorable products as well as stories.
In this blog, we will take a look at some of the top retail tourism trends in 2025.
Key Retail Tourism Trends in 2025
Experiential Shopping Over Transactions
As said earlier, travelers want a meaningful experience. Concept stores, artisan workshops, and interactive pop-ups are booming at present. For example, in Kyoto, tourists can try weaving traditional textiles before purchasing. Nishijin Textile Center offers online booking for tourists who want a hands-on weaving experience. This makes the memory part of the product itself.
Sustainability is Driving Purchases
Eco-conscious shopping is becoming mainstream. A Deloitte study found that 1 in 3 travelers actively seek sustainable retail options while abroad. From recycled fashion in Copenhagen to zero-waste packaging in Bali, SMEs offering eco-friendly products are gaining visibility.
Rise of Luxury Shopping Tourism
Luxury retail continues to dominate, especially in destinations like Paris, Milan, and Singapore. The Chinese outbound tourist market remains the largest spender, accounting for $254 billion in international tourism spending in 2023 (UNWTO). Duty-free hubs and VAT refund programs further fuel this demand.
You might be pleasantly surprised to find out that Millennials and Gen Z have specific purchases in mind before they go shopping. According to American Express’s 2025 Global Travel Report:
58% want to purchase designer goods (e.g., handbags, clothing, and leather goods)
43% wish to buy houseware and home décor items (e.g., rugs, furniture, hand-painted tiles, ceramics, local art)
46% look for beauty products (e.g., high-end fragrances, skincare, and makeup)
Offering Support to Local Stores & Looking for Cultural Authenticity
Handmade crafts, indigenous art, and regional food products are growing retail draws. In a survey, the majority of the travelers responded that they associate more mindful shopping with great trips. And 73% of global respondents say it is important for them to support local small businesses while visiting a new destination.
For SMEs, this means storytelling, provenance, and authenticity matter more than mass production.
Tech-Enabled Retail Experiences
AR-powered store guides, cashless transactions, and AI-driven personalization are transforming shopping tourism. Dubai provides a benchmark: named the world’s leading shopping destination, its retail calendar broke records in 2024 with the 30th Dubai Shopping Festival and Dubai Summer Surprises.
Surprisingly, in the past couple of years, airports have emerged as one of the top shopping destinations. Duty-free retail is a critical revenue driver for the aviation, maritime, and tourism industries. In regions like Asia, the Middle East, and Latin America, travelers can now purchase duty-free goods both on departure and upon arrival. Due to this, shopping has become a fundamental source of income for their airports.
Retail tourism is no longer a side activity. It is a mainstream driver of global travel behavior. For SMEs in the travel and tourism industry, aligning with these trends can open new growth, higher-value customers, and stronger brand loyalty.
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