Travel Retail Market to Grow with a CAGR of 8.72% through 2029

Growing trend of shopping at airports, seaports, and duty-free stores and rising international tourism are the factor driving the global travel retail market.

According to TechSci Research report, “Travel Retail Market - Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2029F”, the Global Travel Retail Market stood at USD 63.30 billion in 2023 and is anticipated to grow with a CAGR of 8.72% through 2029. 

Regulatory and taxation policies have a significant impact on the Global Travel Retail sector. Duty-free shops are, by definition, exempt from certain taxes and tariffs, making them attractive for both retailers and consumers. The policies governing these exemptions can vary from country to country, and changes in regulations can have a substantial influence on the industry. For instance, governments may decide to alter the duty-free allowances, affecting how much travelers can purchase without paying taxes. Additionally, trade agreements and international relations can impact the movement of goods and the rules governing duty-free shopping. Shifts in these policies can create opportunities or challenges for the industry, influencing product pricing, inventory, and consumer behavior.

Global Travel Retail has become increasingly competitive and, in some regions, saturated. As more brands and retailers seek a share of the duty-free market, the competition has intensified. This situation can lead to overcrowded and similar product offerings, making it challenging for any single retailer or brand to stand out. To differentiate themselves, companies must invest in innovative marketing strategies, unique product selections, and an exceptional customer experience. Furthermore, the sector must grapple with the potential for consolidation as larger players aim to gain a competitive edge and reduce operating costs. The ongoing competition and market saturation make it vital for businesses in the industry to continually innovate and evolve their strategies to remain relevant and profitable.

Browse over XX market data Figures spread through XX Pages and an in-depth TOC on "Global Travel Retail Market”.

The global travel retail market is segmented into product type, distribution channel, regional distribution and company.

Based on product type, the food & confectionary segment was the dominated category in the global travel retail market, driven by the high demand for convenience, gifting, and indulgence among travelers. As international tourism continues to rise, food and confectionary items, particularly chocolates, sweets, and local delicacies, have become popular purchases in duty-free and travel retail outlets. Travelers often seek these products for personal consumption, gifts, or souvenirs, taking advantage of tax-free prices and exclusive product offerings available only in travel retail locations. Brands in the confectionary segment are capitalizing on this demand by offering travel-exclusive products and limited-edition collections, further attracting impulse buyers. The convenience of ready-to-eat snacks and premium food products also appeals to travelers looking for comfort during their journeys. With a broad customer base, ranging from frequent flyers to occasional tourists, the food and confectionary category continues to lead in sales within the global travel retail market.

Major companies operating in Global Travel Retail Market are:

• Aer Rianta International
• DFS Group Ltd
• Dubai Duty Free
• King Power International Co., Ltd.
• Hotel Shilla Co., Ltd.
• Flemingo International
• J.R. Group 
• China Duty Free Group Co., Ltd.
• Gebr. Heinemann SE & Co. KG
• Duty Free Americas, Inc.

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“To remain competitive and engage travelers, Global Travel Retail is increasingly embracing the concept of "retailtainment." This trend involves creating an entertaining and immersive shopping experience, going beyond the transactional act of purchasing goods. Retailers are enhancing their stores with interactive displays, entertainment zones, and experiential elements. For example, some airport duty-free shops offer wine tastings, live music performances, or interactive product demonstrations to engage and delight travelers. The goal is to make shopping at the airport or other travel hubs an enjoyable part of the journey, rather than a mere necessity. Retailtainment not only increases foot traffic and sales but also fosters brand loyalty by leaving a positive and memorable impression on travelers.”, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

“Travel Retail Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product Type (Fashion & Accessories, Food & Confectionary, Fragrances & Cosmetics, Wine & Spirits, Others (Stationery, Electronics, Watches, etc.)), By Distribution Channel (Airports, Cruise Liners, Railway Stations, Border, Downtown and Hotel Shops), By Region & Competition, 2019-2029F”, has evaluated the future growth potential of global travel retail market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the global travel retail market.

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