Travel Retail Market Research Report Information By Product Type (Cosmetic & Fragrances, Wines & Spirits, Confectionery & Fine Foods, Tobacco Products, Fashion & Accessories, and Others), By Sector (Duty Free and Duty Paid), By Sales Channel (Airport & Airline Shops, Seaport & Cruise Line Shops, Border Downtown Hotel Shops, and Others), and By Region (North America, Europe, Asia-Pacific, and Rest Of The World) – Market Forecast Till 2032

Global Travel Retail Market Overview

Travel Retail Market Size was valued at USD 55.1 Billion in 2022. The Travel Retail Market Technology is projected to grow from USD 60.7 Billion in 2023 to USD 132.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.20% during the forecast period (2023 - 2032). Rising middle class populations, more accessible travel options, and more foreign travellers in growing Asian nations, are the key market drivers enhancing the market growth.

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Travel Retail Market Trends

• Rising number of international travelers is driving the market growth

One of the main drivers of the business is anticipated to be the increase in international travel. Additionally, it is projected that the availability of inexpensive travel options and an increase in the middle class in developing Asian nations will spur industry expansion. The goal of travel retailers is to improve the customer experience across all distribution channels, including airport and ferry stations. The improvement of industry processes brought about by digitalization has the potential to increase revenues for retailers. Passengers can use digital technologies to facilitate the boarding and check-in processes. Therefore, travel businesses are increasingly utilising this technology to draw customers inside and keep them interested throughout their travels while offering a seamless purchasing experience. To build a retail ecosystem and work with the air carriers, the travel retail industry needs to undergo some significant modifications.

The airline service provider can offer information that can be used to give customers an engaging shopping experience, such as information on customer schedules and purchasing patterns. Additionally, because of the changing demographics of the aviation sector, including the rise in millennial travellers, retailers must leverage loyalty-based, omnichannel, and digitally driven platforms to increase consumer purchasing power.

Global travel is expected to increase, which will boost the travel retail sector. The demand for goods and services at airports and other transportation hubs rises along with the number of travellers using these facilities. Additionally, the expansion of international travel has broadened the travel retail industry's client base. The desire for goods that may satisfy a variety of tastes and preferences has increased as more individuals from different cultures and countries travel the same routes. Additionally, as global disposable income rises, more people may afford premium & luxury goods like clothing, luxury items, expensive fragrances, and cosmetics. In response to this trend, travel retailers are carrying high-end goods including designer apparel, cosmetics, and electronics. Additionally, several nations have loosened the restrictions on duty-free shopping, enabling tourists to buy goods without paying taxes. Retail in the travel industry is now more alluring to customers searching for deals. To give customers a more interesting and immersive shopping experience, retailers are investing in the layout and design of their stores. This has drawn a greater variety of customers and served to set travel retail apart from typical retail. Thus, driving the Travel Retail market revenue.

Travel Retail Market Segment Insights

Travel Retail Product Type Insights

The Travel Retail Market segmentation, based on product type, includes cosmetic & fragrances, wines & spirits, confectionery & fine foods, tobacco products, fashion & accessories, and others. Cosmetic & fragrances segment dominated the global market in 2022. This is a result of rising sales of diverse personal care items at various retail outlets. Cosmetics companies like L'Oreal are opening new boutiques in airports all over the world. Due to their lower prices at duty-free shops, alcoholic beverages are among the most often acquired goods through these shops.

Travel Retail Sector Insights

The Travel Retail Market segmentation, based on sector, includes duty free and duty paid. Duty free segment dominated the global market in 2022. In order to increase sales, cosmetic businesses like L'Oréal, Estee Lauder Inc., and others now place a greater emphasis on selling their goods through Duty Free stores. A factor like this will promote the growth of the duty-free market. Additionally, segmental sales will increase due to the growing number of international travellers and their need for Duty Free goods. According to information provided by the Centre for Asia-Pacific Aviation (CAPA), USD 1.6 million will be spent in total at Indian airports' duty-free shops by the end of 2021.

Travel Retail Sales Channel Insights

The Travel Retail Market segmentation, based on sales channel, includes airport & airline shops, seaport & cruise line shops, border downtown hotel shops, and others. Airport & airline shops segment dominated the Travel Retail Market in 2022. Low prices and rising living standards are predicted to increase the number of travellers, which would help the category thrive. The development of the retail sector in this market has also been boosted by attempts made by various airports to increase revenue from non-aeronautical resources. Over the projected period, the category for border, downtown, and hotel stores is anticipated to experience the highest CAGR. These kinds of stores represent the newest fashions. The reduced rents for these stores in border and downtown districts compared to the airport area are advantageous to retailers.

