AIRPORT GLOW-UP

How beauty brands drive travel retail at Changi Airport

- Sarah Stanley

The travel retail scene in modern airports typically comprises a mix of duty-free complexes, food and beverage options, luxury retailers and fashion boutiques.

But to appeal to a new generation of value-conscious, experience-driven travellers, airports and their brand partners are beginning to explore fresh retail initiatives to arrest the captive market that ambles along transit halls.

According to travel booking platform Booking.com's 2025 Travel Predictions report, around 73 per cent of Singapore travellers are interested in exploring airports with unique experiences and facilities.

It also found that 38 per cent of Singapore travellers would consider visiting a destination based on the quality of its airport.

The shift to airports becoming more lifestyle-centric has resulted in the global travel retail market being valued at US$88.76 billion (S$114 billion) in 2024, according to research firm The Business Research Company. It projects that the market will grow to US$100.73 billion in 2025.

Beauty brands, in particular, have capitalised on the momentum to experiment with bold retail concepts in airports.

Ruder Finn Interactive is an Asian consultancy which taps artificial intelligence (AI) to help clients in their branding campaigns. It says the Asia-Pacific region accounts for over 40 per cent of the global market share for luxury travel retail, with the categories of fragrances and cosmetics leading growth.

L'Oreal Travel Retail, the global beauty empire's arm which caters to travellers, has been implementing new concepts to penetrate the airport consumer market.

Mr Jesus Abia, managing director of L'Oreal Travel Retail Asia Pacific, observes that travellers from India and South-east Asia show more interest in fragrances, while travellers from South Korea and China prefer skincare products.