The global colombia travel market retail market size was USD 461.82 Million in 2022 and is likely to reach USD 930.90 Million by 2031 , expanding at a CAGR of 8.1% during 2023–2031. The growth of the market is anticipated to be impacted by the expected increase in international passenger traffic in the country in the coming years.
After Brazil and Mexico, Colombia is Latin America's third-largest air travel market. An increasing number of initiatives by various airports to increase revenue from non-aeronautical sources has hastened the retail sector growth.
Colombia's growing travel and tourist business are fueling demand for cosmetics, fragrances, confectioneries, fine cuisine, wine, clothes, electronics, spirit goods, tobacco products, and other items such as watches and presents. The shifting worldwide views of Colombia's business climate, as a result of the recently negotiated free trade agreements, is projected to propel the country’s travel retail sector forward.
Due to guerilla action, Cao Cristales, a secluded river canyon, was forbidden to tourists for several years. The Colombian government has made various steps to control the tourist business including demobilizing the major guerrilla organization in Cao Cristales, which has pushed the market forward.
The COVID-19 pandemic has forced states and municipal governments to take strong measures to stop the virus from spreading. Governments start giving subsidies to sustain system supply throughout the epidemic to minimize overcrowding and encourage active transportation by allocating less-used roadway space to bikes and pedestrians. Therefore, this pandemic has a huge impact on the Colombia retail market. The country has made policies for passengers’ air travel restriction and only allowed air freight for medical and essential supplies, which is projected to have a significant impact on the airline industry finances.
Travel Retail Market Trends, Drivers, Restraints, and Opportunities
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Strong economy and increased levels of disposable income among Colombian middle-class households are expected to boost the market growth during the forecast period.
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Increasing number of air passengers as a result of improved living standards and changing lifestyle are key factors driving the market expansion.
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Rapid development of the tourism and travel industry with favorable policies from government is likely to propel the market in the coming years.
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Political instability in the country acts as a major challenge that can hamper the market growth during the forecast period.
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Rising enormous investment by the government agencies in the travel and tourism industry along with increasing foreign direct investments are anticipated to create opportunities for the market growth.
Scope of Travel Retail Market Report
The report on the Colombia travel retail market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Colombia Travel Retail Market - Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Channels (Border, Downtown & Hotel Shops, Railway Stations & Others, Airports, and Cruise Lines) and Products (Fashion & Accessories, Electronics, Tobacco, Perfume & Cosmetics, Confectionery & Fine Food, Wine & Spirit, and Others)
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Country
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Colombia
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Dufry and 3Sixty Duty-Free; Motta International; Areas; Duty-Free Partners; and Duty-Free Americas, Inc.
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Travel Retail Market Segment Insights
Airport segment is expected to grow at a rapid pace
Based on channels, the Colombia travel market retail market is divided into border, downtown & hotel shops, railway stations & others, airports, and cruise lines. The airports segment is expected to grow at a rapid pace during the forecast period owing to an expansion in aircraft routes and the entry of low-cost carriers. However, the border segment is anticipated to hold a key share of the market in the coming years due to lower rentals for establishments along the border and in downtown districts than at airports.
Perfume segment is projected to expand at a considerable CAGR
On the basis of products, the market is segregated into fashion & accessories, electronics, tobacco, perfume & cosmetics, confectionery & fine food, wine & spirit, and others. The perfume segment is projected to expand at a considerable CAGR during the forecast period as according to surveys, consumers of all ages spend roughly USD 30 on a single purchase of fragrances and cosmetics. On the other hand, the fashion & accessories segment is anticipated to account for a major market share during the forecast period due to the wide availability of good product quality and unique design.
Segments
The Colombia travel retail market has been segmented on the basis of
Channels
- Border
- Downtown & Hotel Shops
- Railway Stations & Others
- Airports
- Cruise Lines
Products
- Fashion & Accessories
- Electronics
- Tobacco
- Perfume & Cosmetics
- Confectionery & Fine Food
- Wine & Spirit
- Others
Country
Key Players
Competitive Landscape
Key players competing in the Colombia travel retail market are Dufry and 3Sixty Duty-Free; Motta International; Areas; Duty-Free Partners; and Duty-Free Americas, Inc. To expand their market share, the majority of these businesses adopted organic and inorganic growth tactics. For example, Duty-Free Americas, Inc. launched a Diageo store at El Dorado International Airport in November 2019 in collaboration with Diageo Global Travel and Middle East (GTME). It was the region's first Diageo retail outlet.
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