The global airport retailing market with a valuation of USD 26.83 billion in 2022, is poised for remarkable growth. By 2033, the market is projected to exceed a noteworthy milestone, surpassing the USD 90.23 billion mark.
This tremendous growth trajectory signifies a significant leap from its projected 2023 valuation of USD 29.84 billion. Over this period, the market is anticipated to showcase a CAGR of 11.7%.
Airport travel retail commands a substantial share of the travel retail industry. It is strategically positioned at departure areas, arrival halls, and airside zones. The market encompasses the sale of various products and services within airport premises. Recent years have seen a phenomenal expansion of this market. This expansion can be attributed to
Travel is widely acknowledged as a primary priority for future expenditures, with a special focus on exclusive luxury experiences and thrilling adventure activities. Traveler numbers increase as a consequence. This immediately affects sales at airport retail stores and further fuels the expansion of the airport retailing market.
Airports embrace the popular concept of travel retail shops. These shops offer various products across various categories, such as wines & spirits, perfumes & cosmetics, tobacco goods, electronics, food & beverage, and fashion & accessories. Strategically located in central areas with heavy passenger flow, these airport retail shops attract a large customer base.
Airport retailing has become a global phenomenon. Airports across the globe cater to the shopping needs of travelers. These airports serve a wide spectrum of travelers, including leisure and business travelers, as well as transit passengers. This diverse mix of travelers leads to a wide variety of retail offerings.
Airport retail stores are primarily situated at departures, arrivals, and airside. The airport travel market is growing vastly due to increasing air traffic, expanding airport infrastructure, and higher consumer demand for luxurious products. The duty-free products in airport retail stores are exempted from payment of national taxes, duties, and many other local taxes. Duty-free products such as perfumes, liquors, electronics, tobacco, etc., are commonly purchased by travelers when traveling to another country. Duty-free retail outlets are attractive aspects for consumers and a key contributor to the global airport retailing market.
There is also increasing interest and willingness among individuals to allocate more funds for shopping, thereby fueling the market growth. Additionally, changes in lifestyle, tourism promotion, and improved transportation accessibility all play a role in the expansion of the airport retailing industry.
| Attributes | Details |
|---|---|
| Historical Value (2022) | USD 26.83 billion |
| Current Year Value (2023) | USD 29.84 billion |
| Expected Forecast Value (2033) | USD 90.23 billion |
| Projected CAGR (2023 to 2033) | 11.7% |
Don't pay for what you don't need
Customize your report by selecting specific countries or regions and save 30%!
From 2023 to 2033, the airport retailing market is expected to exhibit a notable CAGR of 11.7%, a considerable improvement over its previous CAGR of 10.2% observed between 2018 and 2022. This projected growth rate signifies a positive upward trend for the market in the coming decade.
The travel and tourism industry is witnessing substantial growth due to the rising popularity of bleisure travel, a combination of business and leisure activities. This trend plays a crucial role in driving the market expansion.
Airports have emerged as prime locations for luxury brands to showcase their products. Renowned fashion, accessory, and jewelry brands have established exclusive outlets within airports. These outlets cater to affluent travelers seeking both luxury and convenience. Brands are trying to personalize their offerings and improve the overall shopping experience for travelers. This contributes to a positive market outlook.
Another significant factor is the increasing amount of time passengers spend at airports, primarily because of early check-in requirements for security and operational reasons. This prolonged dwell time has positively influenced the demand for airport retailing on a global scale.
Asia Pacific has emerged as one of the leading developing regions. This growth is driven by significant improvements in economic conditions and a notable rise in disposable income. The market growth is further fueled by the financial progress observed in countries within the LAMEA region.
The airport retailing market is poised for development due to the projected increase in the number of millennials. As important sports events like the 2024 ICC Men's T20 World Cup in West Indies and the United States in June 2024 and ICC Women’s Cricket World Cup in India in 2025 approach, the airport retailing sector is expected to thrive with a surge in passenger numbers. This positive trend is likely to benefit the airport retailing industry's growth greatly.
Tourism Promotion
The alarmingly growing travel and tourism industry across the world is expected to encourage the airport retailing market to grow further during the forecast period. Business, leisure, medical, etc., fall under the category of travel and tourism and are also the aspects that boost this growth is growing airport retailing market trends and easy accessibility of purchase facilities.
