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North America Travel Retail Market - Growth, Trends, COVID-19 Impact and Forecasts (2021 - 2026)

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  • 150 Pages
  • October 2021
  • Region: North America
  • Mordor Intelligence
  • ID: 5458855

The North America travel retail market is anticipated to rise at a considerable rate and register a CAGR less than 10% during the forecast period, 2021-2026.

COVID-19 has all but wiped out the travel industry and a bounce back is looking increasingly unlikely as passenger numbers continue to be affected by outright bans, onerous quarantine requirements or – in the odd locale where the freedom to travel still exists – fear. Lauder’s latest results release (Q4 2020) acknowledges that consumer traffic continues to be impacted by travel bans in most travel retail locations. American Airlines has reduced October schedule by 55% and the International Air Transport Association has predicted losses of US$84 billion for its members over the year.

Travel retail also called as duty free is a sales procedure comprising of the commercialization of the goods relating to the various product categories. This sales channel comprises of the goods that have not had the taxation, excise applied on their sale price and for sales to customers that are travelers. travel retail is a retailing channel, providing products to international travelers. It is an important source of income and has several marketing prospects. The upsurge in the travel and tourism sector that has increased the demand for apparels, cosmetics, food items, and electronic retail, rise in the urbanization and change in the lifestyle and the growing of the disposable income amongst North Americans. The rise in the number of millennial populations, the growing attention on the digitalizing of the retailing procedure and the increase in the demand for retail chains that provide luxury and premium brands of different products are some of the factors estimated to cushion the growth of the travel retail market in the coming years in North America. The travel and tourism industry are one of the largest growing sectors across North America. Increased passenger traffic has led the infrastructure development in the travel- retail market such as larger retail experiences which include shops, restaurants, bars and other forms of retail. Wealthy tourists from the other countries continue to contribute a significant part in the North America market.

Key Market Trends

Airport Retailing is Generating Higher Revenues than other Channels in North America Travel Retail Market.

The world of airport retail is booming. As airports continue to implement tasks such as check-in and bag-drop remotely, there is more physical space which can be used to increase non-aviation revenue streams. Alongside increasing brick and mortar stores, airports are improving services through personalization and technology. Airport retailing has become an important channel for brands to promote and create awareness about products in the market. Airports are diversifying to nom- aeronautical segments such as retail, restaurant bars, cafeterias. It is expected that the airport size and passenger footfall will continue to rise which will positively impact the airport travel retail market in North America.

Fragrance & Cosmetics Segment Share is Dominating the Travel Retail Market in North America.

The fragrances and cosmetics segment had a higher share in the overall sales in North America travel retail which was nearly one-third of the total market. Improved consumer lifestyle toward premium fragrances, and cosmetics, increase in disposable income, and rapid growth in urbanization are the key factors that drive the growth of the segment in the North American travel retail market. However, the luxury retail segment is expected to grow fastest owing to a premium lifestyle and huge market opportunity in the luxury product segments.

Competitive Landscape

The report covers major international players operating in the North America Travel Retail Market. In terms of market share, few of the major players currently dominate the market. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping into new markets. The leading brands are opening exclusive stores for special products. The companies are also promoting, differentiating and selling limited editions to increase their visibility and brand awareness in the market.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Value Chain / Supply Chain Analysis
4.5 Porters 5 Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Insights on Trends in Passenger Traffic by Channels
4.7 Insights on Government Regulations and Initiatives Effecting the Market
4.8 Technology Innovations in the Market
4.9 Impact of Covid 19 on market
5.1 Retail Activity Type
5.1.1 Fashion and Accessories
5.1.2 Jewellery and Watches
5.1.3 Wine & Spirits
5.1.4 Food & Confectionary
5.1.5 Fragnances and Cosmetics
5.1.6 Tobacco
5.1.7 Others (Stationery, Electronics, etc.)
5.2 Distribution Channel
5.2.1 Airports
5.2.2 Airlines
5.2.3 Ferries
5.2.4 Other(Railway Stations, Border, Downtown)
5.3 Geography
5.3.1 USA
5.3.2 Canada
6.1 Company Profiles
6.1.1 3Sixty
6.1.2 International Shoppes
6.1.3 Stellar Partners
6.1.4 Aer Rianta International North America
6.1.5 Duty Free Americas, Inc
6.1.6 Dufry
6.1.7 DFS Group
6.1.8 Heinemann Americas.
6.1.9 The Nuance Group (Canada) Inc.
6.1.10 ALFA Brands Inc.

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • 3Sixty
  • International Shoppes
  • Stellar Partners
  • Aer Rianta International North America
  • Duty Free Americas, Inc
  • Dufry
  • DFS Group
  • Heinemann Americas.
  • The Nuance Group (Canada) Inc.
  • ALFA Brands Inc.