Travel Retail Market is Anticipated to Reach USD 145.46 Billion by 2032; Rising Number of Businesses Launching Their Stores Fuels Market Development

The global travel retail market size reached a value of USD 66.30 billion in 2024. It is anticipated to increase from USD 72.51 billion in 2025 to USD 145.46 billion by 2032, demonstrating a CAGR of 10.46% throughout the forecast period. Fortune Business Insights™ presents this information in its report titled “Travel Retail Market Size, Share & Industry Analysis, By Product Type (Cosmetics & Fragrances, Wines & Spirits, Confectionery & Fine Foods, Tobacco Products, Fashion & Accessories, and Others), By Sector (Duty Free and Duty Paid), By Sales Channel (Airport & Airline Shops, Seaport & Cruise line Shops, Border Downtown Hotel Shops, Railway Stations, and Others), By Sales Medium (Offline and Online), and Regional Forecast, 2025-2032”.

Travel retail businesses cater to international travelers by offering a wide selection of premium products such as beverages, outdoor essentials, fragrances, and more – designed to enhance the travel experience at airports, cruise ships, and other transit points. These outlets create substantial revenue streams for facility operators and vendors while also helping brands increase their global visibility at relatively low market costs. The growing trend of businesses launching stores collaborating with duty-free retailers in these high-traffic areas across the globe reflects the ongoing expansion of the travel retail market.

The COVID-19 pandemic led to a substantial decline in international air travelers and airport expenditures, while also showcasing the industry's ability to adapt. To control the virus, governments around the globe enacted lockdowns and travel bans, causing a drop in both air and marine travel and jeopardizing market expansion.

Coty Travel Retail Europe Collaboration with Dufry to Drive Travel-Induced Fragrance Products

In July 2023, Coty Travel Retail Europe – the European travel arm of the beauty brand Coty – partnered with Swiss retailer Dufry to launch the Burberry Goddess Eau De Parfum. This new fragrance, developed by U.K.-based luxury brand Burberry, was officially introduced at London Heathrow Airport.

Growth in International Tourist and Domestic Travelers to Drive Market Upsurge

The rising influx of both domestic and international travelers is expected to contribute significantly to market expansion during the forecast period. For example, according to VisitBritain, a British government tourism body, the number of tourist visits to the U.K. is projected to reach 39.5 million in 2024, marking an increase from 2023’s figure of 37.8 million. Additionally, major industry players have rolled out impactful marketing campaigns featuring attractive discounts and special offers to boost customer engagement in the duty-free segment.

However, the high price points of these products can restrict accessibility for consumers in lower income brackets, potentially limiting overall travel retail market growth.

Leading Companies Leverage Advanced Retail Formats to Strengthen Market Presence

Major Players in the industry are implementing a range of strategies, including launching new stores and products, along with promotional campaigns and special offers to boost sales. A key focus has been on setting up stores and products, along with promotional campaigns and special offers to boost sales. A key focus has been on setting up stores equipped with cutting-edge technologies to broaden their consumer base, improve engagement, and maintain a competitive edge in the travel retail space.

Key Players Profiled in the Report:

• Lagardere Travel Retail (France)
• Dufry AG (Switzerland)
• King Power International Group (Thailand)
• Aer Rianta International (Ireland)
• Delhi Duty Free Services Pvt. Ltd. (DDFS) (India)
• Lotte Duty Free (South Korea)
• Gebr. Heinemann SE & Co. KG (Germany)
• China Duty Free Group Co., Ltd. (China)
• Abu Dhabi Duty Free (UAE)
• DFS Group Ltd. (France)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/travel-retail-market-104620

Key Industry Developments:

• April 2025: AdVini and Duty Free Global announced its partnership to expand its retail presence across Africa.

Further Report Findings:

• On the basis of product type, cosmetic and fragrances segmented held the leading position in terms of market share in 2024. Owing to growing interest and adoption between females and millennials for the usage of international brands that are difficult to find in their native countries. Additionally, the retailers offer more brands, a variety of fragrances and cosmetic products under one roof, allowing the consumers to browse better.
• The Asia Pacific region dominated the travel retail market share with a whopping USD 33.95 billion in 2024. Due to the extensive spending done by domestic and international travelers in the duty-free section of airports, has resulted in immense growth, especially in China and South Korea.
• Europe, being the second-largest regional market, is witnessing significant growth fueled by the ongoing development of tourism-related infrastructure. This includes facilities such as hotels, restaurants, and amusement parks, particularly in the U.K., France, and Spain.

Table of Segmentation