Frédéric Porchet at NITR explains why confectionery is a powerful conversion category, plus a regional overview and standout examples

Reflecting on the ongoing recovery of global travel retail, Nestlé International Travel Retail (NITR) reports the first half of 2025 has delivered a “solid” performance, particularly in core channels such as airports. According to General Manager Frédéric Porchet, the confectionery category continues to benefit from its role as an affordable indulgence – especially appealing in a climate where travelers are more selective with their spending. “Overall, consumer confidence in travel retail remains positive, albeit nuanced by region,” he observes. As experienced by NITR, below is a current regional overview of travel retail.  

Europe:

• Consumer confidence remains steady, driven by intra-European travel, especially during key holiday periods
• Inflation and cost-of-living pressures continue to weigh on discretionary spending in some markets, particularly in Southern Europe
• European shoppers respond well to sustainability messaging, making launches such as Nestlé Sustainably Sourced Cocoa highly relevant

Asia Pacific:

• Asia has shown strong recovery, specifically with the rebound of outbound Chinese travel and increased regional connectivity in Southeast Asia. Consumers here exhibit higher brand affinity and appetite for premium gifting, often prioritizing packaging, exclusivity and sense of place
• Engagement levels are particularly high in digitally enhanced environments where gamification, retailtainment and personalization resonate deeply with Gen Z and Millennial travelers

Latin America:

• Economic headwinds in the region have made price sensitivity more pronounced, yet confectionery remains a high-performing category due to its versatility and emotional appeal
• Regional hubs like Panama and São Paulo continue to show healthy performance, especially when engaging formats and regional flavor exclusives are available

Middle East & Africa:‍

• The region continues to serve as a key transit hub, particularly Dubai and Doha. Here, NITR sees robust performance in premium gifting and travel exclusives, supported by diverse passenger profiles and strong airport retail infrastructure
• Emotional connection and luxury cues are key conversion drivers in this region

Driving category growth

When examining the confectionery category more broadly, NITR sees strong momentum from younger, experience-driven travelers across all markets. “These consumers are not just looking for products – they’re seeking interactions, personalization and unique moments, which makes confectionery a powerful conversion category,” explains Porchet. “Through global travel retail exclusive formats, engaging in-store activations and innovations like personalized gifting and digital experiences, we’ve been able to maintain high levels of shopper interest and sustain resilient category growth, even in the face of macroeconomic headwinds.”

The company views the balance between premiumization and balance as essential to category growth – especially in today’s evolving travel retail landscape, where shopper expectations are diverging across generations, regions and spending power, comments Porchet. NITR’s strategic approach is anchored in its Category Growth Drivers framework, which links every product to a clear shopper mission: self-treat, gifting or sharing.

“This framework empowers us to curate smarter portfolios, especially in environments where space is at a premium. By ensuring that every hero SKU earns its shelf space through purpose-driven design and pricing, we can cater to both the aspirational and budget-conscious traveler in a way that’s commercially effective and emotionally relevant,” adds Porchet.

Driving shopper conversion

As a response to today’s shifting consumer behaviors and dynamics, NITR is focused on maximizing impulse opportunities across the traveler journey and implementing a range of initiatives to drive shopper conversion: purpose-led portfolio curation, travel retail exclusive innovation and value, experience-led activation, strategic partnerships and retailtainment, pre-travel communication and digital engagement, as well as resilient supply chain performance to maintain shelf presence.

A standout example of NITR’s experience-led activation component is its multi-brand hero installation with Ospree Duty Free at Mumbai Duty Free, which blends digital interaction, gifting and emotional connection through experience. Combining food and beverage, the new initiative supports cross-category promotion and marks the introduction of a dedicated coffee section featuring a curated range of premium Nestlé coffee products. The new space offers a vibrant, shopper-centric layout, intuitive navigation and impactful storytelling – creating a seamless blend of global appeal and local relevance.

On the partnership side, the company’s landmark global partnership between KitKat and Formula One (F1) demonstrates how it’s leveraging high-energy collaborations to drive future engagement and impulse. “Designed with Gen Z in mind, activations will offer a dynamic blend of exclusive promotions, digital interactivity and brand storytelling that taps into the passion and energy of F1 fandom. It's a bold way to drive excitement, connection and repeat engagement while reinforcing KitKat’s global relevance and innovation.

“Ultimately, our goal is to make confectionery the most engaging category in travel retail – one that not only drives footfall and spend, but also builds long-term emotional loyalty through meaningful stories, purposeful branding and immersive experiences,” says Porchet.

This goal is sure to be achieved knowing that product quality and brand heritage serve as central pillars of the company’s storytelling approach. Nestlé prioritizes the integration of sustainable development into its activations, along with storytelling through product labelling, sleeving solutions, digital displays and informed staff members. This allows for the promotion of environmental and social credentials, as well as fostering of trust and long-term brand loyalty.