Airport Retailing Market Synopsis

Airport Retailing Market Size Was Valued at USD  31.36 Billion in 2023, and is Projected to Reach USD  90.09 Billion by 2032, Growing at a CAGR of 12.44% From 2024-2032.

Airport selling is the creation of selling outlets in an airport setting, including shops, boutiques and duty-free stores for the use of passengers and airport staff, for luxury goods, consumer electronics, food and beverages.

• Airside retailing offers one of the widest fractions of the retail trade in airports. The market has changed most in its history over the past ten years. It goes from duty-free shops and high-end boutiques to specialty stores and outlets for convenience, all planned for travelers' convenience, with one of the most transformative sectors in the business world nowadays. Those factors driving growth in this market are rising air passengers, expansion at airports, and growing demand for premium and convenience products among air passengers. Latest available statistics suggest that, like before, international passenger traffic is expected to be up. According to Research that there will be more than 8 billion people using airline services by the year 2037. Any increase in passenger traffic by air means an equal increase in prospects for the establishment of retail outlets within terminal buildings.
• For an attractive and serious airport authority, retail space presents the "holy grail" of revenue, while premium brands and luxury goods are popular items among tourists. Duty-free shops have utilized the appeal of tax-free shopping to offer premium products at competitive prices for sales. International airports like Heathrow, Dubai International, and Singapore Changi are great examples of luxury retailing becoming the new order of things as exclusive products get housed in up-market boutiques and selective lines attracting well-heeled travelers. Another critical area where technology is changing the face of retailing at airports is through digital kiosks, mobile applications to shop and pay, and interactive displays, which offer an enjoyable shopping experience and increased engagement for consumers. Such technology is not different from the common trends within the digital transformation of a retail context-a context where seamlessness and personalization are the rule.
• Several key trends cut across the airport retailing market. Another trend to be on the rise would be experiential retailing that transforms airports into entertaining and involving shopping environments, employing thematic stores, interactive installations, as well as products meant to be unique, able to fulfill traveler's needs and interests. One example could be about exclusive lines of goods or special-edition items available only at a specific airport in order to enhance the shopping appeal while traveling.
• The emerging trend is the more sustainable and environmentally friendly retail. To the consumers as well as retailers, sustainability is becoming the main concern for the industries that recognize the importance of environmental issues. In this direction, airports are responding to the rising awareness of such issues through green initiatives including the reduction of plastic usage and implementation of recycling programs, as well as the promotion of sustainable brands. In this respect, developments are not only compatible with global sustainability objectives but also latch on to the environmentally conscious traveler.
• The measures that remained effective before are no longer producing the same results in the current pandemic especially when it comes to airport retailing as travelers’ traffic reduces significantly. There is much hope for the recovery of this market in light of increased travel freedoms and recovering volumes. As such, there is an acceleration of contactless payment solutions and digital technologies that is going to influence airport retailing long after it has subsided. Hygiene-plus will remain an imperative in addressing travelers' concerns and ensuring safe shopping.
• Airport retailing is indeed on the growth route with passenger numbers increasing, traveler preferences evolving, and technology advancing. Organizations that adapt and embrace new innovations will be best placed to take hold of these opportunities being created in this fast-changing segment.

Airport Retailing Market Trend Analysis

Growth of Luxury and Premium Brands in Airport Retailing

• This is an increasing trend in global travelers for luxurious, premium brands that may fuel the growth of luxury and premium brands airport retailing. The airports do not stop at being just a stopover anymore; they have now become a vital retailing platform with passengers seeking exclusive shopping experiences. Brands get an interested, high-spending crowd of business travelers and tourists visiting them at these airports. Its strategic position combined with the tax incentive of duty-free makes the luxury product even more attractive: clothes, jewelry, cosmetics, electronics. As international tourism is increasing and spreading across borders, airport retailing has emerged as an even more attractive proposition for luxury brands to reach this unique consumer.
• Airports also improve their retail environments and offer more premium environments that match well with the concept of luxury brand images. Therefore, the presence of digital retail integration has further helped airports in offering pre-order systems and special deals to travelers when they are connected online. In such a hybrid retailing concept of connecting the offline-physical setup with the online or digital setup, high-end products can be purchased by the on-the-move traveler in an efficient way. In the airport retailing context, personalized customer service and, more so, exclusive product lines would add only to the appeal of luxury brands. This would become a critical component of the global luxury market.

Expansion of Digital and Omnichannel Retail Strategies

• In the above facts, digital and omnichannel retailing strategies are changing the shopping habit of passengers in the airport retailing market by blurring the line between digital and offline. Recently, airports have added e-commerce platforms and mobile applications and even pre-order service, by which passengers log on from anywhere in the world, surf the product, and collect it at the airport. This is bringing in more customer interaction and increased sales in the luxury and duty-free segments. Fully, integration of augmented reality (AR) and personalized shopping through analytics is entirely redefining the way customer interfaces are created. It means possible tailoring of offers to an individual's preference; hence one decreases dissatisfaction as well as revenue potential.
• Airport retailing is streamlined through the omnichannel strategy, ensuring easy transitions between different online and offline store environments. Retailers offer click-and-collect, delivery to gates, and curbside pick-up to help customers easily access the products while traveling. These initiatives are helping capture sales from more travel-conscious, time-pressed travelers, who like to shop on digital channels but step into physical stores. But this also aligns with the omnichannel push to the growth of contactless payments and digital wallets in airports, offering frictionless transactions that boost the security of customers' experiences in the ever more digital retail ecosystem.

Airport Retailing Market Segment Analysis:

Airport Retailing Market Segmented based on  Category, Distribution Channel, and Airport Size.

By   Category, Food & Beverages segment is expected to dominate the market during the forecast period

• The Fashion & Accessories segment leads considerably in revenue as international travelers are perceived to shop here for luxury items. Major brands usually try to use an airport as a strategic retail hub to showcase exclusive collections and limited-edition items by capitalizing on the foot traffic in this place. Similarly strong is the  Perfumes & Cosmetics  segment, as there is a wide range of high-end as well as duty-free products. The categories that primarily attract shoppers are duty-free offers, and this segment makes an extremely large share of sales. These categories capitalize upon impulse buying: travelers tend to seek some premium, exclusive products as gifts or personal indulgence.
• Liquor & Tobacco is yet another major segment, particularly in international airports where duty-free pricing would be a significant offer for consumers. We generally attribute liquor sales to air travel, and while the tobacco category operates under many restrictions in other markets, it remains a very big category. The Food & Beverages category went from grabbing something to go to gourmet and local flavors-more experiential. This Others category include electronics, souvenirs, and luxury services, which add to the holistic retail experience for international travelers.

By Airport Size, Large Airport segment held the largest share in 2023

• The airport retailing market is seen to reflect very different trends at small, medium, and large airports; segmented by the size of the airport. Large airports-the ones with passenger volumes generally running to tens of millions of passengers a year-carry a significant share of all international travel and often offer a full range of luxury and premium retail offerings. Airports offer a wide variety of products: there are many high-end fashion, perfumes, cosmetics, and electronics available. Markets in large airports like Heathrow, Dubai, and Singapore's Changi hold a majority of the global share of airport retailing owing to high passenger traffic and therefore, an affluent customer group, in addition to having adequate retail space. There is also curated retailing here, which features well-designed shopping areas and exclusive brands that suit the diverse international consumers, so travel retailing contributes most of the revenues in this market.
• Even though they are not as profitable as the large ones, medium-sized and small airports play a very wide role in airport retailing, especially in regional travel and domestic flights. The retailing strategy at medium-sized airports will often focus more on convenient stores, food and beverage, and also duty-free products marketed towards the leisure traveler. Compared to small airports, with smaller size and volume of passengers, these have very little retail space. However, their offerings are pragmatic and demand-driven. These are more focused on upgrading retail infrastructures as airports to enhance passenger experience and increase non-aeronautical revenue streams. Even though these airports are not of the same size, both small and medium airports are expected to grow with respect to retail opportunities, mainly by the growing number of passengers and the increasing span of low-cost carriers' reach.

