Travel Retail Market to Grow with a CAGR of 8.62% Globally through 2028
Growing trend of shopping at airports, seaports, and duty-free stores
and rising international tourism are the factor driving the global travel
retail market in the forecast period 2024-2028.
According to TechSci Research report, “Global Travel
Retail Market - Industry Size, Share, Trends, Competition Forecast &
Opportunities, 2028”, the Global Travel Retail Market stood at USD 60.56
billion in 2022 and is anticipated to grow with a CAGR of 8.62% in the forecast
period, 2024-2028. Global Travel Retail is strategically positioned in major
transit hubs, making it a significant part of the international retail
landscape. The term "duty-free" indicates that travelers can purchase
goods without paying certain local taxes and import duties, making products
more affordable and attractive. Airports are the most common location for
duty-free shops, but they can also be found in cruise terminals, international
train stations, and even border crossings. This unique shopping environment
caters to an ever-flowing stream of travelers, providing a diverse array of
products. Brands and retailers operating within this sector often use it as a
platform for product launches and promotions. The Global Travel Retail market
has benefited significantly from the rise of international tourism, emerging
middle-class demographics, and the growing demand for luxury and premium goods.
The allure of duty-free shopping and the convenience of finding products not
available in one's home country have made this sector a vital part of the
travel experience.
Browse over XX market data Figures spread
through XXX Pages and an in-depth TOC on "Global Travel Retail Market”.
The evolving preferences and behaviors of consumers
have a profound impact on Global Travel Retail. Travelers' buying habits are
shaped by various factors, including changing fashion trends, health and
wellness considerations, environmental awareness, and digital technology. For
instance, there has been a notable shift toward sustainable and ethically
sourced products, leading brands to introduce eco-friendly options in their
portfolios. Furthermore, the rise of e-commerce and the ability to pre-order
products online before a trip have disrupted the traditional duty-free shopping
experience. Travelers now expect a seamless omnichannel shopping journey,
blending both physical and digital interactions. The industry must adapt by
embracing technology and offering a diverse product range that aligns with
these evolving consumer preferences.
The ebb and flow of international tourism trends play
a crucial role in the success of Global Travel Retail. As the number of
international travelers continues to increase, so does the potential customer
base for duty-free shops. Emerging economies with a growing middle class, such
as China and India, have become important sources of tourism. Additionally, the
rise of long-haul travel and improved connectivity between regions extends the
reach of Global Travel Retail, creating opportunities for retailers and brands
to connect with a diverse global audience. Economic conditions both globally
and within specific regions significantly affect Global Travel Retail. The
sector is sensitive to economic fluctuations as travelers' disposable income
directly impacts their spending habits. During periods of economic growth,
consumers are more inclined to indulge in luxury and premium purchases, which
can boost revenue in the duty-free market. Conversely, during economic
downturns or recessions, travelers may tighten their belts and reduce
discretionary spending. The COVID-19 pandemic serves as a recent example, where
widespread travel restrictions and economic uncertainty led to a dramatic
decline in sales. Economic conditions can be cyclical, and the industry must
adapt to these fluctuations to maintain growth and profitability. The global travel
retail market is segmented into product type, distribution
channel, regional distribution, and company.
Based on distribution channel, the market is segmented
into airports, cruise liners, railway stations, border, downtown and hotel
shops. Downtown and hotel shops are emerging as a rapidly growing segment in
global travel retail. These retail locations, often situated in major urban
centers and hotels, cater to a diverse customer base, from international
tourists to local consumers. They offer convenience, luxury products, and a
unique shopping experience, making them increasingly popular. The appeal of
these segments extends beyond traditional duty-free offerings, encompassing
diverse product categories, from fashion to artisanal goods. These locations
effectively engage travelers and have the potential to capture a captive
audience of hotel guests. Their adaptability to changing consumer preferences
positions them as a prominent and promising sector within global travel retail.
Major companies operating in Global Travel Retail Market
are:
- Aer Rianta International
- DFS Group Ltd.
- Dubai Duty Free.
- King Power International
- Hotel Shilla Co., Ltd.
- Flemingo
- J.R. Group
- China Duty Free Group Co., Ltd.
- Gebr. Heinemann SE & Co. KG
- Duty Free Americas, Inc.
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“Global Travel Retail, also known as duty-free
shopping, represents a dynamic and evolving sector within the retail industry.
It thrives at international transit hubs, offering a range of products at
reduced tax and duty rates. This market's growth is driven by international
tourism trends, economic conditions, changing consumer preferences, and
regulatory policies. The COVID-19 pandemic posed a severe challenge by limiting
travel and sales, pushing the industry to adapt to evolving consumer behavior
and digital engagement. Post-pandemic, the sector seeks to rebound and
innovate, focusing on improving the traveler's shopping experience and
capitalizing on renewed demand for global mobility,” said Mr. Karan Chechi,
Research Director with TechSci Research, a research-based management consulting
firm.
“Travel
Retail Market – Global Industry Size, Share, Trends, Opportunity, and Forecast,
Segmented By Product Type (Fashion & Accessories, Food & Confectionary,
Fragrances & Cosmetics, Wine & Spirits, Others (Stationery,
Electronics, Watches, etc.)), By Distribution Channel (Airports, Cruise Liners,
Railway Stations, Border, Downtown and Hotel Shops), By Region, Competition”,
has evaluated the future growth potential of global travel retail market and
provides statistics & information on market size, structure and future market
growth. The report intends to provide cutting-edge market intelligence and help
decision makers take sound investment decisions. Besides, the report also
identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in the global travel retail market.
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