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A01281 | Pages: 299 | Charts: 53 | Tables: 100 |
The global travel retail market size was valued at $52.7 billion in 2021, and is projected to reach $187.1 billion by 2031, growing at a CAGR of 9.6% from 2022 to 2031.
The travel retail industry refers to the sale of goods and services to travelers at locations such as airports, train stations, cruise terminals, and border shops. It is a unique segment of the retail industry that capitalizes on the spending power and leisure time of travelers. Travel retail encompasses a wide range of products including luxury items, fashion and accessories, cosmetics and skincare, electronics, confectionery, and alcohol.
[COVIDIMPACTSTATEMENT]
The travel retail industry is projected to be fueled by growth in travel around the globe. As the number of passengers passing through airports and other transportation hubs continues to increase, so does the demand for goods & services at these locations. Moreover, growth in global travel has led to more diverse customer base for travel retail. With people from different cultures & countries passing through the same routes, there is increase in demand for products that cater to a range of tastes & preferences. In addition, ss disposable income continues to rise globally, more people are able to afford premium & luxury products such as apparels, luxury goods, premium fragrances, cosmetics. Travel retail has responded to this trend by stocking high-end products such as designer clothing, cosmetics, and electronics.
Moreover, many countries have relaxed their duty-free shopping regulations, allowing travelers to purchase goods tax-free. This has made travel retail more attractive to consumers looking for discounted prices. Retailers are investing in the design & layout of their stores to create a more engaging & immersive shopping experience for customers. This has helped to differentiate travel retail from traditional retail and attracted a wider range of customers.
In addition, development of infrastructure in emerging economies of Asia-Pacific and LAMEA is projected to supplement the growth of the global travel retail market. However, unorganized local market and stringent government regulations in airport retailing hamper the travel retail market growth.
Moreover, the expansion of duty-free shopping is a significant driver of the travel retail market. Duty-free shopping refers to the sale of goods to international travelers who are leaving a country, and are exempted from paying certain taxes or duties on those goods. By purchasing products without paying taxes or duties, travelers can save a significant amount of money on high-end items such as designer clothing, cosmetics, and electronics. This can make the products more accessible to a wider range of customers, and drive the travel retail market demand.
Moreover. the expansion of duty-free shopping has further helped to attract a broader customer base to travel retail. As more travelers become aware of the tax-free shopping opportunities available to them, they may be more likely to purchase goods in these locations. This can help to drive demand for a wider range of products in the travel retail market.
However, rise of e-commerce & online shopping has led to decrease in demand for traditional retail, including travel retail. As more consumers choose to shop online, they may be less likely to make purchases at travel retail locations. Further, various airlines have implemented restrictions on carry-on baggage, which can limit the number of goods that passengers are able to purchase at travel retail locations. This can reduce the demand for certain types of products in the travel retail market.
SEGMENTAL ANALYSIS
The travel retail market forecast is segmented on the basis of product type, channel, and region. By product type, the market is divided into perfume & cosmetics; electronics; wine & spirits; food, confectionery, & catering; tobacco; luxury goods; and others. As per sales channel, the market is divided into airports; cruise liners; railway stations; and border, downtown, & hotel shops. Depending on region, the market is divided into North America, Europe, Asia-Pacific, and LAMEA.
BY PRODUCT TYPE
[PRODUCTTYPEGRAPH]
By product type, the market is divided into perfumes & cosmetics; wine & spirits; tobacco, electronics; luxury goods; food, confectionery, & catering; and others. Sustainability among the perfume & cosmetic products is attracting a large customer base at present as the customer wants various information regarding the products being purchased, such as if they are environment-friendly. Customers are now emphasizing over products made from natural ingredients. In addition, this segment holds a strong customer base, therefore, leading companies, including L’Oréal and Estee Lauder are opening new outlets at several international airports with a wide range of perfumes & cosmetics, skin care products, and beauty products.
BY DISTRIBUTION CHANNEL
[DISTRIBUTIONCHANNELGRAPH]
By distribution channel, the market is classified into airports; cruise liners; railway stations; and border, downtown, & hotel shops. The airports segment accounted for a major travel retail market share in the travel retail market in 2021 and is expected to grow at a significant CAGR during the forecast period. General retail shop concept is followed by the airports as it carries a diversity of items and further includes full range of product categories, such as perfumes & cosmetics, tobacco goods, wines & spirits, electronics, and food & confectionery. These retail shops at airports are located in central areas with high passenger flow, which attracts the customers to visit the stores. New outlets have been opened by L’Oreal and Estee Lauder at airports globally considering the high footfalls of the passenger. Hence, these factors increase the sales at airport retail shops, which drives the growth of the segment.
BY REGION
[REGIONGRAPH]
By region, Asia-Pacific is expected to dominate the global market during the analysis period, due to presence of a large number of retail companies in China, India, and Thailand. In addition, the market in Asia-Pacific is expected to grow at the fastest rate due to increase in the number of high-net-worth individuals and growth of the tourism industry.
COMPETITION LANDSCAPE
The report offers a comprehensive analysis of the key players such as DFS Group, Dufry, LS travel retail, Lotte Duty Free, King Power International Group, The Shilla Duty Free, Gebr, Heinemann, China Duty Free Group (CDFG), Aer Rianta International (ARI), and The Naunace Group.
Key strategic moves and developments:-
Key Market Segments
Key Market Players