Spirit Travel Retail Market Synopsis

Spirit Travel Retail Market Size Was Valued at USD 13590.06 Million in 2022, and is Projected to Reach USD 27218.48 Million by 2030, Growing at a CAGR of 9.07% From 2023-2030.

Spirit Travel Retail, also known as Duty-Free Spirits, is the sale of alcoholic beverages to travellers at a lower cost, usually at airports, cruise ships, or border crossings. These stores are exempt from local taxes and duties, making them a popular choice for tourists looking to buy alcohol at a lower cost.

• The growing popularity of travel, both domestically and internationally, has resulted in an increase in passenger traffic at airports and other transportation hubs. This expanding consumer base creates significant possibilities for spirit brands to capitalize on the captive audience found in airport terminals and onboard flights. The changing consumer preferences and the rise of experiential shopping have reshaped the travel retail market for spirits.
• Furthermore, travellers are increasingly seeking unique and premium offerings, such as limited-edition releases, handcrafted spirits, and exclusive collections that are typically only available at duty-free shops and onboard aircraft. This trend of premiumization and the desire for luxury experiences creates significant growth opportunities for spirit brands that can adapt to travellers’ distinguishing tastes.
• The Spirit Travel Retail Market is positioned for continued growth, aided by factors that contribute to its consistent expansion. Innovative marketing strategies, collaborations with airlines and duty-free operators, and the introduction of new product offerings will increase spirits' appeal in the travel retail sector.

Spirit Travel Retail Market Trend Analysis

Rising Disposable Incomes

• People with more disposable income travel on commercial airlines and cruise ships. Consumers with greater ability to spend and longer wait times at airports or cruise centres seek out unique products. These people have a lot of money to spend on the unique and exclusive collections that are only available in travel retail stores.
• Retailers and brands can take advantage of this trend by investing in more interactive and technologically advanced retail environments. Brands approached consumers through digital advertising on television and digital billboards, and consumers were attracted to those brands and wanted to buy these spirits. This increase in consumer spending, fuelled by higher disposable incomes, boosts demand for spirits and other products in the travel retail market, propelling its growth.

• The graph shows that the growth of the global spirit travel retail market is linked to an increase in global consumer spending. When global consumer spending rises, it indicates a strong global economy and increased consumer confidence, which encourages more people to travel. People frequently purchase spirits at duty-free and travel retail establishments while traveling.

Luxury Spirits and Limited Editions

• Travel retail has always been about discovery and a place to locate unusual and new products. Specialty travel retail products help to create a unique and unforgettable shopping experience. Since the nature and significance of travel retail spirits have evolved over time, this is probably the most significant moment in their history.
• Additionally, Travel retail exclusive products are available in a variety of shapes and sizes. These can be product-related, such as new flavours, ages, manufacturing methods, and strengths, or packaging-related, such as one-of-a-kind gift boxes or labels. Some brands choose to create collector's series, exclusive products that are only available at specific retailers or regions, or products designed for special occasions such as Chinese New Year.
• Travel retail exclusive products are important for reasons that brand owners and retailers are aware of.  To achieve premiumization, retail prices can be raised and excellent premium packaging can be employed. They offer a new conversation starter and generate one at the point of sale, both in-person and online, all of which promote increased creativity.

Spirit Travel Retail Market Segment Analysis:

Spirit Travel Retail Market Segmented on the basis of Type, Sales Channel, Price, and Brand Origin.

By Type, Whiskey/Scotch segment is expected to dominate the market during the forecast period

• The primary purpose of duty-free shopping used to be financial savings.  The goal could have been to bring back something from the place you're visiting, get an extra-large bottle of your favourite brand, or simply pass the time during a long layover. But these days, a constantly growing assortment of limited-edition travel retail releases makes it possible to obtain pricey bottles that aren't available anywhere else.
• Scotch whisky is by far the most represented whiskey in the world of exclusive travel retail releases, with nearly all of the major brands offering their own interpretations. Travel retail provides a platform for whiskey producers to showcase exclusive and innovative products, as well as luxury rare items. being clearly marked as one of the top brands on the shelves of duty-free stores informs consumers of this.
• Apart from the money needed for travel, most travellers also have extra money to spend. Travel retail stores are able to quickly alter digital advertisements and product displays to the preferred spirits and products of passengers from those locations—something that an ordinary retail store could never do. This is in addition to the fact that flight schedules bring in customers from different regions at specific times.

By Sales Channel, Airport segment is expected to dominate the market during the forecast period

• Airport travel retail has a destination that distinguishes itself from the street by simply offering litre bottles of spirits, resulting in an exclusive and popular shopping experience. Major international airports are popular destinations for travellers, who particularly value the spirit experience. As a result, brands compete for space during these peak times when international shoppers may pass by.
• Airports provide thousands of square meters of retail space designed specifically for the important hour or so that travellers have between checking in and the departure of their flight. Looking through the 24-hour retail areas of current global leaders like Hong Kong International Airport or Dubai International Airport is a stimulating experience.
• The majority of people used to travel by aircraft instead of by boat or on the road. The market's sales are rising as a result of the expanding aviation sector. More people are anticipated to use air travel as it becomes more accessible and affordable, which is predicted to support the sector's growth.

