At a booming growth rate of 7.2%: the European travel retail market will generate revenues of $39.60 billion by 2025
According to a new report published by Allied Market Research titled “Europe Travel Retail Market by Product and Channel: Opportunity Analysis and Industry Forecast, 2018 – 2025”, the size of the European travel retail market was valued at $23.03 billion in 2017. , and is projected to reach $39.60 billion by 2025, growing at a CAGR of 7.2% from 2018 to 2025. The perfume and cosmetics segment has a strong customer base in the market European travel retail. Some of the leading companies, such as Estee Lauder, L’Oreal, Rituals Cosmetics, Revlon and others, are expanding their business by opening their outlets in every international airport with a wide exclusive range of fragrances and skincare products. skin. Billions of people travel internationally every year and therefore spend time and money in airports. Travelers have plenty of free time at the airport to browse and purchase products. Additionally, travel retail creates more visibility for their products, which attracts the attention of new customers in different countries and increases brand loyalty among existing customers.
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The development of the travel and tourism industry, rapid urbanization and lifestyle changes, owing to the increase in consumer disposable income, are driving the growth of the travel retail market. However, stringent airport retail regulations are expected to hamper the growth of the European travel retail market.
The wine and spirits segment is the second largest revenue contributor in the European travel retail market. The consumption of wines, especially luxury wines and spirits, has grown considerably in recent years. The wine and spirits segment accounted for 16.3% of the travel retail market in Europe.
Furthermore, it has been observed that luxury wines and spirits are highly popular among international passengers, which leads to the growth of the travel retail industry in Europe. Passengers traveling long distances generally prefer wines and spirits. Additionally, growing culture of luxury goods ownership and consumption of expensive wines and spirits is driving the growth of the market.
Improving economic conditions and growing disposable income are the two major factors propelling the growth of the travel retail market. After the economic crisis of 2009 in Europe, the world economy marked time. However, the strong post-crisis recovery has resulted in notable economic growth and led to an increase in disposable income among middle-income groups.
Additionally, Europe is one of the largest markets for travel retail, due to its stronger base of luxury goods. It is expected to witness notable growth at a CAGR of 7.2% during the forecast period. The region has some of the biggest clothing and cosmetics brands, namely LVMH in France and H&M in Sweden, which have a large share of the luxury clothing, perfume and cosmetics sector, making it one of the main travel retail markets. High net worth tourists from the Middle East, China, the United States and Russia are contributing significantly to the growth of the European travel retail market. Historical home of most luxury houses, the European market represents nearly 23 billion dollars of the travel retail sector.
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Key Findings of the Europe Travel Retail Market:
On a country basis, the UK was the largest contributor to the European travel retail market in 2017, growing at a CAGR of 7.6% from 2018 to 2025.
On a product basis, the perfumes and cosmetics segment accounted for almost a third of the market share in the travel retail market in Europe in 2017 and is expected to grow at a CAGR of 6.9% from 2018 to 2025.
The luxury goods segment is expected to grow at a CAGR of 9.5% during the forecast period.
Based on channel, the airport segment accounted for more than half of the market in 2017 and is expected to grow at a CAGR of 7.2%.
On a country basis, Germany accounted for a significant market share in 2017 and is expected to grow at the highest CAGR of 10.8%.
The report offers a comprehensive analysis of major players such as Autogrill SpA, daa Plc., Dufry AG, Flemingo International Ltd., Gebr. Heinemann SE & Co. KG, Lagardère SCA, LVMH Group, RegStaer, TRE³ and WH Smith PLC.
Allied Market Research (AMR) is a full-service market research and business consulting division of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global corporations as well as small and medium enterprises with unparalleled quality of “Market Research Reports” and “Business Intelligence Solutions”. AMR has a focused vision to provide business insights and advice to help its clients make strategic business decisions and achieve sustainable growth in their respective market area.