Latin America Travel Retail Market Size (2024 - 2029)

The Latin America travel retail market is poised for growth, driven by an increase in travel and tourism, urbanization, and rising disposable incomes. Despite the setbacks caused by the COVID-19 pandemic, which significantly impacted travel retail sales, the market is expected to recover as demand for apparel, cosmetics, food, and electronics rises. The region's duty-free and travel retail industry faces challenges, particularly in Argentina, due to economic constraints and limited consumer interest in airport shopping. However, the growing millennial population and the shift towards digital retailing are anticipated to support the market's expansion in the coming years.

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Market Size of Latin America Travel Retail Industry

Latin America Travel Retail Market
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 9.00 %
Market Concentration Medium

Major Players

Latin America Travel Retail Market Major Players

*Disclaimer: Major Players sorted in no particular order

Latin America Travel Retail Market Analysis

The Latin America travel retail market is anticipated to rise at a considerable rate and register a CAGR less than 9% during the forecast period, 2021-2026.

Dur to COVID-19, the traffic for the first half of 2020 was down by 51% with expectations that the year would close with passengers numbers down by about 51% on 2019 with no immediate prospect of recovery. Due to OVID-19 pandemic and the resulting travel restrictions, some of the major airports witnessed a drop in international passengers for the months of March, April, May 2020 and onwards. Thereby, travel retail sales in the Latin America Travel Retail Market took a significant hit in the 2020.

Latin America is also a significant market for travel retail. The upsurge in the travel and tourism sector that has increased the demand for apparels, cosmetics, food items, and electronic retail, rise in the urbanization and change in the lifestyle and the growing of the disposable income amongst Latin Americans. The Latin American countries like Brazil, Argentina, Columbia, the millennial population is rising. Thus, the growing attention on the digitalizing of the retailing procedure and the increase in the demand for retail chains that provide luxury and premium brands of different products are estimated to cushion the growth of the travel retail market in the coming years in Latin America. People living in the Southern Cone like to take road trips during the Latin American summer and holiday months. With expanded shopping opportunities at favorite border locations, more people tempted to find a reason to travel. The Latin America regional duty free and travel retail industry has been looking at Argentina with trepidation because the country's flagging economy has kept Argentines at home and out of land border and airport duty free shops. However, the chaotic local markets, the stringent government guidelines and the little consumer interest in shopping at the airports are further projected to impede the growth of the travel retail market in the near future.

Latin America Travel Retail Industry Segmentation

'Travel retail' is a term that commonly refers to sales made in travel environments where customers require proof of travel to access the commercial area, but which are subject to taxes and duties.A complete background analysis of the Latin America carpet tile market, which includes an assessment of the emerging trends by segments and regional markets, significant changes in market dynamics, and market overview, is covered in the report. Latin America Travel Retail Market is Segmented By Product Type (Fashion and Accessories, Jewelry and Watches, Wine & Spirits, Food & Confectionery, Fragrances and Cosmetics, Tobacco, Others (Stationery, Electronics, etc.)), By Distribution Channel (Airports, Airlines, Ferries, Other (Railway Stations, Border, Downtown)) and By Geography (Brazil, Argentina, Colombia, Rest of Latin America).

Retail Activity Type
Fashion and Accessories
Jewellery and Watches
Wine & Spirits
Food & Confectionary
Fragnances and Cosmetics
Tobacco
Others (Stationery, Electronics, etc.)
Distribution Channel
Airports
Airlines
Ferries
Other(Railway Stations, Border, Downtown)
Geography
Brazil
Argentina
Colombia
Rest of Latin America
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Latin America Travel Retail Market Size Summary

The Latin America travel retail market is poised for significant growth, driven by the resurgence of the travel and tourism sector, which has spurred demand for apparel, cosmetics, food items, and electronics. Urbanization, lifestyle changes, and increasing disposable income among Latin Americans, particularly in countries like Brazil, Argentina, and Colombia, are further fueling this expansion. The millennial population's rising influence is prompting a shift towards digital retailing and a growing preference for luxury and premium brands. Despite challenges such as economic fluctuations in Argentina and limited consumer interest in airport shopping, the market is expected to recover and thrive, supported by expanded shopping opportunities and the popularity of road trips during holiday seasons.

The fragrances and cosmetics segment leads the market, benefiting from improved economic conditions and urbanization, which attract millennials to these products. Airports are enhancing their retail offerings by increasing non-aviation revenue streams and leveraging technology to improve services. This evolution in airport retailing is creating more opportunities for brands to promote and raise awareness of their products. Major international players dominate the market, but technological advancements and product innovations are enabling mid-size and smaller companies to expand their presence. Initiatives like exclusive store openings and limited edition promotions are helping brands enhance visibility and brand awareness. Notable developments include MONARQ Group's focus on digital marketing and the partnership between Lancôme Travel Retail Americas and Dufry to launch a flagship store in South America, offering a unique and immersive shopping experience.

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Latin America Travel Retail Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Porters 5 Force Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Insights on Trends in Passenger Traffic by Channels

    7. 1.7 Insights on Government Regulations and Initiatives Effecting the Market

    8. 1.8 Technology Innovations in the Market

    9. 1.9 Impact of Covid 19 on market

  2. 2. MARKET SEGMENTATION

    1. 2.1 Retail Activity Type

      1. 2.1.1 Fashion and Accessories

      2. 2.1.2 Jewellery and Watches

      3. 2.1.3 Wine & Spirits

      4. 2.1.4 Food & Confectionary

      5. 2.1.5 Fragnances and Cosmetics

      6. 2.1.6 Tobacco

      7. 2.1.7 Others (Stationery, Electronics, etc.)

    2. 2.2 Distribution Channel

      1. 2.2.1 Airports

      2. 2.2.2 Airlines

      3. 2.2.3 Ferries

      4. 2.2.4 Other(Railway Stations, Border, Downtown)

    3. 2.3 Geography

      1. 2.3.1 Brazil

      2. 2.3.2 Argentina

      3. 2.3.3 Colombia

      4. 2.3.4 Rest of Latin America

Latin America Travel Retail Market Size FAQs

The Latin America Travel Retail Market is projected to register a CAGR of less than 9% during the forecast period (2024-2029)

Dufry , Duty Free Americas, Inc https://dutyfreeamericas.com/, 3Sixty, Retail Services and LURYX are the major companies operating in the Latin America Travel Retail Market.

Latin America Travel Retail Market Report Snapshots

Latin America Travel Retail Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)