Improving Airport Infrastructure
These factors are said to promote the traveler's footprint at airports, therefore supporting the global airport retailing market growth. Constantly developing the travel and tourism industry and incorporating several sectors like hospitality with initiatives from the government to gain more tourists facilitate the growth of the travel and tourism industry across the world. This is likely to further support the airport retailing market during the forecast period.
Rising Holiday Expenses
Factors such as the disposition of people toward exclusive and exotic holiday experiences, growing disposable income from middle- and upper-class populations, and their rising expenditure are responsible for lucratively impacting the market toward its growth. Moreover, the growing demand and interest of many individuals to spend money on shopping and leisure are boosting the market.
Efforts by Market Players
Market players operating in this industry are constantly taking efforts to determine the captivating factors which encourage customers to engage in shopping during travel. Convenience and passing the time while waiting for flights are some of the other eminent factors which are pushed consumers toward airport retail purchases.
Principal Consultant
| Attributes | Details |
|---|---|
| Trends |
|
| Opportunities |
|
North America accounted for 32.3% market share in the global market in 2022. In this region, the United States is the significant hub, where airport retail sales are anticipated to reflect steady growth over the forecast period. In the United States and Canada, in the recent past, airport shopping hallways have become a vital tourist hub. Post the pandemic, the increasing frequency of tourists and travel in this region has resulted in escalated airport retail sales.
The United States has witnessed a surge in domestic and international travel. This has led to a significant increase in demand for airport retail services. Travelers now seek convenient shopping experiences, luxury brands, and personalized services at airports. In 2023, the United States Department of Transportation issued a new rule that allows passengers to bring liquids, gels, and aerosols in travel-size containers that are 3.4 ounces (or 100 milliliters) through airport security checkpoints. This is expected to boost sales of duty-free products in United States airports.
| Country | United States |
|---|---|
| 2022 Value Share in Global Market | 28.4% |
Duty-free shopping has gained significant popularity among international travelers in the United States due to its tax advantages. Airports are capitalizing on this trend by expanding duty-free retail spaces and offering a wide range of tax-free products to cater to the demands of these travelers.
Key players are actively implementing strategies to enhance customer experiences and drive growth in this dynamic market segment. In May 2023, Hudson announced to implement revolutionary changes to Boston Logan International Airport's duty-paid and duty-free offers. It aims to deliver an unparalleled retail experience for travelers in a unique city setting.
Europe acquired 23.1% share of the global market in 2022. In the past few years, Europe has experienced significant growth in the market for airport retailing due to affordable airfares, increasing investments in retail services in airports, and soaring tourism across. Additionally, with various projects underway such as renovating airports, refurbishments, and developing and expanding new terminals, the market is anticipated to experience considerable growth.
Some of the leading countries from Europe are Spain, Germany, and the United Kingdom. Considering the rising luxury trend at airport retail, several luxury brands are thinking of airports as a solution to fading malls. This kind of altering perception toward luxury brands is further predicted to drive the market. Many well-established brands have asserted that the revenue generation across airports is swiftly expanding than the traditional department stores. This is primarily observed in the case of beauty and fashion goods.
Airports in the United Kingdom are increasingly prioritizing customer experience by elevating the quality and diversity of retail offerings. The focus lies in creating seamless and captivating shopping environments that cater to the varied needs and preferences of travelers, enhancing their overall journey.
| Country | United Kingdom |
|---|---|
| Value CAGR (2023 to 2033) | 12.1% |
World Duty Free Group (WDFG) stands as a prominent player in the United Kingdom airport retailing market. Operating a wide range of duty-free and luxury retail stores across crucial airports, WDFG offers an extensive selection of products and renowned brands, providing travelers with an extraordinary shopping experience.
The Germany airport retailing market presents opportunities for growth and innovation. The airport retailing sector in Germany is proactively embracing digitalization to enhance the customer experience. Mobile apps, augmented reality, and personalized marketing campaigns are used to engage passengers and provide seamless shopping experiences.
| Country | Germany |
|---|---|
| 2022 Value Share in Global Market | 5.6% |
Germany strongly emphasizes sustainability, and the airport retailing sector reflects this commitment. Airports are implementing eco-friendly practices such as reducing plastic waste, promoting recycling, and offering sustainable product choices to align with the country's environmental goals.
Luxury brands have gained significant traction in the airport retailing segment in the Asia Pacific region. High-end fashion, accessories, and cosmetics brands are increasingly establishing their presence in airports. Airports in this region are adopting digital technologies to enhance the overall shopping experience for passengers.
