Travel Retail Market Size, Share & Trends Report

Travel Retail Market Size, Share & Trends Analysis Report By Channel (Down Town & Hotel Shops, Airports), By Product (Wine & Spirit, Fashion & Accessories, Perfume & Cosmetics), And Segment Forecasts, 2018 - 2025

  • Published Date: Dec, 2018
  • Base Year for Estimate: 2017
  • Report ID: GVR-2-68038-668-4
  • Format: Electronic (PDF)
  • Historical Data: 2015 - 2016
  • Number of Pages: 143

Industry Insights

The global travel retail market size was valued at USD 67.30 billion in 2017 and is expected to witness a CAGR of 8.7% from 2018 to 2025. Rising number of international travelers is expected to be one of the prime factors driving the industry. Moreover, affordable travel choices and rising middle-class population in emerging Asian countries are anticipated to augment the market growth.

Travel retailers across different distribution channels, such as airport and ferries station, are focusing on providing enhanced customer experience. Digitalization has led to the enhancement of the industry processes, which can help in boosting profits for the retailers. Digital technology can help passengers in carrying out boarding and check-in process.

U.S. travel retail market

Thus, travel retailers are increasingly using this technology to attract passengers into the stores and engage them across their travel journey while providing a seamless shopping experience. The travel retail needs to go through some substantial upgrades to create retail ecosystem while collaborating with the air operators.

The airline service provider can provide insight, such as data about passengers’ schedules, purchasing behavior, and other, which can be used to offer passengers a compelling shopping experience. In addition, due to changing demographics of the aviation industry, such as growing number of millennial travelers, retailers need to use digitally-driven, omnichannel, and loyalty-based platform to drive the buying power of consumers.

Channel Insights

The airport segment led the market in 2017 accounting for over 71.2% of the overall market share. Growing number of air passengers owing to low airfares and enhanced living standards is expected to contribute to the segment growth. Moreover, efforts taken by different airports to increase revenue from non-aeronautical resources have accelerated the development of the retail sector in this segment.

The border, downtown & hotel shops segment is expected to witness the highest CAGR over the forecast period. These types of shops signify the latest trends. Retailers benefit from the lower rents for such shops in border and downtown areas as compared to airport area.

Product Insights

On the basis of product, the market has been divided into perfume & cosmetics, confectionery & fine food, wine & spirit, fashion & accessories , electronics, tobacco, others. The perfume & cosmetics segment accounted for a major revenue share in 2017 due to increased sales of the various personal care products at different retail channels.

Global travel retail market

Cosmetics brands such as L’Oreal are opening new stores across different airports across the globe. This factor is expected to drive the segment growth further. Wine & spirit was the second-largest segment in 2017 and is projected to witness steady development in the years to come. Alcoholic spirits are among the most commonly purchased items through the duty-free stores as they are available at cheaper prices at these stores.

Regional Insights

The Asia Pacific market was valued at USD 28.75 billion in 2017. The region is projected to expand further at the highest CAGR over the forecast period. Growing middle-class population and increasing travel and tourism sector in emerging Asian countries, particularly, in China, is expected to boost the market. Thus, many stores in the APAC market are aligning their strategies and products to meet the needs of the Chinese travelers. This factor is also expected to have a positive impact on the industry growth. In addition, enhanced living standards as a result of rising consumer disposable income levels in emerging economies are augmenting the market development.

Travel Retail Market Share Insights

There is intense competition in the market owing to the potential growth opportunities in the travel and tourism industry. The key players in the market include Dufry, Lotte Duty Free, Lagardère Travel Retail, DFS Group, Heinemann, and Shilla Duty Free.

Most of these companies are pursuing both inorganic and organic growth strategies to increase their market share. For instance, in September 2018 Dufry AH signed a contract with Perth Airport Pty. Ltd. (PAPL) to open two duty-free stores at arrival and departure areas at the international terminal of the airport. This contract will help company to expand its footprint in Australia.

Report Scope

Attribute

Details

Base year for estimation

2017

Actual estimates/Historical data

2015 - 2016

Forecast period

2018 - 2025

Market representation                               

Revenue in USD Million and CAGR from 2018 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

Country scope

U.S., Canada, U.K., Germany, China, India, Japan, Brazil, and Mexico

Report coverage      

Revenue forecast, competitive ranking, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Grand View Research has segmented the global travel retail market report on the basis of product, channel, and region:

  • Product Outlook (Revenue, USD Million, 2015 - 2025)

    • Perfume & Cosmetics

    • Confectionery & Fine Food

    • Wine & Spirit

    • Fashion & Accessories

    • Electronics

    • Tobacco

    • Others

  • Channel Outlook (Revenue, USD Million, 2015 - 2025)

    • Airports

    • Cruise Lines

    • Border, Down Town & Hotel Shops

    • Railway Stations & Others

  • Regional Outlook (Revenue, USD Million, 2015 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • MEA

Key questions answered by the report
Request for Customization

Choose License Type

Single User - $5,950
Multi User (2-5) - $6,950
Enterprise Access - $8,950

Buy Chapters or Sections

Avail customized purchase options to meet your exact research needs:

  • Buy sections of this report
  • Buy country level reports
  • Request for historical data
  • Request discounts available for Start-Ups & Universities

Why Choose Us

  • Research support

    24/5 Research support

    Get your queries resolved from an industry expert.

  • Custom research service

    Custom research service

    Design an exclusive study to serve your research needs.

  • Quality assurance

    Quality assurance

    A testimonial for service in the form of BBB "A" Accreditation.

  • BBB Rating dandb
  • Information security

    Information security

    Your personal and confidential information is safe and secure.

  • grand view research PCI DSS complaint grand view research paypal verified