Travel retail tobacco encompasses the sale of tobacco products through duty-free and travel-exclusive retail outlets located in international transit zones such as airports, cruise ships, railway stations and border shops. These retail environments cater to travelers seeking tax-exempt or exclusive tobacco products during their journeys.
The travel retail tobacco market consists of sales, by entities (organizations, sole traders, or partnerships), of travel retail tobacco that are typically consumed during travel or upon reaching the destination. They are often purchased as souvenirs or gifts, leveraging the allure of international travel and the prestige associated with certain brands. Complementary products include duty-free items such as alcohol and luxury goods, while substitutes encompass nicotine replacement therapies and electronic nicotine delivery systems.
The global travel retail tobacco market was valued at $8,448.49 million in 2019 which declined till 2024 at a compound annual growth rate (CAGR) of more than -0.90%.
Increased Promotion And Marketing Efforts
The increased promotion and marketing efforts drove the growth of the travel retail tobacco market during the historic period. These efforts include engaging advertising campaigns, eye-catching product displays in duty-free shops and attractive in-store promotions such as limited-edition packaging and special offers. By creating a sense of exclusivity and leveraging travel experience, these marketing tactics entice travelers to purchase tobacco products while on the move. For instance, in January 2023, according to the Federal Trade Commission, a US-based independent agency of the United States government, the U.S. major manufacturers of smokeless tobacco products saw an increase in advertising and promotion spending, rising from $567.3 million in 2020 to $575.5 million in 2021. The majority of the expenditure went towards price discounts, with $308.2 million allocated to retailers and $81.3 million to wholesalers in 2021. This spending on price discounts accounted for 67.7% of all industry expenditures. Therefore, the increased promotion and marketing efforts supported the growth of travel retail tobacco market.
First-Of-Its-Kind Heated Tobacco Launch For Adult Smokers In UAE Travel Retail
Companies operating in the travel retail tobacco market are focusing on cutting-edge heated tobacco solutions for adult nicotine users. Heated tobacco solutions are electronic devices that heat processed tobacco sticks or capsules to a controlled temperature (usually between 250°C and 350°C), releasing a nicotine-containing aerosol without actually igniting the tobacco. For example, in June 2025, Japan Tobacco International (JTI), a Switzerland-based tobacco product manufacturer, unveiled its latest heated tobacco product, Ploom X Advanced, in a high-impact launch at Dubai International Airport (DXB). This marks the first time Ploom is available in the UAE travel retail market. The launch was a collaborative effort with Dubai Duty Free, Dubai Airports and JCDecaux and featured a multi-sensory brand activation. Travelers at DXB can now explore the full range of Ploom devices and Heated Tobacco Sticks (HTS), customize their devices and engage with Ploom Experts for an immersive brand discovery experience. The initiative includes bold digital displays, aroma diffusers, exclusive tasting cabins and plans for a flagship store, all aimed at elevating the travel retail experience for adult nicotine users seeking innovative tobacco alternatives.
The global travel retail tobacco market is highly concentrated, with large players operating in the market. The top ten competitors in the market made up to 66.52% of the total market in 2024.
Travel Retail Tobacco Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global travel retail tobacco market as it emerges from the COVID-19 shut down.
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Where is the largest and fastest-growing market for travel retail tobacco? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The travel retail tobacco market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider travel retail tobacco market; and compares it with other markets.
The report covers the following chapters
- Introduction and Market Characteristics- Brief introduction to the segmentations covered in the market, definitions and explanations about the segment by product type, by distribution channel and by end user.
- Key Trends- Highlights the major trends shaping the global market. This section also highlights likely future developments in the market.
- Growth Analysis And Strategic Analysis Framework- Analysis on PESTEL, end use industries, market growth rate, global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods, forecast growth contributors and total addressable market (TAM).
- Global Market Size And Growth- Global historic (2019-2024) and forecast (2024-2029, 2034F) market values and drivers and restraints that support and control the growth of the market in the historic and forecast periods.
- Regional And Country Analysis- Historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison by region and country.
- Market Segmentation- Contains the market values (2019-2024) (2024-2029, 2034F) and analysis for each segment by product type, by distribution channel and by end user in the market. Historic (2019-2024) and forecast (2024-2029) and (2029-2034) market values and growth and market share comparison by region market.
- Regional Market Size and Growth- Regional market size (2024), historic (2019-2024) and forecast (2024-2029, 2034F) market values and growth and market share comparison of countries within the region. This report includes information on all the regions Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa and major countries within each region.
- Competitive Landscape- Details on the competitive landscape of the market, estimated market shares and company profiles of the leading players.
- Other Major And Innovative Companies- Details on the company profiles of other major and innovative companies in the market.
- Competitive Benchmarking- Briefs on the financials comparison between major players in the market.
- Competitive Dashboard- Briefs on competitive dashboard of major players.
- Key Mergers and Acquisitions- Information on recent mergers and acquisitions in the market is covered in the report. This section gives key financial details of mergers and acquisitions which have shaped the market in recent years.
- Recent Developments- Information on recent developments in the market covered in the report.
- Market Opportunities And Strategies- Describes market opportunities and strategies based on findings of the research, with information on growth opportunities across countries, segments and strategies to be followed in those markets.
- Conclusions And Recommendations- This section includes recommendations for travel retail tobacco providers in terms of product/service offerings geographic expansion, marketing strategies and target groups.
- Appendix- This section includes details on the NAICS codes covered, abbreviations and currencies codes used in this report.
Markets Covered:
- 1) By Product Type: Cigarettes; Cigars And Cigarillos; Smokeless Tobacco; Next-Generation Products; Other Product Types
- 2) By Distribution Channel: Airports; Cruise Ships; Border Shops; Railway Stations; Other Distribution Channels
- 3) By End User: Young Adults (18-30 Years Old); Adults (31-59 Years Old); Seniors (60+ Years Old)
- Companies Mentioned: Avolta AG; Lagardere Group; China Tourism Group Duty Free Corporation (CTG); DFS Group Ltd.; Lotte Duty Free
- Countries: China; Australia; India; Indonesia; Japan; South Korea; USA; Canada; Brazil; France; Germany; UK; Italy; Spain; Russia
- Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
- Time-series: Five years historic and ten years forecast.
- Data: Ratios of market size and growth to related markets; GDP proportions; expenditure per capita; travel retail tobacco indicators comparison.
- Data segmentations: country and regional historic and forecast data; market share of competitors; market segments.
- Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.