June 30, 2023

Travel retail's latest confectionery footprint according to m1nd-set

Share to LinkedIn

Laura Shirk

No items found.

After dropping by 30% in 2021 to 24% (vs. previous years), gifting among duty free confectionery shoppers slightly bounced back in Q1 2023 (30%)

Leading up to the release of Global Travel Retail Magazine’s Chocolate Day e-series, the magazine took a closer look at m1nd-set’s Q1 2023 confectionery findings, which highlight travel retail and duty free shopping trends vs. previous years (2017 – Q1 2020, 2021, 2022).

The main focus of the study is on international airport travelers and the scope of the data collected via m1nd-set’s B1S tracking survey spans footfall and conversation rates, purchase drivers, the decision-making process of duty free confectionery buyers, channel influences and barriers to purchase.

According to the agency, the share of shoppers visiting the confectionery section at duty free shops has been increasing since 2021 – and continued to do so in Q1 2023. However, COVID-19 has negatively impacted the conversion rate of the category. Despite the continual increase, the conversion rate in Q1 2023 remained significantly lower compared to pre-pandemic; on the flip side, the purchase rate remained unaffected. The average spend on confectionery significantly grew in the first quarter of this year, showing signs of full recovery. Primary drivers to visit the section included an attractive store and the search for promotions.

Regarding the decision-making process, brand loyalty became the number one driver to purchase among confectionery buyers in Q1 2023. This factor is of greater importance vs. pre-pandemic; it was followed by convenience and self-indulgence, repsecitvely, during this period. The greatest share of confectionery shoppers in duty free purchased for personal consumption, which is particularly true since the pandemic. The first quarter of 2023 also saw a shift from traditional gifting toward gifting to share within the category.

Main takeaways to note in terms of channel influences and barriers to purchase: the share of travelers aware of online pre-ordering services was considerably lower than those who would be interested in using the services available and the leading reason confectionery visitors left the store empty-handed in Q1 2023 is because they found the prices too high vs. their home country. Plus, lack of motivation, limited time and no intention to purchase played a part.

After a double digit decrease to 42% in 2021, duty free confectionery shoppers grouped as “undecided planners” sat at 44% in Q1 2023; this is lower than 48% in 2022

The share of travelers interacting with sales staff remained higher in Q1 2023 vs. pre-pandemic levels; this is lower than in 2022 (49% vs. 69%)

By the numbers

  • The conversion rate of confectionery is the KPI that has experienced the most variation over time; while the category’s footfall rate, purchase rate and average spend remained steady in previous years and Q1 2023, its conversion rate, which sat at 60% between 2017 and Q1 2020, decreased by 20% in 2021, increased by 2% in 2022 and almost reached pre-pandemic levels in Q1 2023 (55%)
  • In line with 2021 and 2022 figures, the majority of duty free confectionery shoppers reported traveling for leisure (74%) and in standard class (88%) in Q1 2023
  • Compared to 19% in 2017 – 2020 and 15% in 2022, almost one quarter of shoppers (24%) in Q1 2023 listed brand loyalty as their top driver to purchase
  • After dropping by 30% in 2021 to 24% (vs. previous years), gifting among shoppers slightly bounced back in Q1 2023 to 30%
  • Compared to pre-pandemic, confectionery shoppers grouped as “specific planners” increased by 8% in Q1 2023 (15% vs. 23%); this is in line with 2021 and 2022 figures
  • After a double digit decrease to 42% in 2021, shoppers grouped as “undecided planners” sat at 44% in Q1 2023; this is lower than 48% in 2022
  • The share of impulse buyers surpassed pre-pandemic levels in Q1 2023 (33%); this is lower than 36% in 2021
  • The share of travelers interacting with sales staff remained higher in Q1 2023 vs. pre-pandemic levels; this is lower than in 2022 (49% vs. 69%); similarly, staff influence decreased in Q1 2023 compared to 2021 and 2022
  • Duty free confectionery shoppers said ingredients (59%), packaging (58%) and production process (58%) are equally important to their decision-making process

Confectionery shoppers in Q1 2023 said ingredients (59%), packaging (58%) and production process (58%) are equally important to their decision-making process

No items found.
No items found.