The Japan airport retailing market has experienced remarkable growth in recent years. With a robust tourism industry and increasing air travel, airports have emerged as significant retail hubs, offering a wide range of products and services to cater to the needs of both domestic and international travelers.
| Country | Japan |
|---|---|
| 2022 Value Share in Global Market | 2.6% |
Japan's renowned omotenashi culture, which emphasizes exceptional hospitality, is deeply ingrained in the airport retailing sector. Airports in Japan are embracing technology to enhance the shopping experience for travelers. The deployment of self-checkout kiosks, digital signage, and mobile apps has created a seamless shopping environment. This enables customers to browse, purchase, and collect products efficiently.
Airports in China are leveraging the power of e-commerce platforms and digital technologies to augment customer engagement and convenience. They are implementing online pre-orders and duty-free shopping services. This promotes a smooth shopping experience by allowing customers to make purchases in advance and pick them up at the airport.
China has experienced an unprecedented surge in outbound tourism. The number of Chinese travelers exploring international destinations has been growing rapidly. As a result of this trend, there is an increased demand for duty-free shopping, luxury brands, and premium products at airports. Hence, China airport retailing market is likely to open up substantial growth prospects for market players.
| Country | Value CAGR (2023 to 2033) |
|---|---|
| China | 13.5% |
| India | 15.8% |
Indian airports are embracing their cultural heritage. They showcase local art, culture, and handicrafts. This trend promotes local artisans. It also enhances the overall passenger experience. Passengers get a captivating glimpse of India's rich traditions and craftsmanship.
The India airport retailing market exhibits regional variations. Airports in crucial metropolitan cities witness higher footfall and offer a broader range of retail options. Tier-II and Tier-III cities are gradually catching up. This presents untapped potential for retailers to expand their presence. They can tap into emerging consumer markets.
The Indian government's initiative to privatize airports has significantly transformed airport infrastructure and retail spaces. Private operators are investing in modernizing terminals. They are also improving retail offerings and introducing innovative concepts. These efforts aim to cater to diverse customer preferences and enhance the overall airport experience.
Get the data you need at a Fraction of the cost
Personalize your report by choosing insights you need
and save 40%!
| Segment | 2022 Value Share in Global Market |
|---|---|
| Fashion & Accessories | 28.9% |
| Direct Retailers | 19.4% |
Airports serve as bustling hubs, witnessing millions of travelers passing through their gates on a daily basis. This presents an extensive customer base for fashion and accessories retailers to tap into, encompassing tourists, business travelers, and leisure seekers. The sheer volume of potential customers makes the fashion and accessories category a dominant force in airport retailing.
Fashion transcends geographical boundaries and is a universally cherished interest. Airport retailers capitalize on this by providing a wide array of fashion and accessories brands. Regardless of their origin, travelers from all corners of the world can find familiar and desirable brands at airport shops. This makes the fashion and accessories segment highly sought after in airport retailing.
Airport retailers consistently update their fashion and accessories offerings. They do this to align with seasonal trends and new collections. This ensures that travelers have access to the latest fashion trends. This contributes to the continued dominance of the fashion and accessories segment in airport retailing.
Direct retailers enjoy greater control over their operations within airport terminals. They can design their stores, select merchandise based on market demands, and implement tailored marketing strategies. This level of control enables them to create a unique shopping experience that caters to the specific needs and preferences of travelers.
Direct retailers often have well-established brand recognition and a loyal customer base. Passengers who are already familiar with a brand prefer to make purchases from a trusted retailer they are comfortable with, even when in an airport environment.
Direct retailers sometimes offer competitive pricing due to their direct relationships with manufacturers or suppliers. By bypassing intermediaries, they have greater flexibility in setting prices, which can be advantageous in a competitive market like airport retailing.
