2024 will undoubtedly be an important year for the travel retail market，said Stefano Gardini, President of the Italian Travel Retail Association (ATRI) and Director of Non-Aviation Business at Bologna Airport in an interview with Pambianconews.
According to figures from the Italian Travel Retail Association, following a record of $73.4 billion in 2023, the global travel retail market value is expected to reach $117 billion by 2030, with a compound annual growth rate of 9.85%. Thanks to the driving force of luxury goods sales, growth in travel retail over the next few years is expected to outpace that of the period from 2009 to 2019. Data from the World Duty Free Association (TFWA) shows that during 2009-2019, annual sales growth was 9%, with fashion and accessories (+9.2%) and beauty and fragrances (+13.4%) performing above average.
Moreover, Gardini predicts that 2024 will also be a decisive year for increased entry flows from non-EU countries into the EU. “This phenomenon has already started in 2023, with significant recovery in inbound tourist flows from Far East Asian countries, the United States, and South America, helping to offset the shortage of Russian tourists. Indeed, these are very important tourist groups with a high propensity to purchase luxury and fashion products, reaffirming the importance of ‘Made in Italy’ in the travel retail channel.”
Analysts at Bain & Co also confirmed the vitality of this channel for the high-end fashion industry. In their annual trend report written in collaboration with the Italian luxury goods industry association Altagamma, Bain estimates that travel retail grew by 20% to 30% in 2022 and will continue to see strong growth through to 2030. Carole Madjo, European Luxury Research Director at Barclays Bank, noted that Chinese tourists are a driving force for growth in the luxury goods industry, “I believe that sales at airports will be much better, as Chinese people will travel more to Europe, but they will also continue to travel to neighboring countries like Japan due to favorable exchange rates.”
Galleria Vittorio Emanuele. On-site photography by Luxe.CO
| Source: Pambianconews, Il Sole 24 Ore, Kearney
| Image Credit: Official website of the Italian Travel Retail Association
| Editor: Liu Jun
