Travel Retail Global Market Report 2022: Leading Brands Are Aggressively Looking for Digital Platforms

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Apr 25, 2023, 11:15 ET

DUBLIN, April 25, 2023 /PRNewswire/ -- The "Travel Retail Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2022 To 2030" report has been added to ResearchAndMarkets.com's offering.

Industry Outlook

The global travel retail sector is not limited to only airports; it also includes cruise lines, ferries, and ports. However, an airport still enjoys the pole position in the market and is expected to remain the dominant player in the upcoming years. The travel retail market was valued at US$ 74.31 Bn in 2019 and for the last two decades, the travel retail market has grown constantly.

However, with the onset of the ongoing COVID-19 pandemic and the resulting travel restrictions, some of the major airports witnessed a drop in international passengers by about 90% for the months of March, April, and May 2020. Thereby, retail sales in the global retail market took a significant hit in the 1st half of 2020. Some of the key observations for international travel in the 1st half of 2020 include:

Major airports across the world witnessed a decline in passengers by about 60%
Leading duty-free operators experienced a 55% to 65% fall in turnover
Popular beauty brands saw a decline of about 20% in overall sales
People traveling for work during the pandemic have significantly avoided visiting retail stores at airports thereby, impulsive sales of leisure products have taken a hit

As a result, the travel retail market which was valued at US$ 74.31 Bn in 2019 is estimated to reach only US$ 33.43 Bn in 2020, registering a year-on-year decline of over 55%. However, with expected relaxations in travel restrictions from the start of 2021, the market can expect a steady increase in retail sales during the forecast period from 2020 to 2028. However, at a conservative growth forecast of about 4.1% during the forecast period, the travel retail market is expected to reach US$ 51.78 Bn by 2021. Some of the factors driving this estimated growth include an uptick in international travel post COVID-19 restrictions, travel retailers adopting digital technologies to drive online sales, and promotional activities planned by leading retailers.

Growing demand for perfumes & cosmetics sub-segment by product category type is likely to propel the market in upcoming years

In 2020, the perfumes & cosmetics segment accounted for the major market share and expected to maintain its dominance over the forecast period. The wine & spirits and fashion & accessories segment followed the perfumes & cosmetics segment with a substantial market share in the base year 2021.

Furthermore perfumes & cosmetics segment expected to witness the highest CAGR in upcoming years owing to the increasing demand for branded products from Asia Pacific consumers.

Airport segment expected to dominate the travel retail market by sales channel throughout the forecast period

Though it has been observed that only 5-10% of the total number of travelers at airport tend to visit duty-free shops, the airport segment accounted for over 50% market share of the global travel retail market in terms of market value in 2020. Market players are also paying more attention to the comfort and convenience of the customers coming to the airport.

For instance, several major airports have already started investing in increasing their online retail sales such as Heathrow Airport's Heathrow Boutique and Brisbane airport's BNE Marketplace . Thereby, several major airports are expected to adopt such digital platforms to drive retail sales to offer higher convenience and health safety for travelers.

Growing demand from the Asia Pacific projected to catapult the market growth

Asia-Pacific travel retail market held the largest market value share in 2019. In 2019, Asia Pacific witnessed an increase in sales by 9% whereas other regions posted stagnant or negative growth. With post COVID-19 travel restriction relaxations, the region is expected to witness higher growth as compared to other regions due to the large base of international travelers for both business and leisure purposes.

Leading brands are aggressively looking for digital platforms

As a part of strategic development leading companies such as Revlon, Estee Lauder, Rituals Cosmetics, L'Oreal, and others with an exclusive and wide range of fragrances and skin care products; expanding their offerings over digital platforms at every international airport. Aer Rianta International (ARI), China Duty Free Group (CDFG), DFASS Group, DFS Group, Dufry AG, Gebr. Heinemann SE & Co. KG, King Power International Group, Lotte Group, Lagardere Group, The Naunace Group and The Shilla Duty Free among others are some of the prominent players in the global travel retail market.

Segmentation Product Category

Perfumes and Cosmetics
Wines and Spirits
Fashion and Accessories
Tobacco Products
Watches and Jewellery
ElecTravel Retailonics and Gifts
Confectionery and Fine Foods

Sales Channel

Airport
Airlines
Ferries and Cruises
Other Shops and Sales

Key questions answered in this report

What are the key micro and macro environmental factors that are impacting the growth of Travel Retail market?
What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
Estimated forecast and market projections up to 2030.
Which segment accounts for the fastest CAGR during the forecast period?
Which market segment holds a larger market share and why?
Are low and middle-income economies investing in the Travel Retail market?
Which is the largest regional market for Travel Retail market?
What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
Which are the key trends driving Travel Retail market growth?
Who are the key competitors and what are their key strategies to enhance their market presence in the Travel Retail market worldwide?

Key Topics Covered:

1. Preface

2. Executive Summary

3. Travel Retail Market: Business Outlook & Market Dynamics

4. Travel Retail Market: By Product Category, 2020-2030, USD (Million)

5. Travel Retail Market: By Sales Channel, 2020-2030, USD (Million)

6. North America Travel Retail Market, 2020-2030, USD (Million)

7. UK and European Union Travel Retail Market, 2020-2030, USD (Million)

8. Asia Pacific Travel Retail Market, 2020-2030, USD (Million)

9. Latin America Travel Retail Market, 2020-2030, USD (Million)

10. Middle East and Africa Travel Retail Market, 2020-2030, USD (Million)

11. Company Profile

Companies Mentioned

Aer Rianta International (ARI)
China Duty Free Group (CDFG)
DFASS Group
DFS Group
Dufry AG
Gebr. Heinemann SE & Co. KG
King Power International Group
Lotte Group
Lagardere Group
The Naunace Group
The Shilla Duty

For more information about this report visit https://www.researchandmarkets.com/r/my6zjw

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