Travel Retail Market by Product (Perfume & Cosmetics, Luxury Goods, Wine & Spirit, Electronics, Food, Tobacco, Confectionery & Catering, and Others) and Channel (Airport, Railway Station, Cruise Liner, and Border, Downtown, & Hotel Shop)- Global Opportunity Analysis and Industry Forecast, 2023–2030

Market Definition:

The Travel Retail Market size was valued at USD 64.8 billion in 2022, and is predicted to reach USD 156.3 billion by 2030, with a CAGR of 10.7% from 2023 to 2030. Travel retail refers to retail outlets that are exempted from the payment of certain local or national taxes. Travel retails are commonly known as duty-free shops and cater to shoppers while they are in transit. Duty-free shops can offer variety of products such as cosmeceuticals, chocolates, international liquor, international bags, and watches. They are typically found at international airports, sea ports, and train stations. However, consumers can also avail these duty-free goods in airplanes or passenger ships during the journey.

Market Dynamics and Trends:

Increasing number of international travelers across the world due to the development in tourism & travel industry is driving the travel retail market. This is attributed to factors such as comprehensive media coverage of various tourist destinations, high disposable income in developed countries, and paid holidays that influence people toward international travel for leisure. 

For instance, according to United Nations World Tourism Organization (UNWTO), in first quarter of 2022, the total number of international arrivals was accounted to 117 million across the world. Also, rapidly rising cruise industry across the world due to lucrative offerings by several cruise lines such as trip personalization, multiple destinations in single trip, and various onboard activities is further driving the travel retail market. However, high cost of international travel for the people living in mid- and low-income countries and the emergence of highly infectious diseases such as monkeypox are limiting tourism activities. This, in turn, is restraining the travel retail market growth. On the contrary, the introduction of modern technology in the travel retail industry such as use of artificial intelligence (AI) voice search & voice control, robots, contactless payments, and virtual reality (VR) are expected to create ample opportunities for the market players in the coming years. Using Robots in duty-free shops can increase efficiency and accuracy in inventory management. Also, it can provide information to customers about product availability and cost of products.     

Market Segmentations and Scope of the Study:

The global travel retail market is segmented based on product, channel, and geography. On the basis of product, the market is sub-segmented into perfume & cosmetics, luxury goods, wine & spirit, electronics, food, tobacco, confectionery & catering, and others. Based on channel, the market is categorized into airport, railway station, cruise liner, and border, downtown, & hotel shop. The geographical fragmentation and analysis of each of the aforementioned segments include regions such as North America, Europe, Asia-Pacific, and RoW.

Geographical Analysis:

North America holds the lion’s share of the travel retail market, and is estimated to continue its dominance during the forecast period. This is attributed to rapidly rising domestic travelers with high income levels and increasing expenditure on travel by the millennial population in this region. Also, very high number of international tourists arriving in the region boosts the travel retail market growth. For instance, in 2021, according to International Trade Administration, the total number of inbound international tourists was around 22.1 million in the U.S.   

However, Asia-Pacific is expected to show a steady rise in the travel retail market, due to rapidly increasing number of low-cost carrier (LCC) airlines that influence international travel and increasing promotional campaigns by international airports in the region that further encourage consumers to buy duty-free products. For instance, in 2021, Mumbai Duty Free in the Chhatrapati Shivaji Maharaj International Airport in India partnered with several ecommerce, lifestyle, hospitality, personal care, and travel & tourism brands to offer a vast range of promotions in the campaign called “Mumbai Duty Free is Now Free”.

Competitive Landscape:

Various market players operating in the global travel retail market include Aer Rianta International (ARI), Duty Free Americas, Flemingo International, The Shilla Duty Free, China Duty Free Group Co. Ltd. (CDFG), GEBR Heinemann SE & CO. KG, King Power, Dufry Ltd., LVMH Group, and Lotte Corporation. These market players are adopting various joint venture strategies, planning acquisitions, and acquiring business contracts across various regions to maintain their dominance in the travel retail market. For instance, in June 01, 2022, Aer Rianta International (ARI) partnered with ANA/VINCI Airports in Lisbon, Portugal to re-open duty-free shops in eight airports across the country. Under this collaboration, Aer Rianta International (ARI) will help ANA/VINCI Airports to provide their passengers with improved shopping experience at airport duty-free shops in Lisbon, Santa Maria, Porto, Madeira, Faro, Ponta Delgada, Porto Santo, and Horta.

Moreover, in May 5, 2020, Dufry Ltd. announced that it has been awarded with two contracts by VINCI Airports in Brazil to operate an extended retail space in Salvador International Airport that includes two duty-free and one duty-paid shop for six years. These new stores will be integrated with latest digital technology to enhance attractiveness and it will be able provide diverse imported and domestic goods to customers at the Salvador International airport.  

Furthermore, in December 2021, China Duty Free Group (CDFG) announced that it aims to acquire 100% of stake of China CTS Asset Operations Corporation. This acquisition will help China Duty Free Group to consolidate duty free resources and improve its market presence.

KEY BENEFITS:

• The travel retail market report provides the quantitative analysis of the current market and estimations from 2022 to 2030. This analysis assists in identifying the prevailing market opportunities to capitalize on.

• The study comprises of an extensive analysis of the travel retail market trends including the current and future trends for depicting the prevalent investment pockets in the market.

• The information related to key drivers, restraints, and opportunities and their impact on the travel retail market is provided in the report.

• The competitive analysis of the market players along with their market share in the travel retail market is mentioned.

• The SWOT analysis and Porter’s Five Forces model is elaborated in the study.

• The value chain analysis in the market study provides a clear picture of the stakeholders’ roles.

KEY MARKET SEGMENTS:

By Product

• Perfume & Cosmetics

• Luxury Goods

• Wine & Spirit

• Electronics

• Food

• Tobacco

• Confectionery & Catering

• Others

By Channel

• Airport

• Railway Station

• Cruise Liner

• Border

• Down-Town

• Hotel Shop

By Geography

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The U.K.

  • Germany

  • Italy

  • France

  • Rest of Europe

• Asia-Pacific

  • China

  • India

  • Japan

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION: