Id: CBI_2408 | Pages: 285 | Format : PDF | Published : | Author : Amit Sati | Category : Consumer Goods
Travel Retail Market is estimated to reach over USD 136.80 Billion by 2032 from a value of USD 65.92 Billion in 2024 and is projected to grow by USD 71.07 Billion in 2025, growing at a CAGR of 10.6% from 2025 to 2032.
Travel retail refers to retail outlets which sell products to end consumers in a travel environment such as airports, cruise & ferry, railway stations, and others. Also, most of the retail outlets are duty free where customers are exempted from certain local taxes and duties. Moreover, the retail operators in the market have expertise with keen understanding of consumer behavior in transit spaces which in turn is driving the travel retail market growth. Moreover, the advantages include high footfall, duty free products, exciting offers, and others which in turn drives the travel retail market growth. Further, retail stores are major source of revenue for airports by providing opportunities for consumer brands, which in turn is boosting the travel retail market demand.
The rapidly growing number of business travelers and luxury tourists are propelling the need for luxury and premium products to attract more travelers, which in turn drives the market progress. Further, the rising need for enhancing customer experience as well as rising demand for luxury brands with duty free benefits is driving the need for luxury and premium products in retail travel stores which in turn is driving the travel retail market demand.
Hence, the rising demand for enhancing customer experience as well as rising demand for luxury brands with duty free benefits is driving the market progress.
The rules and regulations across countries are different for duty free and trave retail which hinders international brands to maintain consistent price of products which in turn hinders the travel retail market expansion. Further, most of the countries such as Australia, Singapore and others have imposed limitations in tobacco and alcohol sale as well as stringent packaging law in turn hinders the travel retail market expansion.
Therefore, the stringent rules and regulations for packaging and sale of products as well as limitations imposed on certain products are restraining the market growth.
The rapidly growing domestic and international travelers across globe is driving the demand for aircraft which in turn is propelling travel retail market opportunities. Additionally, the expansion and modernization of airports are paving the way for travel retail market opportunities. Further, increasing number of transit passenger layovers is driving the need for retails stores which in turn is boosting market development at airports.
Hence, the growing domestic and international travelers across globe is anticipated to increase the number of retail stores in turn is promoting prospect for market development during the forecast period.
Based on the product, the market is segmented into fragrance, cosmetics, alcohol, tobacco, food and confectionery, fashion and others.
Trends in the Product:
Cosmetic accounted for the largest revenue share in the year 2024.
Fashion is anticipated to register the fastest CAGR during the forecast period.
Based on the application, the market is segmented into airports, border shops, ferries, cruise ships and railway stations.
Trends in the Application:
Airport accounted for the largest revenue share of 38.32% in the year 2024 and is anticipated to register the fastest CAGR during the forecast period.
The regions covered are North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 22.69 Billion in 2024. Moreover, it is projected to grow by USD 24.51 Billion in 2025 and reach over USD 48.15 Billion by 2032. Out of this, China accounted for the maximum revenue share of 34.1%. The market is mainly driven by its deployment in airports and cruise ships. Furthermore, factors including booming travel and tourism sector are projected to drive the market progress in Asia Pacific region during the forecast period.
North America is estimated to reach over USD 35.90 Billion by 2032 from a value of USD 17.18 Billion in 2024 and is projected to grow by USD 18.53 Billion in 2025. The North American region's expanding duty free zones offer lucrative progress prospects for the market. Additionally, the evolution of tourism sector and luxury travel is driving the market development.
The regional analysis depicts that the strong presence of luxury brands is driving the market in Europe. Additionally, the key factor driving the market in the Middle East and African region is the growing luxury brand retail store at Dubai and Qatar airports. Further, the growing international and domestic tourism is paving the way for the progress of market in Latin America region.
The global travel retail market is highly competitive with major players providing store to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the travel retail industry. Key players in the travel retail market include-
Product launches:
Partnerships & Collaborations:
Report Attributes | Report Details |
Study Timeline | 2019-2032 |
Market Size in 2032 | USD 136.80 Billion |
CAGR (2025-2032) | 10.6% |
By Product |
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By Application |
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By Region |
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Key Players |
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North America | U.S. Canada Mexico |
Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
Middle East and Africa | GCC Turkey South Africa Rest of MEA |
LATAM | Brazil Argentina Chile Rest of LATAM |
Report Coverage |
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The travel retail market is estimated to reach over USD 136.80 Billion by 2032 from a value of USD 65.92 Billion in 2024 and is projected to grow by USD 71.07 Billion in 2025, growing at a CAGR of 10.6% from 2025 to 2032.
The travel retail report includes specific segmentation details for product, application, and regions.
In the travel retail market, the airport is the fastest-growing segment during the forecast period due to rising number of domestic and international passenger traffic.
The key participants in the travel retail market are R&F Travel Retail (Europe), Storck (UK), Shiseido Travel Retail (Singapore), Nestle (Switzerland), Delhi Duty Free Services Private Limited (India), Chocoladefabriken Lindt & Sprüngli AG (Switzerland), Crown Logistics (Hong Kong), daa group (Ireland), Lagardère (France), Meadfa.com (Dubai) and others.
The travel retail market is being shaped by several key trends including gifting trend is driving the progress of food and confectionery segment as well as luxury brands are partnering with cruise ships to create exclusive brand experience at ship are the key trends driving the market.