GLOBAL DUTY FREE & TRAVEL RETAIL SALES REACH US$ 37 BILLION IN 2008
By Generation Research, 24 June 2009
The detailed research and analysis of 2008 duty free & travel retail sales figures from operations across the world are now concluded. Highlights of the report - confirming preliminary earlier estimates - reveal that the business in 2008 was worth $37bn ($36,998.8m to be precise) compared with $34bn in 2007, representing an 8.8% increase when measured in US dollars and a 7% rise when translated into local currency units (LCU). Global DF & TR data 2009
In terms of regional markets, Europe led the field with sales of $15.2bn (market share 41.3%) in 2008, followed by Asia & Oceania with $9.9bn (27%); The Americas with $8.7bn (23.7%); the Middle East with $2.4bn (6.7%); and Africa with $510.8m (1.4%). Interestingly, the markets which grew fastest were the Middle East (LCU = +20.1%), Asia & Oceania (+10.3%); and Africa (+10.1%).
Looking at the channels of distribution, airports obviously continued to lead the field, accounting for sales of $21.8bn and a market share of 59.1%. In local currency units this corresponded to a 10.6% increase over 2007 and a 1.9% market share improvement against other channels. Other shops, which include downtown, border, seaport and diplomatic outlets etc accounted for sales of $9.8bn and a market share of 26.7% in 2008. This was a 2.1% increase in local currency unit sales over 2007, although the sector lost 1.3 percentage points in market share against other channels. Airline sales came in next at $2.6bn representing a market share of 7.2%. This translated into a 0.9% sales improvement over 2007, although the sector lost 0.4 percentage points in market share against other channels. The ferry sector followed just behind with total sales of $2.5bn in 2008 - or a 6.9% share of the global total. Interestingly, this sector grew by 4.1% in local currency unit sales terms, although it still dropped by 0.2 percentage points in market share against all other channels, reflecting the strong growth elsewhere in airport sales in particular.
Looking at product groups versus the markets, the luxury goods sector was worth $12.7bn, with The Americas accounting for $4.1bn (market share: 32.4%), followed by Asia & Oceania with $4bn (31.5%); Europe $3.4bn (26.9%); The Middle East $1bn (8.5%); and Africa $91.7m (0.7%). The second-highest category of perfumes and cosmetics accounted for $11.3bn in sales, with Europe accounting for $5.3bn (47.3%), followed by Asia & Oceania with $2.7bn (24.6%); The Americas with $2.3bn (20.7%); The Middle East $636m (5.6%); and Africa $220m (1.9%).
The leading market in the $6.3bn wines and spirits category was Europe with $2.8bn (45.3%) followed by Asia & Oceania with $1.7bn (27.2%); The Americas $1.3bn (21.4%); The Middle East $286m (4.5%); and Africa $98.7m (1.6%).Confectionery and fine food was the next highest category (maintaining its lead over tobacco) with sales of $3.4bn, with Europe leading the sales regions with $1.8bn (53.5%) followed by Asia & Oceania with $689.3m (19.9%); The Americas $653m (18.8%); The Middle East $252m (7.3%); and Africa $16m (0.5%).Finally, the tobacco segment was worth $3bn, with Europe out in front with $1.7bn (56%); Asia & Oceania with $753m (25%); The Americas $289m (9%); The Middle East $209m (7%); and Africa $84m (3%).
Looking at the top sales points on an individual operation basis, Dubai International Airport (number 1) was the single highest sales outlet in the world accounting for sales of just over $1bn, overtaking London Heathrow Airport and Incheon International Airport who also both exceeded the $1bn sales level.
Other sales performances in the top 10 outlet league included (in order): Singapore Changi Airport $800m; Paris Charles de Gaulle and Tallink Silja Line - both in the $600m bracket, followed by Schiphol and Hong Kong airports in the $500m segment. Four airports also exceeded sales of $400m and these included Bangkok Suvarnabhumi; Frankfurt; Oslo Gardermoen; and London Gatwick.