Airport Retail Market By Product Type (Liquor & tobacco, Perfumes & cosmetics, Fashion & Accessories, Food & beverages, Others) By Airport Size (Large By Product Type (Electronic Products, Food and Beverages, Fashion and Accessories, Pharmacy Products and Arts), By store Type (Independent Stores and Showrooms, Duty-Free Stores, Restaurants, Supermarkets and Others), Ownership (Independent Owners, Corporate Chains and Franchises) - Growth, Share, Opportunities & Competitive Analysis, 2016 - 2028

What is the Key Product Type of Airport Retail?

Airport retail hubs carry a wide range of goods. They contain a comprehensive spectrum of product categories, such as wines & spirits, perfumes & cosmetics, tobacco goods, electronics, Food & beverage, and fashion & accessories. Airports adhere to the general travel retail shop model. These retail establishments are found in busy, central airport zones, attracting more clients. The goods offered at airports exempt from paying national taxes, tariffs, and other specific local taxes are duty-free goods in retail establishments. The duty-free goods, including alcohol, tobacco, perfumes, clothing, and electronics, are bought by tourists from one nation to another. 

airport-retail-market

What is the Market Size of Airport Retail in terms of Value?

In the following years, the global airport retail market is anticipated to grow at 12.10%. The Value of the worldwide airport retail market was USD 31.5 billion in 2021, and it is anticipated to grow to USD 62.5 billion by 2028. The demand for airport retail is anticipated to rise sharply in the upcoming years. Over the forecast period between 2022 and 2028, it is anticipated to create revenue opportunities worth USD 31.00 million for the major industry participants.

What is the Key Distribution Channel for Airport Retail?

Direct retailers, convenience stores, specialty retailers, and department stores are several market segments for airport retailing worldwide. The market's most significant contributor, specialty retailers, is anticipated to increase. Liquor, perfume, or fashion and accessory stores tend to be the specialty retailers at airports. Not every customer displays brand loyalty when it comes to retail purchasing at airports. Specialty stores are the best choice for these customers since they allow them to select goods from a wide range of branch availability of foreign brands of cosmetics, cigars, perfumes, cigarettes, and watches under one roof also benefits buyers seeking limited edition products, who can readily find them in specialty retail stores. Together, these elements significantly contribute to the market's expansion. 

Interesting Facts about Airport Retail Industry

  • The key drivers of the global airport shopping trend are the demand for distinctive and exotic vacation experiences, an increase in middle- and upper-class disposable income and related expenditure, and a surge in consumer interest and need for increasingly expensive goods. Additionally, a change in lifestyle and more tourism advertising.
  • Throughout the projected period, the growth of the airport's retail sector would be hampered by the high cost of airport rentals. 
  • The Asia-Pacific region dominated the global airport retail market in 2021, and it is expected that it will continue to hold onto its dominance over the forecast period.
  • Large airport retail is expected to witness high growth during the forecast period.

Who are the Top 10 players/companies in the Airport Retail market regarding Value and volume?

The key players in the global airport retail market in value and volume include AIRPORT Retail Group, L.L.C., China Duty-Free Group Co., Ltd., DFS Group Ltd., Dubai Duty-Free, Flemingo International, Japan Airport Terminal Co., Ltd., King Power International, Gebr. Heinemann Se & Co. KG, Dufry AG, and the Shilla Duty-Free. These significant companies focus on technological advancements and new product improvements to improve airport retail production and capture a globally competitive market share. Additionally, several regional and national players are investing significantly to diversify their product offerings and increase sales. For instance, in May 2022, the joint venture GATE ZERO was created by Gebr. Heinemann and Highsnobiety to combine their experience and global reach in travel retail. Highsnobiety and Gebr. Heinemann have agreed to a long-term relationship that started as a pop-up shop at Zurich Airport. The influential multi-media giant and the long-standing travel retail firm started working together 18 months ago. The joint venture agreement for GATE ZERO was finalized at the start of 2021.

Who are the Top 10 Countries in the Airport Retail Market?

The major countries in the global airport retail market are India, China, Thailand, Japan, South Korea, Australia, the U.S., the U.K., Germany, and France. China will be the primary producer and consumer of airport retail in the global market in 2021. An improvement in the region's economy and a rise in disposable income are the main drivers of the market. The market is growing due to the expansion of the affordable luxury sector in tier 2 cities in the Asia-Pacific region. 

