When you’re traveling internationally, duty-free shops may beckon. These brightly lit, beautifully displayed retailers are stocked with all kinds of things you may want to bring home. It’s a big business, too.
According to a 2025 Coherent Market Insights report, the duty-free retailing market is estimated to be valued at nearly $50 billion and expected to reach more than $88 billion by 2032.
Because these stores sell items that are exempt from certain taxes, the prices should be lower than elsewhere. At least, that’s the idea.
But do the items at duty-free shops really cost less? That depends on where you are and what you buy. Note: All prices are accurate at time of publication.
[READ: Take Advantage of Tax-Free Weekend Sales.]
How Duty Free Shops Work
Import, value-added and sales taxes — aka duty — are imposed on imported and exported products. A duty-free shop sells items without adding those taxes to the price. You’ll find duty-free shops in international airports, on cruise ships and in areas where tourists congregate.
As a U.S. citizen, you can purchase from any of them, up to a limit. In general, you can buy up to $800 worth of items at these stores within a 31-day time frame.
Once back in the U.S., you’ll need to complete a customs form to declare your purchases. If you exceed the limit, you’ll have to pay duties on the excess.
Is Duty-Free Tarif-Free?
With President Donald Trump’s tariff plan starting to take effect, there are plenty of questions about how the higher costs may affect prices. The tariff on imported goods is currently 10% across the board, but up to 50% for certain trade partners.
Because duty-free shops bypass national taxes, however, prices on imported products may be unaffected when tariffs rise.
“Duty and tariffs are the same thing,” says Bryan Riley, director of the Free Trade Initiative at the National Taxpayers Union Foundation. “It’s confusing because we use different words interchangeably, but it’s really just a tax on imports.”
When businesses are granted Duty-Free Import Authorization (DFIA), they can import raw materials, components and capital goods without paying customs duty.
“Big increases in tariffs make the potential savings from buying at duty-free shops greater than at any time in recent history,” Riley says.
“It is a little surprising that the Trump administration hasn’t tried to shut down the shops, but it may realize that doing so would be extremely unpopular with Americans who love to get a good deal,” he adds.
[What Costs More Under Trump’s Tariffs: Expectations vs. Reality]
Is Duty-Free Cheaper?
Outside of convenience, you may be compelled to shop at a duty-free store for the value. When taxes aren’t added, prices are typically lower than in places where duty is included. Some duty-free shops also have loyalty programs, where if you become a member, you can score even deeper discounts.
Some products may be cheaper outside of the duty-free environment, however, says Scott Poniewaz, a Bozeman, Montana-based business and travel expert.
“While this might seem like you’re getting a good deal, it’s important to research and compare prices beforehand to ensure that you’re actually getting a bargain,” he adds.
According to 2025 Intel Market Research data, the following categories are the largest by global spending at duty-free shops.
We have included examples within each category, with prices accurate at the time of publication and based on current exchange rates that can fluctuate daily.
1. Perfumes and Cosmetics
The combination of perfumes and cosmetics easily captures the top spending spot, at 38% of total duty-free spending.
In some circumstances, the savings can be excellent. For example, at Tampa Duty Free, a 100ml bottle of Lancome Idôle Now Eau de Parfum is $124.80 for loyalty program members. The same item is available at Macy’s for $157.
Don’t assume you’ll always get a better price at duty-free shops, though. Case in point: Dolce & Gabbana K Eau De Toilette 50ml is $75 at Sanford Duty Free but $37.17 for a comparable bottle (1.7oz) at Fragrancenet.com
2. Wines and Spirits
The next most popular duty-free spend category is alcohol, which accounts for 22% of total spend.
To be sure you’re getting a good deal, do the math first.
Consider a liter of Grey Goose vodka. At the Dufry Shop in Milan, it will cost you €59.50 ($69.29 USD), but at Total Wine & More in the U.S., that same bottle is $41.99. If that’s what you want, you’re far better off getting it domestically.
