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Global Travel Retail Market Size was valued at USD 55.2 Billion in 2022. The Travel Retail market Technology is projected to grow from USD 60.8 Billion in 2023 to USD 132.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.30% during the forecast period (2023 - 2032). In developing Asian countries, there are more international tourists, rising middle-class populations, and more convenient travel possibilities, which are the key market drivers enhancing the market growth.
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The rise in international travel is predicted to be one of the key drivers of the industry. In addition, it is anticipated that the availability of low-cost travel options and a rise in the middle class in developing Asian countries will encourage business expansion. Enhancing the consumer experience across all distribution channels, including airport and ferry terminals, is the aim of the travel retail industry. Retailers may see a rise in profits as a result of the digitalization-driven improvement of industrial processes. Digital technology can be used by passengers to speed up the boarding and check-in procedures. In order to get customers inside and keep them interested during their trips while providing a seamless shopping experience, travel businesses are increasingly using this technology. The travel retail sector needs to go through some major changes in order to create a retail ecosystem and cooperate with air carriers.
The airline service provider may supply data on customer schedules and purchase habits that can be used to provide customers with an enjoyable shopping experience. Additionally, in order to improve customer purchasing power, businesses must make use of loyalty-based, omnichannel, and digitally driven platforms. This is due to the changing demographics of the aviation industry, especially the surge in millennial travelers.
Increased international travel is anticipated, which will benefit the travel retail industry. Along with the increase in travelers using these facilities, there is a corresponding increase in the demand for goods and services at airports and other transportation hubs. Additionally, the clientele of the travel retail industry has grown as a result of the rise of international travel. As more people from many cultures and nations travel the same routes, the demand for commodities that may fulfill a range of tastes and preferences has grown. Additionally, more people may be able to afford premium & luxury goods including apparel, luxury items, pricey fragrances, and cosmetics as global disposable income improves. Travel merchants are carrying high-end products including designer clothing, cosmetics, and electronics in response to this demand. Several countries have also lifted the limitations on duty-free shopping, allowing travelers to purchase items without paying taxes. Customers looking for discounts increasingly find retail in the travel industry to be more appealing. To give customers a more interesting and immersive shopping experience, retailers are investing in the layout and design of their stores. This has attracted a wider range of customers and helped differentiate travel retail from traditional retail. Thus, driving the Travel Retail market revenue.
The global Travel Retail market segmentation, based on Product Type, includes cosmetic & fragrances, wines & spirits, confectionery & fine foods, tobacco products, fashion & accessories, and others. Cosmetic & fragrances segment dominated the global market in 2022. This is due to an increase in the sales of various personal care products at different retail locations. Around the world, cosmetics brands like L'Oreal are launching new stores in airports. Alcoholic beverages are among the most popular items purchased through duty-free retailers because to their lower prices.
The global Travel Retail market segmentation, based on Sector, includes duty-free and duty-paid. The duty-free segment dominated the global market in 2022. Cosmetic companies like L'Oréal, Estee Lauder Inc., and others now place a larger emphasis on selling their products through Duty-Free shops in order to boost sales. Such a factor will encourage the expansion of the duty-free market. Due to the rise in foreign travelers and their demand for duty-free goods, segmental sales will also rise. The Centre for Asia-Pacific Aviation (CAPA) estimates that by the end of 2021, a total of USD 1.6 million will be spent in duty-free stores in Indian airports.
The global Travel Retail market segmentation, based on Sales Channel, includes airport & airline shops, seaport & cruise line shops, border downtown hotel shops, and others. Airport & airline shops segment dominated the global Travel Retail market in 2022. Travelers are expected to travel more as a result of low pricing and growing living standards, which will help the sector grow. The growth of the retail industry in this area has also been aided by many airports' efforts to earn revenue from sources other than aviation. The category for border, downtown, and hotel retailers is estimated to have the highest CAGR during the forecast time. These kinds of shops showcase the most recent trends. Retailers benefit from the lower rents for these stores in border and downtown areas compared to the airport area.
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Insights into the markets in North America, Europe, Asia-Pacific, and the rest of the world are provided by the study. The North America Travel Retail Market dominated this market in 2022 (45.80%). The growth in travel and tourism spending in the United States and Canada is the main factor driving the North American business expansion. According to statistics from the U.S. Travel Organization, domestic and foreign travelers spent USD 1,127 million in the country in 2019. Furthermore, the increase in consumer spending power has sped up regional growth. Further, In the North American area, the U.S. Travel Retail market had the biggest market share, while the Canada Travel Retail market had the quickest rate of expansion.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
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In 2022, a sizable portion of the travel retail market was in Europe. This is a result of the expansion of the travel and tourism-related infrastructure, which includes hotels, eateries, theme parks, etc. The overall number of journeys made by Europeans outside of Europe by air, land, and sea in 2019 was estimated at 496 million by the CBI Ministry of Foreign Affairs. Additionally, the region's tourism and travel-related industries accounted for 35% of the money spent on foreign tourists during the same time period. The region also produces large product revenues as a result of the prominence of luxury goods companies like "Dufry AG," "Aer Rianta International," and "Lagardere Group." Further, In the European region, the German Travel Retail market had the biggest market share, and the U.K. Travel Retail market had the quickest rate of growth.
