Travel Retail Market Report 2025

This Travel Retail report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The travel retail market size has grown rapidly in recent years. It will grow from $88.76 billion in 2024 to $100.73 billion in 2025 at a compound annual growth rate (CAGR) of 13.5%. The growth in the historic period can be attributed to increased disposable income, rise in global urbanization, growing leisure and tourism industry, expansion of airports and other travel hubs, growing demand for luxury goods.

The travel retail market size is expected to see rapid growth in the next few years. It will grow to $169.64 billion in 2029 at a compound annual growth rate (CAGR) of 13.9%. The growth in the forecast period can be attributed to increasing globalization, growing demand for personalized shopping experiences, increasing use of technology to enhance customer experience, growing demand for sustainable and eco-friendly products, increasing demand for online travel retail. Major trends in the forecast period include integration of advanced technology, collaboration between travel retailers and travel service providers, integration of augmented reality (AR) and virtual reality (VR), introduction of contactless and frictionless payment methods, data analytics for personalized marketing and customer engagement.

The increasing number of international travelers is projected to drive the growth of the travel retail market in the future. Mass tourism and package holidays have expanded markets, attracting large numbers of individuals. Travel retail enables international travelers to book their tickets from anywhere using the internet, simplifying their journey. As a result, the rise in international travel is expected to boost the demand for travel retail. For instance, in September 2024, data published by UN Tourism, a Spain-based United Nations agency, indicated that approximately 790 million tourists traveled internationally in the first seven months of 2024, marking an 11% increase compared to the same period in 2023. Therefore, the growth in international travelers is likely to propel the travel retail market forward.

The increasing demand for transportation is anticipated to drive the growth of the travel retail market. Transportation refers to the movement of people and goods between various locations using different modes of conveyance. As more individuals seek efficient and seamless travel experiences, travel retail venues - such as airports, train stations, and highways - are expected to enhance their offerings of duty-free shopping, dining, and entertainment options. For example, in December 2023, data published by TRIP, a US-based nonprofit research organization, projected that the annual freight transported by trucks in the U.S. would increase by 93% in value and 47% in weight from 2022 to 2050. Additionally, business logistics costs in the U.S. reached $2.3 trillion in 2022, accounting for 9.1% of the GDP, the highest proportion recorded to date. Therefore, the rising demand for transportation is likely to stimulate the growth of the travel retail market.

Technological advancement is a significant trend gaining traction in the travel retail market, referring to the discovery of knowledge that propels technology forward. Travel retailers are leveraging data insights, including detailed information about customers' arrival and destination, to address specific needs effectively. Staff and retail displays are tailored to accommodate the languages and cultural sensitivities of incoming passengers, ensuring that the right products are prominently displayed for the appropriate customers. For example, in July 2024, The O2 Store, a UK-based retail chain, launched its first AWS Just Walk Out-enabled store in London. This cutting-edge store incorporates advanced technology that enables customers to shop without conventional checkout processes, using contactless payments and AI-driven monitoring for a smooth shopping experience. By efficiently managing high foot traffic, particularly during events, it improves customer satisfaction while enhancing operational efficiency through real-time data analytics.

Leading companies in the travel retail market are concentrating on creating innovative solutions, such as interactive digital experiences, to engage the next generation of beauty consumers in China and the Asia-Pacific region. This approach combines luxury beauty with modern technology and storytelling. Interactive digital experiences provide engaging environments where users actively participate and influence content or outcomes through various digital interfaces, fostering a deeper connection with the material. For example, in October 2024, Clarins, a beauty company based in France, introduced the Digital Travel Retail Experience in collaboration with Lonsdale Design, a French branding and design agency. This initiative merges interactive technology with youthful, contemporary aesthetics, allowing for personalized brand interactions through avatars and digital elements. Its significance lies in appealing to tech-savvy Gen Z consumers while redefining luxury beauty by integrating the physical and digital realms in a premium retail format specifically designed for airports throughout the Asia-Pacific region.

In July 2022, Dufry AG, a Switzerland-based travel company, acquired Autogrill SpA for an undisclosed amount. This merger created a new entity employing around 60,000 people, serving 2. 3 billion travelers in over 5,500 outlets across 1,200 airport and other locations in more than 75 countries. The acquisition of Autogrill has enabled Dufry to expand its service portfolio, enhance bargaining power, generate cost synergies, and achieve positive financial results and an improved credit rating.

Major companies operating in the travel retail market include Aer Rianta International, China Duty Free Group Co Ltd., Dufry AG, Duty Free Americas Inc., Gebr Heinemann SE & Co KG, King Power International Group, Lotte Hotel & Resorts, Lagardère SCA, The Shilla Duty Free, DFS Group, Flemingo International, The Naunace Group, Dubai Duty Free, James Richardson Group, Lotte Duty Free, Qatar Duty Free, Heinemann, LS Travel Retail, Incheon International Airport Corporation, Singapore Changi Airport Terminal Services, Kappé Schiphol, China Duty Free Group, James Richardson Corporation, RegStaer Group, ARI (Aer Rianta International), Baltona Duty Free, World Duty Free Group, Nuance Group AG, SSP Group Limited, Wenzhou Department Store Group Co Ltd., King Power (Cambodia) Co Ltd.

Asia-Pacific was the largest region in the travel retail market in 2024. The regions covered in the travel retail market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the travel retail market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Travel retail, often centered around airports, airplanes, cruise ships, and downtown duty-free stores, involves the sale of products in environments where taxes and duties are applicable, even during international travel. It is essentially the business of serving shoppers while they are in transit.

The primary product categories in the travel retail market include perfume and cosmetics, wine and spirits, electronics, luxury goods, food, confectionery, catering, tobacco, and others. In this context, wine in travel retail denotes the alcoholic beverage produced from the fermented juice of fresh grapes. Wine spirit, also known as ethanol or ethyl alcohol, is a colorless flammable liquid and the active component in intoxicating drinks, generated through the fermentation of sugars, especially glucose, and utilized as a solvent and in the production of organic chemicals. Various channels are employed in travel retail, including airports, cruise lines, border points, downtown and hotel shops, railway stations, and others. Additionally, the end users of travel retail products span different age groups, including children (less than 18 years old), youth (18-30 years old), middle-aged individuals (18-59 years old), and the elderly (greater than 60 years old).

The travel retail market research report is one of a series of new reports that provides travel retail market statistics, including travel retail industry global market size, regional shares, competitors with a travel retail market share, detailed travel retail market segments, market trends and opportunities, and any further data you may need to thrive in the travel retail industry. This travel retail market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The travel retail market includes revenues earned by entities by taking part in sales activities to meet the expectations of the customers while they are travelling. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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