The latest report by IMARC Group, titled “Travel Retail Market: Global Industry Trends, Share, Size, Growth, Opportunity, and Forecast 2022-2027”, finds that the global travel retail market size reached US$ 52.50 Billion in 2021. Travel retail refers to the sales of goods and services to international travelers during transit. The trade is generally conducted in travel environments, including seaports or airports, where customers require proof of travel to access the commercial area. It is also conducted in hotels, border ships, international aircraft, cruises, ferries, and other marine vessels on international waters. Travel retail usually requires the purchaser to spend a minimum amount of time outside the country and the retail shops accept payments inclusive of the local and national taxes and excise duties. Some of the commonly available products through travel retail include perfumes, fashion accessories, premium alcohols, food and beverages, beauty personal care products, tobacco, and electronics.
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
One of the primary factors driving the market is the rapidly expanding travel and tourism industry worldwide. Travel retail generates vital revenues for national aviation, travel and tourism industries and is now the largest contributor to non-aeronautical income. Besides this, the rising preferences of international travelers for premium wines and spirits are catalyzing the market growth. Furthermore, the expanding e-commerce travel retail solutions have enabled retailers to offer their products through websites and smartphone applications, making it convenient for customers to pre-order products and collect them on arrival. Apart from this, constant technological advancements, such as the advent of touch screens and interactive retail kiosks, are strengthening the market growth. Other growth-inducing factors include the implementation of favorable government policies to promote international tourism in developing nations, the rising millennial population, rapid urbanization, and changing lifestyles. Looking forward, IMARC Group expects the market value to reach US$ 82.57 Billion by 2027, expanding at a CAGR of 7.60% during the forecast period (2022-2027).
- Based on the product type, the market has been divided into perfume and cosmetics, wine and spirit, electronics, luxury goods, food, confectionery and catering, tobacco, and others.
- On the basis of the sector, the market has been classified into duty-free and duty-paid.
- Based on the distribution channel, the market has been segmented into airports, cruise liners, railway stations, and borders, downtown, and hotel shops.
- Region-wise, the market has been categorized into North America (the United States and Canada), Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico, and others), and Middle East and Africa
- The competitive landscape of the market has also been analyzed, with some of the key players being Aer Rianta International, China Duty Free Group Co. Ltd., Dufry AG, Duty Free Americans Inc, Gebr. Heinemann SE& Co. KG, KING POWER International, Lagardere S.A., Lotte Hotels & Resorts (Lotte Corporation), LVMH Moet Hennessy Louis Vuitton, and The Shilla Duty Free (Hotel Shilla Co. Ltd.)
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