Spirit Travel Retail Market Regional Insights:

Asia Pacific is Expected to Dominate the Market Over the Forecast Period

• The region is the global leader in Spirit travel retail sales, with positive growth expected to continue. The Asia Pacific region has significant potential for future growth due to its large population, growing economies, rising incomes, increased purchasing power, and a growing desire to travel. These factors contribute to the growth and development of the Spirit travel retail sector in the region.
• The spirit travel retail sector in the region will continue to grow, due to the development of Mainland Chinese travel and tourism, as well as the expansion of India's middle class and growing economy. As a result, airports across the country have expanded their Spirit travel-related retail selections.
• Cruising is becoming more popular among Asian travellers. Asians prefer shorter cruises and larger cruise parties with multiple generations of family members, as opposed to more established cruise markets. The reduced amount of time for shopping, combined with the potential increase in family group activity, has an impact on Spirit travel retail sales while on board.

Spirit Travel Retail Market Top Key Players:

• Brown-Forman (US)
• Roust (US)
• Beam Suntory (US)
• Tito's Handmade Vodka (US)
• Bacardi (Bermuda)
• Heinemann Se & Co. Kg (Germany)
• Gebr. Heinemann Se & Co. Kg (Germany)
• Mast-Jägermeister (Germany)
• Diageo (UK)
• William Grant & Sons (UK)
• Edrington (UK)
• Moet Hennessy (France)
• Lagardere Travel Retail (France)
• Pernod Ricard (France)
• Lvmh (France)
• Dufry Ag (Switzerland)
• The Nuance Group Ag (Switzerland)
• Aer Rianta International (Ireland)
• Campari Group (Italy)
• Nemiroff (Ukraine)
• Dfs Group Ltd. (China)
• Duty Free China Group Co. Ltd. (China)
• Lotte Duty Free (Lotte Hotel) (South Korea)
• King Power International Group (Thailand), and Other Major Players

Key Industry Developments in the Spirit Travel Retail Market:

• In October 2022, Brown-Forman Global Travel Retail has launched the travel retail-exclusive Jack Daniel's American Single Malt whiskey. This charcoal mellowed American Single Malt is the first of its kind, aged in handcrafted charred oak barrels and finished in the finest Oloroso Sherry Casks.
• In October 2023, William Grant & Sons acquired Silent Pool Distillers, the UK's leading ultra-premium gin producer. As the brand's global supply chain and distribution partner in travel retail, the spirits company will help Silent Pool expand its presence in new markets.

