Travel Retail Market By Product Category (Perfumes And Cosmetics, Wines And Spirits, Fashion And Accessories, Tobacco Products, Watches And Jewellery, Electronics And Gifts, Confectionery And Fine Foods), By Sales Channel (Airport, Airlines, Ferries And Cruises, Other) - Growth, Future Prospects & Competitive Analysis, 2018 – 2026

Industry Outlook

The global travel retail sector is not limited to only airports; it also includes cruise lines, ferries, and ports. However, an airport still enjoys the pole position in the market and remains the dominant player in upcoming years. The retail travel market was valued at US$ 63.59 Bn in 2017. For the last two decades, the retail travel market has grown constantly, a trend that should continue between now and 2026. This growth can be explained by the combination of three factors

• The huge growth in numbers of people traveling, with levels expected to triple from 3.6 to 12 billion travelers between 2000 and 2030
• The rise of the middle-class population, especially in emerging countries such as China, India, and Brazil, among others: their numbers are expected to triple to approximately 5 billion people between 2000 and 2030
• Brands, retailers, and key transport-sector operators are continuously investing capital in order to maximize the capacity and quality of facilities in travel locations.

As a result, the retail travel market is expected to reach US$ 128.18 Bn by 2026, at a CAGR of 8.1% between 2018 and 2026. Since 2012, Asia Pacific has been a key region for the retail travel market because of the rising number of Chinese travelers going abroad; the number of travelers is expected to cross 120 Mn by 2020. In 2017, the region accounted for more than 30% of the global market share and is expected to dominate in upcoming years.

Market Synopsis

Growing demand for perfumes & cosmetics sub-segment by product category type is likely to propel the market in upcoming years.

In 2017, the perfumes & cosmetics segment accounted for the major market share and was expected to maintain its dominance over the forecast period. On the other hand, the wine & spirits and fashion & accessories segments followed the perfumes & cosmetics segment with a substantial market share in 2017. Furthermore perfumes & cosmetics segment is expected to witness the highest CAGR in upcoming years owing to increasing demand for branded products from Asia Pacific consumers.

Airport segment expected to dominate the retail travel market by sales channel throughout the forecast period

Though it has been observed that only 5-10% of the total number of travelers at the airport tend to visit duty-free shops, the airport segment accounted for over 50% market share of the global travel retail market in terms of market value in 2017. Market players are also paying more attention to the comfort and convenience of the customers coming to the airport. For instance, World Duty-Free Group's Heathrow airportp organizes staffing and product displays per the flight schedule. This way, with the needed cultural sensitivities, staff speaking their language welcome passengers.

Growing demand from the Asia Pacific is projected to catapult the market growth.

Asia-Pacific travel retail market held the largest market value share in 2017. During the year, Asia Pacific witnessed an increase in sales by 9%, whereas other regions posted stagnant or negative growth. Asia-Pacific is also identified as the fastest-growing market in the upcoming years. Regional and global companies have been attracted to recent tenders of arrivals duty-free in China, Hong Kong, and South Korea. Although regional traffic trends in 2017 remain positive in the Asia Pacific, the year so far has seen pressure on the retail travel business in East Asia, surrounded by the suspension of Chinese travel to Korea. However, there is continued investment in airport and tourism infrastructure across the region, pointing to a bright future ahead.

Leading brands are aggressively looking for expansion.

As a part of strategic development, leading companies such as Revlon, Estee Lauder, Rituals Cosmetics, L'Oréal, and others with an exclusive and wide range of fragrances and skin care products; expanding their businesses by opening their outlets at every international airport. AerRianta International (ARI), China Duty-Free Group (CDFG), DFASS Group, DFS Group, Dufry AG, Gebr. Heinemann SE & Co. KG, King Power International Group, Lotte Group, Lagardère Group, The Nuance Group, and The Shilla Duty-Free, among others, are prominent global travel players retail market.

Historical & Forecast Period

Our study analyzed each market segment from 2016 to 2026, with 2017 as the base year. Therefore, the forecast period between 2018 and 2026 is considered for the CAGR calculation.

Report Scope

The report enlightens the thorough outline of the global travel retail market by categorizing the market into different segments given below:

ATTRIBUTE DETAILS

  Research Period     2016-2026  

  Base Year              2017  

  Forecast Period      2018-2026  

  Historical Year        2016  

  Unit                      USD Million  

 Segmentation  By Product Category Segment (2016–2026; US$ Bn)

• Perfumes and Cosmetics
• Wines and Spirits
• Fashion and Accessories
• Tobacco Products
• Watches and Jewellery
• Electronics and Gifts
• Confectionery and Fine Foods

 By Sales Channel Segment (2016–2026; US$ Bn)

• Airport
• Airlines
• Ferries and Cruises
• Other Shops and Sales

 Geography Segment (2016–2026; US$ Mn)

• North America (the United States and Canada)
• Europe (U.K., Germany, France, Rest of Europe)
• Asia Pacific (China, Japan, India, Rest of Asia Pacific)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Middle East and Africa (GCC, Rest of MEA)

This research report describes leading continents and their major countries, profiles of key players operating in the overall market, and planned developments. Our report further defines the overall market dynamics, such as drivers, challenges, and opportunities prevalent in the market, to understand the global travel retail market more explicitly. Our in-depth quantitative and quantitative analysis of each segment up to the country level highlights revenue pockets and investment opportunities in the market.

Key questions answered in this report.

• What are the current market trends in the retail travel market and valuable opportunities for the players?
• How do the regulations affect global as well as regional markets?
• Which are the prominent and recent innovations in the market?
• Which is the most lucrative region for investment?
• What are the market size and trends in emerging markets?
• Which are the major sales channels of travel retail and their market sizes?
• Which are the leading players, and what is their market position?

Frequently asked questions :