Newark, Nov. 30, 2023 (GLOBE NEWSWIRE) -- The Brainy Insights estimates that the USD 56.35 billion in 2022 global Travel Retail market will reach USD 139.39 billion by 2032. Continued investment in digital technology will enable travel retailers to enhance the customer experience. Opportunities lie in adopting augmented reality (AR) and virtual reality (VR) for virtual try-ons and immersive shopping experiences, as well as AI-driven personalization and chatbots for customer support. Further integration of offline and online channels will create opportunities for retailers to provide seamless, consistent shopping experiences for travellers. This factor includes the ability to pre-order products, pick them up at physical locations, or receive home delivery. In addition, as sustainability and eco-consciousness become more significant to consumers, travel retailers can seize the opportunity to offer environmentally friendly products, such as reusable travel essentials, organic cosmetics, and sustainable fashion. Also, highlighting local and culturally significant products at travel retail locations will attract travellers seeking unique and authentic experiences. Collaborations with local artisans and brands can give travellers a taste of the destination's culture. Furthermore, the demand for health and wellness products, such as supplements, natural cosmetics, and fitness gear, presents opportunities for travel retailers to expand their offerings in this category. Besides, investment in airport infrastructure and developing modern, attractive airport terminals will create opportunities for retailers to establish or expand their presence in these locations.
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Key Insight of the global Travel Retail market
Asia Pacific is expected to witness the highest market growth over the forecast period.
The Asia Pacific region continually invests in modernizing and expanding its airports and transport infrastructure. This investment leads to larger and more attractive travel retail spaces that offer a broader range of products and services to travellers. In addition, the region is quick to adopt e-commerce and digital technologies, enabling travellers to pre-order products, access exclusive promotions, and use digital payment options, enhancing the overall travel retail experience. Asia Pacific is a hub for market innovation. Integrating technology, special events, and partnerships with airlines and tourism organizations enhances the shopping experience, drawing travellers to the retail outlets. Additionally, relative political stability in the region is conducive to business operations and investment, providing a secure environment for retailers to establish and expand their presence. Furthermore, Asia Pacific includes emerging markets with rising middle-class populations and growing outbound travel. This untapped potential presents numerous growth opportunities for travel retail businesses. Besides, expanding retail opportunities to in-flight and in-hotel shopping further extends the reach and growth potential of the travel retail market in the Asia Pacific region.
In 2022, the perfumes & cosmetics segment dominated the market with the largest share of 37.82% and revenue of 21.31 billion.
The product type segment includes perfumes & cosmetics, wine & spirit, electronics, luxury goods, food, confectionery, & catering, tobacco and others. In 2022, the perfumes & cosmetics segment dominated the market with the largest share of 37.82% and revenue of 21.31 billion.
In 2022, the duty-free segment dominated the market with the highest share of 64.75% and market revenue of 36.49 billion.
The sector segment is classified into duty-free and duty paid. In 2022, the duty-free segment dominated the market with the highest share of 64.75% and market revenue of 36.49 billion.
In 2022, the airport segment held the largest market share at 44.68% and a market revenue of 25.18 billion.
The distribution channel segment is divided into airport, cruise liner, railway station and others. In 2022, the airport segment held the largest market share at 44.68% and a market revenue of 25.18 billion.
Advancement in market
In July 2023: DFS Group, a prominent international luxury travel retail provider, is introducing a collection of exclusive experiences designed to provide guests with tailored shopping adventures, harnessing the power of AR and AI technology.
In January 2023: To begin the New Year on a vegan note, Ritter Sport, the renowned German chocolate specialist, is introducing an exclusive travel retail product. Set for a global launch in March, the Travel Retail Edition Vegan Tower, a set of five 100g bars, presents a selection of three non-dairy chocolate varieties in a convenient five-pack. Within the Travel Retail Edition Vegan Tower, consumers will discover a selection of three of the company's 100g vegan chocolate bars, featuring two fresh flavours, Roasted Peanut and Salted Caramel, recently unveiled in domestic markets in January. This exclusive Ritter Sport Vegan Tower is the perfect gift for chocolate enthusiasts who value not compromising on taste while maintaining their vegan lifestyle.
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Market Dynamics
Driver: Consumer preferences.
Modern travellers often value convenience as a top priority. They seek shopping experiences that are quick, hassle-free, and seamlessly integrated into their journey. In response to this preference, travel retail has embraced digital solutions such as pre-ordering and click-and-collect services, allowing travellers to shop and pay for products in advance, reducing waiting times and making shopping more convenient. Additionally, today's travellers seek more than just a transaction; they seek memorable shopping experiences. Travel retailers have responded by creating innovative and immersive environments within airports and other travel hubs. These environments often include concept stores, themed displays, and interactive technology to engage customers and provide a unique and enjoyable shopping experience. Furthermore, the desire for exclusive and limited-edition products is a significant trend in travel retail. Shoppers are drawn to travel retail locations to access items not available in regular stores. Travel retailers frequently collaborate with renowned brands to offer travellers exclusive collections and special editions, making shopping in these locations more attractive. These shifts in consumer expectations have prompted travel retail businesses to adapt and provide more tailored and appealing offerings to travellers.
