The global travel retail market size is anticipated to hit USD 96.11 billion by 2029 and exhibit a CAGR of 8.1% during the forecast period. The increasing number of international travelers is likely to drive the market’s growth. Fortune Business InsightsTM has presented this information in its report titled, “Travel Retail Market, 2022-2029”. The market size stood at USD 51.28 billion in 2021 and USD 55.74 billion in 2022.
Additionally, the rising popularity of sustainable duty-free shopping is a key trend that is anticipated to amplify market growth in the coming years.
COVID-19 Impact-
The strict lockdowns imposed during the pandemic have negatively impacted the market growth. The global air travel ban during the severe waves of the pandemic have affected the market’s growth. The growing number of air passengers amidst resuming air travel operations has helped the market retain traction. Nonetheless, the rising air travel and demand for personal protection equipment and products such as gloves, face masks, and sanitizers are expected to create lucrative growth for travel retail in the coming years.
Fortune Business Insights™ lists out all the travel retail market companies that are presently striving to reduce the impact of Covid-19 pandemic on the market:
- Lagardere Travel Retail (Lagardere Group) (France)
- DFS Group Ltd. (Hong Kong)
- Dufry AG (Basel, Switzerland)
- King Power International Group (Thailand)
- Aer Rianta International (Ireland)
- The Nuance Group AG (Switzerland)
- Lotte Duty Free (Lotte Hotel) (South Korea)
- Heinemann SE Co. KG (U.S.)
- China Duty Free Group Co. Ltd. (CDFG) (China)
- Flemingo (South Korea)
Drivers Restraints-
Increasing Number of International Travelers to Boost Market Growth
The growing product demand due to the rising numbers of international and domestic travelers is likely to bolster the travel retail market growth. The improving income levels and increasing expenditure on travel by the millennial population are anticipated to be key factors stimulating the market growth. The data released by World Travel and Tourism Council (WTTC) in November 2021 estimated a 34.9% surge in the French travel tourism industry in 2021.
The launch of promotional campaigns by key companies to lure customers into buying duty-free commodities is likely to uptick product demand and boost travel retail.
Additionally, the growing trend of sustainable duty-free shopping is likely to be a key trend expanding the market’s growth. The rising adoption of eco-friendly and sustainable practices, including biodegradable packaging, reduction and recycling, and others, by air travel retailers, is predicted to complement the market growth.
However, high prices of products may hinder market growth due to low demand.
Report Coverage-
- It delivers details about the market in-depth and offers vital information on various market segments: product type, sales channels, sectors, and others.
- It provides information on current trends in travel retail.
- It highlights major industry advancements.
- It includes various direct and indirect variables that complement the market’s growth.
- It includes a detailed review of the COVID-19 pandemic impact on the market.
Segmentation-
On the basis of product type, the market is fragmented into fashion accessories, tobacco products, confectionery fine foods, beverages, cosmetics, and others. On the basis of sector, the market is bifurcated into duty paid and duty-free. On the basis of sales channel, the market is segmented into border downtown hotel shops, seaport cruise line shops, airport airline shops, and others. Geographically, the market is classified into South America, North America, the Middle East Africa, Asia Pacific, and Europe.
Regional Insights-
Asia Pacific to Hold the Lion’s Share
Asia Pacific is projected to gain the largest travel retail market share. The high expenditure on duty-free products by international and domestic travels across countries such as South Korea, India, and China is likely to fuel the growth in Asia Pacific. Furthermore, the growing partnerships between duty-free retailers for business expansion are expected to favor market growth.
Europe is likely to exhibit substantial growth in the coming years. The increasing infrastructural development for travel and tourism is expected to boost the market growth in Europe. Moreover, the strong presence of opulent cosmetics and other major duty-free brands is anticipated to favor the region’s market growth.
The rising consumer expenditure on travel and tourism will foster growth in North America.
The improving income levels of the middle-class populace will support growth in the Middle East Africa.
Competitive Landscape-
Key Players Emphasize E-commerce Adoption to Expand Businesses Globally
The major players operating in the market emphasize the adoption of e-commerce to expand their businesses globally. Sales promotional offers, personalized goods retail, and others are some key methods adopted by major players to capture huge customer bases. Recently, in November 2021, Pernod Richard, a beverage company based in France, unveiled its first boutique in China’s Shenzhen Duty-free Group Haikou.
Key Industry Developments-
October 2021: Lagardere Switzerland formed a partnership with Inflyter to introduce fully digital automated solutions at Geneva Airport, Switzerland.
Browse Detailed Summary of Research Report:
https://www.fortunebusinessinsights.com/travel-retail-market-104620
