Global Duty-Free and Travel Retail Market to Grow at a CAGR of 24% by 2033.

The duty-free and travel retail industry is an instrument for economic and social growth, including the creation of infrastructure and jobs. Enterprises primarily utilize this channel to export their products and expand internationally. The rise of the worldwide duty-free and travel retail business is mainly driven by the desire for luxury and premium products sold by various retail chains. The increased emphasis on digitalizing the retailing process so that businesses can optimize profits may increase market sales. The increasing appeal of the tourist and travel business is another element contributing to the growth of the duty-free and travel retail market. The investigated market provides a temporary space that offers extra time to end-users following security check-in and permits customers to indulge in purchasing products, in addition to the ambiance and experience of shopping for international products. The sector is primarily driven by the increase in tourists visiting various locations worldwide. Factors such as an expanding middle class and affordable air travel are also anticipated to drive the market. Market Dynamics Rapid Urbanization to Drive the Global Duty-Free and Travel Retail Market The rise of the worldwide duty-free and travel retail business is fueled by the increasing number of middle-class individuals and fast urbanization. The rise in discretionary income, the improvement in living, and the affordability and convenience of air travel are increasing the number of middle-class individuals who travel and shop at duty-free outlets. The leading vendors are establishing consumer-focused businesses for this end-user category to increase the size of their travel retail industry over the next several years. Middle-class consumers in developing nations such as India and China are the main contributors to economic growth. They have the purchasing power to drive the expansion of the global duty-free business. With the increase in the median income of the middle class, their spending pattern, method of travel, and demand for premium brands would also increase, consequently boosting travel retail sales across the industry. Rapid expansion and urbanization will improve infrastructure and market access to better amenities. The construction of new airports and ports will increase revenue. Technological Advancements to Provide Opportunities for the Global Duty-Free and Travel Retail Market Some airports have already implemented augmented reality (AR) and robots powered by artificial intelligence (AI) to enhance the consumer experience. AR enables users to experience a product in a unique setting. By giving discounts and other incentives, duty-free and travel retail operators have developed applications to attract and encourage people to purchase their products (e.g., Red by Dufry). Airports also have well-developed internet and e-commerce infrastructure to serve their clients. Several airports allow tourists to purchase things online and then pick them up at the airport. All of these advancements present an attractive potential for business expansion. Key Highlights The global duty-free and travel retail market was worth USD 40 billion in 2021, and it is anticipated to reach an expected value of USD 280 billion by 2030 at a CAGR of 24% throughout (2022-2030). By product type, the global duty-free and travel retail market is segmented into beauty and personal care, tobacco, eatables, wines and spirits, fashion accessories, hard luxury, and other types. The beauty and personal care segment dominated the global duty-free and travel retail market and is estimated to register at a CAGR of 26.3% during the forecast period.  Based on distribution channel, the global duty-free and travel retail market is segmented into airports, airlines, ferries, and other channels. The airport's segment dominated the global duty-free and travel retail market and is estimated to grow at a CAGR of 21.8% during the projected period.  Regional Insights By region, the global duty-free and travel retail market: is segmented into North America, Europe, Asia Pacific, and Middle East, and Africa Asia Pacific accounted for the highest market share and is estimated to grow at a CAGR of 21.9% during the forecast period. China is one of the world's greatest outbound travel markets in terms of the number of tourists and the amount they spend. Increasing earnings, lenient travel visas, heightened global awareness, greater access to travel information online, and a rise in foreign airlines are some primary factors driving China's outbound travel sector. Furthermore, the introduction of new airline routes, the overall expansion in consumer capacity, and the emergence of non-first-tier cities have become significant growth engines boosting the need for duty-free shops in the country. Europe is the second largest region. It is anticipated to reach an expected value of USD 75 billion by 2030 at a CAGR of 22.3%. Duty-free and travel retail (DFTR) is a unique retailing channel marketing to international travelers and a significant source of income and marketing opportunities for European businesses, necessitating tailor-made legislative and regulatory solutions and an alternative approach utilized in European domestic markets. The success of the DFTR channel is inextricably tied to the growth of global aviation and tourism; as a result, it has developed distinctive characteristics. North America is the third largest region. The global duty-free and travel retail (DFTR) market is overseen by numerous global and regional authorities, such as the International Association of Airport Duty-Free Stores and the European and Middle Eastern Travel Retail Associations. The International Group of Airport Duty-Free Stores (IAADFS) is a global trade association with over 400 member companies. IAADFS' purpose is to promote the airport duty-free industry as a substantial proportion of the global business community, provide activities through which operators of airport duty-free stores and their suppliers can share information on products and their duty-free market opportunities, and represent the airport duty-free industry on issues affecting its membership. It is anticipated that the aviation sales channel for duty-free and travel retail accounts for around fifty percent of the expected total duty-free and travel retail sales in the Americas. An analysis of the various sales channels reveals that airports in the United States perform significantly different than in Canada and, even more so, in Latin America and the Caribbean. The retail activity at airports in the latter region resembles that of airports in Europe and Asia more closely. For instance, the average expenditure per leaving a passenger in Latin America is around three to four times that of the United States. This is likely attributable to the higher tax rates in South America, which incentivize more considerable expenditure on duty-free goods and the high exemption rates. Competitive Landscape The major global duty-free and travel retail companies are Dufry, Lotte Duty-Free, Lagardere Travel Retail, DFS Group, The Shilla Duty-Free, and Gebr. Heinemann, King Power International Group, China Duty-Free Group, Ever Rich Duty-Free, Dubai Duty-Free, Duty Free Americas, Sinsegae Duty-Free, Aer Rianta International, W H Smith* Market News October 2022 - Nescafé, the largest coffee brand owned by Nestlé and one of the most popular coffees in the world, revealed its comprehensive strategy to help make coffee cultivation more sustainable today: the Nescafé Plan 2030. While accelerating its decade-long efforts under the Nescafé Plan, the company is assisting coffee farmers with their transition to regenerative agriculture. February 2022 - Delivering on Nestlé's net zero roadmaps and the transition to a regenerative food system necessitates extensive changes in the production and sourcing of agricultural raw materials. Nestlé has released the establishment of the Nestlé Institute of Agricultural Sciences to translate breakthrough agricultural science into practical applications and discover the most promising agricultural technologies. Global Duty Free and Travel Retail Market: Segmentation By Product Type Beauty and Personal Care Wines and Spirits Tobacco Eatables Fashion Accessories and Hard Luxury Other Types By Distribution Channel Airports Airlines Ferries Other Channels By Region North America Europe Asia Pacific Middle East and Africa