Travel Retail Market Size, Share, Industry Analysis, Trends, Growth, Forecasts, 2032

Travel Retail Industry Prospective:

The global travel retail market size was evaluated at $56.31 billion in 2023 and is slated to hit $118.09 billion by the end of 2032 with a CAGR of nearly 8.58% between 2024 and 2032.

Request Free Sample

Travel Retail Market: Overview

Travel retail is referred to as various businesses revolving around cruise ships, airports, downtown duty-free stores, and airplanes. Furthermore, travel retail is a retail outlet that helps in selling goods to visitors from other nations. Reportedly, it is a major cash source with over 3 billion travelers going through the airport every year and the number is projected to increase by about 5% yearly.  

Key Insights

• As per the analysis shared by our research analyst, the global travel retail market is projected to expand annually at the annual growth rate of around 8.58% over the forecast timespan (2024-2032)
• In terms of revenue, the global travel retail market size was evaluated at nearly $56.31 billion in 2023 and is expected to reach $118.09 billion by 2032.
• The global travel retail market is anticipated to grow rapidly over the forecast timeline owing to travel retail enabling travelers to book their tickets online and make their travel safe.
• In terms of product type, the cosmetic & fragrances segment is slated to register the highest CAGR over the forecast period.
• Based on sector, the duty-free segment is predicted to lead the segmental space in the upcoming years.
• Based on sales channel, the airport & airline shops segment is projected to dominate the segmental surge in the ensuing years.
• Region-wise, the North American travel retail industry is projected to register the fastest CAGR during the projected timespan.

Request Free Sample

Travel Retail Market: Growth Factors

A rise in the number of travelers across the globe to boost the global market trends

The surging number of international travelers is anticipated to embellish the expansion of the global travel retail market. A rise in tourist activities along with an increase in holiday packages will prop up the growth of the market globally. Travel retail enables travelers to book their tickets online and make their travel safe, thereby increasing global travel. Citing an instance, as per the Transportation Security Administration of the U.S., in the second half of 2021, there were nearly over 7 million daily travelers in June 2021. Hence, the surge in the global trade will drive the global market trends.

A surge in transport activities will embellish the expansion of the market across the globe. Technological breakthroughs can bring a paradigm shift in the growth of the global market. Launching of new travel retail stores will boost the growth of the market across the globe. For instance, in the last half of 2021, Bentley Leathers Inc., a key retail firm based in Canada, declared the introduction of Tracker for airports and various other modes of travel in Canada.

Travel Retail Market: Restraints

Restriction on travel retail product sales can retard the expansion of the global industry by 2032

Strict legislation and the levying of huge taxes on travel retail products can restrict the growth of the global travel retail industry. Complicated custom duties and restrictions on some of the travel retail products can impede the global industry expansion. Increasing competition in online shopping activities with a surge in e-commerce tools can put brakes on the growth of the industry across the globe.

Travel Retail Market: Opportunities

Escalating requirements for gaining exceptional shopping experience to open new growth horizons for the global market

The growing need for gaining a unique shopping experience is expected to generate new growth avenues for the global travel retail market. Duty-free shopping incentives and rising per capita income will further enlarge the scope of the global market demand.

Travel Retail Market: Challenges

Growing security issues at airports can prove to be a big obstacle in the growth path of the global industry by 2032

The outbreak of pandemics such as COVID-19 pandemics has severely impacted the travel sector, thereby posing a huge threat to the expansion of the global travel retail industry. Surging security concerns and restrictions levied on airports & travel can prove detrimental to the growth of the global industry elevation. A rise in operating costs can impede the expansion of the market globally.

Travel Retail Market: Segmentation

The global travel retail market is sectored into product type, sector, sales channel, and region.                                         

In terms of product type, the travel retail market globally is bifurcated into cosmetic & fragrances, confectionery & fine foods, fashion & accessories, wines & spirits, and tobacco products segments. Furthermore, the cosmetic & fragrances segment, which acquired nearly 58% of the global market earnings in 2023, is predicted to register the fastest CAGR in the coming eight years. The growth of the segment in the coming seven years can be attributed to a prominent increment in the purchase of various kinds of personal care items in various travel retail stores.

Based on the sector, the global travel retail industry is sectored into duty-free and duty-paid segments. Additionally, the duty-free segment, which collected a key share of the global industry in 2023, is projected to lead the segmental surge in the upcoming years. The segmental surge over the forecast period can be due to a rise in the sale of cosmetics through duty-free stores.

Based on the sales channel, the global travel retail market is sectored into border downtown hotel shops, airport & airline shops, and seaport & cruise line shops segments. Apart from this, the airport & airline segment, which dominated the segment growth in 2023, is projected to lead the segmental expansion in the forthcoming years. The segmental growth over the assessment period can be subject to various attempts from airports to earn profits through non-aeronautical resources.

Travel Retail Market: Report Scope

Travel Retail Market: Regional Insights

Asia-Pacific is projected to maintain the dominant position in the global travel retail market in the coming eight years

Asia-Pacific, which contributed about 65% of the global travel retail market revenue in 2023, will be a key region in the coming eight years. Apart from this, the regional market expansion over the forecast timeline can be attributed to a thriving travel & tourism sector in countries such as India, Maldives, Mauritius, New Zealand, Australia, Thailand, Indonesia, Singapore, and Malaysia. A surging standard of living along with an increase in the consumer per capita income of the developing economies of Asia-Pacific will proliferate the size of the regional market.

North American travel retail industry is anticipated to register the fastest CAGR in the forecast timeline. The expansion of the industry in the region can be due to a rise in the spending on travel activities in Canada and the U.S. Furthermore, a surge in the purchasing capacity of the people will steer the expansion of the industry in the sub-continent.

Key Developments

• In the last quarter of 2023, the DFS Group, a travel retail segment of LVMH is developing a shopping mall on Chinese Island. The move is likely to embellish the expansion of the market globally.
• In the first half of 2023, Lagardere Travel Retail firm and Inflyter joined hands to digitize the duty-free shopping experience for travelers.
• In the first quarter of 2021, Hudson Group, a retailing division owned by Dufry AG, introduced Amazon One, a tech-driven store set up at Dallas Love Field Airport, to provide end-users with an exquisite in-store shopping experience.

Travel Retail Market: Competitive Space

The global travel retail market profiles key players such as:

• Dufry
• Heinemann
• Lotte Duty Free
• DFS Group
• Lagardère Travel Retail
• and Shilla Duty Free.

The global travel retail market is segmented as follows:

By Product Type

• Cosmetic & Fragrances
• Confectionery & Fine Foods
• Fashion & Accessories
• Wines & Spirits
• Tobacco Products

By Sector

• Duty-Free
• Duty-Paid

By Sales Channel

• Airport & Airline Shops
• Border Downtown Hotel Shops
• Seaport & Cruise Line Shops

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa