Airport retailing Market Size, Share, Growth, and Industry Analysis, By Type (Food and Beverage, Leisure Services, Hotel and Other), By Application (Airside, Landside and Other) and Regional Forecast to 2032

Updated On: 04 November 2024

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AIRPORT RETAILING REPORT OVERVIEW

The global Airport Retailing Market size was USD 33.7 billion in 2023 and the market is projected to touch USD 55.73 billion by 2032, exhibiting a CAGR of 4.8% during the forecast period.

Airport retailing refers to the presence of various retail services in the field, similar as jewellery, books & magazines, gifts & crafts, vesture & accessories, convenience stores, and scents, to give further convenience to trippers. Moreover, airport retailing provides various particulars and is accessible for excursionists. It has come one of the essential ways for businesses to promote and raise brand mindfulness at airports. Airports with low- cost airline tickets are unable to induce significant aeronautical profit. As a result, they turn to non-aeronautical businesses, including retail stores, restaurants, bars, and cafeterias.

The airport retailing market is projected to reach billion, driven by growth in global air trip and increased passenger spending. Duty-free shops, dining experiences, and luxury brands are crucial contributors to this expansion, as airports increasingly concentrate on enhancing the travellers experience and optimizing retail surroundings.

COVID-19 Impact: Market Growth Restrained by Pandemic due to Labour Shortage

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

Since the outbreak, transnational trip and other flight services have been shut down due to epidemic and the perpetration of lockdown. Owing to the global health extremity, transnational trip has braked down, which has significantly affected field’s duty-free deals. Numerous transnational breakouts have been cancelled during the lockdown period, which is anticipated to hinder the growth of the airport retailing market.

LATEST TRENDS

"New product launches and technology to flourish the market"

A latest trend in the global airport retailing market is the rising demand for new product. A significant shift towards sustainability has surfaced, with retailers’ emphasizing eco-friendly products and practices. The integration of technology, including mobile apps for flawless shopping and contactless payment options, enhances the trip experience. Individualized immolations are gaining traction, as retailers influence data analytics to knitter elevations and recommendations. Also, existential merchandising is on the rise, with brands creating engaging surroundings that attract travellers. Incipiently, a focus on heartiness and healthier dining options reflects changing consumer preferences, pressing the demand for quality and convenience amidst trip challenges.

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AIRPORT RETAILING MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into food and beverage, leisure services, hotel and other.

Food and Beverage: Food and beverage is rapidly evolving, offering different options. Travellers seek convenience and quality, driving demand for local delicacies, gourment snacks, and healthy choices amidst conveyance.

Leisure Services: leisure services is expanding, featuring different immolations like gym treatments, entertainment couches, and shopping experiences. Travellers decreasingly seek relaxation and enjoyment during layovers and detainments.

Hotel: Hotels focuses on convenience, offering travellers quick access to lodgment , amenities, and services. Experience, loyalty programs, and propinquity to terminals drive demand and client satisfaction are enhanced.

Other: The airport travelling market extends beyond traditional orders, including technology, fashion, and monuments. Inventions in e-commerce, duty-free shopping, and localized products enhance traveller experience while boosting profit for airport retailers.

By Application

Based on application the global market can be categorized into airside, landside and other.

Airside: Airside airport retailing enhances travellers experience with exclusive shopping, dining, and rest options. Passengers enjoy curated products, decoration services, and entertainment, all while awaiting breakouts, maximizing time spent in conveyance.

Landside: Landside airport retailing caters to arriving and departing passengers, offering convenience stores, restaurants, and original brands. It enhances the trip experience, allowing travellers to shop and dine before security checks.

Other: Airport retailing extends to services similar as currency exchange, baggage backing, and trip accessories. These reciprocal immolations give travellers with essential support, enhancing the overall trip and fostering a flawless airport experience.

