CANNES, France — Despite global geopolitical turmoil stoked by protests in Hong Kong, the uncertainty around Brexit, trade wars and currency fluctuations, the travel-retail industry remains on a high growth trajectory, driven by beauty sales and the Chinese consumer.
Overall, the channel clocked 12.9 percent gains in 2018 to $79 billion, of which $31 billion was rung up by beauty products — by far the largest category — that registered a 23 percent sales rise versus 2017, according to Generation Research.
Skin care made up about 45 percent of the category’s revenues in travel retail, up 35 percent on-year; makeup comprised about 25 percent, with 30 percent growth, and fragrance represented some 30 percent, advancing 3 percent, Generation said.
The continued uptick in beauty sales shows no signs of slowing, due in part to the constant increase in passenger footfall — expected to reach 3.5 billion travelers soon — and airport facility developments, according to beauty brands and retail operators at the TFWA World Exhibition and Conference held in Cannes, France, from Sept. 29 to Oct. 4.
Passenger traffic is said to be increasing by about 6 percent annually, driven by the growth of the Chinese middle class. Already the numbers are quite large:
Overall, the channel clocked 12.9 percent gains in 2018 to $79 billion, of which $31 billion was rung up by beauty products — by far the largest category — that registered a 23 percent sales rise versus 2017, according to Generation Research.
Skin care made up about 45 percent of the category’s revenues in travel retail, up 35 percent on-year; makeup comprised about 25 percent, with 30 percent growth, and fragrance represented some 30 percent, advancing 3 percent, Generation said.
The continued uptick in beauty sales shows no signs of slowing, due in part to the constant increase in passenger footfall — expected to reach 3.5 billion travelers soon — and airport facility developments, according to beauty brands and retail operators at the TFWA World Exhibition and Conference held in Cannes, France, from Sept. 29 to Oct. 4.
Passenger traffic is said to be increasing by about 6 percent annually, driven by the growth of the Chinese middle class. Already the numbers are quite large: