The European luxury Tax Free Shopping market has grown by 7%, according to Global Blue’s study presented at the second edition of the Luxury Insight event. The increase suggests a degree of market stabilisation after years of double-digit growth, driven by a modest rise both in the number of shoppers (+5%- nearly 3mn additional consumers) and in average spend (+2%), taking the figure to €3,900. However, these trends are not evenly distributed across brand segments and product categories. The Exclusive cluster continues to outperform the Luxury segment, which is under pressure, particularly in Ready-to-Wear and Leather Goods & Bags.

By contrast, the Luxury Watches & Jewellery segment is delivering above-average results both in shopper growth and in average spend. The report indicates a slowdown in luxury Tax Free spending by Chinese tourists in Europe, with a 2019-2024 CAGR of -8% and the spending recovery rate in the first half of 2025 stuck at 62% of 2019 levels. Their contribution has fallen from 32% to 13%, overtaken by the US (22%) and Gulf countries (13%). They nonetheless remain the most significant nationality globally (23% of total spend), with a growing preference for East Asia, where Japan now accounts for 40% of their Tax Free purchases (up from 14% in 2019).

Among high-spending shoppers, Ultra High Net Worth Individuals (UHNWIs) remain the main driver of luxury Tax Free Shopping: they represent just 0.1% of shoppers but generate 20% of total volumes, with an average spend of €132,000 per shopper and a CAGR of +15% since 2019. UHNWIs are the most strategic segment for luxury brands, thanks to their high purchase frequency and loyalty.