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Travel Retail Market Size
- Report ID: GMI10082
- Published Date: Jul 2024
- Report Format: PDF
Travel Retail Market Size
Travel Retail Market size was valued at USD 61.2 billion in 2023 and is estimated to register a CAGR of over 12% between 2024 and 2032. As global travel continues to rise, especially among middle-class populations in emerging markets, the demand for travel retail goods, such as luxury items, cosmetics, and alcohol, will increase. Modern airports are increasingly designed to incorporate extensive retail spaces, creating opportunities for brands to reach a captive audience of travelers.
For instance, in June 2024, 3Sixty Duty Free announced the grand re-opening and expansion of its retail store at Fort Lauderdale International Airport (FLL) Terminal 4. This expansion makes it the largest retailer in the facility, covering 3,300 sq ft, with plans for additional new stores in other terminals due to the anticipated increase in air traffic.
| Report Attribute | Details |
|---|---|
| Base Year: | 2023 |
| Travel Retail Market Size in 2023: | USD 61.2 Billion |
| Forecast Period: | 2024 - 2032 |
| Forecast Period 2024 - 2032 CAGR: | 12% |
| 2032 Value Projection: | USD 203.3 Billion |
| Historical Data for: | 2021 - 2023 |
| No. of Pages: | 270 |
| Tables, Charts & Figures: | 295 |
| Segments covered: | Product, Distribution Channel, Sector, End User |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Higher disposable incomes worldwide have led to increased spending on luxury and premium products, which are prominently featured in travel retail environments. Duty-free shopping offers significant cost savings for travelers, making it an attractive option and boosting sales. Companies are adopting innovative retail strategies, such as experiential retailing, omnichannel approaches, and personalized marketing, to attract and retain customers. For instance, in May 2024, Aer Rianta International (ARI) announced the expansion of its retail space at Dublin Airport, adding new luxury brands and enhanced shopping experiences for travelers. This expansion is part of ARI's strategy to cater to the increasing passenger numbers and the demand for high-quality duty-free shopping.
The travel retail market faces several pitfalls and challenges that can impede its growth. Changes in duty-free allowances, tax regulations, and customs policies can impact the attractiveness of travel retail shopping. Running retail operations in airports involves high operating costs including rent, staffing, security, and logistics. Limited space in airports and competition for prime retail locations pose challenges. The rise of e-commerce poses a significant challenge to traditional travel retail, as travelers increasingly prefer online shopping for convenience and often better deals.
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Travel Retail Market Scope
