Global Travel Retail Market to Peak $145 Billion by 2028

28-12-22

The global travel retail market size is expected to reach USD 145 Billion by 2028, registering a CAGR of 14.9% during the forecast period.

The demand for garments, cosmetics, food, and electronics in the travel retail industry has increased as a result of the growth in travel and tourism. Additionally, the rise in urbanization and changes in lifestyle are significant factors anticipated to fuel the expansion of the travel retail market throughout the course of the forecast year. 

Additionally, improving economic conditions and an increase in middle-class disposable income both significantly contribute to the market's expansion. Additionally, elements like technical developments support the travel retail market expansion. Furthermore, the industry is anticipated to develop as the population of millennials rises.

The travel retail market will rise as a result of rising demand for products from both domestic and foreign passengers. 10.89 million foreign visitors arrived in India in 2019, a 3.2% increase over the previous year, according to the Indian Brand Equity Foundation (IBEF) research titled "Indian Tourism and Hospitality Industry Analysis." Retailers now provide tailored loyalty programs & deals to accommodate the evolving buying preferences of travelers. Due to this feature, the industry is growing as retailers increase their revenue from duty-free goods.

The spending on travel and tourism by the growing millennial population will also increase product revenues. The spending on travel and tourism by the growing millennial population will also increase product revenues. This factor is expected to drive the growth of the travel retail market.

Travelers have more time to browse in airports that are set up as inviting retail areas, which contributes to their propensity to spend while on the road. To respond to individual demands, travel retailers leverage data insights such as in-depth knowledge of the customer's origin and destination.

To make sure that the relevant products are prominently displayed for targeted clients, staff and product displays are arranged based on the language and cultural sensitivity of arrival passenger groups. Retailers have a fantastic chance to boost customer loyalty, visibility of their items, recruitment, and diversity.

The industry gives SMEs the chance to showcase their goods to tourists from around the world at low advertising and marketing expenditures. The expansion of the travel retail market has been significantly influenced by the rise in domestic and international traveler foot traffic, particularly when it comes to air travel. Another element influencing upward market trends is improved infrastructure and retail options.

The potential for growth for the travel retail market is enormous because of technological advancements that allow for improved tracking and analysis of consumer trends. Brand retailers have the chance to implement a loyalty management system to track and evaluate their customers in order to serve the majority of travelers. By keeping track of customer behavior and improving tracking of customers, loyalty management systems help businesses generate income in the travel retail market.