Spirits sales in global travel retail (GTR) are predicted to rise to US$16.1 billion by 2027 boosted by demand for blended whisky and Asia Pacific.
According to a report from Allied Market Research, global duty free spirits sales were worth US$13.78 billion in 2019 and are expected to rise to US$16.10 billion by 2027.
The report, titled Duty-Free Liquor Market by Type and Channel: Global Opportunity Analysis and Industry Forecast, 2021–2027, projected that travel retail spirits sales will register a compound annual growth rate (CAGR) of 11.1% from 2021 to 2027.
The report said whisky accounted for more than one-third of the global duty free liquor market share in 2019. The sector is predicted to post the fastest CAGR to 2027, with a 12.2% rise driven by increasing demand for blended whisky.
Regionally, Europe, followed by Asia Pacific and North America, garnered the major share of the market in 2019, generating nearly two-fifths of the global duty free spirits market.
However, Allied Market Research estimates Asia Pacific will exhibit the fastest CAGR of 13.4% by 2027. The budget airline boom and rise in the number of travellers in the Asia-Pacific region are forecast to fuel increases.
The growth of the sector in the coming years is also projected to be driven by lifestyle changes, increased tourism promotion, a rise in disposable income, and a surge in the number of frequent fliers.
The report also predicted that ‘rapid urbanisation is expected to create multiple opportunities in the industry’, but warned government restrictions surrounding airport retail could ‘impede the growth to some extent’.
Despite the outbreak of the Covid-19 pandemic affecting international travel and significantly impacting travel retail sales, Allied Market Research predicted GTR spirits sales will revive soon as the vaccine rollout continues and travel restrictions begin to lift.
Via The Spirits Business