North America Travel Retail Market Size (2024 - 2029)

The North America travel retail market is poised for growth, driven by factors such as increased passenger traffic, urbanization, and rising disposable incomes. This retailing channel, which caters to international travelers by offering tax-exempt goods, is experiencing a resurgence as the travel and tourism sector expands. The market's expansion is supported by the demand for luxury and premium products, the digitalization of retail processes, and the infrastructure development of larger retail spaces. Despite challenges posed by the COVID-19 pandemic, the market's potential remains strong due to the significant contributions from affluent tourists and the evolving lifestyle preferences of North Americans.

Market Size of North America Travel Retail Industry

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North America Travel Retail Market
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 10.00 %
Market Concentration Medium

Major Players

North America Travel Retail Market Major Players

*Disclaimer: Major Players sorted in no particular order

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North America Travel Retail Market Analysis

The North America travel retail market is anticipated to rise at a considerable rate and register a CAGR less than 10% during the forecast period, 2021-2026.

COVID-19 has all but wiped out the travel industry and a bounce back is looking increasingly unlikely as passenger numbers continue to be affected by outright bans, onerous quarantine requirements or - in the odd locale where the freedom to travel still exists - fear. Lauder's latest results release (Q4 2020) acknowledges that consumer traffic continues to be impacted by travel bans in most travel retail locations. American Airlines has reduced October schedule by 55% and the International Air Transport Association has predicted losses of US$84 billion for its members over the year.

Travel retail also called as duty free is a sales procedure comprising of the commercialization of the goods relating to the various product categories. This sales channel comprises of the goods that have not had the taxation, excise applied on their sale price and for sales to customers that are travelers. travel retail is a retailing channel, providing products to international travelers. It is an important source of income and has several marketing prospects. 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 North Americans. The rise in the number of millennial populations, 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 some of the factors estimated to cushion the growth of the travel retail market in the coming years in North America. The travel and tourism industry are one of the largest growing sectors across North America. Increased passenger traffic has led the infrastructure development in the travel- retail market such as larger retail experiences which include shops, restaurants, bars and other forms of retail. Wealthy tourists from the other countries continue to contribute a significant part in the North America market.

North 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 North 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. North 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 (United States and Canada).

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
USA
Canada
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North America Travel Retail Market Size Summary

The North America travel retail market is poised for significant growth, driven by the resurgence of the travel and tourism sector. This market, also known as duty-free retailing, involves the sale of goods to international travelers without the application of taxes or excise duties. The sector is experiencing a revival as urbanization, lifestyle changes, and increased disposable income among North Americans boost demand for apparel, cosmetics, food items, and electronics. The rise of millennials and the digitalization of retail processes, along with the growing demand for luxury and premium brands, are expected to further propel market expansion. The travel retail sector is a crucial income source, with airports enhancing their retail offerings to include larger shops, restaurants, and bars, thereby increasing non-aviation revenue streams.

The airport retail segment is particularly thriving, with airports expanding their physical spaces and improving services through personalization and technology. This growth is supported by an increase in passenger traffic and infrastructure development. The fragrances and cosmetics segment holds a significant share of the market, driven by improved consumer lifestyles and urbanization. Meanwhile, the luxury retail segment is anticipated to grow rapidly due to the demand for premium lifestyles. The market is characterized by the presence of major international players, with technological advancements and product innovations allowing mid-size and smaller companies to expand their market presence. Leading brands are focusing on exclusivity and limited editions to enhance visibility and brand awareness.

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North 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 USA

      2. 2.3.2 Canada

North America Travel Retail Market Size FAQs

The North America Travel Retail Market is projected to register a CAGR of less than 10% during the forecast period (2024-2029)

Dufry, Duty Free Americas, Inc, Aer Rianta International North America, DFS Group and International Shoppes are the major companies operating in the North America Travel Retail Market.

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