Global Airport Retailing Market Insights Forecasts to 2033

• The Global Airport Retailing Market Size was valued at USD 39.7 Billion in 2023.

• The Market Size is Growing at a CAGR of 11.24% from 2023 to 2033

• The Worldwide Airport Retailing Market Size is Expected to reach USD 115.2 Billion by 2033

• Asia Pacific is Expected to Grow the fastest during the forecast period

The Global Airport Retailing Market is expected to reach USD 115.2 billion by 2033, at a CAGR of 11.24% during the forecast period 2023 to 2033.

Airport retailing market describes the businesses and services that travellers and passengers can purchase inside airport terminals. Along with a variety of amenities like food and beverage outlets, lounges, and entertainment venues, these services also involve the selling of commodities like luxury goods, duty-free items, gadgets, cosmetics, apparel, and accessories. Airports are beginning to include relaxation areas, spas, wellness centres, and entertainment zones in order to accommodate travellers looking for something to do while waiting for a flight. Airport retailers now have a larger client base thanks to the growing number of air travellers caused by increased prosperity, globalisation, and better transportation infrastructure. Large-scale expansion and renovation projects have been carried out at many airports, creating larger, more contemporary terminals with improved retail areas and services.

Airport Retailing Market Value Chain Analysis

Suppliers are essential in supplying airport merchants with merchandise. These suppliers can be producers, distributors, or wholesalers of products including electronics, cosmetics, food and beverage items, luxury goods, and other retail goods. Airport operators oversee the facilities and infrastructure, including retail areas, inside airport terminals. They administer the general administration of airport retail operations and lease out shop areas to retailers. Duty-free shops, upscale boutiques, convenience stores, food and beverage establishments and specialty retailers are among the retailers that operate in airport terminals. Within their assigned retail areas, these retailers are in charge of hiring people, maintaining inventory, sourcing products, marketing, and sales. The final consumers and users of the goods and services provided in airport terminals are travellers. Ancillary services like marketing support, cleaning, security, and logistics are provided by service providers to airport operators and shops.

Airport Retailing Market Opportunity Analysis

The ongoing rise in air travel worldwide, resulting from factors like growing middle-class populations, rising disposable incomes, and an increase in international tourism, expands the consumer base for airport businesses. Retailers can take advantage of the captive audience that occurs when travellers in airport terminals have extra time before their flights. There will be more options for dining and shopping with this captive crowd, which will increase sales volumes. There is a growing tendency towards premiumization as tourists become more prepared to part with their money for superior goods and experiences. In order to appeal to wealthy travellers, airport retailers can profit from this trend by providing upmarket premium items, fine eating alternatives, and customised shopping experiences. A lot of airports are expanding and renovating to make room for more passengers and enhance the overall traveller experience.

Market Dynamics

Airport Retailing Market Dynamics

Improved airport retail infrastructure to propel the market growth

Modernising the dining and retail facilities at airports may make the experience more enjoyable and stimulating for travellers, enticing them to spend more time and money dining and shopping. The entire passenger experience can be enhanced by contemporary, aesthetically beautiful shop rooms that provide plenty of lounging areas, natural lighting, and practical layouts. Greater diversity in retail outlets, such as food alternatives, duty-free shops, specialised stores and luxury boutiques, can be found in airport terminals by optimising and expanding the retail area. More room for retail provides more chances for merchants to display their goods and services, drawing in a larger clientele. New retail formats and concepts can be implemented owing to improved airport retail infrastructure. Pop-up shops, interactive exhibits, experiential areas, and digital kiosks are a few examples of how to give tourists distinctive and unforgettable shopping experiences.

Restraints & Challenges

Due to the high costs of manpower, utilities, rent, and other operating expenses, operating retail stores near airport terminals can be costly. It may be difficult for smaller shops in particular to maintain their competitiveness due to reduced profit margins. The retail landscape at airports is getting more and more competitive, with multiple stores fighting for travellers' attention. Prime retail sites may be dominated by well-known brands and merchants, making it challenging for smaller or more recent companies to become visible and draw in customers. Seasonal and cyclical influences, such as holiday travel peaks, swings in corporate travel, and economic downturns, frequently impact airport shop sales. In order to handle these changes in demand and reduce revenue volatility, retailers need to modify their strategy.

