INTERNATIONAL. Global duty free & travel retail sales increased +12.9% year-on-year in 2018 to US$78.96 billion, according to travel retail research company Generation Research.
Asia Pacific saw the largest sales increase of +23.3% and remained the biggest market at US$38.8 billion. Generation’s data is based on actual and estimated sales and reflects current conversion rates.
Source: Generation Research
Sales in the Middle East grew +6.2% to US$6.36 billion, while Europe saw a +5% increase to US$21 billion.
Growth in the Americas was the slowest at +2.2%, reaching US$11.9 billion. Africa saw a +3.7% increase, to US$815.8 million.
Airport shops accounted for the biggest slice of global sales at US$41.7 billion, with growth of +9.3%. ‘Other shops & sales’, including downtown and border duty free stores, recorded a +19.3% increase, to US$32.4 billion.
Source: Generation Research
Airlines saw just +0.6% growth on a global basis, to US$2.6 billion. Ferries accounted for a slightly smaller amount of sales by volume, at US$2.2 billion, but recorded +8.6% growth.
The perfumes & cosmetics category continues to drive industry sales, with +23.5% growth to US$31.5 billion. According to Generation, the “lion’s share” of the growth originated in Asia (+37% over 2017). The category performed strongly in downtown and other shops globally, with an increase of above +15%.
Wines & spirits remains the second-largest category, growing +7.2% in 2018 to reach US$12.2 billion. Fashion & accessories sales were up +7.7% to US$10.8 billion, in third place.
Source: Generation Research
Sales of tobacco goods grew +6% to US$7.8 billion, while the watches, jewellery & fine writing category saw a +6.1% increase to US$6 billion.
The electronics, gifts & other and confectionery & fine food categories both grew +6.2%, recording global sales of US$5.33 billion and US$5.28 billion respectively.
“Going into 2019, we see a continued growth pattern in all categories with +8% growth globally in the first quarter of the year,” commented Generation. “[This will be] driven again by Asia Pacific, with +16% growth in the region.
“Fragrances & cosmetics will be the main driver, with +16% growth in Q1 globally and +26% in Asia Pacific.”
Generation added that it expected the global sales trend to continue during the year, with sustained growth in Asia Pacific.
