Travel retail retailers have yet to catch up with innovations happening outside of their world
POTLAND, 5933 NE WIN SIVERS DRIVE, #205, OR 97220, USA, September 9, 2022 /EINPresswire.com/ — According to a new report published by Allied Market Research, titled “Travel retail market By Product & Channel: Global Opportunity Analysis and Industry Forecast, 2018 – 2025″, the global travel retail market size was valued at $74.9 billion in 2017 and is projected to reach $153.7 billion in 2025, growing at a CAGR of 9.6% from 2018 to 2025. The Perfumes and Cosmetics segment has a strong customer base in the global travel retail market. Some of the leading companies, such as Estee Lauder, LOral, Rituals Cosmetics, Revlon and others, are expanding their business by opening their outlets in every international airport with an exclusive and wide range of fragrances and skin care products.
Travel retail retailers have yet to catch up with the innovations happening outside of their world. Nevertheless, Covid-19 will certainly accelerate the transformation of travel retailers, especially in contactless payments, loyalty programs and digitization. Indeed, billions of people travel internationally every year and spend money and time in airports. Travelers have plenty of free time at the airport to browse and purchase products. Additionally, travel retail creates more visibility for their products, which attracts the attention of new customers in different countries and increases brand loyalty among existing customers.
The development of the travel and tourism industry, rapid urbanization and changes in lifestyle, owing to the increase in consumer disposable income, are driving the growth of the travel retail market. Additionally, increasing travel and tourism or international tourist arrivals in emerging economies, such as Asia-Pacific and LAMEA, are expected to create lucrative opportunities for the global travel retail market. However, unorganized local markets and strict airport retail regulations are hampering the growth of the travel retail market.
Wines and spirits are the second largest revenue contributor in the global travel retail market. The consumption of wines, especially luxury wines and spirits, has grown considerably in recent years. Wines and spirits, out of the total, hold 15.9% of the travel retail market share. Moreover, it has been observed that luxury wines and spirits are highly popular among international passengers, which leads to the growth of the market. Passengers traveling long distances generally prefer wines and spirits. Additionally, growing culture of owning luxury goods and consuming expensive wines and spirits is driving the growth of the market.
Asia-Pacific is the largest travel retail market in the world and is experiencing the fastest growth due to improved living standards, increased disposable income, improved mode of life and the development of the tourism industry.
Additionally, Europe is one of the largest markets for travel retail, due to its stronger base of luxury goods. It is expected to witness the fastest growing travel retail market with a CAGR of 7.2% during the forecast period.
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The region has some of the largest clothing and cosmetics brands, namely LVMH in France and H&M in Sweden, which hold a significant share of the luxury clothing, perfume and cosmetics sector, making it the second largest travel retail market. High net worth tourists from the Middle East, China, the United States and Russia are contributing significantly to the growth of the European travel retail market. Being the historic home of most luxury houses, the European market accounts for nearly $23 billion of the travel retail sector.
Key Retail Market Findings:-
By channel, the airport segment accounted for the maximum market revenue in 2017 and is expected to grow at a CAGR of 9.6% during the forecast period.
By channel, the border stores, downtown and hotels segment is expected to grow at the highest CAGR of 10.1%.
By product type, the perfume and cosmetics segment accounted for more than 31% of the travel retail market share in 2017 and is expected to dominate the global market by 2025.
By product type, the luxury goods segment is expected to grow at the highest CAGR of 12% during the forecast period.
China was the largest shareholder in the Asia-Pacific travel retail industry and accounted for approximately 67.4% share in 2017
Key Players profiled in this report include:-
China duty free group co., ltd.
duty free americas, inc
Gebr. Heinemann se & co.kg
king power international
Lagardère sca (lagardère travel retail)
Lvmh group (limited dfs group)
The duty free shilla
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