Airport Retailing Market Share, Size, Trends, Industry Analysis Report, By Category (Fashion & Accessories, Perfumes & Cosmetics, Liquor & Tobacco, Food & Beverages, and Others); By Distribution Channel; By Airport Size; By Region; Segment Forecast, 2024 – 2032
- Published Date:Jan-2024
- Pages: 118
- Format: PDF
- Report ID: PM3854
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global airport retailing market was valued at USD 34.1 billion in 2023 and is expected to grow at a CAGR of 12.40% during the forecast period.
The significant growth in air travelers globally, the rising middle-class population and their affordability to air travel, and continuously developing airport infrastructure across the globe, coupled with the emergence of airport retail from traditional duty-free shops to a diverse range of offerings, are major factors propelling the demand and growth of the market. In addition, the rapidly surging inclination towards unique and exotic holiday experiences and constantly escalating demand for various high-end and extravagant products from consumers globally are also likely to have a positive impact on market demand and growth.
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For instance, in April 2023, Hong Kong International Airport announced the launch of its first autonomous convenience stores in association with Lagardere Travel Retail Asia, that is designed to offer travelers a seamless shopping experience through the grab-and-go purchase of products like souvenirs, drinks, packaged food, and travel essentials.
Moreover, with the growing opportunity for businesses across the world to tap into the local culture and preferences of travelers by offering region-specific products and services, including local merchandise, traditional crafts, regional cuisine, or collaborations with local artisans and designers, which enables them to create a unique shopping experience that resonates with passengers and will positively contribute to the growth of the market.
The outbreak of the COVID-19 pandemic has significantly impacted the growth of the airport retailing market. The rapid spread of the pandemic across the globe led to widespread travel restrictions, including border closures, quarantine measures, and reduced flight schedules. This resulted in a significant decline in passenger traffic at airports and changes in passenger behaviors, thereby negatively influencing sales and growth during the pandemic.
Industry Dynamics
Growth Drivers
Increasing number of airports
The rapid development, expansion, and modernization of airport infrastructure across both developed and developing economies and the rising number of airports investing in creating state-of-the-art terminals and passenger facilities, including retail spaces, to enhance the overall travel experience are primary factors driving the market growth. Modern airports are gaining huge popularity and traction, as they offer a wide range of retail options, from luxury brands to duty-free shops, attracting more travelers and generating higher revenue.
Furthermore, the growing adoption of several types of digital technologies, the integration of online and offline retail channels, and increasing focus on major airports towards embracing e-commerce platforms, mobile apps, and digital marketing strategies to offer a seamless shopping experience to passengers and expand their reach to the broader customer base, that are also among the leading factors propelling the market growth.
Report Segmentation
The market is primarily segmented based on category, distribution channel, airport size, and region.
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By Category |
By Distribution Channel |
By Airport Size |
By Region |
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By Category Analysis
Fashion & accessories segment accounted for the largest market share in 2022
Fashion and accessories held the largest share, owing to the emergence of airports as hubs where passengers have ample time to browse and shop for fashion and accessories and the ability to provide travelers with an opportunity and access to make last-minute purchases or find items they may have forgotten to pack.
Moreover, a large number of fashion and accessories brands across the globe use airport retailing as a key strategic platform to showcase their products to a diverse and international customer base. That exposure helps them to build brand recognition, attract new customers, and drive sales at a rapid pace.
The food and beverages segment is expected to gain a substantial growth rate over the anticipated period, which is mainly driven by greater demand for food and beverages products in airports globally due to the rising number of travelers and their penetration for various convenience and ready-to-eat food products at airports to save time and energy. Also, airport operators and retailers focus on providing a range of food and beverage options to cater to different preferences and offer an enjoyable experience for passengers during the waiting period time, thereby positively impacting the market.