While you’re in the Caribbean, you may want to bring back some rum. At the Piarco International Airport, Trinidad and Tobago, a duty-free shop sells a 750ml bottle of Bacardi Gold rum for $12.00, but at Target, it’s $12.99. Not a dramatic savings, but a little better, and you won’t have to pay sales tax.
“I’ll get things like whisky in the Caribbean because it can be cheaper,” says Derek Sall, former founder and financial expert at LifeAndMyFinances. “But I always look up the prices first to make sure. Hop on your phone and see what it costs at home.”
Just be aware that comparing and contrasting prices isn’t always easy. Sizes can differ. A bottle may be available only in a 1-liter size at the airport, for example, but domestic retailers can carry larger or smaller versions.
3. Luxury Goods
High-end products capture 19% of the global spend at duty-free shops. You may be surprised to find you can get a better discount outside the airport, though.
Consider the Michael Kors, Harlowe Woman Steel 38 Q3 200 watch in rose gold. At the Santiago Duty Free shop, it can be yours for $354. The same watch is just $154 on Jomashop.
Deals can be had, though. For example, maybe you’ve had your eye on a pair of Swarovski Swan stud earrings, but at the Swarovski store, they’re regularly priced at $139. At the Chicago Shop Duty Free, you can pick them up for $116.
[Read: Luxury Dupes That Make Financial Sense]
4. Tobacco
Representing 12% of the current market share are tobacco products, such as cigarettes and cigars.
If you’re at the San Juan Airport in Puerto Rico, for example, you may pick up a 20-pack box of Natural American Spirit Yellow Ks for $87.50. A 10-pack box of the same product is $81.59 at KC Liquor, which makes it roughly twice as much.
Seeking celebratory cigars? A box of Cohiba Black Gigante goes for $580 at DFS in San Francisco. The same box at Mike’s Cigars has a list price of $640, but can be purchased for $415.50 on sale.
5. Confectionery and Food
Nine percent of duty-free spend are sweets and snacks. They may be tempting, but you’re usually better off getting chocolates and candies elsewhere.
“Everyday consumer goods may not necessarily provide substantial savings at duty-free shops,” Sall says. “Sometimes they may even be more expensive.”
That doesn’t mean deals don’t exist. The 15-piece Godiva Gold Collection chocolate gift box is $24.60 at Frankfort Airport Shopping, but a comparable box (18-pieces) at Godiva is $46.
How to Buy Duty-Free Items
The Intel Market Research Report found that the majority of duty-free shopping occurs at airports (68%), but the rest is done at a combination of border stores, cruises and ferries and rail stations.
You can also buy online from a company like World Duty Free, and then pick up the items from the store.
Enter your departure location, reserve the item you want (the store will hold it for you for anywhere from 24 hours to 30 days), then pay in the store and collect your purchase. Note that you’ll have to show the cashier your travel documents, such as your boarding pass and passport.
Consider Duty-Free Alternatives
Elyse Glickman is a Los Angeles-based freelance travel writer who says she’ll buy from a duty-free shop in two circumstances: when she knows the item isn’t available elsewhere and in emergencies.
“The savings aren’t usually that great compared to department stores, but they can be a lifesaver when your purse or bag rips,” she says. “If I don’t have time to shop, I’ll take advantage of them.”
In other circumstances, Glickman suggests supporting local businesses instead.
“You can find something really special to bring home, such as jewelry and clothing that you can’t find anywhere else,” she says.
Glickman also suggests buying standard items at a department store for comparable prices, which can be even lower during sales season.
Poniewaz agrees, encouraging travelers to explore regional markets, boutiques and shopping districts instead.
“They often provide a more diverse and authentic shopping experience,” he says. “These places may offer unique products, local craftsmanship and better prices compared with duty-free shops.”
More from U.S. News
Has Tap-to-Pay Made Spending Too Easy?
12 Best Discount Shopping Apps
Shopping Rules to Slash Impulse Spending
Duty Free: Is It a Good Deal? originally appeared on usnews.com
Update 08/26/25: This story was published at an early date and has been updated with new information.
