Travel Retail Market: Global Industry Analysis And Forecast (2023-2029)

Travel Retail Market size was valued at US$ 58.77 Bn. in 2022 and the total Global Travel Retail revenue is expected to grow by 9.2% from 2023 to 2029, reaching nearly US$ 108.82 Bn.
Travel Retail Market Overview:
A travel retailer is a business entity that develops, arranges, or offers travel services and may offer and distribute travel insurance to its clients on behalf of and under the supervision of a limited lines travel insurance producer. Travel retail refers to sales undertaken in travelling contexts where customers are required to verify travel and are subject to taxes and duties. Travel retail is a retail channel that sells goods to foreign travellers. It is a significant source of income with several marketing opportunities. Duty-free and travel retail create critical earnings for the global aviation, travel, and tourist sectors. The number of international travellers has resulted in significant growth in the travel retail industry in recent years.To know about the Research Methodology :- Request Free Sample Report

The report explores the Travel Retail Market's segments (Product Type, Sector, Sales Channel, and Region). Data has been provided by market participants, and regions (North America, Asia Pacific, Europe, Middle East & Africa, and South America). It provides a thorough analysis of the rapid advances that are currently taking place across all industry sectors. Facts and figures, illustrations, and presentations are used to provide key data analysis for the historical period from 2017 to 2022. The report investigates the Travel Retail Market's drivers, limitations, prospects, and barriers. This MMR report includes investor recommendations based on a thorough examination of the Travel Retail Market's contemporary competitive scenario.
Travel Retail Market Dynamics:
An increasing number of international travelers drives Market growth.

The growing number of national and international travelers drives product demand, driving the market growth. Millennials use more vacation time than any other generation, and they aren't interested in doing the same sorts of adventures on all of their holidays. They desire diversity and travel experiences that are uniquely theirs. Millennial travelers want to relax on one trip, visit relatives on another, and then escape on a romantic holiday on the next. Because they want to experience a variety of holiday kinds, their penchant for diversity is wonderful news for locations and travel businesses.

Growth in travel industries drives the market.

Significant growth in the tourism and travel industries is a primary factor driving demand for travel retail services. However, factors like rising urbanization and an expanding middle-class population drive the growth of the travel retail business. In addition, the rising number of low-cost carriers (LCC) air travel and foreign visitors drive market growth. Moreover. The increased digitization of the retailing process to allow businesses to optimize revenues may drive market growth further.

High Product Price is a key restraint to the Market.

A huge number of retail commodities are branded. As a result, they are high-quality items at a premium price. This aspect allows businesses to offer travel items at greater costs, reducing product demand among lower-income traveler groups. Moreover, a lack of customer awareness of new product releases and improvements provides a barrier to purchasing commodities, restricting the market growth.

Latest Tourism & Travel Technology Trends.

Customers are going to expect a particular level of experience and the ease that comes with it when trends emerge and new technology get entrenched. Customers will be unsatisfied if your firm does not meet these expectations. This might result in unfavorable evaluations and damage to the company's image. Keeping up with travel and tourism technology developments may also benefit employees and make recruiting simpler, as applicants would want to work with the most up-to-date technologies, especially if they can alleviate stress.
Travel Retail Market Segment Analysis:
By Sales Channel Segment, in 2022, the airport sector led the market, accounting for the largest market share. An increasing number of air passengers is anticipated to contribute to segment growth as a result of lower costs and improved living conditions. Additionally, initiatives by many airports to increase profitability from non-aeronautical resources have spurred the growth of this segment's retail sector. The border, downtown, and hotel stores category is predicted to grow at the fastest rate throughout the forecast period. These kinds of stores represent the most recent trends. Retailers benefit from reduced rents in border and downtown regions, as contrasted to the airport area.

By Product Segment, The perfume & cosmetics segment accounted for the largest revenue share in 2020 because of growing sales of numerous personal care goods through multiple retail outlets. L'Oreal and other cosmetics companies are building new boutiques in airports across the world. This element is expected to drive segment growth even further. Wine and spirits were the second-largest sector in 2020 and are expected to grow steadily in the years ahead. Alcoholic spirits are among the most regularly acquired things through duty-free outlets since they are cheaper there.

The fashion and accessories segment is expected to grow significantly throughout the forecast period since fashion goods are particularly popular among celebrities and athletes. Fashion retailers specialize in niche marketing to attract a diverse range of clients that have similar purchase habits when it comes to sports equipment, musical instruments, and beauty cosmetics.

