DUBLIN, Aug. 30, 2023 /PRNewswire/ — The “Global Travel Retail Market (2023-2028) by Product Type, Distribution channel, and Geography, Competitive Analysis, Impact of Covid-19 and Ansoff Analysis” report has been added to ResearchAndMarkets.com’s offering.
The Global Travel Retail Market is estimated to be USD 59.16 Bn in 2023 and is expected to reach USD 89.94 Bn by 2028, growing at a CAGR of 8.74%.
The travel retail industry includes the sale of goods and services to travelers in areas such as airports, train stations, cruise terminals, and border shops. It is a distinct retail industry area that capitalizes on travelers’ spending power and leisure time. Luxury items, clothes and accessories, cosmetics and skin care, gadgets, confectionery, and alcohol are all part of travel retail.
The rising number of international travelers is driving the growth of the Global Travel Retail Market as more people travel, they are more likely to purchase goods and services at airports, train stations, and other travel hubs. They are more likely to visit new places and try new things. This creates an opportunity for travel retailers to offer a wider range of products and services to meet the needs of these travelers.
However, the rise of e-commerce and online shopping platform is hampering the growth of the market it is easier for people to shop for products and services from the comfort of their own homes, and that’s why they are less likely to visit travel retail stores when they are traveling. Also, e-commerce retailers often offer lower prices and a wider collection of products than travel retail stores. This makes it more attractive for people to shop online rather than in travel retail stores.
Nonetheless, the expansion of duty-free shopping attracts a broader customer base, creating opportunities for Global Travel Retail Market. Duty-free shopping saves travelers a significant amount of money on their purchases as goods purchased in duty-free shops are not subject to taxes, which can add up to a significant amount on high-value items. They are typically located in airports and other travel hubs, making it easy for travelers to shop for duty-free products without going out of their way.
But the restrictions implemented by airlines on carry-on baggage are challenging the Global Travel Retail Market as passengers are less likely to buy goods from retail travel shops because passengers do not want to risk having their goods confiscated by security or paying additional fees to check their bags. Also, airlines are charging higher fees for checked baggage. This makes it more expensive for passengers to bring goods from retail travel shops onto their flights. This is also leading to a decline in sales.
Drivers and Opportunities:
- The increasing number of international travelers is a major driver behind the growth of the Global Travel Retail Market.
- The expansion of duty-free shopping provides a significant opportunity for retailers to attract a broader customer base.
Challenges and Disruptions:
- The rise of e-commerce and online shopping poses a challenge to traditional retail models.
- Airlines’ restrictions on carry-on baggage impact travelers’ willingness to purchase items from retail stores at travel hubs.
- Abu Dhabi Duty Free
- Aer Rianta International
- China Tourism Group
- … (more companies listed)
- Lotte Duty Free
- LVMH Group
- … (more companies listed)
- Starboard Holdings Ltd.,Inc.
- WH Smith
By Product Type:
- Perfume & Cosmetics
- Confectionery & Fine Food
- Wine & Spirit
- Fashion & Accessories
By Distribution Channel:
- Cruise Lines
- Border, Down Town & Hotel Shops
- Railway Stations & Others
- Middle East & Africa
For more information about this report visit https://www.researchandmarkets.com/r/j72ug
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Originally published at https://www.prnewswire.com/news-releases/global-travel-retail-market-set-to-soar-predicted-to-reach-89-94-billion-by-2028-with-8-74-cagr-301913853.html
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