The Colombia travel retail market size is expected to
reach USD 686.0 million by 2025, and it is anticipated to register a CAGR of
8.3% from 2019 to 2025, according to a new report by Grand View Research, Inc.
The travel and tourism industry accounted for nearly 3.8% of Colombia’s Gross
Domestic Product (GDP) in 2018. The industry’s demand has witnessed an increase
of 12% in 2018 from the previous year. Columbia is one of the major tourist
destinations with attractions including colonial cities, coffee plantations,
mountains, and beaches. A rising number of international travelers is expected
to be one of the prime factors driving the market growth.
According to Colombia’s Ministry of Commerce,
Industry and Tourism (MinCIT), the country’s travel and tourism revenues was
approximately USD 5.8 billion in 2018. However, the Colombian government plans
to increase these revenues to USD 40 billion by 2022 by making tourism a high
priority. Initiatives such as increasing airline routes to Colombia are
subsequently expected to drive the growth of the market for travel retail in
the country. Moreover, the rising middle-class population in developing
countries and reasonably priced travel choices are anticipated to drive the
market growth.
The retail market is getting increasingly
competitive, owing to the entry of other duty-free retailers in the country.
For instance, in 2017, Dufry and 3Sixty Duty Free signed a joint venture
agreement and obtained duty-free store concession at the El Dorado
International Airport in Bogota. The two companies signed a concession
agreement with Opain S.A. for one duty-paid, seven duty-free, and two Hudson
convenience stores. An improving economy, sustainable business practices, and
favorable commercial trade agreements have created robust opportunities for
international brands, which acted as a catalyst for market growth. According to
the World Travel & Tourism Council (WTTC), Bogota accounted for more than
29% of Colombia’s overall travel and tourism activity.
Over two decades of political instability has
impeded the growth of Colombia market. Despite decades of security challenges
and internal conflicts, Colombia has been relatively steady in upholding
democratic institutions characterized by transparent and peaceful elections and
the protection of civil liberties. The increasing political stability and
improving security situation is expected to open opportunities for foreign
direct investments and subsequently strengthen the Colombian tourism industry.
An active travel and tourism industry would further encourage international
travel retail operators to consider entering the market in Colombia, where
competition is currently relatively moderate.
Browse full research report on Colombia
Travel Retail Market: https://www.grandviewresearch.com/industry-analysis/colombia-travel-retail-market
Further key
findings from the report suggest:
- The perfume and
cosmetics segment dominated the market with a value of USD 118.9 million
in 2018. The segment is projected to continue its dominance over the
forecast period
- Rising investments
for the development and upgradation of airports in Colombia has
contributed to the growth of the market. The airport channel segment is
anticipated to register the highest CAGR of 8.5% over the forecast period
- The key players in
the market focus on strategies such as partnerships and expansions to
expand their presence in the market
- Prominent players
operating in the market include Duty Free Americas, Inc. (DFA); Dufry and
3Sixty Duty Free; Motta International; Areas; and Duty Free Partners.
Browse request sample of this report by
Grand View Research: https://www.grandviewresearch.com/industry-analysis/colombia-travel-retail-market/request/rs1
Grand
View Research has segmented the Colombia travel retail market on the basis of
product and channel:
Colombia
Travel Retail Product Outlook (Revenue, USD Million, 2015 - 2025)
- Perfume &
Cosmetics
- Confectionery &
Fine Food
- Wine & Spirit
- Fashion &
Accessories
- Electronics
- Tobacco
- Others
Colombia
Travel Retail Channel Outlook (Revenue, USD Million, 2015 - 2025)
- Airports
- Cruise Lines
- Border, Downtown
& Hotel Shops
- Railway Stations
& Others
About Grand View Research
Grand View Research, Inc. is a U.S. based market
research and consulting company, registered in the State of California and
headquartered in San Francisco. The company provides syndicated research
reports, customized research reports, and consulting services. To help clients
make informed business decisions, we offer market intelligence studies ensuring
relevant and fact-based research across a range of industries, from technology
to chemicals, materials and healthcare.
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