The global travel retail market 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 Increase in travel & tourism has augmented the demand for apparels, cosmetics, food items, and electronic retail in the travel retail market. Moreover, Increase in urbanization and changes in lifestyle are key factors expected to propel the market growth during the forecast period. In addition, rise in disposable Income among the middle Income groups and improvement in economic conditions majorly drive the growth of the market. Further, factors such as technological advancements additionally boost the market growth. However, unorganized local markets and strict government regulations pertaining to airport retailing will impede the upcoming market growth opportunities. On the contrary, Increase in millennial population is expected to drive the growth of the market.
The travel retail market in Asia-Pacific is majorly driven by the tourism industry, as many foreign investors visit countries such as Hong Kong and Malaysia for tax-free shopping. Various market players are keen to expand their market presence by establishing themselves in the Asian markets. Another factor is rise in disposable Income and Increase in middle class population in countries such as China and India, which has led to Increase in demand for luxury & premium goods. This resulted in Increase in the number of high-end brands entering the market and opening stores in airport retail spaces. In addition, many Asian countries have relaxed their duty-free regulations in recent years, making it more attractive for retailers to set up shop in airports and other travel hubs. This has helped to drive growth in the travel retail market in the region.
There is Increase in the standards of living of the people & their lifestyle owing to high disposable Incomes and Increase in corporate culture. Rise in proliferation of corporate entities in the developing nations has popularized the ‘carrying expensive & luxurious products’ culture among consumers, while additionally becoming a status symbol. Thus, the luxury goods segment in the travel retail industry is expected to grow at the fastest rate by 2031.
Besides, railway stations have witnessed considerable growth over the years. For instance, the London's King's Cross station established an airy-bar restaurant with wooden floors & vintage leather sofas, with an aim to provide comfort to travelers. Moreover, the station has various branded stores with different product categories such as clothing & accessories for both men & women, sportswear, and music stores with products such as audio equipment, CD & vinyl and accessories. These factors boost the growth of the travel retail market at railway stations.
The travel retail market is segmented on the basis of product type, sales 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 distribution 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.
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.
The travel retail market in Asia-Pacific is majorly driven by the tourism industry, as many foreign investors visit countries such as Hong Kong and Malaysia for tax-free shopping. Various market players are keen to expand their market presence by establishing themselves in the Asian markets. Another factor is rise in disposable Income and Increase in middle class population in countries such as China and India, which has led to Increase in demand for luxury & premium goods. This resulted in Increase in the number of high-end brands entering the market and opening stores in airport retail spaces. In addition, many Asian countries have relaxed their duty-free regulations in recent years, making it more attractive for retailers to set up shop in airports and other travel hubs. This has helped to drive growth in the travel retail market in the region.
There is Increase in the standards of living of the people & their lifestyle owing to high disposable Incomes and Increase in corporate culture. Rise in proliferation of corporate entities in the developing nations has popularized the ‘carrying expensive & luxurious products’ culture among consumers, while additionally becoming a status symbol. Thus, the luxury goods segment in the travel retail industry is expected to grow at the fastest rate by 2031.
Besides, railway stations have witnessed considerable growth over the years. For instance, the London's King's Cross station established an airy-bar restaurant with wooden floors & vintage leather sofas, with an aim to provide comfort to travelers. Moreover, the station has various branded stores with different product categories such as clothing & accessories for both men & women, sportswear, and music stores with products such as audio equipment, CD & vinyl and accessories. These factors boost the growth of the travel retail market at railway stations.
The travel retail market is segmented on the basis of product type, sales 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 distribution 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.
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 Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the travel retail market analysis from 2021 to 2031 to identify the prevailing travel retail market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the travel retail market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report Includes the analysis of the regional as well as global travel retail market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Product Type
- Perfume and Cosmetics
- Food, confectionery and catering
- Wine and spirits
- Luxury goods
- Tobacco
- Electronics
- Others
By Distribution Channel
- Airports
- Cruise Liners
- Railway Stations
- Border, Downtown and Hotel Shops
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Gebr. Heinemann SE & Co. KG
- Aer Rianta International
- King Power International
- The Shilla Duty Free
- Duty Free Americas, Inc.
