Travel Retail Market size is expected to be valued at USD 62.3 billion in 2022 which is expected to grow at a CAGR of 13.2% over 2022-2028. Travel retail, also known as duty-free sales includes the commercialization of products related to numerous goods categories. This sales channel comprises sales to customers who are travelers and sales of objects that do not have taxes or excise forced on their sale values. Travel retail is a retailing shop that sells goods to guests from other countries. It has numerous marketing prospects and is a significant cash source. The surge in tourism and travel which has increased the demand for cosmetics, apparel, electronic retail, and food items can lead to the growth of the travel retail market. Moreover, growth in urbanization and lifestyle changes are some primary factors that can boost the global travel retail market. Apart from these, an increase in disposable income amongst middle-income families and upgradation in economic conditions can also accelerate the market in the future. However, some factors such as high costs for international trips and lack of knowledge among the travelers about various product upgrades and launches can restrain the growth of the market. Chaotic local markets and stringent government regulations relating to airport retailing can hinder market growth. Companies should focus on the expansion and growth of the tourism and travel sector particularly in developing countries which can create an opportunity for the growth of the global travel retail market. Moreover, an increase in the millennial population can create a lucrative opportunity in the market.
Recent Market Developments:
In February 2022, Altavia launched Altavia Travel Retail