Airport Retailing Market Regional Insights:

North America  is Expected to Dominate the Market Over the Forecast period

• North America is anticipated to have the largest share of the Airport Retailing Market through the forecast timeline based on aspects like increased passengers count of North American airports, better airport facilities, and greater consumer expenditure.. Several large airports in such cities as New York, Los Angeles, and Toronto are developing their retail space  a promising market for luxury and premium segments. Besides, North American airports are concentrating on improving the consumers’ satisfaction by the means of application of advanced technologies, various opportunities in terms of purchasing, and available payment systems as well as loyalty programs. This focus on increasing the customer value proposition is consistent with what the future passenger – an aspiring marketer of his lifestyle – – may find desirable: a convenient store for shopping tailored for his convenience. In addition, expansion of tourist international arrivals and high growth rate in low cost airlines also reflects the growth of airport retailing in the region Supported by s of airport infrastructures and high consumerism. Large airports in global cities such as New York, Los Angeles and Toronto are increasing their floorspace for retail services, providing a positive environment for luxury and premium brands. Moreover, the current improvements of North American airports include greater focus on the passengers’ level of satisfaction through embracing technological solutions, diversification of retails and catering outlets, and availability of payment and loyalty. This emphasis on the optimisation of the prospection phase corresponds to the increasing desire for customised shopping from buyers who are regular flyers.
• Furthermore, the constant increase in cross-border travels as seen by the growth of new international airlines and increase in the number of LCCs is driving the airport retail of the region’s airports. Extreme disposable per capita income, globally developed tourism sector and strong distribution channel network of duty free shops makes North America as the market leader. Moreover, fashion & accessories, perfumes & cosmetics as well as food & beverages categories are showing the largest growth rates in North American airports due to various factors like customers’ preferences and global tendencies to make airport shopping an important part of traveller’s experience.

Active Key Players in the Airport Retailing Market

• DFS Group Ltd. (Hong Kong)
• The Shilla Duty Free (South Korea)
• Airport Retail Group, LLC (United States)
• Dufry AG (Switzerland)
• Flemingo International (United Arab Emirates)
• Dubai Duty Free (United Arab Emirates)
• Japan Airport Terminal Co., Ltd. (Japan)
• China Duty Free Group Co., Ltd. (China)
• King Power International (Thailand)
• Heinemann SE & Co (Germany) and Other Active Players

Key Industry Developments in the Airport Retailing Market

• In August 2023, One of the world's largest duty-free retailers, Dubai Duty Free, partnered with Emirates Skywards, the loyalty program of Emirates Airline, to provide exclusive discounts and rewards to program members. This partnership strengthens customer engagement and incentivizes spending at duty-free shops.
• In September 2023,  The acquisition of Paradies Lagardère Retail, a retail operator, was announced at a European airport by Travel retailer Hudson for €545 million. This acquisition significantly widens Hudson's footprint in Europe and strengthens its position as the leader in travel retail.
• In June 2023, cStore Essentials, a convenience store chain, was acquired by Stellar Partners, a US airport retailer, with locations in 11 airports. This acquisition permits Stellar to widen its portfolio beyond specialty retail and enter the lucrative convenience store market.

Chapter 1: Introduction
 1.1 Scope and Coverage

Chapter 2:Executive Summary

Chapter 3: Market Landscape
 3.1 Market Dynamics
  3.1.1 Drivers
  3.1.2 Restraints
  3.1.3 Opportunities
  3.1.4 Challenges
 3.2 Market Trend Analysis
 3.3 PESTLE Analysis
 3.4 Porter's Five Forces Analysis
 3.5 Industry Value Chain Analysis
 3.6 Ecosystem
 3.7 Regulatory Landscape
 3.8 Price Trend Analysis
 3.9 Patent Analysis
 3.10 Technology Evolution
 3.11 Investment Pockets
 3.12 Import-Export Analysis

