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‘Explore NewHorizons’: innovation, intelligence, and the future of travel retail Yesterday’s conference opened with a powerful state of the industry address by TFWA President Philippe Margueritte. In light of shifting consumer expectations and evolving market dynamics, Margueritte offered his perspective on the industry’s current position, outlined its strategic priorities, and examined the outlook for duty free and travel retail, along with the opportunities taking shape on the horizon. U nder the theme of ‘Explore New Horizons’ yesterday’s TFWA World Conference brought together a select group of global thinkers and influential voices to unpack the forces influencing the sector and the strategies required to navigate them. The morning opened with an inspirational state of the industry address by TFWA President Philippe Margueritte. He shared how, from the stage, he could feel the audience’s enthusiasm for starting this new edition of TFWA World Exhibition & Conference, but also sense the tension as the travel retail industry faces strong international trade and geopolitical headwinds. “Business uncertainty is the worst poison for all of us,” said Margueritte. “It delays investments, affects our teams, and consumer spending. While it’s still early to determine who might benefit from tariff shifts or how long these tensions may last, what is undeniable is that we are all affected and must adapt strategically.” Margueritte emphasised that the fundamentals of the travel retail industry remain exceptionally strong. “The human instinct to explore is deep-rooted and stands strong in our DNA. Even today, that urge to explore drives billions of people to travel abroad, spending trillions of dollars on the way. And they do that consistently.” Indeed, figures show regular, long-term international passenger growth of 3% to 4% per year, barring occasional interruptions. That means passenger numbers are doubling every 20 years. “According to ACI’s latest figures, by 2045 we should have 18 billion passengers flying above our heads,” said Margueritte. “That’s twice the total population currently living on planet Earth!” This is also confirmed by both Boeing and Airbus. Margueritte noted that the two companies predict over 40,000 new aircraft will be needed by 2044 to keep up with steadily rising passenger numbers. “That means the current fleet of planes will almost double in the next 20 years,” he explained. “The cruise sector, although smaller, is growing faster than air travel currently, thanks to nearly double- digit increases in passengers over the past year and 2025. While this growth rate will slow down, the addition of new high-capacity ships on popular routes, along with 75 ocean-going vessels on order at shipbuilders, makes cruise lines optimistic about the future.” The importance of data and business intelligence Margueritte took a moment to reflect on the past, in order to better prepare for the future. He highlighted the key drivers of the industry over the last 50 years, such as airspace deregulation, airport investment, the retail revolution, brand creativity and, of course, demographic explosion. “Regarding the last point, both the scale and the rapid growth are impressive,” Margueritte shared. TFWA President Philippe Margueritte: “To secure future growth, we must address two longstanding issues that we have been unsuccessfully discussing for decades. One is having reliable market data to build our strategies, and the other is the conversion rate, which means being able to deliver the excitement that the new Gen Z expects in our shops in the short-term.” Tuesday 30 September 2025 4 T F W A D A I L Y