Asia-Pacific Travel Retail Market - Growth, Trends, COVID-19 Impact and Forecasts ((2022 - 2027)

Asia-Pacific Travel Retail Market - Growth, Trends, COVID-19 Impact and Forecasts ((2022 - 2027)

The Asia-Pacific travel retail market is anticipated to rise at a considerable rate and register a CAGR more than 10.1% during the forecast period, 2021-2026.

The outbreak of the COVID pandemic, in early 2020, however, has negatively impacted the market for duty-free retailing in the Asia Pacific region. Over 320,000 local jobs across the Asia Pacific region and a $36bn industry were at risk of being overlooked by politicians as they devise financial rescue measures to cope with the COVID-19 crisis. The pandemic resulted in national lockdowns across the region resulting in restrictions in international travel, creating a negative impact on the industry. The Asia Pacific duty-free retailing market, however, is expected to recover from 2021 and exhibit moderate growth during 2021-2025.

Duty-free shops refer to the retail outlets where goods are exempted from national taxes and duties for providing a unique sales channel for international travelers and tourists. These outlets are majorly located at international airports, seaports, border shops, international train stations, and onboard aircraft. Duty-free retailing offers a broad range of products, including perfumes, cosmetics, alcohol, confectioneries, electronics, fashion accessories, etc. In the Asia Pacific region, the expanding travel and tourism sector along with the rising number of new international routes is primarily driving the market for duty-free retailing. Moreover, the increasing levels of urbanization along with the emergence of low-cost carrier (LCC) airlines are also propelling the sales of duty-free goods in the region. The market is further driven by the emergence and growth of duty-free stores across international airports and seaports. Moreover, the wide presence of duty-free goods pertaining to country-specific culture and heritage has also attracted numerous international tourists. Additionally, the increasing popularity of duty-free retail stores offering various luxury and premium brands is also driving the market growth. Rising digitalization along with the increasing penetration of social media marketing strategies has enabled several retailers to promote their exclusive products to the international customers. The wide availability of duty-free goods on e-commerce platforms is also catalyzing the market growth in the Asia Pacific region. Besides this, the growing penetration of self-service stations, such as kiosks, and other interactive sales channels has enabled retailers to overcome linguistic barriers with their customers.

Key Market TrendsThe Wide Availability Of Duty-Free Goods On E-Commerce Platforms Is Also Catalyzing The Market Growth In The Asia Pacific Region.

In whitepaper ‘Top 100 Retailers in Asia 2021’, Euromonitor looks at how the APAC region world-class mobile connectivity enables digital transformation and is supported by extremely tech-savvy consumer segments in the region. As the retail landscape becomes more competitive with players fighting to stay relevant in the digital space, localizing the shopping journey to individual markets and personalizing the retail experience to various customer segments in Asia Pacific will be essential. The presence of big players on e-commerce is also playing a vital role in the e-commerce growth in travel retail.

Airport Retailing is Generating Higher Revenues than other Channels in Asia-Pacific Travel Retail Market.

The travel retail market in Asia-Pacific majorly is driven by the tourism industry, as many foreign investors visit countries such as Hong Kong and Malaysia for tax-free shopping. The Airport has become thriving retail channel. Airport retailing has become an important channel for brands to promote and create awareness about products in the market. Airports are diversifying to nom- aeronautical segments such as retail, restaurant bars, cafeterias. Airport Retail and commercial services, including food and beverage, constitute a crucial business sector providing up to 60% vital commercial income for airport owners, outpacing aeronautical revenue streams. It is the most significant direct contributor to the investment in Asia-Pacific's aviation infrastructure and ongoing development of world-class national gateways, the region's hubs to the world.

Competitive Landscape

The report covers major international players operating in the Asia-PacificTravel Retail Market. In terms of market share, few of the major players currently dominate the market. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping into new markets. The leading brands are opening exclusive stores for special products. The companies are also promoting, differentiating and selling limited editions to increase their visibility and brand awareness in the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Dufry
China duty free group co., ltd.
DFS Group
King Power
Heinemann Asia Pacific
Lotte Duty Free
The shilla duty free
Flemingo International
James Richardson Group
The Nuance Group

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