Travel Retail Market Trends

Global Travel Retail Market Overview

Travel Retail Market Size was valued at USD 62040.7 million in 2022. The Travel Retail market industry is projected to grow from 2022 to USD 176449.1 million by 2032, exhibiting a compound annual growth rate (CAGR) of 10.8% during the forecast period (2022 - 2032). 

The Travel Retail Market is expected to witness significant growth in the coming years, driven by the rising number of international and domestic Travelers. Travel retail refers to the sale of goods and services to Travelers at locations such as airports, train stations, cruise terminals, and border shops. One key factor contributing to the increasing popularity of duty-free shopping is the evolving travel experience. Travelers today are not merely journeying from point A to point B; they are seeking an enriched experience during their travels. Duty-free stores have adapted to meet this demand by offering more than just a place to buy goods. Moreover, the growing popularity of duty-free shopping in the Travel Retail Market can be attributed to a combination of factors. The evolution of duty-free stores into experiential spaces, the introduction of premium brands, convenience, inclusivity, e-commerce integration, airline partnerships, and sustainability initiatives have collectively reshaped the perception and appeal of duty-free shopping.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Travel Retail Market Trends

• Growing Popularity of Duty-Free Shopping

Duty-free shopping has seen a remarkable surge in popularity within the Travel Retail Market. This trend can be attributed to several factors that have reshaped the way Travelers perceive and engage with duty-free stores. With a focus on the changing dynamics and consumer preferences, this article explores the significant rise in the allure of duty-free shopping and its impact on the global travel retail industry. One key factor contributing to the increasing popularity of duty-free shopping is the evolving travel experience. Travelers today are not merely journeying from point A to point B; they are seeking an enriched experience during their travels. Duty-free stores have adapted to meet this demand by offering more than just a place to buy goods. These shops have transformed into vibrant spaces that offer a glimpse into the culture and identity of the destination. 

They serve as microcosms of the region, selling products unique to the area and providing a sense of place even before Travelers reach their destination. Furthermore, the duty-free shopping experience has been redefined with the introduction of premium brands. Global luxury brands have recognized the value of airport and travel retail spaces as prime locations to showcase their products. Travelers can now indulge in exclusive, high-end shopping experiences while awaiting their flights. The allure of purchasing luxury items at duty-free prices has significantly elevated the status of these stores among frequent Travelers. Additionally, the convenience factor plays a pivotal role in the growing preference for duty-free shopping. 

Airport duty-free stores are strategically positioned within terminals, making them easily accessible to Travelers. This convenience factor is further amplified by the range of products available, from cosmetics and fragrances to electronics and fashion. Travelers can efficiently fulfill their shopping needs and make the most of their time before departure or during layovers, enhancing the overall travel experience. Moreover, the duty-free shopping landscape has become more inclusive and diverse, catering to a broader range of Travelers. Retailers have recognized the importance of offering a wide selection of products to meet the diverse tastes and preferences of their customers. This inclusivity extends to providing items that appeal to various age groups, demographics, and backgrounds. As a result, duty-free stores have become places where every traveler can find something that resonates with them. 

The growth of e-commerce has also played a pivotal role in the popularity of duty-free shopping. Many travelers now research and browse products online before their journey, which includes exploring duty-free options. Duty-free retailers have adapted by offering online pre-order services, allowing travelers to reserve products in advance and pick them up at the airport. This not only enhances convenience but also ensures that travelers can secure their desired items at duty-free prices, especially when it comes to limited-edition or high-demand products. Furthermore, the global travel retail industry has witnessed an increase in partnerships between airlines and duty-free operators. Airlines have recognized the potential to generate additional revenue by promoting duty-free shopping to their passengers.