By Distribution Channel Analysis
Direct retailer segment held the significant market share in 2022
The direct retailer segment held the maximum market share in terms of revenue in 2022, mainly accelerated to their better control over their operations within the airport terminals and invested significantly in designing their stores and selecting merchandise based on the emerging market demands. Along with this, direct retailers are also known due to their competitive pricing, as they have direct relationships with suppliers or even manufacturers, which allow them to offer products at the most competitive rates.
The convenience store segment is projected to gain a substantial growth rate over the coming years due to its ability to cater to the immediate needs of travelers, providing them with a range of essential products such as snacks, beverages, personal care items, travel accessories, and reading materials, and ensuring availability of products and services irrespective of flight schedules.
By Airport Size Analysis
Medium airport segment is expected to witness highest growth during forecast period
The medium airport segment is projected to grow at the highest growth rate over the next coming years on account of their modern, spacious, and well-designed terminals that are more likely to attract passengers to explore the retail options available and the rising integration of technology such as mobile apps, digital kiosks, and online pre-order services at these airports, provides passengers with convenient and seamless shopping experiences.
The large airport segment is the leading contributor to the market share in 2022 and is likely to grow at a considerable growth rate over the study period, which is largely attributed to an increased number of business passengers and international tourists with higher spending capacity on premium and luxury products along with the surging popularity of these airports as holiday destinations, particularly in the country capital region.
By Regional Analysis
Asia Pacific region dominated the global market in 2022
The Asia Pacific region dominated the global market with the largest revenue share in 2022 and is anticipated to maintain its dominance throughout the projected period. The regional market growth can be largely attributable to the continuous rise in consumer living standards and disposable incomes, leading to a significant expansion in the tourism industry coupled with the rising development of several affordable luxury segments, mainly in tier-2 cities of the region. Additionally, the increasing preference for various types of value-added products boosts the consumer desire to travel and higher demand for duty-free liquor, which, in turn, positively contributes to the region’s growth.
The North America region is likely to emerge as the fastest growing region with a healthy CAGR over the study period, owing to the continuous development and expansion of airports in the region and increasing focus on enhancing passenger experiences and retail spaces coupled with the diversification of retail offerings attracting to a wider customer base. It encourages them to spend more money and time on retail purchases.
Competitive Insight
The Airport Retailing market is fragmented and is anticipated to witness competition due to several players' presence. Major service providers in the market are constantly upgrading their technologies to stay ahead of the competition and to ensure efficiency, integrity, and safety. These players focus on partnership, product upgrades, and collaboration to gain a competitive edge over their peers and capture a significant market share.
Some of the major players operating in the global market include
- Airport Retail Group LLC
- Autogrill
- China Duty-Free Group Co. Ltd.
- DFS Group Ltd.
- Dubai Duty-Free
- Dufry AG
- Flemingo International
- Gebr. Heinemann SE & Co. KG
- Japan Airport Terminal Co. Ltd.
- King Power International
- The SHILLA Duty Free
- World Duty-Free Group
Recent Developments
- In May 2022, Airport Council International, introduced new white-paper on the airport retailing. It is developed by the ACI World’s ANARA sub-committee specialized in economic evaluations.
- In April 2021, Hudson, introduced its new automated retail stores across the airports. This concept will feature a wide selection of exclusive products from various leading global brands in the skincare, electronic, lifestyle, toy, and eyewear industries. The company has firstly launched the concept at the Myrtle Beach International Airport in Myrtle Beach, South Carolina.
Airport Retailing Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 38.23 billion |
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Revenue forecast in 2032 |
USD 97.18 billion |
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CAGR |
12.40% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments covered |
By Category, By Distribution Channel, By Airport Size, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Customization |
Report customization as per your requirements with respect to countries, region and segmentation. |
FAQ's
The global airport retailing market size is expected to reach USD 97.18 billion by 2032.
Key players in the airport retailing market are King Power International, Japan Airport Terminal, Flemingo International
Asia Pacific contribute notably towards the global airport retailing market
The global airport retailing market is expected to grow at a CAGR of 12.3% during the forecast period.
The airport retailing market report covering key segments are category, distribution channel, airport size, and region.
