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U nder the theme of ‘Shaping the World of Travel Retail’, yesterday’s TFWA World Conference explored the forces redefining the industry, from geopolitics and mobility to human behaviour and consumer engagement. The morning opened with an inspirational state of the industry address by TFWA President Sarah Branquinho. She used her first TFWA World Conference as President to look both at how far the industry has come and at the significant opportunity that lies ahead. Branquinho reflected on the 42 Tax Free World Exhibitions she has attended and the extraordinary transformation she has witnessed across decades of growth and recession, changing traveller profiles, technologies, operators and ownership structures. Over the past 25 years, travel retail sales have nearly quadrupled to US$76 billion. Yet Branquinho believes the opportunity ahead is greater still. With only 1.4 billion of the world’s 8.3 billion people currently holding a passport, she highlighted the potential for international travel to expand. But, she cautioned, “growth is never automatic. More travellers do not necessarily mean more shoppers, and more traffic does not guarantee more value.” That led to the central question of her address: “How do we turn the extraordinary growth in travel into sustainable growth for travel retail?” Branquinho organised her assessment around three themes: Market Trends, Proving our Value Together, and The Way Forward. A resilient industry facing a conversion challenge The market environment remains demanding, Branquinho acknowledged, citing geopolitical uncertainty, trade tensions, exchange rate volatility, pressure on consumer confidence and disruption across travel and supply chains. “The context is certainly challenging, but the more fundamental question for us is what is happening to spend once passengers reach the airport,” she said. Shaping the World of Travel Retail The good news is that travel itself remains resilient. Global passenger traffic was ahead of the previous year during the first half of 2026, with around 4.7 billion passengers taking to the skies, while Airports Council International (ACI) expects some 10 billion passengers to pass through the world’s airports this year. “So, even against a challenging backdrop, people are still travelling, and the longer-term outlook remains positive,” Branquinho said. “Our industry is still growing.” However, passenger growth is not translating into retail sales at the same rate. While passenger numbers have recovered beyond 2019 levels, retail revenue per passenger has fallen by more than 20% since pre-Covid. “For me, that is one of the numbers we should keep in mind this week,” Branquinho said. “It shows us that our opportunity is not simply to welcome more passengers. It is to give more of those passengers a compelling reason to shop.” There are encouraging signs elsewhere. Global travel retail sales increased 2.4% against 2024 to US$76 billion, according to Generation Research, with perfumes and cosmetics retaining their leading position. Tobacco, confectionery and fine food also performed well, while airports continue to account for close to 60% of global revenue. Branquinho also pointed to strong growth beyond airports. Cruise passenger numbers have risen from 21 million a decade ago to more than 37 million today. “Cruise offers the perfect combination of holiday mood and dwell time and is a reminder of what can happen when travellers have the time and reason to engage,” she said. TFWA research shows that more than half of cruise passengers visit the ship’s duty free shops and nearly three quarters of those visitors buy something – “a conversion rate any airport would envy”. “So the fundamentals are encouraging,” Branquinho said. “Growth is real, but it is not evenly distributed and it cannot be taken for granted.” Yesterday’s conference opened with a powerful state of the industry address by TFWA President Sarah Branquinho. At a time of economic uncertainty, evolving traveller expectations and profound shifts in global commerce, Branquinho reflected on the industry’s current position and the opportunities emerging for duty free and travel retail in a rapidly changing world. TFWA President Sarah Branquinho: “Certainly, we must work differently. This does not mean discarding what makes travel retail special. It means being much more deliberate about howwe translate those strengths for a new generation of travellers.” Tuesday 29 September 2026 6 T F W A D A I L Y