Chapter 4: Airport Retailing Market by Category
 4.1 Airport Retailing Market Snapshot and Growth Engine
 4.2 Airport Retailing Market Overview
 4.3 Fashion & Accessories
  4.3.1 Introduction and Market Overview
  4.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.3.3 Key Market Trends, Growth Factors and Opportunities
  4.3.4 Fashion & Accessories: Geographic Segmentation Analysis
 4.4 Perfumes & Cosmetics
  4.4.1 Introduction and Market Overview
  4.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.4.3 Key Market Trends, Growth Factors and Opportunities
  4.4.4 Perfumes & Cosmetics: Geographic Segmentation Analysis
 4.5 Liquor & Tobacco
  4.5.1 Introduction and Market Overview
  4.5.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.5.3 Key Market Trends, Growth Factors and Opportunities
  4.5.4 Liquor & Tobacco: Geographic Segmentation Analysis
 4.6 Food & Beverages
  4.6.1 Introduction and Market Overview
  4.6.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.6.3 Key Market Trends, Growth Factors and Opportunities
  4.6.4 Food & Beverages: Geographic Segmentation Analysis
 4.7 Others
  4.7.1 Introduction and Market Overview
  4.7.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  4.7.3 Key Market Trends, Growth Factors and Opportunities
  4.7.4 Others: Geographic Segmentation Analysis

Chapter 5: Airport Retailing Market by Distribution Channel
 5.1 Airport Retailing Market Snapshot and Growth Engine
 5.2 Airport Retailing Market Overview
 5.3 Direct Retailer
  5.3.1 Introduction and Market Overview
  5.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.3.3 Key Market Trends, Growth Factors and Opportunities
  5.3.4 Direct Retailer: Geographic Segmentation Analysis
 5.4 Convenience Store
  5.4.1 Introduction and Market Overview
  5.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.4.3 Key Market Trends, Growth Factors and Opportunities
  5.4.4 Convenience Store: Geographic Segmentation Analysis
 5.5 Specialty Retailer
  5.5.1 Introduction and Market Overview
  5.5.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.5.3 Key Market Trends, Growth Factors and Opportunities
  5.5.4 Specialty Retailer: Geographic Segmentation Analysis
 5.6 Departmental Store
  5.6.1 Introduction and Market Overview
  5.6.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  5.6.3 Key Market Trends, Growth Factors and Opportunities
  5.6.4 Departmental Store: Geographic Segmentation Analysis

Chapter 6: Airport Retailing Market by Airport Size
 6.1 Airport Retailing Market Snapshot and Growth Engine
 6.2 Airport Retailing Market Overview
 6.3 Medium Airport
  6.3.1 Introduction and Market Overview
  6.3.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  6.3.3 Key Market Trends, Growth Factors and Opportunities
  6.3.4 Medium Airport: Geographic Segmentation Analysis
 6.4 Small Airport
  6.4.1 Introduction and Market Overview
  6.4.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  6.4.3 Key Market Trends, Growth Factors and Opportunities
  6.4.4 Small Airport: Geographic Segmentation Analysis
 6.5 Large Airport
  6.5.1 Introduction and Market Overview
  6.5.2 Historic and Forecasted Market Size in Value USD and Volume Units (2017-2032F)
  6.5.3 Key Market Trends, Growth Factors and Opportunities
  6.5.4 Large Airport: Geographic Segmentation Analysis

Chapter 7: Company Profiles and Competitive Analysis
 7.1 Competitive Landscape
  7.1.1 Competitive Benchmarking
  7.1.2 Airport Retailing Market Share by Manufacturer (2023)
  7.1.3 Industry BCG Matrix
  7.1.4 Heat Map Analysis
  7.1.5 Mergers and Acquisitions
  
 7.2 DFS GROUP LTD. (HONG KONG)
  7.2.1 Company Overview
  7.2.2 Key Executives
  7.2.3 Company Snapshot
  7.2.4 Role of the Company in the Market
  7.2.5 Sustainability and Social Responsibility
  7.2.6 Operating Business Segments
  7.2.7 Product Portfolio
  7.2.8 Business Performance
  7.2.9 Key Strategic Moves and Recent Developments
  7.2.10 SWOT Analysis
 7.3 THE SHILLA DUTY FREE (SOUTH KOREA)
 7.4 AIRPORT RETAIL GROUP
 7.5 LLC (UNITED STATES)
 7.6 DUFRY AG (SWITZERLAND)
 7.7 FLEMINGO INTERNATIONAL (UNITED ARAB EMIRATES)
 7.8 DUBAI DUTY FREE (UNITED ARAB EMIRATES)
 7.9 JAPAN AIRPORT TERMINAL CO LTD. (JAPAN)
 7.10 CHINA DUTY FREE GROUP CO LTD. (CHINA)
 7.11 KING POWER INTERNATIONAL (THAILAND)
 7.12 HEINEMANN SE & CO (GERMANY)
 7.13 OTHER ACTIVE PLAYERS

