The Europe duty paid travel retail market was valued at $ 10,657.7 million in 2019, and is estimated to reach $16,884.0 million by 2030, registering a CAGR of 6.1% from 2022 to 2030.
The Middle East & Africa duty paid travel retail market size was valued at $ 2,622.9 million in 2019, and is estimated to reach $4,596.9 million by 2030, registering a CAGR of 7.0% from 2022 to 2030. Duty paid refers to shopping in travel retail areas, offering shoppers with a wide variety of goods at airports with attractive price offers. Duty paid travel retail products are sold at airports, railway stations, cruise liners, and land border shops. Duty paid products meet the demands of duty and taxes and the government regulations for duty and sales & distribution of products. In duty paid travel retail shops, consumers can buy international brands at any domestic stores without any limitations or restrictions on purchasing the goods.
The duty paid travel retail market demand has witnessed significant growth due to increase in the number of people traveling domestically and rise in number of domestic airports in Europe and the Middle East & Africa. Furthermore, many international players in the market are trying to consolidate their position by establishing partnerships with well-known local travel retailers and airports authorities, which is expected to drive market growth during the forecast period. In addition, limitations on carrying duty-free products internationally promote the demand for duty paid travel retail products across the globe. This is attributed to the fact that duty paid products do not have many restrictions or limitations to be carried by international travelers except for alcoholic products and tobacco products. Moreover, increase in the number of domestic travelers in Europe is expected to fuel the duty paid travel retail market growth in the region.
By Product Type
Food segment is expected to grow at the highest CAGR during the forecast period
However, global travel & tourism was devastated by the COVID-19 pandemic. After a buoyant 2019, air traffic worldwide collapsed in 2020. According to the Airports Council International (ACI), global passenger traffic in 2020 declined to 65% compared to the projected baseline. As many as 9.5 billion passengers had been predicted for the year, but only 3.4 billion flew—a loss of 6.1 billion passengers. On the contrary, travel restrictions are liberalized across the globe, which boosted the travel & tourism industry in 2021, and is expected to grow significantly in the next few years.
By Sales Channel
The Direct Retailer segment is expected to grow at the highest CAGR during the forecast period
The duty paid travel retail market is segmented into product type, sales channel, mode of travel, and region. On the basis of product type, the market is categorized into perfume & cosmetics, electronics, food, confectionery & catering, tobacco, wine & spirits, luxury goods, fashion & accessories, travel accessories, and others. The luxury goods segment is further segregated into premium jewelry, luxury watches, luxury cosmetic & perfumes, luxury wines & spirits, and others.
By Mode Of Travel
Airport segment contribute the highest revenue share
The fashion & accessories segment is sub segmented into glasses, wallets & handbags, footwear, jewelry, watches, and others. By sales channel, the market is fragmented into convenience stores, specialty retailers, direct retailers, and departmental stores. Depending on the mode of travel, it is categorized into airports, cruise liners, railway stations, and land borders. Region wise, it is analyzed across Europe (France, Germany, Italy, Spain, the UK, Russia, and the rest of Europe) and Middle East & Europe (Turkey, Saudi Arabia, the UAE, Egypt, Israel, South Africa, Nigeria, and rest of the Middle East & Africa). The players operating in the global market have adopted various developmental strategies to expand duty paid travel retail market share, increase profitability, and remain competitive in the market. The key players profiled in this report include Aer Rianta International, Dufry AG, Flemingo International, Gebr. Heinemann SE & Co. KG, Lagardère Travel Retail, LVMH Group, AL Tayer Group, Autogrill S.p.A., Dnata, L'oreal S.A., the Estée Lauder Companies. and WH Smith Plc.
By Country
U.K. contribute the highest revenue share
Key benefits for stakeholders
- The study provides an in-depth analysis of the duty paid travel retail market opportunities along with the current and future trends across Europe and Middle East & Africa to elucidate the imminent investment pockets in the market.
- The current and future trends are outlined in the report to determine the overall market attractiveness and single out profitable trends to gain a stronger foothold in the duty paid travel retail market.
- The report provides information regarding drivers, restraints, and opportunities with impact analysis.
- A quantitative analysis of the current market and estimation for the same from 2019 to 2030 is provided to showcase the financial competency of the market.
- The Porter’s five forces model of the industry illustrates competitiveness of the market by analyzing various parameters such as threat of new entrants, threat of substitutes, bargaining power of the buyers, and bargaining power of the suppliers operating in the market.
- Value chain analysis in the report provides a clear understanding of the roles of stakeholders involved in the value chain.
- Competitive intelligence highlights business practices followed by leading market players across various regions.
Europe and Middle East and Africa Duty Paid Travel Retail Market Report Highlights
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Analyst Review
The leading global travel retail company, Flamingo is taking care of almost all the duty-free travel retail shops in India and abroad. However, now the company is entering in the duty paid travel retail business, as the number of domestic passengers is increasing across various countries. Thus, leading travel retail players are trying to expand their business in the duty paid travel retail market. However, the outbreak of the COVID-19 pandemic has had a significant impact on the duty-paid and duty-free travel retail sector.
Travel restrictions imposed across EU Member States and beyond have resulted in large declines in passenger numbers in aviation and maritime transport traffic, resulting in dramatically lower turnover for travel shops and lost sales for suppliers in this channel. However, in 2023, there will be a boom in travel and tourism, which is expected to foster the demand for clothing, cosmetics, gourmet products, and technology retail.
The Europe and the Middle East and Africa duty paid travel retail market is expected to develop due to rapid urbanization and societal changes in the region. Furthermore, middle-class individuals' discretionary spending has increased, economic conditions have changed, and technology advancements have aided market expansion by making it easier to get transportation and book hotels through online portals. In the next few years, the demand for duty paid travel retail products in Europe and the Middle East & Africa will continue to grow, due to surge in demand for customized and limited-edition products.
The Europe duty paid travel retail market was valued at $ 10,657.7 million in 2019, and is estimated to reach $16,884.0 million by 2030
Middle East & Africa duty paid travel retail market is expected to register CAGR of 6.3% over the forecast period.
Forecast period in the duty paid travel retail market report is 2022-2030
The key players profiled in this report include Aer Rianta International, Dufry AG, Flemingo International, Gebr. Heinemann SE & Co. KG, Lagardère Travel Retail, LVMH Group, AL Tayer Group, Autogrill S.p.A., Dnata, L'oreal S.A., the Estée Lauder Companies. and WH Smith Plc
By product type, sales channel, mode of travel and region are the segments of duty paid travel retail market.
2021 is the base year calculated in the Europe and the Middle East and Africa duty paid travel retail market
By product type, the fashion & accessories segment of the Middle East & Africa duty paid travel retail market is estimated to witness the fastest growth, registering a CAGR of 8.2% during the forecast period.
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