Report Overview

As the number of international travelers continues to grow, they will be one of the key factors driving global travel retail market. Moreover, the rising middle-class population and affordable travel choices in developing countries are anticipated to boost market growth. Advances in technology, economic conditions, and the burgeoning retail chains that offer elegant and high-end brands are among the other factors expected to spur growth in the retail travel market over the coming years

Global Travel Retail Market Size - Industry Trends & Forecast Report 2027

Global travel retail market was worth USD 54.3 Billion in 2020 and is further projected to reach USD 136.8 Billion by 2027, at a CAGR of 14.2% during 2021-2027 (forecast period). The growing number of international travelers will drive the global travel retail market. Additionally, the growing middle-class population and the variety of affordable travel options in developing countries are anticipated to fuel market growth. Technological advances and the emergence of retail chains that offer elegant and high-end brands are among the other factors expected to boost retail travel growth in the future.

Source: BlueWeave Consulting

Global Travel Retail Market Overview

Travel Retail is an industry that revolves mostly around airports, cruise liners, aircraft, international railway stations, and downtown duty-free retailers. It is a retail channel that sells goods to overseas visitors. It is also a substantial source of revenue and offers numerous marketing options. One of the key elements driving the expansion of the travel retail market is the burgeoning popularity of the travel and tourism sector. The majority of these sales take place in airports as travelers have enough time to browse in airports fashioned as enticing shopping venues. Duty-free shops (or stores) generally sell goods that are exempt from local or national taxes and tariffs on the condition that they are sold to traveling customers who intend to take the items abroad.

Growth Drivers

Immense Business Opportunities

 

Travel retail is known as the global platform for business growth and innovation. It offers immense business opportunities to high-end brands as well as small and medium organizations. Small and medium enterprises (SMEs), which are considered the backbone of an economy, can benefit greatly from travel retail. SMEs can use travel retail as a solid platform for displaying their products to international tourists at minimal advertising costs. Travel retail provides retailers with fantastic opportunities to promote their products, strengthen customer loyalty, and attract new customers from foreign countries.

The Burgeoning Tourism Industry

One of the factors influencing the growth of the global travel retail market is the considerable development of the travel and tourism sector. Due to a rise in travel and tourism, apparel, cosmetics, food items, and electronic retail sales are growing in the travel retail marketplace. In addition, the increase of urbanization and lifestyle changes are critical factors probable to increase the travel retail market growth during the coming time. With the availability of cheaper flights and the ability to schedule a vacation over the internet, travel has become quite simple. Moreover, people nowadays have a better comprehension and knowledge of places, which is why they are willing to explore more countries, thereby driving the global travel retail market.

Restraints

One of the challenges confronting the global travel retail market is customers’ lack of interest in purchasing at airports. However, distribution channels are taking every possible measure to provide value to passengers, improve their travel experiences, and stimulate the economy. Despite the fact that many corporations work with duty-free retailers to offer limited or exclusive products, growth at these stores is likely to be limited due to a lack of promotion campaigns and high product pricing.

Impact of COVID-19 on the Global Travel Retail Market

The duty-free and travel retail market was hit hard in 2020 like most of other industries due to the sudden fall in tourism amid the COVID-19 pandemic and the nationwide lockdown enforced by different countries. SMEs in particular have also been severely impacted, especially since many of them are heavily dependent on airport sales.

The tourism sector has already felt the negative impact of the pandemic on its performance much earlier. Globally, travel restrictions and measures started as early as January 2020. Domestic and international tourists limited their travel due to fear of contracting COVID-19, which reduced the number of domestic and international customers for this retail channel. As a result of low customer traffic, many leading duty-free retailers had to cut back their store hours at downtown and airport locations.

Global Travel Retail Market: By Channel

Based on channels, the global travel retail market is segmented into Down Town & Hotel Shops, and Airports. The airport segment dominated the market in 2020 and continues to lead the overall market in terms of revenue. Due to low airfares and increasing living standards, there is a rise in the number of air passengers, which is likely to contribute to the segment’s growth. Airports have been making myriad efforts to increase revenue from non-aeronautical resources, which contributes to the growth of the retail sector in this segment.

Global Travel Retail Market: By Product

Based on products, the global travel retail market is divided into Wine & Spirit, Fashion & Accessories, and Perfume & Cosmetics. The perfume and cosmetics segment has the highest market share primarily because there are a variety of personal care products available through different retail channels. For instance, many cosmetics brands like L’Oréal have launched new stores across multiple airports worldwide. Perfume and cosmetics segment growth is expected to be driven by this factor. The second-largest segment is wine & spirit, which is projected to witness steady growth in the coming years.