Travel Retail Product Type Insights

The Travel Retail Market segmentation, based on product type, includes fragrances and cosmetics, food, confectionery & catering, wine and spirits, fashion & accessories, tobacco products, and others. The fashion & accessories segment accounted for the largest market share of 36% in 2022 and is likely to register a CAGR of 10.6% during the projected period. The "Fashion and Accessories" product type in the Travel Retail Market encompasses a wide range of clothing, footwear, handbags, jewelry, sunglasses, watches, and other fashion-related items sold at airports, duty-free shops, and travel retail outlets. This category plays a pivotal role in driving the travel retail market by tapping into travelers' desire for style, luxury, and the unique shopping experience that comes with exploring international destinations. 

It capitalizes on several key factors, including brand prestige, exclusivity, and the allure of duty-free shopping, making it a dynamic and influential segment. First and foremost, the Fashion and Accessories category thrives on the aspirational aspect of travel. Travelers often associate their journeys with adventure, new experiences, and the opportunity to elevate their style. Duty-free shops and airport boutiques strategically showcase a curated selection of designer and luxury fashion brands, creating a sense of exclusivity and sophistication. Travelers are enticed to invest in premium clothing, accessories, and jewelry as tangible reminders of their travels, driving sales and revenue for the travel retail industry. The appeal of duty-free shopping is a significant driver within this category. Travelers recognize the potential for cost savings when purchasing high-end fashion and accessories without the burden of import duties or taxes. This pricing advantage encourages travelers to make purchases they might not consider in their home markets, thereby contributing to higher sales volumes.

Figure 1: Travel Retail Market, by Product Type, 2022 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Travel Retail Demographic Insights

The Travel Retail Market segmentation, based on demographics, includes millennials, middle-aged, and seniors. The millennial segment accounted for the largest market share of 37% in 2022. Millennials, the generation, constitute a significant and influential demographic in the travel retail market. With their distinctive preferences and spending habits, understanding this generation is crucial for businesses operating in the duty-free sector. According to recent data, a substantial 47% of Millennials visit duty-free shops during their travels, indicating a substantial portion of this demographic actively engages with these retail spaces. The appeal of duty-free shopping to Millennials can be attributed to several factors. First and foremost, the allure of tax-free prices is a compelling incentive. Millennials, often seeking value for their money, are drawn to the potential savings that duty-free shopping can offer. The opportunity to purchase luxury items, such as high-end cosmetics, fragrances, and electronics, at reduced prices significantly resonates with this generation's desire for affordability without compromising on quality. Moreover, the convenience of duty-free shops within airports and other travel hubs aligns perfectly with the fast-paced, on-the-go lifestyle that many Millennials lead.

Figure 1: Travel Retail Market, by Demographic, 2022 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Travel Retail Market Segment Insights:

Travel Retail Sales Channel Insights

The Travel Retail Market segmentation, based on sales channels, includes airports & airline shops, cruise lines, and border downtown & hotel shops. The airports & airline shops segment held the majority share in 2022 concerning the Travel Retail Market revenue. In the travel retail market, sales channels within airports and airline shops are primarily driven by a combination of factors that cater to the unique needs and preferences of travelers. Firstly, convenience plays a pivotal role as time-pressed passengers seek quick and hassle-free shopping experiences. Airport retailers strategically position stores throughout terminals, making them easily accessible to departing and arriving travelers. Additionally, the allure of duty-free shopping entices customers with the promise of tax-free or reduced-tax prices on a wide array of products, including luxury items like perfumes, cosmetics, and liquor, which are particularly popular among international travelers. The sense of exclusivity and savings associated with duty-free shopping often acts as a strong incentive. Moreover, the travel retail market capitalizes on the aspirational nature of travel by showcasing premium and high-end brands. Luxury boutiques and designer stores are a common sight in airport terminals, appealing to affluent travelers seeking prestige and indulgence.

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

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Travel Retail Category Insights

The Travel Retail Market segmentation, based on category, includes standard and luxury. The Standard segment accounted for a higher market share in 2022 and is expected to witness the highest CAGR. Standard categories in the travel retail market encompass a diverse range of products designed to meet the varying needs and desires of travelers. These categories include duty-free goods like alcohol and luxury items, travel essentials such as toiletries and luggage, fashion and apparel offerings, a wide array of electronics and gadgets, an assortment of food and beverages, luxury goods like high-end fashion and jewelry, and souvenirs and gifts. These categories play a pivotal role in driving the travel retail market by not only catering to travelers' diverse preferences but also by capitalizing on the allure of duty-free shopping, where tax exemptions make products more affordable. Additionally, they leverage the concept of experiential shopping within airport environments, encouraging impulse purchases and boosting overall sales and revenue.

