September 08, 2022 08:48 ET | Source: Fortune Business Insights Fortune Business Insights
Pune, India, Sept. 08, 2022 (GLOBE NEWSWIRE) -- According to Fortune Business Insights, the global travel retail market size is anticipated to hit USD 96.11 billion by 2029 and exhibit a CAGR of 8.1% during the forecast period. The increasing number of international travelers is likely to drive the market’s growth. Fortune Business InsightsTM has presented this information in its report titled, “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 anticipated to amplify market growth in the coming years.
The strict lockdowns imposed during the pandemic have negatively impacted the market growth. The global air travel ban during the severe waves of the pandemic have affected the market’s growth. The growing number of air passengers amidst resuming air travel operations has helped the market retain traction. Nonetheless, the rising air travel and demand for personal protection 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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Travel Retail Market Report Scope & Segmentation:
Fortune Business Insights™ lists out all the travel retail market companies that are presently striving to reduce the impact of Covid-19 pandemic on the market:
Increasing Number of International Travelers to Boost Market Growth
The growing product demand due to the rising numbers of international and domestic travelers is likely to bolster the travel retail market growth. The improving income levels and increasing expenditure on travel by the millennial population are anticipated to be key factors stimulating the market growth. The data released by World Travel and Tourism Council (WTTC) in November 2021 estimated a 34.9% surge in the French travel & tourism industry in 2021.
The launch of promotional campaigns by key companies to lure customers into buying duty-free commodities is likely to uptick product demand and boost travel retail.
Additionally, the growing trend of sustainable duty-free shopping is likely to be a key trend expanding the market’s growth. The rising adoption of eco-friendly and sustainable practices, including biodegradable packaging, reduction and recycling, and others, by air travel retailers, is predicted to complement the market growth.
However, high prices of products may hinder market growth due to low demand.
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Asia Pacific to Hold the Lion’s Share
Asia Pacific is projected to gain the largest travel retail market share. The high expenditure on duty-free products by international and domestic travels across countries such as South Korea, India, and China is likely to fuel the growth in Asia Pacific. Furthermore, the growing partnerships between duty-free retailers for business expansion are expected to favor market growth.
Europe is likely to exhibit substantial growth in the coming years. The increasing infrastructural development for travel and tourism is expected to boost the market growth in Europe. Moreover, the strong presence of opulent cosmetics and other major duty-free brands is anticipated to favor the region’s market growth.
The rising consumer expenditure on travel and tourism will foster growth in North America.
The improving income levels of the middle-class populace will support growth in the Middle East & Africa.
On the basis of product type, the market is fragmented into fashion & accessories, tobacco products, confectionery & fine foods, beverages, cosmetics, and others. On the basis of sector, the market is bifurcated into duty paid and duty-free. On the basis of sales channel, the market is segmented into border downtown hotel shops, seaport & cruise line shops, airport & airline shops, and others. Geographically, the market is classified into South America, North America, the Middle East & Africa, Asia Pacific, and Europe.
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Key Players Emphasize E-commerce Adoption to Expand Businesses Globally
The major players operating in the market emphasize the adoption of e-commerce to expand their businesses globally. Sales promotional offers, personalized goods retail, and others are some 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 boutique in China’s Shenzhen Duty-free Group Haikou.
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October 2021: Lagardere Switzerland formed a partnership with Inflyter to introduce fully digital automated solutions at Geneva Airport, Switzerland.
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1. How much is the travel retail industry worth?
Answer: Fortune Business Insights says that the industry size was USD 55.74 billion in 2022 and is anticipated to reach USD 96.11 billion by 2029.
2. What was the value of the worldwide industry in 2021?
Answer: In 2021, the industry valued at USD 51.28 billion.
3. At what CAGR is the global market projected to grow in the forecast period (2022-2029)?
Answer: At a CAGR of 8.1%, the global travel retail market forecasted to grow from 2022 to 2029.
4. Which is the leading type of product in this market? Answer: The cosmetics segment is a leading product type during the forecast period (2022-2029).
5. What is the crucial factor driving the global market? Answer: The rising number of international travelers is accelerating growth.
6. Who are the key players in the global travel retail sector?
Answer: Lagardere Travel Retail (Lagardere Group), DFS Group Ltd., Dufry AG are leading companies worldwide.
7. Which region held the dominant share in 2021?
Answer: Asia Pacific region to dominate the market in 2021.
8. Which factors drive the adoption of travel & tourism retail-related services?
Answer: Retailers adopting eco-friendly business practices is one of the prominent trends.
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