Global Travel Retail Market – Regional Insights

Based on regions, the global travel retail market is segmented into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa. The Asia-Pacific region dominates the market in terms of revenue and is expected to maintain its supremacy over the forecast period. In emerging Asian countries, particularly China, the rising middle-class population and the booming travel and tourism sector will likely boost the market. Many stores in the APAC region align their strategies and products to meet the needs of Chinese travelers. In developing countries, rising living standards and higher consumer disposable income levels drive market development.

Recent Developments

 

• In February 2021, Hudson Group, owned by Dufry, opened its first Hudson Nonstop store at Dallas Love Field Airport (DAL) using Amazon's Just Walk Out technology. Using Just Walk Out technology, customers can pick up products in a physical store, pay for their purchases, and leave.

 

• In January 2021, in partnership with Shenzhen Duty Free Group, DFS opened the first phase of a new downtown duty-free retail complex in Haikou Mission Mills, Hainan. The DFS Group will exhibit a luxury line-up across a range of categories at the first China International Consumer Products Expo in Hainan on May 7-10, 2021.

 

Competitive Landscape

Key players in the global travel retail market are DFS Group, Dufry, LS travel retail, Lotte Duty Free, King Power International Group, The Shilla Duty Free, Gebr, Heinemann, China Duty Free Group (CDFG), Aer Rianta International (ARI), The Nuance Group, and other manufacturers.

 

Innovative marketing campaigns and unique price offers may help players survive the competitive market for duty-free and travel retail products.

 

Scope of the Report:

Attribute	Details
Years Considered	Historical data – 2017-2020 Base Year – 2020 Forecast – 2021 – 2027
Facts Covered	Revenue in USD Billion
Market Coverage	U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, Argentina, UAE, South Africa, Saudi Arabia
Product/Service Segmentation	By Channel, By Product, By Region
Key Players	DFS Group, Dufry, LS travel retail, Lotte Duty Free, King Power International Group, The Shilla Duty Free, Gebr, Heinemann, China Duty Free Group (CDFG), Aer Rianta International (ARI), and The Nuance Group, and other key manufacturers.

 