1. INTRODUCTION
   1. RESEARCH OBJECTIVES
   2. RESEARCH METHODOLOGY
   3. RESEARCH PROCESS
   4. SCOPE AND COVERAGE
      1. Market Definition
      2. Key Questions Answered
   5. MARKET SEGMENTATION
2. EXECUTIVE SUMMARY
3. MARKET OVERVIEW
4. GROWTH OPPORTUNITIES BY SEGMENT
5. MARKET LANDSCAPE
   1. PORTER’S FIVE FORCES ANALYSIS
      1. Bargaining Power Of Supplier
      2. Threat Of New Entrants
      3. Threat Of Substitutes
      4. Competitive Rivalry
      5. Bargaining Power Among Buyers
   2. INDUSTRY VALUE CHAIN ANALYSIS
   3. MARKET DYNAMICS
      1. Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
   4. MARKET TREND ANALYSIS
   5. REGULATORY LANDSCAPE
   6. PESTLE ANALYSIS
   7. PRICE TREND ANALYSIS
   8. PATENT ANALYSIS
   9. TECHNOLOGY EVALUATION
   10. MARKET IMPACT OF THE RUSSIA-UKRAINE WAR
       1. Geopolitical Market Disruptions
       2. Supply Chain Disruptions
       3. Instability in Emerging Markets
   11. ECOSYSTEM
6. SPIRIT TRAVEL RETAIL MARKET BY TYPE (2016-2030)
   1. SPIRIT TRAVEL RETAIL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. WHISKEY/SCOTCH
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2016 – 2030F)
      3. Historic And Forecasted Market Size in Volume (2016 – 2030F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. VODKA
   5. RUM
   6. GIN
   7. TEQUILA/MEZCAL
   8. BRANDY/COGNAC
   9. LIQUEURS
   10. SPECIALTY SPIRITS
7. SPIRIT TRAVEL RETAIL MARKET BY SALES CHANNEL (2016-2030)
   1. SPIRIT TRAVEL RETAIL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. AIRPORT
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2016 – 2030F)
      3. Historic And Forecasted Market Size in Volume (2016 – 2030F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. CRUISE SHIP
   5. BORDER SHOPS
   6. DOWNTOWN DUTY-FREE STORES
8. SPIRIT TRAVEL RETAIL MARKET BY PRICE (2016-2030)
   1. SPIRIT TRAVEL RETAIL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. PREMIUM
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2016 – 2030F)
      3. Historic And Forecasted Market Size in Volume (2016 – 2030F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. MID-RANGE
   5. ENTRY-LEVEL SPIRITS
9. SPIRIT TRAVEL RETAIL MARKET BY BRAND ORIGIN (2016-2030)
   1. SPIRIT TRAVEL RETAIL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. INTERNATIONAL BRANDS
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2016 – 2030F)
      3. Historic And Forecasted Market Size in Volume (2016 – 2030F)
      4. Key Market Trends, Growth Factors And Opportunities
      5. Geographic Segmentation Analysis
   4. LOCAL OR REGIONAL BRANDS
10. COMPANY PROFILES AND COMPETITIVE ANALYSIS
    1. COMPETITIVE LANDSCAPE
       1. Competitive Positioning
       2. Spirit Travel Retail Market Share By Manufacturer (2022)
       3. Industry BCG Matrix
       4. Heat Map Analysis
       5. Mergers & Acquisitions
    2. BROWN-FORMAN (US)
       1. Company Overview
       2. Key Executives
       3. Company Snapshot
       4. Role of the Company in the Market
       5. Sustainability and Social Responsibility
       6. Operating Business Segments
       7. Product Portfolio
       8. Business Performance (Production Volume, Sales Volume, Sales Margin, Production Capacity, Capacity Utilization Rate)
       9. Key Strategic Moves And Recent Developments
       10. SWOT Analysis
    3. ROUST (US)
    4. BEAM SUNTORY (US)
    5. TITO'S HANDMADE VODKA (US)
    6. BACARDI (BERMUDA)
    7. HEINEMANN SE & CO. KG (GERMANY)
    8. GEBR. HEINEMANN SE & CO. KG (GERMANY)
    9. MAST-JÄGERMEISTER (GERMANY)
    10. DIAGEO (UK)
    11. WILLIAM GRANT & SONS (UK)
    12. EDRINGTON (UK)
    13. LAGARDERE TRAVEL RETAIL (FRANCE)
    14. PERNOD RICARD (FRANCE)
    15. LVMH (FRANCE)
    16. PERNOD RICARD (FRANCE)
    17. MOET HENNESSY (FRANCE)
    18. DUFRY AG (SWITZERLAND)
    19. THE NUANCE GROUP AG (SWITZERLAND)
    20. AER RIANTA INTERNATIONAL (IRELAND)
    21. CAMPARI GROUP (ITALY)
    22. NEMIROFF (UKRAINE)
    23. DFS GROUP LTD. (CHINA)
    24. DUTY FREE CHINA GROUP CO. LTD. (CHINA)
    25. LOTTE DUTY FREE (LOTTE HOTEL) (SOUTH KOREA)
    26. KING POWER INTERNATIONAL GROUP (THAILAND)
11. GLOBAL SPIRIT TRAVEL RETAIL MARKET BY REGION
    1. OVERVIEW
    2. NORTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Type
       4. Historic And Forecasted Market Size By Sales Channel
       5. Historic And Forecasted Market Size By Price
       6. Historic And Forecasted Market Size By Brand Origin
       7. Historic And Forecasted Market Size By Country
          1. USA
          2. Canada
          3. Mexico
    3. EASTERN EUROPE
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Russia
          2. Bulgaria
          3. The Czech Republic
          4. Hungary
          5. Poland
          6. Romania
          7. Rest Of Eastern Europe
    4. WESTERN EUROPE
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Germany
          2. United Kingdom
          3. France
          4. The Netherlands
          5. Italy
          6. Spain
          7. Rest Of Western Europe
    5. ASIA PACIFIC
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. China
          2. India
          3. Japan
          4. South Korea
          5. Malaysia
          6. Thailand
          7. Vietnam
          8. The Philippines
          9. Australia
          10. New-Zealand
          11. Rest Of APAC
    6. MIDDLE EAST & AFRICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Turkey
          2. Bahrain
          3. Kuwait
          4. Saudi Arabia
          5. Qatar
          6. UAE
          7. Israel
          8. South Africa
    7. SOUTH AMERICA
       1. Key Market Trends, Growth Factors And Opportunities
       2. Key Manufacturers
       3. Historic And Forecasted Market Size By Segments
       4. Historic And Forecasted Market Size By Country
          1. Brazil
          2. Argentina
          3. Rest of South America
12. INVESTMENT ANALYSIS
13. ANALYST VIEWPOINT AND CONCLUSION
    1. Recommendations and Concluding Analysis
    2. Potential Market Strategies