Pune, India, Sept. 06, 2023 (GLOBE NEWSWIRE) — The global travel retail market size was valued at USD 55.74 billion in 2022 and is projected to grow from USD 60.72 billion in 2023 to USD 117.18 billion by 2030, exhibiting a CAGR of 9.85% during the forecast period.
Leading players in this market are launching promotional campaigns to boost the sales of duty-free products. Moreover, they offer high-quality products at airports to keep high-income travelers entertained during waiting times. This information is provided by Fortune Business Insights, in its report titled, “Travel Retail Market, 2023-2030.”
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Key Industry Development:
- January 2023: Ritter Sport, a German chocolate bar brand, announced plans to expand its vegan product range by launching its Travel Retail Edition Vegan Tower 5x 100g set worldwide. The new product is available in a five-pack with three non-dairy chocolate types. The travel edition includes Salted Caramel, Smooth Chocolate, and Roasted Peanut flavors.
Leading Players Featured in the Research Report:
Companies leading the travel retail market are Aer Rianta International (Ireland), The Nuance Group AG (Switzerland), Lotte Duty Free (Lotte Hotel) (South Korea), Gebr. Heinemann SE & Co. KG (U.S.), Duty Free China Group Co. Ltd. (CDFG) (China), Samsung Group (South Korea), Lagardere Travel Retail (Lagardere Group) (France), DFS Group Ltd. (Hong Kong), Dufry AG (Switzerland), King Power International Group (Thailand), and more.
Report Scope & Segmentation:
|2030 Value Projection||USD 117.18 Billion|
|Market Size in 2022||USD 55.74 Billion|
|No. of Pages||175|
|Report Coverage||Revenue Forecast, Company Profiles, Competitive Landscape, Growth Factors and Latest Trends|
|Travel Retail Market Growth Drivers||High Product Pricing to Hinder Market Augmentation|
|Continual Provision of Duty-Free Campaigns by Retailers to Upsurge Product Demand|
Browse Detailed Summary of Research Report with TOC: https://www.fortunebusinessinsights.com/travel-retail-market-104620
Drivers and Restraints:
Growing Number of Domestic and International Travelers to Propel Market Augmentation
The rising number of international and domestic travelers is driving travel retail market growth. As per the ‘Indian Tourism and Hospitality Industry Analysis’ report published by the Indian Brand Equity Foundation (IBEF), there were 10.89 million foreign tourist arrivals in India in 2019 which is 3.2% higher than the last year. Moreover, retailers offer personalized loyalty programs & deals to meet the changing shopping habits of air passengers. This will boost the sales of duty-free products further and propel market augmentation. Moreover, rising expenditure on travelling and tourism by millennial population will further aid market expansion.
On the other hand, the high price of travel retail products reduces their demand from lower income disposable populace thus hindering market proliferation.
Rising Popularity of Anxiety-Reducing Products Facilitated Market Growth Amid the Pandemic
The spread of COVID-19 worldwide and rising number of deaths in several economies forced governments to impose stringent lockdowns and travel restrictions. The number of air and marine travel passengers decreased which affected the travel and tourism sectors severely. However, the surging demand for anxiety-reducing products and wellness-related products created new opportunities for market players.
Factors Affecting the Growth of the Travel Retail Market:
- Global Tourism Trends: The number of international tourists plays a pivotal role in travel retail growth. A rise in global tourism, driven by factors like increased disposable income, easier access to travel, and changing consumer preferences, can lead to higher sales at travel retail outlets.
- Airport Infrastructure Development: Expansions and upgrades of airports, especially in emerging markets, provide opportunities for more travel retail outlets. Modern and attractive retail spaces can attract more passengers and boost sales.
- Economic Conditions: The state of the global economy significantly affects travel retail. During economic downturns, travelers may cut back on discretionary spending, while economic prosperity tends to result in higher travel retail sales.
- Air Travel Growth: The growth of the airline industry, including the number of flights and passengers, directly impacts the travel retail market. More flights and passengers mean a larger potential customer base.
- Duty-Free Regulations: Changes in duty-free regulations and policies can have a profound impact on the market. Favorable duty-free allowances and regulations can encourage travelers to shop more at these outlets.
