The global travel retail market size was valued at USD 55.74 billion in 2022 and is projected to grow from USD 60.72 billion in 2023 to USD 117.18 billion by 2030, exhibiting a CAGR of 9.85% during the forecast period.
Leading players in this market are launching promotional campaigns to boost the sales of duty free products. Moreover, they offer high quality products at airports to keep high income travellers entertained during waiting times. This information is provided by Fortune Business Insights, in its report titled, “Travel Retail Market, 2023-2030.”
List of Key Players Mentioned in the Report:
- Lagardere Travel Retail (Lagardere Group) (France)
- DFS Group Ltd. (Hong Kong)
- Dufry AG (Switzerland)
- King Power International Group (Thailand)
- Aer Rianta International (Ireland)
- The Nuance Group AG (Switzerland)
- Lotte Duty Free (Lotte Hotel) (South Korea)
- Gebr. Heinemann SE & Co. KG (U.S.)
- Duty Free China Group Co. Ltd. (CDFG) (China)
- Samsung Group (South Korea)
Segmentation:
Cosmetic & Fragrances Segment to Lead Backed by Surging Demand from Females
As per product type, the global market report is split into cosmetic & fragrances, wines & spirits, confectionery & fine foods, tobacco products, fashion & accessories, and others. Among these, the cosmetics segment captured the dominant market share in 2022 owing to the rising interest of females and millennials in internationally acclaimed brands that are difficult to find in their native locations.
Duty Free Shopping to Capture Major Share With Rising Number of International Travelers
Based on sector, the global market is bifurcated into duty free and duty paid. Among these, the duty-free segment led the market in 2022 stoked by its value added tax benefits as compared to duty paid stores.
Airport & Airline Shops to Dominate Due to Availability of Strong In-Flight WiFi Connectivity
According to sales channel, the market is arrayed into airport & airline shops, seaport & cruise line shops, border downtown hotel shops, and others. Among these, the airport & airline shops segment captured the largest market share due to the easy availability of in-flight WiFi connectivity which provides a seamless online shopping experience to consumers.
Geographically, the market is segregated into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
Report Coverage:
The report covers:
- List of key companies in the market
- Latest developments such as partnerships, mergers and acquisitions, and collaborations
- Impact of COVID-19 on market growth and revenues gathered
- Drivers, restraints, opportunities, and threats affecting market dynamics.
Drivers and Restraints:
Growing Number of Domestic and International Travelers to Propel Market Augmentation
The rising number of international and domestic travelers is driving travel retail market growth. As per the 'Indian Tourism and Hospitality Industry Analysis’ report published by the Indian Brand Equity Foundation (IBEF), there were 10.89 million foreign tourist arrivals in India in 2019 which is 3.2% higher than the last year. Moreover, retailers offer personalized loyalty programs & deals to meet the changing shopping habits of air passengers. This will boost the sales of duty-free products further and propel market augmentation. Moreover, rising expenditure on travelling and tourism by millennial population will further aid market expansion.
On the other hand, the high price of travel retail products reduces their demand from lower income disposable populace thus hindering market proliferation.
Regional Insights:
Asia Pacific to Capture Significant Share Due to Rising Number of Economical Tours Offered by Travel Companies
Asia Pacific held the largest part in the travel retail market share in 2022 owing to rising spending on duty free products by international tourists in economies in South Korea, India, and China. The availability of a large number of economical tours has increased customer traffic rates and attributed to market growth in this region as well.
Europe market is projected to grow significantly in the upcoming years owing to the availability of travel and tourism related infrastructure such as amusement parks, hotels and restaurants.
North America is anticipated to showcase positive growth due to rising travel and tourism spending by U.S. and Canada populace. According to the statistical data presented by U.S. Travel Organization, in 2019, U.S. domestic and international travelers' spending reached USD 1,127 million.
Competitive Landscape:
Launch of New Stores to Drive Market Proliferation
Leading players in the market are making various decisions to strengthen their positioning and gather larger revenues. Additionally, continuous introduction of sales promotional offers to attract buyers towards their products is also boosting the market share. Partnerships, collaborations, and mergers and acquisitions are some methods for the same. For example, in January 2023, Lotte Duty Free opened a store for NONFICTION, a beauty brand which offers consumers free goods online and offline when purchasing NONFICTION products.
Key Industry Development:
- January 2023: Ritter Sport, a German chocolate bar brand, announced plans to expand its vegan product range by launching its Travel Retail Edition Vegan Tower 5x 100g set worldwide. The new product is available in a five-pack with three non-dairy chocolate types. The travel edition includes Salted Caramel, Smooth Chocolate, and Roasted Peanut flavors.
Reference Link:
https://www.fortunebusinessinsights.com/travel-retail-market-104620