Which is the Key Airport Size in the Airport Retail Market?

The international airport retailing market is divided into three categories based on airport size: large airports, medium airports, and small airports. The market's most significant contributor, the big airport category, is anticipated to expand throughout the forecast period. Large airports are found in the country's capital region and are well-liked vacation spots. A sizeable portion of passengers at these airports fly in business class, which significantly aids in the sale of goods through retail travel hubs. At these airports, revenue is made at a high rate due to the heavy passenger traffic. As a result, the expansion of this market is fuelled by an increase in foreign travelers.

High passenger traffic at airports continues to increase annually. As a result, the number of passengers an airport handles closely correlates to its revenue. Large and medium airports handle more than 70% of all aviation passenger traffic worldwide. Airports must modernize and install intelligent systems to enable efficient airport operations in light of rising flight traffic. Since there are many medium-sized airports worldwide, they are currently dominating the market. These airports need to install self-service check-in kiosks and baggage drop boxes to alleviate delays and customer wait times. Self-service check-ins are the only intelligent solutions installed in tiny airports.

What are the Major Driving Factors for Airport Retail Market?

The desire for unusual and exotic vacation experiences, an increase in middle- and upper-class disposable income and corresponding spending, and a surge in consumer interest and need for more expensive goods are the main factors driving the global airport retailing trend. Additionally, lifestyle modifications, increased tourism advertising, and improved accessibility of transportation options all contributed to the expansion of the airport retailing business.

What are the Major Restraints for Airport Retail Market?

Airport boarding procedures are made more accessible by modern, computerized security technologies. However, the design, development, and integration of these systems into the airports of any nation comes at a very high cost. They must work with various electronic parts and subsystems to give the airport authorities real-time data. The creation, introduction, and upkeep of these systems are expensive. The airport authorities prefer to outsource the security services to independent service companies like 

G4S Plc, Securitas AB, and others due to the high cost of these systems and necessary services. As a result, the cost and time involved in developing and deploying these systems prove to be obstacles to the market's expansion globally. 

Which Region Dominated the World Airport Retail Market?

Due to rising disposable income, higher living standards, and a booming tourism sector. The market is growing due to the expansion of the affordable luxury sector in tier 2 cities in the Asia-Pacific region. The main factors for the expansion of the Asia-Pacific airport retailing sector are an increase in the number of new flight routes and the entry of low-cost carriers (LCC). Additionally, consumers' increased preference for value-added goods increases their desire to travel, driving the demand for duty-free alcohol, tobacco, clothing, cosmetics, and fragrances.

 The second-largest contributor to the airport retailing sector was the Europe market. The most extensive travel and tourism markets in Europe are in the United Kingdom and Russia, which get more significant numbers of visitors by air travel. Additionally, travelers from other nations, such as China and the Middle East, help to support the European airport retail industry. As a result, the growth of the travel and tourism sector and an improvement in lifestyle brought on by rising consumer disposable income serve as the market's primary driving drivers. The expansion of the airport retailing business is anticipated to be hampered by the strict laws surrounding the permitted duty-free products in airport retailing.

Segmentation of Global Airport Retail Market-

Global Airport Retail Market – By Product Type

  • Liquor & tobacco
  • Perfumes & cosmetics
  • Fashion & Accessories
  • Food & beverages
  • Others

 Global Airport Retail Market – By Airport Size

  • Large airport
  • Medium airport
  • Small airport

Global Airport Retail Market – By Distribution Channel

  • Direct retailer
  • Convenience store
  • Specialty retailer
  • Departmental store

Frequently asked questions about the global Airport Retail industry

In terms of volume and Value, Asia Pacific held the most significant proportion of the worldwide airport retail market.

The primary drivers of the market's expansion are an increase in the middle- and upper-class disposable income and corresponding expenditure, as well as a desire for unusual and exotic vacation experiences.

Large airports had a significant share in 2021 with more than 50% of the market revenue share.

In 2021, specialty retailers will have a sizable portion of the global market, and it is expected that they will maintain their dominance during the forecast period.

Airport Retail Market Scope

Report Attribute Details
Market Value in 2021 USD 31.5 billion
Market Value in 2028 USD 62.5 billion
CAGR 12.10%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
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Published Date:  Aug 2022
Category:  Automotive & Transportation
Report ID:   58016
Report Format:   PDF
Pages:   180
Rating:    4.8 (70)
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