Restraint: Regulatory barriers.
Stringent customs regulations involve thorough inspections, documentation checks, and compliance verification. These processes can introduce delays in the movement of products across borders. Travel retail businesses may experience hold-ups at customs checkpoints, particularly if the required documentation needs to be in order or if goods are subject to inspection, further slowing down the supply chain. Additionally, complying with complex customs regulations and import/export duties often involves extensive paperwork and administrative procedures. Travel retail companies must allocate resources to manage these administrative tasks, diverting time and workforce from core operations. Moreover, import/export duties can substantially increase the cost of doing business for travel retail businesses. Import duties can drive up the procurement costs of products, reducing profit margins. Likewise, export duties can reduce the competitiveness of domestically produced goods in international markets. These regulations and duties, while necessary for the control of goods and revenue collection, can create hindrances that result in delays, increased costs, and reduced product availability.
Opportunity: Global events and exhibitions.
International events typically attract many participants and attendees, resulting in a considerable boost in foot traffic at airports, event venues, and transportation hubs. This surge in travellers creates a broader customer base for travel retail outlets. Travellers attending international events have time to spare during layovers, event breaks, and transit. They shop and make impulse purchases while awaiting their next activity or travel leg. Furthermore, travel retail businesses often enjoy the event's popularity by offering exclusive and limited-edition products. These event-specific offerings attract shoppers seeking memorabilia and unique items associated with the event. In anticipation of increased foot traffic during events, travel retail outlets frequently run special promotions, discounts, and exclusive deals to incentivize travellers to purchase. These promotional strategies can significantly boost sales. These events unite people from various regions and backgrounds, creating a unique environment for travel retail businesses to capitalize on.
Challenge: Seasonal and regional variations.
Travel retail sales often exhibit pronounced seasonality. Different seasons and holidays can significantly impact the flow of tourists and travellers. For instance, summer vacations, year-end holidays, and major festivals can lead to a surge in travel, resulting in higher sales during these periods. Conversely, off-peak seasons may see reduced foot traffic and lower sales. Climate and weather situations play a critical part in determining travel patterns. Travel retail businesses in locations with distinct seasons may see fluctuations in sales based on weather-related preferences. For instance, destinations with cold winters may experience decreased tourism during the winter months, affecting sales. Furthermore, different travel destinations and hubs have unique regional and location-specific trends. Certain areas may be more popular for summer vacations, while others attract winter sports enthusiasts. These regional variations can impact the travel retail market's performance.
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Some of the major players operating in the global Travel Retail market are:
• Aer Rianta International
• China Duty Free Group
• Dufry AG
• DFS Group (LVMH Group)
• Dubai Duty Free
• Duty Free Americas, Inc.
• Ever Rich Duty Free
• Flemingo
• Gebr Heinemann
• Heinemann SE & Co. KG
• J.R. GROUP
• King Power International Group
• Lotte Duty Free
• Lagardere Travel Retail
• Qatar Duty Free
• Sinsegae Duty Free
• The Shilla Duty Free
• 3Sixty Duty Free
Key Segments cover in the market:
By Product Type
• Perfumes & Cosmetics
• Wine & Spirit
• Electronics
• Luxury Goods
• Food, Confectionery, & Catering
• Tobacco
• Others
By Sector
• Duty-Free
• Duty Paid
By Distribution Channel
• Airport
• Cruise Liner
• Railway Station
• Others
By Region
• North America (U.S., Canada, Mexico)
• Europe (Germany, France, the UK, Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America)
• The Middle East and Africa (UAE, South Africa, Rest of MEA)
About the report:
The market is analyzed based on value (USD Billion). All the segments have been analyzed worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report analyses driving factors, opportunities, restraints, and challenges to gain critical market insight. The study includes Porter's five forces model, attractiveness analysis, Product analysis, supply, and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.
About The Brainy Insights:
The Brainy Insights is a market research company, aimed at providing actionable insights through data analytics to companies to improve their business acumen. We have a robust forecasting and estimation model to meet the clients' objectives of high-quality output within a short span of time. We provide both customized (clients' specific) and syndicate reports. Our repository of syndicate reports is diverse across all the categories and sub-categories across domains. Our customized solutions are tailored to meet the clients' requirement whether they are looking to expand or planning to launch a new product in the global market.
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