Dublin, Jan. 15, 2021 (GLOBE NEWSWIRE) -- The "Travel Retail Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2020 To 2028" report has been added to ResearchAndMarkets.com's offering.
The travel retail market was valued at US$ 74.31 Bn in 2019 and for the last two decades, the travel retail market has grown constantly.
The global travel retail sector is not limited to only airports; it also includes cruise lines, ferries, and ports. However, an airport still enjoys the pole position in the market and is expected to remain the dominant player in the upcoming years. However, with the onset of the ongoing COVID-19 pandemic and the resulting travel restrictions, some of the major airports witnessed a drop in international passengers by about 90% for the months of March, April, and May 2020. Thereby, retail sales in the global retail market took a significant hit in the 1st half of 2020.
People traveling for work during the pandemic have significantly avoided visiting retail stores at airports thereby, impulsive sales of leisure products have taken a hit
As a result, the travel retail market which was valued at US$ 74.31 Bn in 2019 is estimated to reach only US$ 33.43 Bn in 2020, registering a year-on-year decline of over 55%. However, with expected relaxations in travel restrictions from the start of 2021, the market can expect a steady increase in retail sales during the forecast period from 2020 to 2028.
However, at a conservative growth forecast of about 4.1% during the forecast period, the travel retail market is expected to reach US$ 46.11 Bn by 2028. Some of the factors driving this estimated growth include an uptick in international travel post COVID-19 restrictions, travel retailers adopting digital technologies to drive online sales, and promotional activities planned by leading retailers.
Growing demand for perfumes & cosmetics sub-segment by product category type is likely to propel the market in upcoming years
In 2019, the perfumes & cosmetics segment accounted for the major market share and expected to maintain its dominance over the forecast period. The wine & spirits and fashion & accessories segment followed the perfumes & cosmetics segment with a substantial market share in the base year 2019. Furthermore perfumes & cosmetics segment expected to witness the highest CAGR in upcoming years owing to the increasing demand for branded products from Asia Pacific consumers.
Airport segment expected to dominate the travel retail market by sales channel throughout the forecast period
Though it has been observed that only 5-10% of the total number of travelers at airport tend to visit duty-free shops, the airport segment accounted for over 50% market share of the global travel retail market in terms of market value in 2019. Market players are also paying more attention to the comfort and convenience of the customers coming to the airport.
For instance, several major airports have already started investing in increasing their online retail sales such as Heathrow Airport's "Heathrow Boutique" and Brisbane airport's "BNE Marketplace". Thereby, several major airports are expected to adopt such digital platforms to drive retail sales to offer higher convenience and health safety for travelers.
Growing demand from the Asia Pacific projected to catapult the market growth
Asia-Pacific travel retail market held the largest market value share in 2019. In 2019, Asia Pacific witnessed an increase in sales by 9% whereas other regions posted stagnant or negative growth. With post COVID-19 travel restriction relaxations, the region is expected to witness higher growth as compared to other regions due to the large base of international travelers for both business and leisure purposes.
Leading brands are aggressively looking for digital platforms
As a part of strategic development leading companies such as Revlon, Estee Lauder, Rituals Cosmetics, L'Oreal, and others with an exclusive and wide range of fragrances and skin care products; expanding their offerings over digital platforms at every international airport.
Some of the key observations for international travel in the 1st half of 2020 include:
Key Topics Covered:
Chapter 1 Preface
Chapter 2 Executive Summary
2.1 Market Snapshot: Global Travel Retail Market
Chapter 3 Market Dynamics
3.2 Market Dynamics
3.2.1 Market Drivers
126.96.36.199 The Emerging Middle Class in The New Markets
188.8.131.52 The Boom in the Asia-Pacific Travel Retail Market
3.2.2 Market Challenges
184.108.40.206 High Operating Expenses
220.127.116.11 Stringent Regulations in Airport Retailing
3.2.3 Market Opportunities
18.104.22.168 Digitizing Travel Retail
22.214.171.124 Increasing Demand From Emerging Economies
3.3 Attractive Investment Proposition, by Geography, 2019
3.4 Market Positioning of Key Players, 2019
Chapter 4 Global Travel Retail Market, by Product Category
4.2 Perfumes and Cosmetics
4.3 Wines and Spirits
4.4 Fashion and Accessories
4.5 Tobacco Products
4.6 Watches and Jewellery
4.7 Electronics and Gifts
4.8 Confectionery and Fine Foods
Chapter 5 Global Travel Retail Market, by Sales Channel
5.4 Ferries and Cruises
5.5 Other Shops and Sales
Chapter 6 Global Travel Retail Market, by Geography
Chapter 7 Company Profiles
7.1 Aer Rianta International (ARI)
7.2 China Duty Free Group (CDFG)
7.3 DFASS Group
7.4 DFS Group
7.5 Dufry AG
7.6 Gebr. Heinemann SE & Co. KG
7.7 King Power International Group
7.8 Lotte Group
7.9 Lagardere Group
7.10 The Naunace Group
7.11 The Shilla Duty Free
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