Dublin, Oct. 31, 2023 (GLOBE NEWSWIRE) — The “Global Travel Retail Market (by Product Type, Sales Channel, and Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)” report has been added ResearchAndMarkets.com offer
The global travel retail market is poised for significant growth, with an expected value of US$ 75.93 billion by 2023, representing a robust compound annual growth rate (CAGR) of 17.37% during the period forecast from 2022 to 2027.
Travel retail refers to retail establishments primarily located in travel environments such as airports, train stations, cruise lines and more. Recent increases in impulse purchases made while waiting for flights or trains at these travel touch points, particularly airports, have driven the growth of the global travel retail industry. Travel shopping offers many advantages, including convenience, accessibility, a pleasant environment and cost efficiency, attracting customers to these establishments.
Travel retail businesses are closely associated with the travel environment and typically require customers to provide proof of travel to enter the business area, where purchases may be subject to taxes and fees. To attract customers, many stores and companies offer duty-free items.
Coverage segment
- By product type: The global travel retail market is segmented into seven product types: fragrances and cosmetics, wine and spirits, luxury goods, tobacco, food, confectionery and catering, electronics, and others. The luxury goods segment is expected to exhibit the highest growth during the forecast period. This growth can be attributed to increased disposable income, increased exposure to social media, urbanization, and a preference for investments in personal luxury items.
- By sales channel: The market report categorizes the global travel retail market into four sales channels: airport, border, downtown shops and hotels, train stations and cruise ships. The airport segment currently holds the largest share in the travel retail market, driven by the growing number of travelers and technological advancements in airports.
Geographic coverage
The global market is divided into five main regions: Asia Pacific, Europe, North America, Middle East and Africa, and Latin America. North America includes the United States, Canada, and Mexico, while Europe includes the United Kingdom, Germany, France, Spain, and the Rest of Europe.
In addition, South Korea, China and the Rest of Asia Pacific are part of the Asia Pacific region. Asia Pacific dominates the global travel market due to the travel and tourism sector as well as the growth of new international routes in the region. South Korea, in particular, has a thriving duty free market, driven by its position as one of the largest in the world and a growing number of Chinese and Japanese visitors.
Main impact factors
The drivers of growth:
- Dominant Gen Z and Millennial Population: Millennials and Gen Z travelers consider travel a necessity and prioritize unique experiences over traditional luxury, driving demand for travel sales.
- Increase the number of airports: The growing number of airports and air travelers creates a conductive environment for travel retail businesses.
- Increase personal consumption of luxury goods: Increased income and exposure to luxury goods on social media platforms is contributing to increased spending on personal luxury items.
- Increased travel offers: Expanding travel offerings, including leisure travel and personalized experiences, are increasing travel retail sales.
Challenges:
- Lack of Space Availability: Limited space in travel retail stores can pose challenges in merchandising and providing a positive customer experience.
- Annoying air travel requirements: Strict air travel requirements, including security checks and document verification, can deter travelers from shopping at travel outlets.
Trends:
- Implication of Artificial Intelligence: The use of artificial intelligence enhances the travel retail experience and helps retailers tailor offers to customer preferences.
- Digitization of Travel Retail: The digital transformation of travel retail is introducing new ways to engage travelers and improve their shopping experience.
- Growing trend of robotics in Travel Retail: The integration of robotics into travel retail operations is becoming more prevalent, offering efficiency and convenience.
- Technological advances: Technological innovations, such as data analytics and personalized marketing, are shaping the future of airport retail.
The impact of COVID-19
The COVID-19 pandemic has had a significant impact on the travel retail market, with a reduction in traffic, travel restrictions and economic challenges leading to a decrease in demand for travel retail products. However, as vaccination efforts progress and mobility at travel touch points such as airports and train stations increases, the post-pandemic market is expected to regain momentum.
Analysis of key players
The travel retail market is traditionally fragmented, with key companies focusing on analyzing consumer buying behavior and offering tailored retail products. The main players in the market include:
- Dufry AG
- Shilla Shop Duty Free
- LVMH Moet Hennessy Louis Vuitton (DFS Group)
- Hotel Shilla Co., Ltd (The Shilla Duty Free)
- Lagardere Group
- WH Smith PLC
- Shinsegae Inc (Shinsegae Duty Free)
- Lotte Corporation (Lotte Duty Free)
- Dublin Airport Authority (Aer Rianta International Duty-Free LLC)
- Duty Free Americas, Inc.
- China International Travel Service Corporation Limited (China Duty Free Group)
- Hebrew Heinemann SE & Co. KG
- Harding Brothers Retail Ltd (Flemingo International Limited)
- Everrich Duty Free Shop
- Dubai Duty Free
- The King Power International Group
For more information on this report visit https://www.researchandmarkets.com/r/vdwvao
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