With the market valued at US$ 74.31 Bn in 2019 and for the last two decades, the travel retail market has grown constantly. However, with the onset of the ongoing COVID-19 pandemic and the resulting travel restrictions, some of the major airports witnessed a drop in international passengers by about 90% for the months of March, April, and May 2020.
Thereby, retail sales in the global retail market took a significant hit in the 1st half of 2020. Some of the key observations for international travel in the 1st half of 2020 include:
– Major airports across the world witnessed a decline in passengers by about 60%
– Leading duty-free operators experienced a 55% to 65% fall in turnover
– Popular beauty brands saw a decline of about 20% in overall sales
– People traveling for work during the pandemic have significantly avoided visiting retail stores at airports thereby, impulsive sales of leisure products have taken a hit
At a conservative growth forecast of about 4.1% during the forecast period, the travel retail market is expected to reach US$ 51.78 Bn by 2021. Some of the factors driving this estimated growth include an uptick in international travel post COVID-19 restrictions, travel retailers adopting digital technologies to drive online sales, and promotional activities planned by leading retailers.
Growing demand for perfumes & cosmetics sub-segment by product category type is likely to propel the market in upcoming years
In 2020, the perfumes & cosmetics segment accounted for the major market share and expected to maintain its dominance over the forecast period. The wine & spirits and fashion & accessories segment followed the perfumes & cosmetics segment with a substantial market share in the base year 2021. Furthermore perfumes & cosmetics segment expected to witness the highest CAGR in upcoming years owing to the increasing demand for branded products from Asia Pacific consumers.
– Airport segment expected to dominate the travel retail market by sales channel throughout the forecast period
– Growing demand from the Asia Pacific projected to catapult the market growth
– Leading brands are aggressively looking for digital platforms
Historical & Forecast Period
This study report represents analysis of each segment from 2020 to 2030 considering 2021 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2022 to 2030.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.