Regional Forecasts

North America Market Statistics

North America is anticipated to dominate the Airport Retailing Market from 2023 to 2033. Airports in North America provide a wide array of retail choices, such as duty-free stores, upscale boutiques, specialised shops, electronics stores, and food and beverage facilities. Renowned brands and designer labels are frequently found in major airports, serving both domestic and foreign passengers. Enhancing the passenger experience through digital technologies, personalised services, and creative retail concepts is a top priority for airport operators and retailers in North America. Travellers are supposed to be engaged and encouraged to make purchases through initiatives including click-and-collect services, mobile shopping apps, and experience retail activations. Airports in North America are leading the way in incorporating technology into the shopping experience. To enhance customer service, personalise marketing campaigns, and streamline operations, some examples of this include the use of data analytics, mobile payment systems, biometric authentication, and digital signage.

Asia Pacific Market Statistics

Asia Pacific is witnessing the fastest market growth between 2023 to 2033. The aviation markets in the Asia-Pacific region are seeing rapid growth due to factors such as rising prosperity, urbanisation, and the expansion of the middle class. Air travel, both domestically and internationally, is growing significantly in countries like China, India, and Southeast Asia. This is resulting in an increase in passenger numbers and expenditure at airport retail establishments. Airports are being built new or expanded as a result of urbanisation and economic growth in the Asia-Pacific region. Modern retail spaces, creative architectural ideas, and cutting-edge technology integration are all present at these remodelled airports to improve traveller satisfaction and boost retail sales.

Segmentation Analysis

Insights by Type

The perfumes and cosmetics segment accounted for the largest market share over the forecast period 2023 to 2033. Due to tax exemptions, perfumes and cosmetics are frequently more affordable duty-free than they would be in typical retail establishments, making them attractive choices for travellers. Duty-free stores at airports draw customers wanting to save money on high-end scents, skincare items, makeup, and other necessities for beauty. Airports welcome travellers from all around the world and act as centres for international travel. Regardless of a traveler's origin or culture, perfumes and cosmetics appeal to a wide spectrum of consumers, making this market extremely profitable for airport businesses. Companies frequently modify their product lineups to accommodate global consumers' varying tastes. Retailers in airports use creative marketing techniques, such as in-store specials, sample sales, and experience activations, to advertise perfumes and cosmetics.

Insights by Distribution Channel

The specialty retailers segment is dominating the market with the largest market share over the forecast period 2023 to 2033. Speciality merchants set themselves apart with their carefully chosen merchandise, attentive customer service, and engaging storefronts. They evoke a feeling of wonder and enthusiasm in visitors, drawing them to explore and purchase unique goods that embody the destination's personality, culture, and legacy. Travellers with extra time before their flights can be found in airports. By putting their businesses in prime locations within airport terminals and designing eye-catching displays to draw customers in and encourage impulse buys, specialty retailers take advantage of this captive audience. Speciality stores employ focused marketing techniques to cater to particular customer segments, including but not limited to high-end travellers, foodies, environmentally aware customers, and tech-savvy individuals.

Insights by Airport Size

The large airports segment accounted for the largest market share over the forecast period 2023 to 2033. Both local and foreign passengers often use large airports, which handle huge volumes of traffic. They thus provide airport businesses with a sizable consumer base, boosting sales and income growth. To accommodate the requirements and tastes of travellers, large airports frequently feature expansive retail rooms and a variety of retail products. Numerous terminals, concourses, and retail spaces are present in these airports, giving retailers plenty of space to set up shop and exhibit their goods. Large airports are frequently renowned for their upmarket shopping options, which include designer stores and luxury boutiques showcasing premium goods and well-known brands. Premium apparel, accessories, jewellery, and beauty products are the focus of luxury shops, who aim to attract wealthy customers and enhance their whole shopping experience.

Recent Market Developments

• In August 2023, Dubai Duty Free, one of the biggest duty-free shops in the world, has teamed up with Emirates Skywards, the airline's loyalty programme, to provide members of the programme special discounts and benefits.

Competitive Landscape

Major players in the market

• Dufry AG (Switzerland)
• Heinemann SE & Co. KG (Germany)
• Paradies Lagardère Travel Retail (France)
• HMSHost Corporation (US)
• Hudson Group (US)
• Dubai Duty Free (UAE)
• King Power International Group (Thailand)
• SSP Group plc (UK)

Market Segmentation

This study forecasts revenue at global, regional, and country levels from 2023 to 2033.

Airport Retailing Market, Type Analysis

• Fashion and accessories
• Perfumes and cosmetics
• Liquor & tobacco
• Food and beverages
• Others

Airport Retailing Market, Distribution Channel Analysis

• Direct Retailers
• Convenience Stores
• Specialty Retailers
• Departmental Stores

Airport Retailing Market, Airport Size Analysis

• Medium Airport
• Small Airport
• Large Airport

Airport Retailing Market, Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Uk
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of Middle East & Africa