DUBLIN, November 3, 2023 /PRNewswire/ — 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 to ResearchAndMarkets.com supply.
The global travel retail market is poised for significant growth with a projected value of 75.93 billion US dollars to 2023, representing a stable compound annual growth rate (CAGR) of 17.37% over the forecast period of 2022 to 2027.
Travel retail refers to retail outlets located primarily in tourist environments such as airports, train stations, cruise lines, etc. Recent surges in impulse purchases made while waiting for flights or trains at these travel touchpoints, especially airports, are fueling the growth of the global travel retail industry. Travel shopping offers several advantages, including convenience, affordability, pleasant atmosphere and cost-effectiveness, attracting customers to these establishments.
Travel retail businesses are closely related to the tourism environment and typically require customers to provide proof of travel to enter the retail area, where purchases may be subject to taxes and tariffs. To attract customers, many shops and companies offer duty-free goods.
Segment coverage
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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 show the highest growth during the forecast period. This growth can be attributed to rising disposable incomes, increased exposure to social media, urbanization and investment preferences in personal luxury items.
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By sales channel: The market report categorizes the global travel retail market into four sales channels: airport, border, hub and hotel stores, railway stations and cruise ships. The airport segment currently holds the largest share of the travel retail market, driven by increasing passenger numbers and technological advancements at airports.
Geographic coverage
The global market is divided into five main regions: Asia and the Pacific, Europe, North Americaon Middle East and Africaand Latin America. North America covers the US, Canadaand Mexicowhile Europe includes Great Britain, Germany, France, Spainand the rest of Europe.
Furthermore, South Korea, Chinaand the rest of Asia and the Pacific are part of Asia and the Pacific region. Asia and the Pacific dominates the global travel retail market due to the booming travel and tourism sector as well as the growth of new international routes in the region. South Koreain particular, it has a thriving duty-free market, driven by its position as one of the largest in the world and the growing number of Chinese and Japanese visitors.
Major influencing factors
Growth drivers:
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Dominant Generation Z and Millennial Population: Millennial and Gen Z travelers view travel as a necessity and prioritize unique experiences over traditional luxury, driving travel retail demand.
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Increasing number of airports: The growing number of airports and air passengers creates a favorable environment for the travel services business.
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Increased personal consumption of luxury goods: Rising incomes and exposure to luxury goods on social media platforms are contributing to increased spending on personal luxury items.
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Increased travel offers: Expanding travel offerings, including leisure travel and personalized experiences, boosts travel retail sales.
Challenges:
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Lack of space: Limited space in travel stores can create challenges in merchandising and providing a positive customer experience.
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Annoying air travel requirements: Strict requirements for air travel, including security checks and document verification, can deter travelers from shopping at travel outlets.
Trends:
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Involvement of artificial intelligence: The use of artificial intelligence improves the retail travel experience and helps retailers tailor offers to customer preferences.
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Digitization of Travel Retail: The digital transformation of travel retail is introducing new ways to engage travelers and improve their shopping experience.
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Emerging Robotics Trend in Travel Retail: The integration of robotics into travel retail operations is becoming more common, offering efficiency and convenience.
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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 reduced visitation, travel restrictions and economic challenges leading to reduced demand for retail travel products. However, as vaccination efforts advance and mobility increases at travel touchpoints such as airports and train stations, the post-pandemic market is expected to regain momentum.
Analysis of key players
The travel retail market has traditionally been fragmented, with key companies focusing on analyzing consumer buying behavior and offering personalized retail products. The leading players in the market include:
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Dufry AG
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Shilla Duty Free Shop
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LVMH Moet Hennessy Louis Vuitton (DFS Group)
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Hotel Shilla Co., Ltd (The Shilla Duty Free)
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Lagardere Group
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WH Smith PLC
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Shinsegae Inc (Shinsegae Duty Free)
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Lotte Corporation (Lotte Duty Free)
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Dublin Airport (Aer Rianta International Duty-Free LLC)
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Duty Free Americas, Inc.
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China International Travel Service Corporation Limited (China Duty Free Group)
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Gebr. Heinemann SE & Co. KG
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Harding Brothers Retail Ltd (Flemingo International Limited)
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Everrich Duty Free Shop
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Dubai Duty free
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King Power International Group
For more information on this report, visit https://www.researchandmarkets.com/r/ctynut
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SOURCE Research and Markets