Travel Retail Market Size, Industry Analysis By Segmentations, Top Key Players, Trends, Future Development & Forecast By 2033
- PUBLISHED ON
- 2024-05-31
- NO OF PAGES
- 260
- CATEGORY
- Retails & Consumer
Travel Retail market size was valued at USD 66,800 million in 2022 and is projected to reach USD 71,200 million by 2033, growing at a CAGR of 7.0% during the forecast period.
Report Scope
Report Attributes | Description |
Market Forecast in 2022 | USD 66,800 million |
Market Forecast in 2033 | USD 71,200 million |
CAGR % 2023-2033 | 7.0% |
Base Year | 2022 |
Historic Data | 2020-2021 |
Forecast Period | 2023-2033 |
Report USP | Product, end-user industry, company share, company heat map, company Capacity Technology Product capacity, growth factors and more |
Key Companies | Dufry; Lotte Duty Free; Lagardère Travel Retail; DFS Group; Heinemann; Shilla Duty Free |
Travel Retail Market- Description
The travel retail market, also known as duty-free retail or airport retail, refers to the sale of goods to international travelers at designated locations such as airports, cruise ships, border shops, and downtown duty-free stores. These retail outlets offer a wide range of products, including cosmetics, fragrances, alcohol, tobacco, fashion and accessories, electronics, and luxury goods.
Travel retailers are focusing on personalized experiences to engage customers and build loyalty. They leverage customer data and technologies like artificial intelligence to offer tailored recommendations, promotions, and exclusive offers. Interactive digital displays and virtual reality experiences are also being used to enhance customer engagement. Travel retail is shifting towards creating memorable experiences for travelers.
Travel Retail market: Key Trends
• Sustainability and social responsibility
Travel retailers are increasingly conscious of environmental and social issues. They are incorporating sustainable practices, such as reducing plastic packaging, offering eco-friendly products, and supporting local communities. Travelers are showing a growing preference for environmentally responsible brands, which has led to the rise of sustainable travel retail initiatives.
• Expansion into emerging markets
As travel becomes more accessible, emerging markets are experiencing a surge in outbound tourism. This has led to the expansion of travel retail in regions like Asia-Pacific, the Middle East, and Latin America. Airports in these regions are investing in infrastructure and retail spaces to accommodate the growing demand.
Travel Retail market: Segmental Analysis
Product
• Perfume & Cosmetics
• Confectionery & Fine Food
• Wine & Spirit
• Fashion & Accessories
• Electronics
• Tobacco
• Others
Channel
• Airports
• Cruise Lines
• Border, Down Town & Hotel Shops
• Railway Stations & Others
Travel Retail market: Geographical landscape
The Travel Retail market is expanding globally, with key regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. North America has a significant travel retail market, with major airports in the United States and Canada serving as key shopping hubs.
Europe has a well-developed and diverse travel retail market, with key players operating in major airports across the continent. Airports in countries like the United Kingdom, France, Germany, and Spain attract a significant number of international travelers. The region's market is characterized by a mix of luxury brands, fashion outlets, and duty-free stores. Tax-free shopping is a major draw for travelers in Europe.
The Asia Pacific region has experienced significant growth in the travel retail market in recent years. Airports in countries like China, Japan, South Korea, and Singapore have become major shopping destinations for both domestic and international travelers. The rise of middle-class consumers and increasing outbound tourism from countries like China contribute to the market growth. Luxury goods, cosmetics, and electronics are popular categories among travelers in Asia Pacific.
Travel Retail Market- Recent Developments
• In 2023, Ritter Sport plans to introduce a Winter Selection Tower 5x100g specifically for global travel retail markets starting in August 2023. Drawing inspiration from the popular Scandinavian Hygge lifestyle trend, this product is exclusively available in travel retail channels. It consists of five 100g bars of chocolate that aim to evoke a cozy winter atmosphere. These bars are made with cocoa sourced from 100% sustainable certified cocoa farms.
Travel Retail Market: Key Companies
• Dufry
• Lotte Duty Free
• Lagardère Travel Retail
• DFS Group
• Heinemann
• Shilla Duty Free
• Others
Travel Retail Market: Regional Scope
North America
• U.S.
• Canada
• Mexico
Europe
• U.K.
• Germany
• France
• Italy
• Spain
• Rest of Europe
Asia Pacific
• China
• India
• Japan
• South Korea
• Australia
• Rest of Asia Pacific
South America
• Brazil
• Argentina
• Rest of South America
Middle East and Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of Middle East and Africa
Quality Assurance Process
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Case Study- Automotive Sector
One of the key manufacturers of automotive had plans to invest in electric utility vehicles. The electric cars and associated markets being a of evolving nature, the automotive client approached We Market Research for a detailed insight on the market forecasts. The client specifically asked for competitive analysis, regulatory framework, regional prospects studied under the influence of drivers, challenges, opportunities, and pricing in terms of revenue and sales (million units).
Solution
The overall study was executed in three stages, intending to help the client meet its objective of precisely understanding the entire market before deciding on an investment. At first, secondary research was conducted considering political, economic, social, and technological parameters to get a gist of the various aspects of the market. This stage of the study concluded with the derivation of drivers, opportunities, and challenges. It also laid substantial emphasis on understanding and collecting data not only on a global scale but also on the regional and country levels. Data Extraction through Primary Research
The second stage involved primary research in which several market players and automotive parts suppliers were contacted to study their viewpoint concerning the development of their market and production capacity, clientele, and product line. This stage concluded in a brief understanding of the competitive ecosystem and also glanced through the strategies and pricing of the companies profiled.
Market Estimates and Forecast
In the final stage of the study, market forecasts for the electric utility were derived using multiple market engineering approaches. This data helped the client to get an overview of the market and accelerate the process of investment.
Case Study- ICT Sector
Business process outsourcing, being one of the lucrative markets from both supply- and demand- side, has appealed to various companies. One of the prominent corporations based out of Japan approached us with their requirements regarding the scope of the procurement outsourcing market for around 50 countries. Additionally, the client also sought key players operating in the market and their revenue breakdown in terms of region and application.
Business Solution
An exhaustive market study was conducted based on primary and secondary research that involved factors such as labor costs in various countries, skilled and technical labors, manufacturing scenario, and their respective contributions in the global GDP. A comparative study of the market was conducted from both supply- and demand side, with the supply-side comprising of notable companies, such as GEP, Accenture, and others, that provide these services. On the other hand, large manufacturing companies from them demand-side were considered that opt for these services.
Conclusion
The report aided the client in understanding the market trends, including country-level business scenarios, consumer behavior, and trends in 50 countries. The report also provided financial insights of crucial players and detailed market estimations and forecasts till 2033.
Frequently Asked Questions
What is the market size and growth projections?
The global Travel Retail market size was valued at USD 66,800 million in 2022 and is projected to reach USD 71,200 million by 2033, growing at a CAGR of 7.0% during the forecast period.
What are the drivers shaping various markets?
Travel retailers are increasingly conscious of environmental and social issues. They are incorporating sustainable practices, such as reducing plastic packaging, offering eco-friendly products, and supporting local communities.
Who are the key competitors of market Players?
Some of the major players operating within the market are Dufry; Lotte Duty Free; Lagardère Travel Retail; DFS Group; Heinemann.
What are the top performing segments, and countries / regions of each of the markets?
The Asia Pacific region has experienced significant growth in the travel retail market in recent years. Airports in countries like China, Japan, South Korea, and Singapore have become major shopping destinations for both domestic and international travelers. The rise of middle-class consumers and increasing outbound tourism from countries like China contribute to the market growth.
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