- Consumer Behavior: Shifts in consumer preferences and behavior can influence the types of products sold at travel retail outlets. For instance, a growing interest in luxury goods among travelers can boost sales of high-end products.
- Digital Transformation: E-commerce and digital technologies have started to play a significant role in travel retail. Online pre-ordering and in-flight shopping platforms are becoming increasingly popular, allowing travelers to shop conveniently.
- Marketing and Advertising: Effective marketing strategies and advertising campaigns can attract more travelers to these retail spaces. Promotions, discounts, and loyalty programs can also stimulate sales.
- Tourist Demographics: The composition of travelers, including their age, nationality, and travel purpose, can influence the types of products and brands that are in demand at travel retail outlets.
- Health and Safety Concerns: Events such as pandemics or security concerns can significantly impact travel patterns and, consequently, travel retail. Health and safety measures and protocols can also affect the shopping experience.
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Cosmetic & Fragrances Segment to Lead Backed by Surging Demand from Females
As per product type, the global market report is split into cosmetic & fragrances, wines & spirits, confectionery & fine foods, tobacco products, fashion & accessories, and others. Among these, the cosmetics segment captured the dominant market share in 2022 owing to the rising interest of females and millennials in internationally acclaimed brands that are difficult to find in their native locations.
Duty Free Shopping to Capture Major Share With Rising Number of International Travelers
Based on sector, the global market is bifurcated into duty free and duty paid. Among these, the duty-free segment led the market in 2022 stoked by its value added tax benefits as compared to duty paid stores.
Airport & Airline Shops to Dominate Due to Availability of Strong In-Flight WiFi Connectivity
According to sales channel, the market is arrayed into airport & airline shops, seaport & cruise line shops, border downtown hotel shops, and others. Among these, the airport & airline shops segment captured the largest market share due to the easy availability of in-flight WiFi connectivity which provides a seamless online shopping experience to consumers.
Geographically, the market is segregated into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
Asia Pacific to Capture Significant Share Due to Rising Number of Economical Tours Offered by Travel Companies
Asia Pacific held the largest part in the travel retail market share in 2022 owing to rising spending on duty free products by international tourists in economies in South Korea, India, and China. The availability of a large number of economical tours has increased customer traffic rates and attributed to market growth in this region as well.
Europe market is projected to grow significantly in the upcoming years owing to the availability of travel and tourism related infrastructure such as amusement parks, hotels and restaurants.
North America is anticipated to showcase positive growth due to rising travel and tourism spending by U.S. and Canada populace. According to the statistical data presented by U.S. Travel Organization, in 2019, U.S. domestic and international travelers’ spending reached USD 1,127 million.
Detailed Table of Contents:
- Research Scope
- Market Segmentation
- Research Methodology
- Definitions and Assumptions
- Executive Summary
- Market Dynamics
- Market Drivers
- Market Restraints
- Market Opportunities
- Emerging Trends
- Key Insights
- Overview of the Parent/Related Markets
- Industry SWOT Analysis
- Supply Chain and Regulatory Analysis
- Recent Industry Developments – Policies, Partnerships, New Product Launches, and Mergers & Acquisitions
- Qualitative Analysis (in relation to COVID-19)
- Impact of COVID-19
- Supply Chain Challenges
- Potential Opportunities due to COVID-19
- Global Travel Retail Market Analysis, Insights, and Forecast, 2019-2030
- Key Findings / Summary
- Market Size Estimates and Forecast
- By Product Type (Value)
- Cosmetic & Fragrances
- Wines & Spirits
- Confectionery & Fine Foods
- Tobacco Products
- Fashion & Accessories
- By Sector (Value)
- By Sales Channel (Value)
- Airport & Airline Shops
- Seaport and Cruise Line Shops
- Border Downtown Hotel Shops
- By Region (Value)
- North America
- Asia Pacific
- South America
- Middle East & Africa
- By Product Type (Value)
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Launch of New Stores to Drive Market Proliferation
Leading players in the market are making various decisions to strengthen their positioning and gather larger revenues. Additionally, continuous introduction of sales promotional offers to attract buyers towards their products is also boosting the market share. Partnerships, collaborations, and mergers and acquisitions are some methods for the same. For example, in January 2023, Lotte Duty Free opened a store for NONFICTION, a beauty brand which offers consumers free goods online and offline when purchasing NONFICTION products.
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