• By Channel

• Down Town & Hotel Shops
• Airports

• By Product

• Wine & Spirit
• Fashion & Accessories
• Perfume & Cosmetics

• By Region

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East
• Africa

1. Research Framework

    1.1. Research Objective

    1.2. Product Overview

    1.3. Market Segmentation

2. Research Methodology

    2.1. Qualitative Research

            2.1.1. Primary & Secondary Research

2.2. Quantitative Research

2.3. Market Breakdown & Data Triangulation

           2.3.1. Secondary Research

           2.3.2. Primary Research

    2.4. Breakdown of Primary Research Respondents, By Region

    2.5. Assumption & Limitation

3. Executive Summary

4. Global Travel Retail Market Insights

    4.1. DROC Analysis

           4.1.1. Growth Drivers

           4.1.2. Restraints

           4.1.3. Opportunities

           4.1.4. Challenges

    4.2. Recent Development

    4.3. Porter’s Five Forces Analysis

            4.3.1. Bargaining Power of Suppliers

            4.3.2. Bargaining Power of Buyers

            4.3.3. Threat of New Entrants

            4.3.4. Threat of Substitutes

            4.3.5. Intensity of Rivalry

   4.4 Value Chain Analysis

   4.5 Key Strategic Developments

5. Global Travel Retail Market Overview

    5.1. Market Size & Forecast by Value, 2017-2027

            5.1.1. By Value (USD Billion)

    5.2. Market Share & Forecast

            5.2.1. By Channel

                5.2.1.1. Down Town & Hotel Shops

                5.2.1.2. Airports

            5.2.2. By Product

                5.2.2.1. Wine & Spirit

                5.2.2.2. Fashion & Accessories

                5.2.2.3. Perfume & Cosmetics

             5.2.3. By Region

                 5.2.3.1. North America

                 5.2.3.2. Latin America

                 5.2.3.3. Europe

                 5.2.3.4. Asia Pacific

                 5.2.3.5. Middle East

                 5.2.3.6. Africa

6. North America Travel Retail Market

         6.1. Market Size & Forecast by Value, 2017-2027

              6.1.1. By Value (USD Billion)

         6.2. Market Share & Forecast

              6.2.1. By Channel

              6.2.2. By Product

              6.2.3. By Country

                       6.2.3.1. United States

                       6.2.3.2. Canada

7. Europe Travel Retail Market

       7.1. Market Size & Forecast by Value, 2017-2027

            7.1.1. By Value (USD Billion)

       7.2. Market Share & Forecast

            7.2.1. By Channel

            7.2.2. By Product

            7.2.3. By Country

                      7.2.3.1. Germany

                      7.2.3.2. Poland

                      7.2.3.3. Russia

                      7.2.3.4. Italy

                      7.2.3.5. France

                      7.2.3.6. United Kingdom

                      7.2.3.7. Spain

                      7.2.3.8. Rest of Europe

8. Asia Pacific Travel Retail Market

     8.1. Market Size & Forecast by Value, 2017-2027

             8.1.1. By Value (USD Billion)

     8.2. Market Share & Forecast

            8.2.1. By Channel

            8.2.2. By Product

            8.2.3. By Country

                8.2.3.1. China

                8.2.3.2. India

                8.2.3.3. Japan

                8.2.3.4. Malaysia

                8.2.3.5. Singapore

                8.2.3.6. Rest of Asia Pacific

9. Latin America Travel Retail Market

    9.1. Market Size & Forecast by Value, 2017-2027

             9.1.1. By Value (USD Billion)

    9.2. Market Share & Forecast

             9.2.1. By Channel

             9.2.2. By Product

             9.2.3. By Country

                 9.2.3.1. Brazil

                 9.2.3.2. Mexico

                 9.2.3.3. Rest of Latin America

10. Middle East & Africa Travel Retail Market

   10.1. Market Size & Forecast by Value, 2017-2027

         10.1.1. By Value (USD Billion)

    10.2. Market Share & Forecast

         10.2.1. By Channel

         10.2.2. By Product

         10.2.3. By Country

             10.2.3.1. Saudi Arabia

             10.2.3.2. UAE

             10.2.3.3. South Africa

             10.2.3.4. Rest of Middle East & Africa

11. Competitive Landscape

     11.1. List of Key Players and Their Offerings

     11.2. Market/Ranking Share Analysis

     11.3. Competitive Benchmarking, By Operating Parameters

12. COVID-19 Impact

13. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)

    13.1. DFS Group

    13.2. Dufry

    13.3. LS travel retail

    13.4. Lotte Duty Free

    13.5. King Power International Group

    13.6. The Shilla Duty Free

    13.7. Gebr

    13.8. Heinemann

    13.9. China Duty Free Group (CDFG)

    13.10. Aer Rianta International (ARI)

    13.11. The Naunace Group

    13.12. Other manufacturers

 

14. Key Strategic Recommendations

 

* Financial information of non-listed Companies will be provided as per availability

 

**The segmentation and the companies are subjected to modifications based on in-depth study during the final deliverable.

                  

 

List of Figures

 

 

Fig 1: Travel Retail Market Segmentation

 

Fig 2: Travel Retail Market Value Chain Analysis,

 

Fig 3: Company Market Share Analysis, 2020

 

Fig 4: Global Travel Retail Market Size, By Value (USD Billion), 2017-2027

 

Fig 5: Global Travel Retail Market Share (%), By Channel, By Value, 2017-2027

 

Fig 6: Global Travel Retail Market Share (%), By Product, By Value, 2017-2027

 

Fig 7: Global Travel Retail Market Share (%), By Country, By Value, 2017-2027

 

Fig 8: North America Travel Retail Market Size, By Value (USD Billion), 2017-2027

 

Fig 9: North America Travel Retail Market Share (%), By Channel, By Value, 2017-2027

 

Fig 10: North America Travel Retail Market Share (%), By Product, By Value, 2017-2027

 

Fig 11: North America Travel Retail Market Share (%), By Country, By Value, 2017-2027

 

Fig 12: Europe Travel Retail Market Size, By Value (USD Billion), 2017-2027

 

Fig 13: Europe Travel Retail Market Share (%), By Channel, By Value, 2017-2027

 

Fig 14: Europe Travel Retail Market Share (%), By Product, By Value, 2017-2027

 

Fig 15: Europe Travel Retail Market Share (%), By Country, By Value, 2017-2027

 