- LVMH Group
- Lagardere
- Dufry AG
- China Duty Free Group Co., Ltd
- Lotte Corporation
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: TRAVEL RETAIL MARKET, BY PRODUCT TYPE
CHAPTER 5: TRAVEL RETAIL MARKET, BY DISTRIBUTION CHANNEL
CHAPTER 6: TRAVEL RETAIL MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to a new report, titled, 'Travel Retail Market,' The travel retail market was valued at $52.7 billion in 2021, and is estimated to reach $187.1 billion by 2031, growing at a CAGR of 9.6% from 2022 to 2031.The travel retail market 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.
Key factors driving the growth of the tea market include development of the travel & tourism industry, rise in purchase of luxury products among travelers, and rise in purchase of duty-free products. Additionally, one key driver for the travel retail market is the growing number of international travelers. As more people embark on domestic and international trips for business or leisure, the potential customer base for travel retail expands. The increasing middle-class population in emerging economies, coupled with affordable air travel options, has contributed to a significant rise in international travel. This provides travel retailers with a larger pool of potential customers and a greater opportunity for sales. Moreover, the integration of technology and digital innovations has become a significant driver in the travel retail market. Digital platforms, online pre-ordering, and personalized marketing strategies enhance the shopping experience, convenience, and engagement with customers. Technology enables retailers to gather data, understand consumer preferences, and deliver targeted promotions, leading to increased sales and customer loyalty.
In addition,The travel retail sector comprises numerous glamorous brands such as Ferragamo, Tommy Hilfiger, and Hermes. consumers are shopping for luxury products from the travel retail stores either for gifting purposes, or for personal pampering. In addition, the new age, brand conscious consumers pursue high quality customer service, seek for an excellent range of luxury products, and further demand for better shopping experience. Furthermore, the key players are stepping forward toward fulfilling the expectations of the consumers, by identifying behaviors & buying trends. In addition, luxury brands are attracting large customer base by bringing latest collection at the travel retail outlets. Therefore, high product and brand availability with better customer experience propel the growth of the travel retail market around the globe.
The market also offers growth opportunities to the key players in the market. Emerging economies are experiencing a rise in disposable income and an increase in outbound tourism. Market players can seize the opportunity to expand their presence in these regions, establishing partnerships with local airports, cruise terminals, and other travel hubs. This allows them to tap into the growing customer base and capture market share in these markets. Collaborating with renowned luxury brands can enhance the appeal of travel retail offerings. Key market players can forge exclusive partnerships and secure distribution rights for luxury products, attracting high-end customers seeking unique shopping experiences and premium items. These partnerships can also lead to co-branded promotional activities and events, further elevating brand recognition and sales. Additionally, consumers are increasingly conscious of sustainability and ethical practices. Key market players can integrate sustainable initiatives, such as offering eco-friendly products, reducing packaging waste, and supporting local communities. By aligning with environmentally and socially responsible practices, they can appeal to conscious travelers and build a positive brand image.
The travel retail market is segmented on the basis of product type, sales 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 distribution 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.
The key players in the travel retail market have focused on expanding their business operations in the emerging countries by adopting various strategies, such as acquisition and contact/agreement. The major players profiled in this report include 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 findings of the study
- By product type, the perfumes & cosmetics segment was the highest revenue contributor to the market in 2021 and is expected to grow at a significant CAGR during the forecast period.
- Region wise, Asia-Pacific was the highest revenue contributor to the market in 2021 and is expected to grow at a significant CAGR during the forecast period.
Companies Mentioned
- Gebr. Heinemann SE & Co. KG
- Aer Rianta International
- King Power International
- The Shilla Duty Free
- Duty Free Americas, Inc.
- LVMH Group
- Lagardere
- Dufry AG
- China Duty Free Group Co., Ltd
- Lotte Corporation
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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