Consumer demand for trendy e-cigarettes of various sizes and forms will expand at airports and cruises, raising segmental sales for tobacco goods. However, smoking-related prohibitionary restrictions imposed by airlines and marine retailers would limit tobacco product demand among passengers, reducing the segmental growth of tobacco goods.

Confectionery and fine food goods are among the fastest-selling food product categories, with extensive sales among young people and millennials. The colourful and appealing displays of cartoon figures are an excellent method to attract guests to the door. Stickers and amusing displays with adjustable wall arts provide a lucrative market for children. Chocolate and other confectionery shops strive to improve their presentation and establish unique ways to educate the mindsets of children, giving new growth potential to the industry.
Travel Retail Market Regional Insights:
The Asia-Pacific travel retail industry is expected to grow at a CAGR of xx % during the forecast period, according to a report commissioned by the Duty-Free World Council (DFWC) and the Asia Pacific Travel Retail Association (APTRA). East Asian nations such as South Korea, China, and Japan accounted for xx % of duty-free and travel retail sales in the area. Additionally, the Asia Pacific area is the dominant region in the travel retail business, with a high CAGR in the Travel Retail Market, according to the DFWC. The rising middle-class population and rising travel and tourist sectors in emerging Asian countries, especially China, are likely to drive the industry further. As a result, many APAC retailers are aligning their strategies and products to match the demands of Chinese tourists. This aspect will also have a favorable influence on industrial growth. Additionally, improved living standards in emerging nations as a result of increased consumer disposable income levels are driving the market growth.



The regional market is majorly driven by India, China, Japan, and South Korea. South Korea is rapidly overtaking China and Japan as the world's largest travel retail market, accounting for the most sales. The apparel and accessories, perfumes and cosmetics, and wines and spirits divisions all contribute significantly to the regional market's income. Latin America is also an important travel retail market. More than 50,000 jobs are directly supported by travel retail spending in Latin America and the Caribbean.

The objective of the report is to present a comprehensive analysis of the Travel Retail Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The report also helps in understanding the Travel Retail Market dynamics, and structure by analyzing the market segments and projecting the Travel Retail Market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the Travel Retail Market make the report investor’s guide.
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Global Travel Retail Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 58.77 Bn.


Forecast Period 2023 to 2029 CAGR:
9.2%
Market Size in 2029:
US $ 108.82 Bn.


 Segments Covered:
by Product
Fashion and accessories
Perfume and cosmetics
Electronics
Food
Confectionery products
Bakery products
Catering
Luxury goods
Watches
Jewelry
Wine & spirits
Tobacco
Others


by Sector
Duty-Free
Duty Paid


by Sales Channel
Airport
Cruise Liner
Railway Station and Border
Downtown and Hotel Shop



Travel Retail Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, Turkey, Russia and Rest of Europe)
Asia Pacific (China, India, Japan, South Korea, Australia, ASEAN and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina, Columbia and Rest of South America)
Travel Retail Market, Key Players are
1. Dufry Group
2.Lotte Duty-Free
3. The Shilla Duty-Free
4. China Duty-Free Group
5. Lagardére Travel Retail
6. DFS Group
7. Gebr Heinemann
8. Shinsegae Duty-Free
9. King Power International Group (Thailand)
10. Ever Rich Duty-Free Shop
11. Dubai Duty-Free
12. Duty-Free Americas
13. Aer Rianta International
14. WHSmith
15. Japan Airport Terminal Co
16. Starboard Cruise Services
17. Flemingo International
18. 3Sixty Duty-Free
19. Hyundai Duty-Free
20. NAA Retailing
21. Qatar Duty-Free
22. Sky Connection
23. Tallink Group
24. King Power Group (Hong Kong)
25. JR/Duty-Free

FAQs:

1. Which is the potential market for the Global Travel Retail in terms of the region?
Ans. In APAC region, rising middle-class population and rising travel and tourist sectors in emerging Asian countries are expected to help drive the market.

2. What are the opportunities for new market entrants?
Ans. The key opportunity is new emerging technological advancement in Global Travel Retails market.

3. What is expected to drive the growth of the Travel Retail Market in the forecast period?
Ans. A major driver in the Travel Retail Market is the increasing national and international travelers.

4. What is the projected market size & growth rate of the Travel Retail Market?
Ans. Travel Retail Market size was valued at US$ 58.77 Bn. in 2022 and the total Global Travel Retail revenue is expected to grow by 9.2% from 2023 to 2029, reaching nearly US$ 108.82 Bn.

5. What segments are covered in the Travel Retail Market report?
Ans. The segments covered are Product, Sales Channels, Sectors and Region.