According to the latest report published by Credence Research, Inc. “Global 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 and Competitive Analysis, 2018-2026,” the worldwide Travel Retail market amounted to US$ 63.59 billion in 2017, increasing to CAGR by 8.1 per cent from 2018 to 2026.
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The worldwide travel retail industry increased by US$ 63.59 billion in 2017 with a CAGR of 8.1 per cent during the forecast period from 2018 to 2026. According to the United Nations World Tourism Organization, there has been a huge increase in global tourist arrivals, from only 277 million in 1980 to over 1 billion in 2017. Significant developments in the travel and tourism industry, along with medical tourism, have increased demand for retail travel services. Particularly in the Asia-Pacific region, the implementation of democratic airlines for travel and budget airlines has led to an increasing amount of travellers. According to statistics from the International Airports Council, tourists experienced a substantial rise in the region in 2017 compared to 2016; the growth rate of tourists was significantly greater than the world average.
The emerging middle class in the new markets is one of the primary drivers of growing demand for travel retailers. The growing middle class in many of the nations in the region is a key factor in the growing amount of tourists in developing nations. As travel becomes more available, customers have shown a good deal of desire for it and have filled the seats of airlines. More prominently, China is the biggest source of outbound visitors owing to the growing amount of middle-class people. In 2016, China, followed by Russia, accounted for roughly 29 per cent of total tax-free expenditure globally. Retail advantages, a good selection of shopping malls, renowned global brand shops and a willingness to purchase products at a better cost are some of the key variables that middle class clients consider during travel retail shopping.
In 2017, Asia Pacific dominated the travel retail market in terms of value. China, India and Japan are the prime markets for travel retail in Asia Pacific accounting for significant share of total regional revenue. Asia-Pacific is growing at the fastest rate owing to improving standard of living, rise in disposable income, and development of the tourism industry. Furthermore, owing to stronger base of luxury brands, Europe is one of the prominent travel retail markets across the globe. The region holds headquarters of some of the biggest apparels and cosmetics brands, namely, H&M from Sweden and LVMH from France, which hold a substantial share in the luxury a perfumes, apparels and cosmetics sector, thus making Europe the second largest travel retail market. Europe’s market accounts for major share of the travel retail sector as region has headquarters of most of the luxury brands. Wealthy tourists from the Middle East, China, and the U.S. contribute considerably towards the growth of the European travel retail market.
Aer Rianta 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 Naunace Group and The Shilla Duty Free among others are some of the prominent players in global travel retail market.
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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)
- Ferries and Cruises
- Other Shops and Sales
By Geography Segment (2016–2026; US$ Mn)
- North America
- Asia Pacific (APAC)
- Middle East & Africa (MEA)
- Latin America