Travel Retail Market Synopsis

Travel Retail Market Size Was Valued at USD 6802.40 Million in 2023, and is Projected to Reach USD 17018.26 Million by 2032, Growing at a CAGR of 10.34% From 2024-2032.

Travel retail refers to the sales of goods targeted at international travelers in duty-free zones, such as airports, cruise terminals, and other transit hubs. Products in this sector are tax-exempt when purchased for immediate export, making travel retail a unique and appealing shopping experience for travelers.

• This industry is a significant revenue generator for aviation, tourism, and maritime sectors, with airport retail contributing the largest share to non-aeronautical income worldwide. More than 1 billion international travelers pass through airports each year, a number projected to grow by 5% annually. This steady increase in travel volume underscores travel retail’s role as a cornerstone for airport growth and development. Recognizing its economic importance, modern airports now prioritize spacious, vibrant retail areas in their designs to maximize engagement and revenue opportunities.
• The top three product categories in travel retail are fragrances and cosmetics (30% of sales), wines and spirits (17%), and accessories (15%), highlighting the diversity and appeal of duty-free shopping. By creating a seamless, integrated experience across digital and in-store channels, travel retail taps into every stage of the customer journey, making it an essential and high-impact component of the travel industry.

Travel Retail Market Trend Analysis

Rising Global Air Traffic and Passenger Numbers

• The worldwide air travel sector is recovering robustly in 2024, with travel demand reaching pre-pandemic figures, leading to a boom in the travel retail market. The World Economic Forum states that travel and tourism have fully returned, with projected global GDP contributions achieving levels seen before 2020. This expansion is clear in consumer spending patterns, as highlighted by the Mastercard Economics Institute, which indicates that individuals are placing greater importance on travel and experiences, allocating a larger portion of their budget to international journeys.
• Regionally, the recovery is varied, as airports such as Hong Kong and Macau have achieved 55% of 2019 passenger levels, while Singapore’s Changi Airport has rebounded to 86%, and Malaysia’s airports to 78%. The increase in passenger traffic has driven growth in airport retail, prompting airports to enlarge duty-free areas to serve the growing population of international tourists. The 2024 ACI World Annual Airport Traffic Report anticipates a 10% increase in worldwide passenger traffic, predicted to reach 9.5 billion by the end of the year. By the middle of 2024, passenger traffic had reached 102% of what it was before the pandemic, with international traffic showing a 17% increase compared to the previous year.
• The increase in passengers is a significant factor for travel retail, as airports take advantage of high volumes of visitors and spending, broadening retail choices to cater to varied traveler requirements. With expanded infrastructure and retail areas, travel retail is set to prosper during the ongoing recovery of worldwide air traffic.

Increasing Demand for Luxury and Exclusive Products

• The travel retail market is evolving rapidly, driven by the surging demand for luxury and exclusive products. As restrictions on travel ease, airports and travel retailers are seizing the opportunity to engage affluent consumers looking for quality and exclusivity in their purchases. The luxury retail sales reached €1.51 trillion in 2023, marking an impressive 11-13% increase over the previous year. Millennials and Gen Z are at the forefront of this growth, now making up 85% of the expansion in global luxury sales. By 2030, it’s projected that Millennials and Gen Z will comprise as much as 85% of luxury purchases, redefining the market with their expectations for sustainability, hybrid shopping experiences, and high-end offerings.
• The industry report by Lagardère Travel Retail highlights how brands and airports are adapting to these demands by implementing sustainable practices, developing hybrid retail concepts, and exploring data-sharing models to enhance the consumer experience. With contributions from 58 airports and 150 brands across 27 countries, the study illustrates a commitment to transforming the travel retail sector to meet evolving consumer expectations. This collaboration promises a vibrant, sustainable, and connected future for travel retail, capitalizing on the trend toward unique and exclusive luxury products that travelers increasingly desire.

Travel Retail Market Segment Analysis:

Travel Retail Market Segmented on the basis of type, product type, location, and sales channel.