Figure 1: Travel Retail Market, by Sales Channel, 2022 & 2032 (USD Billion)

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Travel Retail Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Travel Retail Market dominated this market in 2022 (45.80%). The expansion of the North America business is primarily being supported by rising U.S. and Canadian travel and tourism spending. U.S. Travel Organization statistics show that domestic and international traveller spending in the United States was USD 1,127 million in 2019. Additionally, the rise in people's purchasing power has accelerated regional development. Further, the U.S. Travel Retail market held the largest market share, and the Canada Travel Retail market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: TRAVEL RETAIL MARKET SHARE BY REGION 2022 (USD Billion)

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Europe Travel Retail market accounted for the healthy market share in 2022. This is a result of the expansion of infrastructure associated to travel and tourism, including hotels, restaurants, theme parks, etc. According to estimates made public by the CBI Ministry of Foreign Affairs, 496 million journeys totaled the air, land, and marine travel undertaken by Europeans outside of Europe in 2019. Additionally, 35% of the money spent on foreign tourism during the same time period came from the region's tourism and travel activities. Additionally, the region generates significant product revenues thanks to the strong presence of luxury goods firms like "Dufry AG," "Aer Rianta International," and "Lagardere Group." Further, the German Travel Retail market held the largest market share, and the U.K Travel Retail market was the fastest growing market in the European region

The Asia Pacific Travel Retail market is expected to register significant growth from 2023 to 2032. The market is anticipated to grow as a result of an expanding middle class and a growing travel and tourist industry in rising Asian nations, particularly in China. As a result, several businesses in the APAC region are coordinating their strategy and offerings with Chinese tourists in mind. This element is also anticipated to benefit industry expansion. Additionally, rising consumer disposable income levels in emerging economies are enhancing market development through improved living conditions. Moreover, China’s Travel Retail market held the largest market share, and the Indian Travel Retail market was the fastest growing market in the Asia-Pacific region.

Travel Retail Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Travel Retail market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Travel Retail Industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Travel Retail Industry to benefit clients and increase the market sector. In recent years, the Travel Retail Industry has offered some of the most significant advantages to medicine. Major players in the Travel Retail market, including Lagardere Travel Retail (Lagardere Group), DFS Group Ltd., Dufry AG, King Power International Group, Aer Rianta International, The Nuance Group AG, Lotte Duty Free (Lotte Hotel), Gebr. Heinemann SE & Co. KG, Duty Free China Group Co. Ltd. (CDFG), and Samsung Group, are attempting to increase market demand by investing in research and development operations.

Based in Schwabmunchen, Germany, Ritter Sport is a producer of cartridges, consumables, and landscaping goods. The business provides a variety of racks, 1 and 2-component and dental cartridges, robotic consumables, film, liquid-handling dispensers, and landscaping and road construction surface products, assisting businesses in acquiring necessary materials and ensuring smooth workflows in labs and medical facilities. In January 2023, Ritter Sport, a German chocolate bar company, announced intentions to introduce its Travel Retail Edition Vegan Tower 5x 100g set globally in March 2023 as part of an expansion of its vegan product line.

Companies all over the world can turn to Hudson Global Inc (Hudson) for complete talent solutions and specialised recruiting outsourcing. The business specialises in project management and recruitment process approaches. It provides a variety of contracting and RPO recruitment services. Project-based outsourcing, recruitment outsourcing, and outsourced professional contract staffing services to RPO clients are among the company's main services. To give customers a better in-store shopping experience, the Hudson Group, a Dufry AG-owned retailing company, opened Amazon One in February 2021 at Dallas Love Field Airport (DAL).

Key Companies in the Travel Retail market include

• Lagardere Travel Retail (Lagardere Group)


• DFS Group Ltd.


• Dufry AG


• King Power International Group


• Aer Rianta International


• The Nuance Group AG


• Lotte Duty Free (Lotte Hotel)


• Heinemann SE & Co. KG


• Duty Free China Group Co. Ltd. (CDFG)


• Samsung Group

Travel Retail Industry Developments

January 2023: An automated Duty Free point of sale has opened at Brussels Airport thanks to a collaboration between Lagardère Travel Retail Belgium and Atos, a French IT service and consultancy firm. The automated POS was introduced by the businesses to provide travellers with a fresh and distinctive travelling experience.

Travel Retail Market Segmentation

Travel Retail Product Type Outlook

• Cosmetic & Fragrances


• Wines & Spirits


• Confectionery & Fine Foods


• Tobacco Products


• Fashion & Accessories


• Others

Travel Retail Sector Outlook

• Duty Free


• Duty Paid

Travel Retail Sales Channel Outlook

• Airport & Airline Shops


• Seaport & Cruise line Shops


• Border Downtown Hotel Shops


• Others

Travel Retail Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America
  
  
  
  

Report Scope:

Report Attribute/Metric	Details
Market Size 2022	USD 55.1 Billion
Market Size 2023	USD 60.7 Billion
Market Size 2032	USD 132.1 Billion
Compound Annual Growth Rate (CAGR)	10.20% (2023-2032)
Base Year	2022
Market Forecast Period	2023-2032
Historical Data	2018- 2022
Market Forecast Units	Value (USD Billion)
Report Coverage	Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered	Product Type, Sector, Sales Channel, and Region
Geographies Covered	North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered	The U.S., Canada, German, France, U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled	Lagardere Travel Retail (Lagardere Group), DFS Group Ltd., Dufry AG, King Power International Group, Aer Rianta International, The Nuance Group AG, Lotte Duty Free (Lotte Hotel), Gebr. Heinemann SE & Co. KG, Duty Free China Group Co. Ltd. (CDFG), and Samsung Group
Key Market Opportunities	Growing number of millennial and middle income traveller groups
Key Market Dynamics	Rising number of international travelers, affordable travel choices, and rising middle-class population in emerging Asian countries

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