Travel Retail Market by Product Type (Perfumes & Cosmetics, Wine & Spirit, Electronics, Luxury Goods, Food, Confectionery, Catering, Tobacco) and Sales Channel (Airports, Cruise liners, Railway Stations, Border, Down-Town & Hotel Shop): Global Opportunity Analysis and Industry Forecast, 2021 - 2028

Travel Retail Market 

The global travel retail market size is expected to reach USD 145.0 Billion by 2028, registering a CAGR of 14.9% during the forecast period. The rise in travel and tourism has raised consumer demand for apparel, cosmetics, food, and technology in the travel retail sector. Additionally, the expansion of the travel retail market is predicted to be fueled by the acceleration of urbanization and changes in lifestyle throughout the course of the forecast year.

Additionally, the market is expanding as a result of improving economic conditions and rising middle-class disposable income. Technical advancements and other factors also contribute to the expansion of the travel retail business. The sector is also predicted to grow as the number of millennials increases.

Trends Influencing the Growth of the Travel Retail Market 

The increase in domestic and international travelers' desire for goods will lead to growth in the travel retail industry. According to the "Indian Tourism and Hospitality Industry Analysis" study by the Indian Brand Equity Foundation (IBEF), 10.89 million foreign tourists visited India in 2019, a 3.2% rise from the previous year. Retailers now provide customized loyalty programs and discounts to cater to travelers' shifting purchasing tastes. As shops raise their earnings from duty-free items as a result of this provision, the industry is expanding.

The increased number of millennial consumers will spend more on travel and tourism, which will boost product sales. The increased number of millennial consumers will spend more on travel and tourism, which will boost product sales. The travel retail market is anticipated to develop as a result of this aspect. In airports that are arranged as inviting retail spaces, travelers have more time to shop, which increases their propensity to spend while traveling. Travel retailers use data insights including in-depth knowledge of the customer's origin and destination to cater to specific wants. Staff and product displays are organized according to the language and cultural sensitivity of arrival passenger groups to ensure that the pertinent products are prominently presented for targeted customers.

Due to minimal advertising and marketing costs, the industry allows SMEs to promote their products to tourists from around the world. The rise in domestic and foreign traveler foot traffic, particularly when it comes to air travel, has had a considerable impact on the expansion of the travel retail business. The development of retail options and infrastructure is another factor promoting rising market trends. 

The travel retail industry has huge development potential thanks to technological advancements that make it easier to detect and analyze customer patterns. In order to cater to the majority of travelers, brand retailers have the opportunity to deploy a loyalty management system to track and assess their clients. Loyalty management systems assist companies in making money in the travel retail market by monitoring customer behavior and enhancing client tracking.

Travel Retail Market Share

The Asia Pacific region would have the highest CAGR of 17.2% between 2021 and 2028. The Asia-Pacific region is anticipated to lead the global market during the course of the analysis since China, India, Thailand, and other nations have a large number of retail enterprises. The market in Asia-Pacific is also predicted to grow at the highest rate due to an increase in the population of high-net-worth individuals and the expansion of the tourism industry.

By Product Type

• Perfumes & Cosmetics
• Wine & Spirit
• Electronics
• Luxury Goods
• Food, Confectionery, & Catering
• Tobacco 

Luxury goods segment would exhibit the highest CAGR of 19.4% during 2021 - 2028.

Based on product type, the luxury goods segment is anticipated to register the highest growth rate during the forecast period in the travel retail market. The purchase of these goods is totally dependent on the economic stability of any region, as the goods are majorly procured by the upper economic classes. Owing to early adoption of a premium lifestyle. Rise in disposable income, exposure to social media, urbanization and preference toward investments on personal luxury goods are some of the factors that further drive the market growth.

By Channel

• Airport
• Cruise Liner
• Railway Station
• Border, Downtown, & Hotel Shop

 Airport segment would exhibit the highest CAGR of 16.4% during 2021-2028.

Railway stations have also witnessed considerable growth over the years. For instance, London's King's Cross Station established an airy-bar restaurant with wooden floors and vintage leather sofas, with an aim to provide comfort to travelers. The station also has various branded stores with different product categories such as clothing and accessories for both men and women, sportswear, music stores with products including audio equipment, CD & vinyl, accessories and others. These factors boost the growth of the travel retail market at railway stations.

By Region

• North America
• Asia-Pacific
• Europe
• LAMEA

Key Companies

• DFS Group
• Dufry,
• LS travel retail
• Lotte Duty Free
• King Power International Group
• The Shilla Duty Free
• Gebr
• Heinemann
• China Duty Free Group
• AerRianta International
• The Naunace Group 

Scope of Travel Retail Market Report