Fig 16: Asia-Pacific Travel Retail Market Size, By Value (USD Billion), 2017-2027

 

Fig 17: Asia-Pacific, Travel Retail Market Share (%), By Channel, By Value, 2017-2027

 

Fig 18: Asia-Pacific, Travel Retail Market Share (%), By Product, By Value, 2017-2027

 

Fig 19: Asia-Pacific Travel Retail Market Share (%), By Country, By Value, 2017-2027

 

Fig 20: Latin America Travel Retail Market Size, By Value (USD Billion), 2017-2027

 

Fig 21: Latin America Travel Retail Market Share (%), By Channel, By Value, 2017-2027

 

Fig 22: Latin America Travel Retail Market Share (%), By Product, By Value, 2017-2027

 

Fig 23: Latin America Travel Retail Market Share (%), By Country, By Value, 2017-2027

 

Fig 24: Middle East & Africa Travel Retail Market Size, By Value (USD Billion), 2017-2027

 

Fig 25: Middle East & Africa Travel Retail Market Share (%), By Channel, By Value, 2017-2027

 

Fig 26: Middle East & Africa Travel Retail Market Share (%), By Product, By Value, 2017-2027

 

Fig 27: Middle East & Africa Travel Retail Market Share (%), By Country, By Value, 2017-2027

 

List of Tables

 

Table 28: Global Travel Retail Market Size, By Channel, By Value (USD Billion), 2017-2027

 

Table 29: Global Travel Retail Market Size, By Product, By Value (USD Billion), 2017-2027

 

Table 30: Global Travel Retail Market Size, By Region, By Value (USD Billion), 2017-2027

 

Table 31: North America Travel Retail Market Size, By Channel, By Value (USD Billion), 2017-2027

 

Table 32: North America Travel Retail Market Size, By Product, By Value (USD Billion), 2017-2027

 

Table 33: North America Travel Retail Market Size, By Country, By Value (USD Billion), 2017-2027

 

Table 34: Europe Travel Retail Market Size, By Channel, By Value (USD Billion), 2017-2027

 

Table 35: Europe Travel Retail Market Size, By Product, By Value (USD Billion), 2017-2027

 

Table 36: Europe Travel Retail Market Size, By Country, By Value (USD Billion), 2017-2027

 

Table 37: The Asia-Pacific Travel Retail Market Size, By Channel, By Value (USD Billion), 2017-2027

 

Table 38: The Asia-Pacific Travel Retail Market Size, By Product, By Value (USD Billion), 2017-2027

 

Table 39: The Asia-Pacific Travel Retail Market Size, By Country, By Value (USD Billion), 2017-2027

 

Table 40: Latin America Travel Retail Market Size, By Channel, By Value (USD Billion), 2017-2027

 

Table 41: Latin America Travel Retail Market Size, By Product, By Value (USD Billion), 2017-2027

 

Table 42: Latin America Travel Retail Market Size, By Country, By Value (USD Billion), 2017-2027

 

Table 43: The Middle-East & Africa Travel Retail Market Size, By Channel, By Value (USD Billion), 2017-2027

 

Table 44: The Middle-East & Africa Travel Retail Market Size, By Product, By Value (USD Billion), 2017-2027

 

Table 45: The Middle-East & Africa Travel Retail Market Size, By Country, By Value (USD Billion), 2017-2027

 

Table 46: DFS Group Financial Analysis

Table 47: DFS Group Business Overview

Table 48: Dufry Financial Analysis

Table 49: Dufry Business Overview

Table 50: LS travel retail Financial Analysis

Table 51: LS travel retail Business Overview

Table 52: Lotte Duty Free Financial Analysis

Table 53: Lotte Duty Free Business Overview

Table 54: King Power International Group Financial Analysis

Table 55: King Power International Group Business Overview

Table 56: The Shilla Duty Free Financial Analysis

Table 57: The Shilla Duty Free Business Overview

Table 58: Gebr Financial Analysis

Table 59: Gebr Business Overview

Table 60: Heinemann Financial Analysis

Table 61: Heinemann Business Overview

Table 62: China Duty Free Group (CDFG) Financial Analysis

Table 63: China Duty Free Group (CDFG) Business Overview

Table 64: Aer Rianta International (ARI) Financial Analysis

Table 65: Aer Rianta International (ARI) Business Overview

Table 66: The Nuance Group Financial Analysis

Table 67: The Nuance Group Business Overview