Figure 2: Travel Retail Market, by Category, 2022 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Travel Retail Regional Insights

By Region, the study segments the market into North America, Europe, Asia Pacific, and the Middle East & Africa. Asia Pacific Travel Retail market accounts for the largest market share 65.0% in 2022 and is expected to exhibit a 10.3% CAGR due to the rapidly growing tourism industry in the region. The Asia-Pacific region has emerged as a dynamic and thriving hub for the travel retail market, captivating travelers from around the world with its unique blend of cultures, landscapes, and experiences. From the bustling airports of Beijing to the tropical paradises of Bali, Asia-Pacific offers an enticing array of shopping opportunities that cater to the diverse tastes and preferences of globetrotters. Further, the China Travel Retail market held the largest market share, and the India Travel Retail market was the fastest-growing market in the region.

Further, the major countries studied are The U.S., Canada, Mexico, Germany, France, UK, Italy, Spain, China, Japan, India, South Korea, GCC Countries, Brazil, Argentina, Turkey, Northern Africa and Southern Africa.

Figure 3: TRAVEL RETAIL MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The North American travel retail market is a dynamic and evolving sector that plays a crucial role in enhancing the travel experience for millions of tourists and travelers each year. This market encompasses a wide array of products and services, ranging from duty-free shops at airports and cruise terminals to in-flight sales and even land-based travel retail outlets. With its ability to cater to the diverse needs and preferences of travelers, the North American travel retail market has become a significant player in the global travel and tourism industry. One of the key factors contributing to the growth of the North American travel retail market is its strategic location. North America serves as a major hub for international travel, with countless visitors passing through its airports and cruise ports annually. This provides a substantial customer base for travel retail businesses, allowing them to offer an extensive range of products and services to a diverse group of travelers from various parts of the world. Travelers often seek convenience and variety during their journeys, and the North American travel retail market is designed to deliver precisely that. Whether you're looking for high-end luxury goods, locally crafted souvenirs, or everyday essentials, you'll find a wide selection of options at these retail outlets. From designer clothing and accessories to electronics, cosmetics, and spirits, the travel retail market caters to a multitude of preferences. The North America Travel Retail market comprised the US, Canada, & Mexico, among which the US emerged as the frontrunner.

The Europe Travel Retail market is expected to grow at a CAGR of 12.7% from 2022 to 2032. The European travel retail market is a dynamic and ever-evolving sector that plays a vital role in the continent's economy. This industry has undergone significant changes and challenges, leaving a profound impact on both the retail landscape and the broader European economy. One of the most striking findings from the report is the substantial economic contribution made by the European travel retail sector. It reveals that the industry generated an impressive sale in 2019, with this number projected to continue its growth trajectory in the coming years. This significant financial contribution underscores the sector's importance as a key player in the European business landscape. Moreover, the travel retail market has a significant impact on employment, with over 400,000 direct and indirect jobs created across Europe in 2019.

The Asia-Pacific Travel Retail market is a dynamic and growing sector. The Asia-Pacific region has emerged as a dynamic and thriving hub for the travel retail market, captivating travelers from around the world with its unique blend of cultures, landscapes, and experiences. From the bustling airports of Beijing to the tropical paradises of Bali, Asia-Pacific offers an enticing array of shopping opportunities that cater to the diverse tastes and preferences of globetrotters. One of the key drivers of the travel retail market in Asia-Pacific is the region's rapidly growing tourism industry. Countries like China, Japan, and South Korea have experienced a surge in international visitors, creating a substantial customer base for travel retail outlets. Tourists are drawn to Asia-Pacific for its rich heritage, stunning natural beauty, and vibrant urban centers, making shopping at airports and duty-free stores an integral part of their travel experience. Asia-Pacific's status as a global economic powerhouse has also significantly contributed to the growth of the travel retail market. Booming economies, rising incomes, and an expanding middle class have led to increased consumer spending, particularly on luxury and premium goods.  Moreover, the China Travel Retail market held the largest market share, and the India Travel Retail market was the fastest-growing market in the Asia-Pacific region.

