The global travel retail market size is expected to reach USD 128.80 billion by 2025, according to a new report by Grand View Research, Inc. The market is projected to expand at a strong CAGR of 8.7% over the forecast years. Rapidly expanding retail and travel and tourism industry along with increasing per capita income levels is expected to drive the market growth. Different retail channels help in improving the retail experience of the passengers while contributing to economic growth.
The airport retail segment is expected to gain traction over the forecast period and is expected to reach over USD 91.75 billion by 2025. On the basis of products, perfume & cosmetics segment held a significant share of the market in 2017. Driven by the rising demand for branded cosmetics, such as makeup and skin care products, which are available discounted rates at the duty-free stores, the segment is projected to expand further.
The travel retail industry is focusing on enhancing customer experience and use data to provide customers an integrated experience. For example, Kuala Lumpur International Airport has integrated big data platform deployed for its KLIA2 terminal. This platform will extract passenger’s real-time location throughout the airport for real-time status check, travel plans, and so on.
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Further key findings from the study suggest:
- The global market accounted for USD 67.3 billion in 2017 and is expected to register a CAGR of 8.7% from 2018 to 2025
- Increasing number of international travelers across the globe is expected to boost the market growth
- The perfume & cosmetics segment is anticipated to witness the highest CAGR of 9.9% followed by the fashion & accessories segment over the forecast period
- Asia Pacific is anticipated to be the fastest-growing regional market due to increasing disposal income levels and expanding travel industry in the region
- Key companies in the global travel retail market include Shilla DFS, Lagardre Group, Lotte Corp., Heinemann, and Dufry AG