Chapter 8: Global Airport Retailing Market By Region
 8.1 Overview
 8.2. North America Airport Retailing Market
  8.2.1 Key Market Trends, Growth Factors and Opportunities
  8.2.2 Top Key Companies
  8.2.3 Historic and Forecasted Market Size by Segments
  8.2.4 Historic and Forecasted Market Size By Category
  8.2.4.1 Fashion & Accessories
  8.2.4.2 Perfumes & Cosmetics
  8.2.4.3 Liquor & Tobacco
  8.2.4.4 Food & Beverages
  8.2.4.5 Others
  8.2.5 Historic and Forecasted Market Size By Distribution Channel
  8.2.5.1 Direct Retailer
  8.2.5.2 Convenience Store
  8.2.5.3 Specialty Retailer
  8.2.5.4 Departmental Store
  8.2.6 Historic and Forecasted Market Size By Airport Size
  8.2.6.1 Medium Airport
  8.2.6.2 Small Airport
  8.2.6.3 Large Airport
  8.2.7 Historic and Forecast Market Size by Country
  8.2.7.1 US
  8.2.7.2 Canada
  8.2.7.3 Mexico
 8.3. Eastern Europe Airport Retailing Market
  8.3.1 Key Market Trends, Growth Factors and Opportunities
  8.3.2 Top Key Companies
  8.3.3 Historic and Forecasted Market Size by Segments
  8.3.4 Historic and Forecasted Market Size By Category
  8.3.4.1 Fashion & Accessories
  8.3.4.2 Perfumes & Cosmetics
  8.3.4.3 Liquor & Tobacco
  8.3.4.4 Food & Beverages
  8.3.4.5 Others
  8.3.5 Historic and Forecasted Market Size By Distribution Channel
  8.3.5.1 Direct Retailer
  8.3.5.2 Convenience Store
  8.3.5.3 Specialty Retailer
  8.3.5.4 Departmental Store
  8.3.6 Historic and Forecasted Market Size By Airport Size
  8.3.6.1 Medium Airport
  8.3.6.2 Small Airport
  8.3.6.3 Large Airport
  8.3.7 Historic and Forecast Market Size by Country
  8.3.7.1 Bulgaria
  8.3.7.2 The Czech Republic
  8.3.7.3 Hungary
  8.3.7.4 Poland
  8.3.7.5 Romania
  8.3.7.6 Rest of Eastern Europe
 8.4. Western Europe Airport Retailing Market
  8.4.1 Key Market Trends, Growth Factors and Opportunities
  8.4.2 Top Key Companies
  8.4.3 Historic and Forecasted Market Size by Segments
  8.4.4 Historic and Forecasted Market Size By Category
  8.4.4.1 Fashion & Accessories
  8.4.4.2 Perfumes & Cosmetics
  8.4.4.3 Liquor & Tobacco
  8.4.4.4 Food & Beverages
  8.4.4.5 Others
  8.4.5 Historic and Forecasted Market Size By Distribution Channel
  8.4.5.1 Direct Retailer
  8.4.5.2 Convenience Store
  8.4.5.3 Specialty Retailer
  8.4.5.4 Departmental Store
  8.4.6 Historic and Forecasted Market Size By Airport Size
  8.4.6.1 Medium Airport
  8.4.6.2 Small Airport
  8.4.6.3 Large Airport
  8.4.7 Historic and Forecast Market Size by Country
  8.4.7.1 Germany
  8.4.7.2 UK
  8.4.7.3 France
  8.4.7.4 Netherlands
  8.4.7.5 Italy
  8.4.7.6 Russia
  8.4.7.7 Spain
  8.4.7.8 Rest of Western Europe
 8.5. Asia Pacific Airport Retailing Market
  8.5.1 Key Market Trends, Growth Factors and Opportunities
  8.5.2 Top Key Companies
