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Tax-free shopping is on the rise in Italy, mainly to the continued push from US consumers. According to Global Blue data, spending volumes are predicted to rise by 3% in 2025, led by a 10% increase in the shopper base. Americans dominate the market, accounting for 25% of the total. This is mostly due to UHNWIs' (Ultra High Net Worth Individuals) 24% increase in spending, with watches and jewelry accounting for 55% of their wallets. They are followed by tourists from the Gulf states (10%) and China (9%). However, despite an increase in quantity (+9%), the value of Chinese consumer purchases fell by 13%. Geographically, the push is notable from new markets such as Latin America (+12%), with Brazil (43%), Mexico (25%), and Argentina (17%) being the most important nationalities for tax-free purchases in the country, with a special emphasis on premium and lifestyle items. Nearly half of their purchases are for clothing and handbags. However, the most rapidly expanding categories are watches, fragrance, and cosmetics. Generation Z continues to be the main factor behind this expansion. Over the past year, the number of youthful shoppers has increased by 28%. The watchmaking (+48%) and sportswear (+38%) industries outperform, followed by cosmetics and perfumes (+27%) and jewelry (+26%). Notable is the growth in interest in footwear (+11%) and handbags (+9%). Geographically, Milan and Rome account for 65% of shoppers, while scenic and cultural sites such as Florence, Venice, Capri, Como, and Verona are becoming increasingly popular, with 36% of tourists choosing them. Finally, 17% like small, quickly rising destinations like Taormina, Bellagio, and Positano. Italy is thus preparing for the expanding global trend of tax-free purchasing.
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