Market Trends of Duty Free And Travel Retail Industry
Increase in the Demand for Premium Brands and Fashion Accessories
The travel retail & duty-free market is growing because of the widespread desire for luxury cosmetics from a few well-known companies like Estee Lauder, MAC Cosmetics, and L'Oreal Paris. In addition, Europe enjoys a solid reputation in the markets for luxury products and fashion. Duty-free stores enable tourists to buy high-end items at tax-free prices, such as the highly sought-after Italian fashion labels Versace, Gucci, Prada, and Armani. The expansion of Italy's travel retail & duty-free industry is attributed to the appeal of Italian luxury products and fashion. All of these factors drive the growth of the market in this region.
The duty-free and travel retail markets are expanding due in part to the rising demand for retail chains that carry luxury and premium brands of a variety of goods. Distribution channels provide travelers with value, improve their travel experiences, and boost economic activity. Due to factors like a lack of marketing campaigns and expensive merchandise, it is anticipated that the low consumer interest in shopping at airports will likely limit the market's growth. The market is expanding as a result of numerous businesses collaborating with duty-free retailers to introduce their unique or limited-edition goods. Throughout the projection period, the wines and spirits segment is anticipated to significantly increase in market share.
Asia-Pacific is Anticipated to Dominate the Market
Over one-third of the market share was held by Asia-Pacific in the current year. The growth of the Asia-Pacific duty-free and travel retail sector is primarily driven by the opening of low-cost carriers and the expansion of new air routes. The increasing consumption and purchasing power in China and India has a positive impact on this region's market. Asia-Pacific duty-free customers are using digital platforms more and more to make their purchases easier. Usually, smartphone apps like Alipay, Paytm, etc. are used for this. One of the biggest areas for the duty-free shopping business to expand globally is India. The factors behind the expansion of the Indian market are the country's expanding population, improved air connectivity, incoming tourism, and the middle class's inclination to go abroad.
The growing preference for distinctive and value-added items in the region is encouraging people to travel, which is expected to raise demand for duty-free goods. The acceptance of new lifestyles and the launch of low-cost destination travel packages by businesses like GoIbibo, MakeMyTrip, and Cleartrip could lead to an expansion of the worldwide duty-free and retail travel markets. Additionally, vendors operating in the Asia-Pacific market are anticipated to find profitable prospects as a result of the economy's growing digitalization and social media penetration during the forecast period.
