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TR spirits shift to emerging markets
Spirits sales in global travel retail are to shift significantly towards emerging markets, which will account for 44% of all category transactions in the channel by 2025, according to a new report.
Spirits sales in travel retail have fallen in 2015
Data in Aviation Media for Luxury Brands, produced by consultancy Aviator, shows that in 2015 just 26% of spirits sales in travel retail occurred in emerging markets, up from 15% in 2004.
India is named as the fastest growing travel retail market across all categories and is forecast to run a CAGR of 21% from 2015-2020.
Japan ranks second (13%), with China third (11%) and South Korea and Malaysia joint fourth (10%).
The Philippines, Peru and Mexico all rank in the remaining top 10.
Chinese travellers represent the largest share of buyers in the world, accounting for 30% of luxury good purchases in 2016 – representing a third of the global luxury goods market, the report says.
India and southeast Asia generated more than two thirds of personal luxury market growth in 2016.
The report also shows that the travel retail alcohol category runs the third-highest conversion rate across airport stores.
Citing the JCD Global Shopper Survey 2016, Aviator says of the 65% who browsed alcohol brands, 42% made a purchase.
In comparison, 75% browsed cosmetics with 49% making a purchase, and 81% looked at fragrances, with 62% snapping something up.
In October last year, travel retail wine and spirits sales reversed 2015 value losses to grow 4% in the first quarter of 2016, provisional data from Generation Research showed.