Sarah Branquinho makes her inaugural address at TFWA President.

Global duty-free and travel retail (DF&TR) sales are on an upward trajectory and the Asia Pacific shopper continues to be a “major cornerstone” of the industry, said Sarah Branquinho in her inaugural welcome address as President of the Tax Free World Association (TFWA) at the TFWA Asia Pacific Conference 2026 in Singapore today (11 May).

The seasoned travel retail executive and association chief gave delegates a thoughtful overview of the business landscape as it stands, and how it may evolve in the future, stating: “The fact that you’ve chosen to be here at a time of such geopolitical and economic uncertainty really speaks to the importance of the Asia Pacific region and our industry – and the strength of the duty-free and travel retail community.

“The conflict in the Middle East has not only severely impacted the immediate region but also had a much wider ripple effect across the world, disrupting aviation, supply chains and trade.”

She outlined some of the knock-on impacts, such as softer traveller sentiment, route suspensions and increased ticket prices, rising fuel costs and the “very real prospect of fuel shortages”.

She also referenced that, while absence from the show of some friends and colleagues from the Middle East is being felt, the association is grateful for those who are present.

“This industry is at its core, a community built on trust, long relationships and shared experiences,” she relayed.

A packed auditorium for the TFWA Asia Pacific Conference 2026.

She went on to reflect on the environment the industry is navigating today – and where it could go from this point.

“There are undeniable challenges which reminds us that our industry doesn’t operate in isolation,” she said while also highlighting the opportunity the diverse and dynamic Asia Pacific region brings.

“For several decades, Asia fuelled our industry growth,” she said, referencing the outbound travel waves from Japan, Korea and China as well as the growth of travel retail within the region itself.

“As we look across Asia Pacific today, it’s clear that the region is performing strongly. It continues to be the world’s fastest growing region by GDP. Asia remains the engine of global consumer growth – and expectations around price, quality and seamless shopping are evolving rapidly and at a different pace across its mature and emerging markets. Our channel is not immune to what is happening in the region’s domestic markets. Indeed, we should take heed, and the presence here of agents and distributors from these markets really enriches the value of this week’s event.”

Generation Research shows that global DF&TR sales are estimated to reach US75.9m in FY2025.

Branquinho referenced China’s “incredible scale”, India’s “bright future with its rapidly growing middle class”, and the opportunity that exists across the region from the mature economies to those that are rapidly catching up.

Of course, understanding who’s travelling and how they plan to spend, is fundamental to the business of all stakeholders.

“Air traffic remains a dominant factor for the travel retail and duty-free industry – and travel demand remains strong,” she said. “Asia Pacific is leading global growth in air traffic, outperforming every other region in 2025, and is expected to do so again this year. While the impact of the Middle East crisis remains to be seen, several of the world’s busiest international routes are within this region. The Hong Kong – Taipei route alone accounts for nearly 7 million seats. What’s more, 68% of this region’s passengers are travelling within Asia Pacific itself. That means a significant share of traveller spend remains within the region.”

She continued: “However you view it, Asia is well placed to withstand some of the challenges affecting other regions.”

Global DF&TR retail sals by region. Source: Generation Research, February 2026 (preliminary estimates0.

She went on to quote preliminary estimates by Generation Research (FY2023-FY2025) which shows that global DF&TR sales are set to continue on its upward trajectory to reach US$75.9m for 2025 – up 2.4% year-over-year.

The research also shows that all categories have gained ground, apart from fragrances and cosmetics, though it remains the most purchased category ranking with 32.2% of market share worldwide. From a regional perspective, Asia Pacific retained its leadership position (in terms of sales by region) at 40.2%, though its share dipped -2.4% yoy.

The TFWA President also mentioned how the reorientation away from bulk buying behaviour to individual passengers purchases is a “welcome return to the essence of the duty-free and travel retail industry, which globally rests on the principle of selling to individuals for their personal use.”

TFWA President Sarah Branquinho: “The Asia Pacific shopper continues to be a major cornerstone of our industry”.

Next, she took delegates on a tour of strong passenger numbers reported across key Asia Pacific airports.

“Travel demand remains strong, but something fundamental has shifted. The Asia Pacific shopper continues to be a major cornerstone of our industry wherever we are, with the region driving high footfall, high in-store dwell time and high spend. However, these shoppers are more demanding than ever.”

Being purposeful when entering the store, for instance, and having a keen interest in differentiation, are just some of the qualities that make them stand out.

“Today’s shopper is evolving and we need to say abreast of developments if we are to continue to take full advantage of the opportunity they present.”

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