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Retail and Travel



Travel retail, for every brand owner holds a very crucial standpoint, as it marks an exclusivity for their products and sets a standard for them, avoiding comparisons with competing brands and pricing within the domestic markets. It also marks the premiumization of the brands, which is a very crucial factor due to rapid urbanization, as it creates multiple opportunities within the consumer segment.

 

As per a report by Allied Market Research, the global duty-free spirits sales are expected to rise a mark of US$16.10 billion, which was worth US$13.78 billion in 2019. From 2021 to 2027 the projected travel retail spirits sale is expected to register a Compound Annual Growth Rate (CAGR) of 11.1%.

 

The delayed resumption of foreign travel during 2021 also hampered the travel retail spirits sales by slowing them down. The travel retails sales of spirits plunged down to almost 72%, while showing a minor recovery of 37% in 2021. With travelers returning to the skies and seas, spirits brands in global travel retail are working hard to maximize their return. But that is not all. The standards for hygiene and maintaining distances in transit points eventually affected the brands and businesses to attract buyers, but that also gave rise to the digitilasation of the solutions in order to safeguard buyers, while simultaneously simplifying the buying experience.

 

A very crucial part of the travel retail are the cruise ships. The cruise-goers have a thirst for a unique phenomenon called getting “ship-faced” which is the best opportunity for any beverage to be a part of. Alcoholic, or non-alcoholic. All the shots and cocktails, the wines, and champagnes, as a market growth opportunity this is a great shot to catapult any brand across oceans.

 

Even though the Covid-19 pandemic's impacted greatly on international travel and travel retail sales, the local travel retail spirits sales will be expected to bounce back, driven by lifestyle changes, a rise in disposable income, surge in the number of frequent flyers, vaccine distributions and the ease on the primarily implemented travel restrictions. With regions like Europe, Asia-Pacific, and North America garnering the major share of the global duty-free spirits market, Asia Pacific is expected to display a comparatively faster growth rate due to the uprise of budget airlines and the rise is the travel sector to the Asia-Pacific region.

 

As new consumers enter the market, segment diversification and the rise of specialist status categories – such as agave-based spirits, Irish whiskey, US whiskey, and Japanese whisky – will become a major disruptor to the present worldwide status spirits environment.