By Product Type, Beauty & Personal Care segment is expected to dominate the market during the forecast period

• In global travel retail, Beauty & Personal Care dominate the market. Fragrances and cosmetics with a 30% share of sales, led by a rising demand for niche fragrances. At Istanbul Airport, niche fragrances increased by 42% in turnover in 2023 compared to the previous year, accounting for 20% of the fragrance market. This growth reflects a strong traveler desire for unique and exclusive products.
• Skincare is another promising segment, although only 8% of passengers visit skincare sections in duty-free shops, 39% of these visitors make a purchase, with an average spend of $95. Cross-category spending is prevalent, as skincare buyers often purchase perfumes (33%), chocolate and confectionery (18%), and makeup (16%), highlighting a tendency for shoppers to indulge across categories. Wines and spirits follow in market share at 17%, appealing to duty-free shoppers seeking premium alcohol selections, while accessories like watches and jewelry capture a 15% share, catering to demand for branded travel items and gifts.

By Location, Airports segment is expected to dominate the market during the forecast period

• The airport segment is dominating the global travel retail market by location, driven by the rebound in international passenger traffic and the high spending power of travelers. In 2023, airports are capturing the majority share as global passenger traffic is projected to reach 8.7 billion, a 31% increase from 2022, and recover to 95% of pre-pandemic (2019) levels. This resurgence is largely due to the 42% growth in international passenger traffic, surpassing domestic growth.
• By 2024, global passenger numbers are expected to reach 9.7 billion, with international traffic alone nearing 4 billion. This surge is generating significant sales within airport retail, as duty-free and luxury shopping continue to attract consumers, particularly in major hubs. In contrast, other travel retail locations, such as railways, border shops, and cruise ships, are showing slower growth, owing to a smaller volume of passengers and limited retail offerings.
• Aircraft movements another indicator of retail footfall is projected to rise from 98.2 million in 2023 to 106.7 million in 2024. This trend reflects strong growth at airports, highlighting their central role in travel retail, where high passenger turnover and a demand for premium products maintain airports as the leading travel retail segment.

Travel Retail Market Regional Insights:

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

• Asia-Pacific is set to lead the global travel retail market, driven by rising tourism, expanding middle-class consumer base, and increasing disposable incomes. The region's market value is projected to reach $108 billion by 2029, with an annual growth rate of 8.1%. China and India are key players, fueled by infrastructural investments and a shift in consumer spending patterns. For example, China's travel retail market alone is estimated to hit $86 billion by 2025, spurred by domestic tourism policies and high demand in destinations like Hainan Island, where duty-free sales reached $10 billion in 2023. India’s travel retail market, currently valued at $2.03 billion, is expected to grow at a 21.59% CAGR, reaching $5.4 billion by 2029.
• Indian airports, including new developments in Mumbai and Delhi, are essential hubs, with Mumbai’s passenger volume already surpassing pre-pandemic levels by 10%. By 2030, Asia is forecasted to see international departures of over 50 million from India alone, and Airbus estimates that Asia’s passenger flows will grow two to three times faster than in Europe and North America. This massive footfall provides a robust customer base, cementing Asia-Pacific’s dominance in the global travel retail sector.

Active Key Players in the Travel Retail Market

• LVMH Moët Hennessy Louis Vuitton (France)
• Dufry AG (Avolta) (Switzerland)
• Lagardère Travel Retail (France)
• King Power Corporation (Thailand)
• Aer Rianta International (Ireland)
• Lotte Duty Free (South Korea)
• Gebr. Heinemann SE & Co. KG (Germany)
• CTG Duty Free (China Tourism Group) (China)
• DFS Group Ltd. (Hong Kong)
• The Estée Lauder Companies (USA)
• Avolta AG (Switzerland)
• Duty Free Americas, Inc. (USA)
• Weitnauer Group (Switzerland)
• Hudson Group (USA)
• Otis McAllister & Co. (USA)
• International Shoppes (USA)
• 3Sixty Duty Free (USA)
• London Supply Group (Argentina)
• Harding Retail (United Kingdom)
• The Shilla Duty Free (South Korea)
• Dubai Duty Free (UAE)
• Cancun Duty Free (Mexico)
• Starboard Cruise Services (USA)
• Global Sea Chandler (UAE)
• Ship Chandler & Duty-Free Shopper, LLC (USA), and Other Active Players

Key Industry Developments in the Travel Retail Market:

• In November 2024, E23 Retail and DRP have announced a strategic partnership aimed at transforming data-driven strategies in the travel retail industry. This collaboration combines E23 Retail’s AI-powered campaign optimization with DRP’s expertise in SKU-specific pricing data and retail intelligence, offering enhanced audience measurement, sales forecasting, and campaign execution for duty-free operators and brands. The partnership is set to drive efficiency, precision, and ROI in travel retail, supporting post-pandemic recovery and growth through innovative data solutions.
• In September 2024, Paul Smith, Britain’s renowned independent design brand, has appointed Newmark’s Travel Retail team to lead its expansion in the travel retail market. The partnership aims to introduce Paul Smith’s iconic “classic with a twist” style to new audiences through airport duty-free and cruise retail outlets.

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. TRAVEL RETAIL MARKET BY TYPE (2017-2032)
   1. TRAVEL RETAIL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. DUTY-FREE
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Key Market Trends, Growth Factors And Opportunities
      4. Geographic Segmentation Analysis
   4. DUTY PAID
7. TRAVEL RETAIL MARKET BY PRODUCT TYPE (2017-2032)
   1. TRAVEL RETAIL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. BEAUTY & PERSONAL CARE
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Key Market Trends, Growth Factors And Opportunities
      4. Geographic Segmentation Analysis
   4. LIQUOR & TOBACCO
   5. CONFECTIONERY & SNACKS
   6. WATCHES & JEWELRY
   7. FASHION & ACCESSORIES
   8. ELECTRONICS
   9. OTHER PRODUCTS
8. TRAVEL RETAIL MARKET BY LOCATION (2017-2032)
   1. TRAVEL RETAIL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. AIRPORTS
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Key Market Trends, Growth Factors And Opportunities
      4. Geographic Segmentation Analysis
   4. CRUISE SHIPS
   5. RAILWAYS AND FERRIES
   6. BORDER SHOPS
9. TRAVEL RETAIL MARKET BY SALES CHANNEL (2017-2032)
   1. TRAVEL RETAIL MARKET SNAPSHOT AND GROWTH ENGINE
   2. MARKET OVERVIEW
   3. STORES
      1. Introduction And Market Overview
      2. Historic And Forecasted Market Size in Value (2017-2032F)
      3. Key Market Trends, Growth Factors And Opportunities
      4. Geographic Segmentation Analysis
   4. ONLINE TRAVEL RETAIL
10. COMPANY PROFILES AND COMPETITIVE ANALYSIS
    1. COMPETITIVE LANDSCAPE
       1. Competitive Benchmarking
       2. TRAVEL RETAIL Market Share By Manufacturer (2023)
       3. Industry BCG Matrix
       4. Heat Map Analysis
       5. Mergers & Acquisitions
    2. LVMH MOËT HENNESSY LOUIS VUITTON
       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. DUFRY AG (AVOLTA)
    4. LAGARDÈRE TRAVEL RETAIL
    5. KING POWER CORPORATION
    6. AER RIANTA INTERNATIONAL
    7. LOTTE DUTY FREE
    8. GEBR. HEINEMANN SE & CO. KG
    9. CTG DUTY FREE (CHINA TOURISM GROUP)
    10. DFS GROUP LTD.
    11. THE ESTÉE LAUDER COMPANIES
    12. AVOLTA AG
    13. DUTY FREE AMERICAS, INC.
    14. WEITNAUER GROUP
    15. HUDSON GROUP
    16. OTIS MCALLISTER & CO.
    17. INTERNATIONAL SHOPPES
    18. 3SIXTY DUTY FREE
    19. LONDON SUPPLY GROUP
    20. HARDING RETAIL
    21. THE SHILLA DUTY FREE
    22. DUBAI DUTY FREE
    23. CANCUN DUTY FREE
    24. STARBOARD CRUISE SERVICES
    25. GLOBAL SEA CHANDLER
    26. SHIP CHANDLER & DUTY-FREE SHOPPER, LLC
    27. OTHER ACTIVE PLAYERS
11. GLOBAL 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 Product Type
       5. Historic And Forecasted Market Size By Location
       6. Historic And Forecasted Market Size By Sales Channel
       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