Market Trends of India Travel Retail Industry
Growth of Tourism is Impacting the India Travel Retail Market
- The significant growth of tourism in India profoundly impacts the country's travel retail market. With more tourists visiting, there is a heightened demand for products and services at travel retail outlets like duty-free shops, airport stores, and hotel shops. This surge in demand is fueling market growth, prompting the creation of new retail spaces and the expansion of existing ones. Tourists' evolving preferences and spending habits influence the products available in these outlets. India's burgeoning tourism sector is a pivotal force propelling the expansion and transformation of its travel retail market.
- With the increasing popularity of coastal tourism, India's premier online travel company has introduced the 'Beaches of India' campaign. This initiative highlights the nation's plentiful coastal attractions and positions them as desirable tourist destinations.
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Growth of Wines and Spirits in the India Travel Retail Market
- India is experiencing robust consumption and a growing trend towards premiumization, driven by increased disposable incomes among the middle class, the easing of pandemic restrictions, and enhanced quality, variety, and availability in retail. Momentum is positive across all drinks categories, with a notable surge in demand for brown spirits. Consumers are upgrading their preferences, especially in sparkling wine, whisky, and agave-based spirits.
- In addition to the diverse product range available at duty-free stores, promotional offers, and other incentives attract Indian consumers. Interestingly, duty-free shops at airport arrivals in India are outperforming their departure counterparts, with liquor being the top-selling category in arrivals. This may be attributed to the highly competitive prices offered on liquor at duty-free shops. Arrivals contribute significantly to duty-free shop sales, as inbound travelers often make purchases back to the city.