The Middle East and Africa (MEA) market has witnessed a notable evolution in its Travel Retail market, The Middle East & Africa (MEA) region has always been a fascinating mosaic of cultures, landscapes, and historical treasures, making it an increasingly popular destination for global travelers. This diverse region has a travel retail market that reflects its eclectic mix of traditions and modernity, and, like the rest of the world, it has faced unique challenges due to the COVID-19 pandemic. In the wake of the pandemic, the MEA travel retail market experienced a substantial slowdown, mirroring the global trends. However, it's important to acknowledge the region's remarkable resilience and determination in the face of adversity. One of the defining characteristics of the MEA travel retail market is its adaptability. As countries in the region gradually reopen their borders and vaccination campaigns progress, retailers are swiftly adjusting their strategies to cater to travelers' evolving needs. They have embraced enhanced safety measures, contactless payment options, and digital experiences to provide a safe and convenient shopping environment.

Travel Retail Key Market Players & Competitive Insights

The Travel Retail market is a dynamic and multifaceted industry, reflecting a wide spectrum of consumer preferences and demands. This market is segmented by several key factors, including product types, demographics, sales channels, category, and region. One of the primary drivers of the Travel Retail market is the increasing focus on delivering exceptional shopping experiences to travelers. As travelers seek more than just standard products, retailers are dedicated to offering a diverse range of exclusive and premium items, tailored to the tastes and preferences of a diverse customer base. The Travel Retail market is also profoundly influenced by evolving consumer trends associated with travel and lifestyle. Travelers are now looking for personalized and memorable experiences, leading to the development of innovative concepts like experiential retail and interactive shopping spaces within airports and transportation hubs. Retailers are harnessing technology to enhance the customer journey, providing features such as digital catalogs, mobile payment options, and virtual shopping assistants. Furthermore, sustainability and responsibility are emerging as significant trends in the Travel Retail market.

Key Companies in the Travel Retail market include

• Heinemann SE & Co. KG (Germany)


• Dufry AG (Switzerland)


• Lagardère (France)


• DFS Group Ltd (Hong Kong)


• Lotte Duty Free(France)


• The Shilla Duty Free(Singapore)


• Aer Rianta International (Ireland)


• China Tourism Group(China)


• King Power Corporation(Thailand)


• Ever Rich (Taiwan)


• Duty Free Americas (US)

Travel Retail Industry Developments

September 2023: Shilla Duty-Free has unveiled a strategic partnership with Naver, Korea's leading portal site, to advance the retailer's digital transformation efforts and provide enhanced integrated benefits for its shoppers. This collaboration underscores Shilla's commitment to leveraging digital technology to improve the shopping experience and offer innovative solutions to its customers

July 2023: Dufry inaugurated its latest duty-paid retail outlet within Vitória airport following the establishment of a decade-long agreement with Zurich Airport Brasil.". Lagardère Travel Retail strengthens its strategic Partnership with Inflyter

Travel Retail Market Segmentation

Travel Retail Product Type Outlook

• Fragrances and Cosmetics


• Food, Confectionery & Catering


• Wine and Spirits


• Fashion & Accessories


• Tobacco Products


• Others

Travel Retail Demographics Outlook

• Millennials


• Middle-Aged


• Seniors

Travel Retail Sales Channel Outlook

• Airports & Airline Shops


• Cruise Lines


• Border Downtown & Hotel Shops

Travel Retail Category Outlook

• Standard


• Luxury

Travel Retail Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


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


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia & New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of South America
  
  
  
  


• Middle East & Africa
  
  
  
  • GCC Countries
  
  
  • Turkey
  
  
  • Northern Africa
  
  
  • Southern Africa