An Eye on the Start-ups
Airbus:
| Attributes | Details |
|---|---|
| Who | Airbus |
| When | November 2020 |
| What | E-commerce start-up Airbuy partnered with Google to enter the airport retail business. This partnership works similarly to any other food conveyance commercial hub where the food and beverages are sourced from the terminal along with other menus on their mobile application. Consumers can download the app from Google Play Store, decide on their order and wait for the Ready notification and accordingly pick their order from the source outlet. |
The New Shop:
| Attributes | Details |
|---|---|
| Who | The New Shop |
| When | January 2022 |
| What | The New Shop, a retail tech start-up signed a partnership with Adani Airports for upcoming Airports. It is India’s smartest 24-hour convenience store chain and has successfully opened its 41st store at Lucknow’s Chaudhary Charan Singh International Airport. It is also the first-ever airport flagship store from the brand. |
Some of the key players in the airport retailing market are Dubai Duty-Free, Airport Retail Group, LLC, Dufry AG, King Power International, DFS Group Ltd., China Duty-Free Group Co. Ltd., The Shilla Duty-Free, Gebr. Heinemann SE & Co. KG, Heinemann SE & Co. KG, Flemingo International, Japan Airport Terminal Co. Ltd., and Others.
King Power International:
| Attributes | Details |
|---|---|
| Who | King Power International |
| When | June 2023 |
| Strategic Move | King Power revealed a stunningly enhanced store at Suvarnabhumi airport. This development further elevates their esteemed collaborations with prestigious global luxury brands. |
Gebr. Heinemann SE & Co. KG:
| Attributes | Details |
|---|---|
| Who | Gebr. Heinemann SE & Co. KG |
| When | May 2023 |
| Strategic Move | The duty-free, food service, and convenience space of Smartseller undergone a complete redesign. Smartseller is a joint venture established in 2020 by Gebr Heinemann and Casualfood. The various components have been merged into a unified, open concept. The space, now known as all yours, is officially inaugurated. |
China Duty-Free Group Co. Ltd.:
| Attributes | Details |
|---|---|
| Who | China Duty-Free Group Co. Ltd. |
| When | March 2023 |
| Strategic Move | The parent organization of China Duty Free Group is China Tourism Group. It has announced a noteworthy investment of USD 178.6 million in China Overseas Personnel Service Co., Ltd. (CNSC). CNSC is a fellow travel retailer. The objective behind this move is to enhance and expand the scale of CDFG's duty-free business, ultimately driving overall profitability. |
DFS Group Ltd:
| Attributes | Details |
|---|---|
| Who | DFS Group Ltd |
| When | March 2021 |
| Strategic Move | DFS Group expands its footprint in Macau by partnering with three new hotels. DFS is the world’s leading luxury travel retailer, and it plans to continue to deliver an exclusive shopping experience for its distinguished customers in Macau with the opening of three new hotel pop-ups along with its seven full-sized stores across the enclave. |
Dufry AG:
| Attributes | Details |
|---|---|
| Who | Dufry AG |
| When | July 2022 |
| Strategic Move | Dufry, a travel retail giant, and Autogrill, the leader in Travel Food & Beverage (F&B) are coming together to create an integrated global Travel Experience player. The partnership is going to address 2.3 billion passengers in over 75 countries in nearly 5500 outlets across 1200 airports and several other locations. |
The market is valued at USD 29.84 billion in 2023.
DFS Group Ltd., China Duty-Free Group Co. Ltd., The Shilla Duty-Free are airport retailing industry’s key companies.
The market is forecast to register a CAGR of 11.7% through 2033.
The China market CAGR is 13.5% through 2033.
The Indian market CAGR is 15.8% through 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Category 5.1. Fashion & Accessories 5.2. Perfumes & Cosmetics 5.3. Liquor & Tobacco 5.4. Food & Beverages 5.5. Others 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Distribution Channel 6.1. Direct Retailer 6.2. Convenience Store 6.3. Specialty Retailer 6.4. Departmental Store 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Airport Size 7.1. Medium Airport 7.2. Small Airport 7.3. Large Airport 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Western Europe 8.4. Eastern Europe 8.5. South Asia and Pacific 8.6. East Asia 8.7. Middle East and Africa 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. Key Countries Market Analysis 17. Market Structure Analysis 18. Competition Analysis 18.1. Dubai Duty-Free 18.2. Airport Retail Group, LLC. 18.3. Dufry AG 18.4. King Power International 18.5. DFS Group Ltd 18.6. China Duty-Free Group Co. Ltd. 18.7. The Shilla Duty-Free 18.8. Gebr. Heinemann SE & Co. KG 18.9. Heinemann SE & Co. KG 18.10. Flemingo International 18.11. Japan Airport Terminal Co. Ltd. 19. Assumptions & Acronyms Used 20. Research Methodology
Explore Consumer Product Insights
View Reports
Airport Retailing Market
