Travel Retail Market Size To Reach $128.94 Billion By 2030

Travel Retail Market Growth & Trends

The global travel retail market size is expected to reach USD 128.94 billion by 2030, registering a CAGR of 9.4% from 2024 to 2030, according to a new report by Grand View Research, Inc. According to the statistics published by UN Tourism, in the first quarter of 2024, international arrivals, measuring overnight visitors, rebounded to 97% of their 2019 levels, signaling a near-complete recovery from pre-pandemic volumes. Approximately 285 million tourists ventured abroad during this period, marking a notable 20% increase compared to the first quarter of 2023. This growth was fueled by sustained robust demand, the gradual reopening of Asian markets, improved air connectivity, and streamlined visa processes. These factors collectively bolstered the market growth of travel retail by expanding the pool of potential customers with higher disposable incomes, thereby driving increased footfall and spending at duty-free shops and retail outlets in airports and travel hubs worldwide.

The growth of travel retail, encompassing duty-free shops, airport retail, and other travel-related shopping venues, has seen remarkable expansion globally. This sector has flourished primarily due to increasing international travel and the rising affluence of global middle-class populations. As more people travel for business and leisure, the demand for convenient shopping experiences at airports, train stations, and cruise terminals has surged. This trend has been further fueled by the growth of low-cost carriers and improved global connectivity, facilitating greater passenger throughput and, consequently, higher footfall in travel retail spaces.

Moreover, the strategic location of airports and other travel hubs as retail destinations has attracted both retailers and brands seeking to capitalize on captive audiences of travelers with disposable income. The allure of duty-free shopping, where travelers can purchase goods at prices often lower than those in domestic markets due to tax exemptions, has become a significant driver of sales in these venues. This pricing advantage, combined with the perception of exclusivity and convenience, has positioned travel retail as a lucrative channel for both luxury and everyday consumer goods.

Furthermore, the evolution of travel retail has been shaped by advancements in technology and changing consumer behaviors. Digital transformation has enabled retailers to enhance customer engagement through personalized marketing, online pre-ordering, and seamless shopping experiences across physical and digital platforms. These innovations not only cater to the preferences of tech-savvy travelers but also contribute to increased sales volumes and customer satisfaction. In parallel, consumer demand for unique and culturally relevant products has prompted retailers to diversify their offerings, thereby enhancing the appeal of travel retail as a destination for distinctive shopping experiences.

In addition to organic growth, mergers and acquisitions (M&A) have played a significant role in shaping the landscape of the travel retail market. M&A activities within this sector are often driven by strategic objectives such as expanding market presence, gaining access to new geographical markets, and consolidating market share. For instance, in February 2023, Lagardere Travel Retail Group completed the acquisition of Marché International, a global catering company.

The company aims to strengthen its food service operations and expand across all segments of Travel Retail and Dining. This move enhanced its portfolio of proprietary brands, including Marché, a well-established global brand. As companies continue to pursue growth opportunities both organically and through strategic partnerships, M&A activities are expected to remain a prominent feature of the market, driving consolidation and innovation while shaping the future of travel retail on a global scale.

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Travel Retail Market Report Highlights

• In 2023, the demand for perfumes and cosmetics held a dominant market share. This sector benefits greatly from international travel, attracting a captive audience eager to purchase high-margin products perceived as convenient and desirable during trips. Duty-free pricing contributes significantly by making luxury brands more accessible and appealing to travelers seeking savings

• In 2023, travel retail products at airports and airline outlets commanded a significant market share primarily fueled by the rising air traffic, expanding the customer base for retail outlets

• The growth trajectory of travel retail is poised to continue its upward trajectory, driven by expanding global travel volumes, evolving consumer preferences, and technological innovations. As airports and other travel hubs continue to evolve into dynamic retail environments, the industry's ability to adapt to changing market dynamics and consumer behaviors will be crucial in sustaining growth and profitability

• In 2023, the travel retail market in North America accounted for a dominant share of global revenue. Major airports in the region have made substantial investments in modernization and expansion projects. These initiatives not only enhance capacity but also elevate the shopping experience for travelers, positioning airports as increasingly appealing retail destinations

Travel Retail Market Segmentation

Grand View Research has segmented the global travel retail market on the basis of product, distribution channel, and region:

Travel Retail Product Outlook (Revenue, USD Billion, 2018 - 2030)

• Perfume and Cosmetics

• Wines and Spirits

• Fashion and Accessories

• Tobacco Products

• Electronics and Gifts

• Food and Confectionery

• Others

Travel Retail Distribution Channel Outlook (Revenue, USD Billion, 2018 - 2030)

• Airport and Airlines

• Train Stations

• Ferries

• Others

Travel Retail Regional Outlook (Revenue, USD Billion, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

  • Italy

  • Spain

• Asia Pacific

  • China

  • India

  • Japan

  • Australia & New Zealand

  • South Korea

• Central & South America

  • Brazil

• Middle East & Africa

  • South Africa

List of Key Players of the Travel Retail Market

• Avolta AG

• Lotte Corporation

• China Duty Free Group Co. Ltd.

• LVMH Moët Hennessy Louis Vuitton (DFS Group)

• Gebr. Heinemann SE & Co. KG

• Lagardere Travel Retail Group

• The Shilla Duty Free

• The King Power International Group

• Aer Rianta International cpt

• Duty Free Americas