Pune, India, May 05, 2022 (GLOBE NEWSWIRE) — The world travel retail market The size is expected to reach USD 96.11 billion by 2029 and grow at a CAGR of 8.1% during the forecast period. The growing number of international travelers is likely to drive the growth of the market. Fortune Business InsightsMT presented this information in its report entitled, “Travel Retail Market, 2022-2029”. The market size stood at USD 51.28 billion in 2021 and USD 55.74 billion in 2022.
Additionally, the rising popularity of sustainable duty-free shopping is a key trend that is expected to amplify the market growth in the coming years.
Impact of COVID-19-
Strict lockdowns imposed during the pandemic have negatively impacted the growth of the market. The global ban on air travel during the severe waves of the pandemic has affected the growth of the market. The growing number of air passengers amid the resumption of airline operations has helped the market retain traction. Nevertheless, the increase in air travel and the demand for personal protective equipment and products such as gloves, face masks and sanitizers are expected to create lucrative growth for travel retail in the coming years.
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Fortune Business Insights™ lists all companies in the travel retail market currently working to reduce the impact of the Covid-19 pandemic on the market:
- Lagardère Travel Retail (Lagardère Group) (France)
- DFS Group Ltd. (Hong Kong)
- Dufry AG (Basel, Switzerland)
- King Power International Group (Thailand)
- Aer Rianta International (Ireland)
- The Nuance Group AG (Switzerland)
- Lotte Duty Free (Lotte Hotel) (South Korea)
- Heinemann SE & Co. KG (USA)
- China Duty Free Group Co.Ltd. (CDFG) (China)
- Flemingo (South Korea)
Drivers and Constraints-
Increase in the number of international travelers to drive the growth of the market
Growing demand for the products due to growing number of international and domestic travelers is expected to support the growth of the travel retail market. Improving income levels and increasing travel expenditures of the millennial population are expected to be key factors driving the growth of the market. Data released by the World Travel and Tourism Council (WTTC) in November 2021 estimated a 34.9% increase in the French travel and tourism industry in 2021.
The launching of promotional campaigns by key companies to entice customers to purchase duty-free products is likely to increase product demand and stimulate travel retail.
Additionally, the growing trend of sustainable duty-free shopping is likely to be a key trend to expand market growth. The increasing adoption of environmentally friendly and sustainable practices, including biodegradable packaging, reduce and recycle, and others, by air travel retailers is expected to complement the growth of the market.
However, high product prices may hamper market growth due to low demand.
Travel retail market Report Scope and Segmentation:
|Forecast Period 2022 to 2029 CAGR||8.1%|
|2029 value projection||$96.11 billion|
|Year of reference||2021|
|Market size in 2021||$51.28 billion|
|Historical data for||2018 to 2020|
|Number of pages||175|
|Segments Covered||By product type, by industry, by sales funnel, by region|
|Growth engines||Increase in the number of international travelers to drive the growth of the market|
|Asia-Pacific will hold the lion’s share|
|Key players are emphasizing adoption of e-commerce to grow their business globally|
|Pitfalls and Challenges||High product prices to limit product demand|
Browse Detailed Abstract of Research Report with TOC:
- It provides in-depth market details and offers vital information on various market segments: product type, sales channels, industries and others.
- It provides information on current trends in travel retail.
- It highlights major advances in the industry.
- It includes various direct and indirect variables that complement market growth.
- It includes a detailed review of the impact of the COVID-19 pandemic on the market.
Based on product type, the market is fragmented into fashion and accessories, tobacco products, confectionery and delicatessen, beverages, cosmetics and others. On the basis of sector, the market is divided into duty paid and duty free. Based on the sales channel, the market is segmented into downtown border hotel shops, seaport and cruise shops, airport and airline shops, and others. Geographically, the market is categorized into South America, North America, Middle East & Africa, Asia-Pacific, and Europe.
Asia-Pacific will hold the lion’s share
Asia-Pacific is expected to gain the largest travel retail market share. High spending on duty-free goods from international and domestic travel in countries such as South Korea, India and China is expected to fuel growth in Asia-Pacific. Additionally, growing partnerships among duty-free retailers for business expansion are expected to drive the market growth.
Europe is expected to show substantial growth in the coming years. Growing infrastructure development for travel and tourism is expected to drive the market growth in Europe. Additionally, the strong presence of opulent cosmetics and other leading duty-free brands is expected to drive the region’s market growth.
Rising consumer spending on travel and tourism will support growth in North America.
Improving middle class income levels will support growth in the Middle East and Africa.
Key players are emphasizing adoption of e-commerce to grow their business globally
The major players operating in the market are emphasizing the adoption of e-commerce to expand their business globally. Sale promotional offers, retailing of customized products and others are some of the key methods adopted by major players to capture huge customer bases. Recently, in November 2021, Pernod Richard, a beverage company based in France, unveiled its first store in the Chinese duty-free Haikou group in Shenzhen.
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Detailed Table of Contents:
- Search scope
- Market segmentation
- Research Methodology
- Definitions and assumptions
- Market dynamics
- Market factors
- Market constraints
- Market opportunities
- Emerging trends
- key ideas
- Overview of parent/related markets
- Industry SWOT Analysis
- Supply chain and regulatory analysis
- Recent Industry Developments – Policies, Partnerships, New Product Launches and Mergers & Acquisitions
- Qualitative analysis (in relation to COVID-19)
- 5.1 Impact of COVID-19
- 5.2 Supply chain challenges
- 5.3 Potential opportunities due to COVID-19
- Global Travel Retail Market Analysis, Outlook and Forecast, 2018-2029
- Main results/summary
- Market size estimates and forecasts
- By product type (value)
- Beauty products
- Fashion Accessories
- Tobacco products
- Confectionery & Delicatessen
- By sector (value)
- By sales channel (value)
- Airport and airline shops
- Seaport and Cruise Line Shops
- Downtown Border Hotel Boutiques
- By region (value)
- North America
- Asia Pacific
- South America
- Middle East and Africa
- By product type (value)
Key Industry Developments-
October 2021: Lagardère Switzerland has formed a partnership with Inflyter to introduce fully digital automated solutions at Geneva Airport, Switzerland.
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