From 2023 to 2032, the Asia Pacific travel retail market is anticipated to increase significantly. A burgeoning middle class and a booming travel and tourism sector in developing Asian nations, particularly in China, are expected to drive market growth. As a result, several companies in the APAC region are coordinating their offerings and strategies with a focus on Chinese tourists. This component is also projected to help the growth of the sector. Furthermore, improving living standards in emerging economies are promoting market development. This is due to increased consumer disposable income levels. Moreover, In the Asia-Pacific region, the Indian Travel Retail market had the quickest rate of growth while China's Travel Retail market had the greatest market share.
Leading industry companies are making significant R&D investments in order to diversify their product offerings, which will drive the Travel Retail market's expansion. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants are also engaging in a number of strategic actions to increase their global footprint. The Travel Retail sector needs to provide affordable products if it wants to grow and thrive in a more competitive and challenging market environment.
One of the primary business strategies employed by manufacturers in the worldwide Travel Retail industry to assist customers and expand the market sector is local manufacturing to reduce operational costs. Some of the biggest benefits to medicine have recently come from the Travel Retail sector. Major players in the Travel Retail market, including Lagardere Travel Retail (Lagardere Group), DFS Group Ltd., Dufry AG, King Power International Group, Aer Rianta International, The Nuance Group AG, Lotte Duty Free (Lotte Hotel), Gebr. Heinemann SE & Co. KG, Duty Free China Group Co. Ltd. (CDFG), and Samsung Group, are attempting to increase market demand by investing in research and development operations.
Ritter Sport is a manufacturer of cartridges, consumables, and landscaping supplies with its headquarters in Schwabmunchen, Germany. The company offers a range of racks, 1 and 2-component and dental cartridges, robotic consumables, film, liquid-handling dispensers, and surface products for landscaping and road construction, helping businesses acquire the materials they need and ensuring efficient lab and medical facility workflows. Ritter Sport, a German manufacturer of chocolate bars, declared in January 2023 that it would expand its vegan product line by launching its Travel Retail Edition Vegan Tower 5x 100g set globally in March 2023.
Hudson Global Inc. (Hudson) offers comprehensive talent solutions and specialized recruiting outsourcing to businesses all over the world. The company specializes in hiring procedures and project management techniques. It offers numerous contracts and RPO hiring services. The company's major services include project-based outsourcing, recruitment outsourcing, and outsourced professional contract employment for RPO clients. The Hudson Group, a retailing business owned by Dufry AG, launched Amazon One in February 2021 at Dallas Love Field Airport (DAL) to improve in-store purchasing for consumers.
· Lagardere Travel Retail (Lagardere Group)
· DFS Group Ltd.
· Dufry AG
· King Power International Group
· Aer Rianta International
· The Nuance Group AG
· Lotte Duty Free (Lotte Hotel)
· Gebr. Heinemann SE & Co. KG
· Duty Free China Group Co. Ltd. (CDFG)
· Samsung Group
January 2023: Lagardère Travel Retail Belgium and Atos, a French IT service and consulting company, worked together to open an automated Duty Free point of sale at Brussels Airport. Businesses introduced the automated POS to give customers a novel and different traveling experience.
· Cosmetic & Fragrances
· Wines & Spirits
· Confectionery & Fine Foods
· Tobacco Products
· Fashion & Accessories
· Others
· Duty Free
· Duty Paid
· Airport & Airline Shops
· Seaport & Cruise line Shops
· Border Downtown Hotel Shops
· Others
· North America
- US
- Canada
· Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
· Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
· Rest of the World
- Middle East
- Africa
- Latin America
|
Report Attribute/Metric |
Details |
|
Market Size 2022 |
USD 55.2 Billion |
|
Market Size 2023 |
USD 60.8 Billion |
|
Market Size 2032 |
USD 132.2 Billion |
|
Compound Annual Growth Rate (CAGR) |
10.30% (2023-2032) |
|
Base Year |
2022 |
|
Market Forecast Period |
2023-2032 |
|
Historical Data |
2018- 2022 |
|
Market Forecast Units |
Value (USD Billion) |
|
Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
|
Segments Covered |
Product Type, Sector, Sales Channel, and Region |
|
Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
|
Countries Covered |
The U.S., Canada, German, France, U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
|
Key Companies Profiled |
Lagardere Travel Retail (Lagardere Group), DFS Group Ltd., Dufry AG, King Power International Group, Aer Rianta International, The Nuance Group AG, Lotte Duty Free (Lotte Hotel), Gebr. Heinemann SE & Co. KG, Duty Free China Group Co. Ltd. (CDFG), and Samsung Group |
|
Key Market Opportunities |
Growing number of millennial and middle income traveller groups |
|
Key Market Dynamics |
Rising number of international travelers, affordable travel choices, and rising middle-class population in emerging Asian countries |
The global Travel Retail Market was valued at USD 55.2 billion in 2022, and it is estimated to reach USD 132.2 billion by 2032.
The global market is projected to grow at a CAGR of 10.30% during the forecast period, 2023-2032.
North America had the largest share in the global market
The key players in the market are Lagardere Travel Retail (Lagardere Group), DFS Group Ltd., Dufry AG, King Power International Group, Aer Rianta International, The Nuance Group AG, Lotte Duty Free (Lotte Hotel), Gebr. Heinemann SE & Co. KG, Duty Free China Group Co. Ltd. (CDFG), and Samsung Group
The Cosmetic & Fragrances Product Type dominated the market in 2022.
The Duty Free Sector had the largest share in the global market.
Report Code :
RL65141
Published on :
Sep 2023
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