  8.5.3 Historic and Forecasted Market Size by Segments
  8.5.4 Historic and Forecasted Market Size By Category
  8.5.4.1 Fashion & Accessories
  8.5.4.2 Perfumes & Cosmetics
  8.5.4.3 Liquor & Tobacco
  8.5.4.4 Food & Beverages
  8.5.4.5 Others
  8.5.5 Historic and Forecasted Market Size By Distribution Channel
  8.5.5.1 Direct Retailer
  8.5.5.2 Convenience Store
  8.5.5.3 Specialty Retailer
  8.5.5.4 Departmental Store
  8.5.6 Historic and Forecasted Market Size By Airport Size
  8.5.6.1 Medium Airport
  8.5.6.2 Small Airport
  8.5.6.3 Large Airport
  8.5.7 Historic and Forecast Market Size by Country
  8.5.7.1 China
  8.5.7.2 India
  8.5.7.3 Japan
  8.5.7.4 South Korea
  8.5.7.5 Malaysia
  8.5.7.6 Thailand
  8.5.7.7 Vietnam
  8.5.7.8 The Philippines
  8.5.7.9 Australia
  8.5.7.10 New Zealand
  8.5.7.11 Rest of APAC
 8.6. Middle East & Africa Airport Retailing Market
  8.6.1 Key Market Trends, Growth Factors and Opportunities
  8.6.2 Top Key Companies
  8.6.3 Historic and Forecasted Market Size by Segments
  8.6.4 Historic and Forecasted Market Size By Category
  8.6.4.1 Fashion & Accessories
  8.6.4.2 Perfumes & Cosmetics
  8.6.4.3 Liquor & Tobacco
  8.6.4.4 Food & Beverages
  8.6.4.5 Others
  8.6.5 Historic and Forecasted Market Size By Distribution Channel
  8.6.5.1 Direct Retailer
  8.6.5.2 Convenience Store
  8.6.5.3 Specialty Retailer
  8.6.5.4 Departmental Store
  8.6.6 Historic and Forecasted Market Size By Airport Size
  8.6.6.1 Medium Airport
  8.6.6.2 Small Airport
  8.6.6.3 Large Airport
  8.6.7 Historic and Forecast Market Size by Country
  8.6.7.1 Turkey
  8.6.7.2 Bahrain
  8.6.7.3 Kuwait
  8.6.7.4 Saudi Arabia
  8.6.7.5 Qatar
  8.6.7.6 UAE
  8.6.7.7 Israel
  8.6.7.8 South Africa
 8.7. South America Airport Retailing Market
  8.7.1 Key Market Trends, Growth Factors and Opportunities
  8.7.2 Top Key Companies
  8.7.3 Historic and Forecasted Market Size by Segments
  8.7.4 Historic and Forecasted Market Size By Category
  8.7.4.1 Fashion & Accessories
  8.7.4.2 Perfumes & Cosmetics
  8.7.4.3 Liquor & Tobacco
  8.7.4.4 Food & Beverages
  8.7.4.5 Others
  8.7.5 Historic and Forecasted Market Size By Distribution Channel
  8.7.5.1 Direct Retailer
  8.7.5.2 Convenience Store
  8.7.5.3 Specialty Retailer
  8.7.5.4 Departmental Store
  8.7.6 Historic and Forecasted Market Size By Airport Size
  8.7.6.1 Medium Airport
  8.7.6.2 Small Airport
  8.7.6.3 Large Airport
  8.7.7 Historic and Forecast Market Size by Country
  8.7.7.1 Brazil
  8.7.7.2 Argentina
  8.7.7.3 Rest of SA

Chapter 9 Analyst Viewpoint and Conclusion
9.1 Recommendations and Concluding Analysis
9.2 Potential Market Strategies

Chapter 10 Research Methodology
10.1 Research Process
10.2 Primary Research
10.3 Secondary Research