DRIVING FACTORS

"Development of the Travel & Tourism Industry to Propel Growth in Market"

One significant key driving factor in the airport retailing market growth is the development of the travel & tourism industry. Travel & tourism includes rest, business, medical, and others. The factors that promote the growth of the trip & tourism assiduity include changes in life, a rise in tourism creation, and an increase in availability of transport installations, which, in turn, are anticipated to boost the number of trippers at the field, therefore contributing toward the growth of the airport retailing market. Easy access to hostel & transport bookings through online doors further boosts the market growth. Nonstop development in the trip & tourism assiduity and integration of various parts similar as hospitality & structure with government enterprise to attract excursionists accelerate the growth of the global trip & tourism assiduity, which in turn supplements the development of the airport retailing market.

"Increasing Disposable Income Is Expected To Fuel the Growth of the Market"

Another crucial factor impacting the airport retailing market is the increasing disposable income. Enhancement in profitable condition and rise in disposable income are the two crucial factors that propel market growth. The world frugality witnessed a standstill fiscal extremity in Europe and the profitable extremity in China. Nearly all the countries in the world were affected by this profitable extremity. Still, a strong recovery from the situation redounded in strong profitable growth, especially in developing husbandry. This has increased disposable income among the middle- income groups, accordingly adding to the middle- class population. In addition, the disposable income of individualities in Europe and Asia- Pacific witnessed high growth, therefore driving the development of the airport retailing market.

RESTRAINING FACTORS

"Government Strict Rules and Policies Regarding Duty-Free Items to Hamper Market Growth"

One of the primary restraining factors in the airport retailing market is the government strict rules and policies regarding duty free items. Government rigid rules and programs toward the allowed limit of duty-free products for air rubberneck passengers are projected to hinder field retail market growth. Governments of different countries apply different practices for their air travellers. The Indian Commerce and Industry Ministry has proposed reducing the number of alcohol bottles passengers can buy through a duty-free outlet when returning from an overseas trip. The number of alcohol bottles bought from duty-free outlets is proposed to be halved. This move has touched off massive review.

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AIRPORT RETAILING MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America and Middle East & Africa

"North America Region Dominating the Market due to High Popularity of Sports"

North America has emerged as the most dominant region in the global airport retailing market share due to several factors. Asia- Pacific is growing at the fastest rate owing to bettered living norms and a rise in disposable income in addition to the expansion of the tourism assiduity. Also, the development of the affordable luxury member in league 2 metropolises of Asia- Pacific boosts the market's growth. An increase in the number of new air routes and the preface of low- cost carriers (LCC) are the crucial factors that further promote the development of the Asia- Pacific airport retailing market. Likewise, the swell in preference for value- added products boosts the desire to travel, adding the demand for duty-free liquor, tobacco, fashion products, cosmetics, and scents.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The airport retailing market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• Rianta International (Ireland)
• DFS (Hongkong)
• Dubai Duty Free (Dubai)
• Dufry (Switzerland)
• Capi-Lux (Netherlands)
• Duty Free Americas (U.S.)
• Heinemann (Germany)
• King Power International (Thailand)
• Lotte Duty Free (South Korea)
• Lagardère Travel Retail (France)
• Shilla Duty Free (Singapore)
• Airport Retail Group (Norway)
• Delhi Duty Free (India)

INDUSTRIAL DEVELOPMENT

July 2024: Parfums Christian Dior, part of LVMH Beauty, has partnered with Delhi Duty Free to launch an elegant fragrance shop-in-shop at Indira Gandhi International Airport (Delhi Airport).The elegant shop-in-shop, is showcasing the ultra-premium Dior La Collection Privée fragrance line. Designed to celebrate the prestige fragrance range and Dior’s art of gifting, the store offers the maison’s fragrances, candles and soaps, brought to life via sensorial experiences. La Collection Privée comprises 22 scents, all displayed on an elegant fragrance bar. Highlights include Oud Ispahan, Gris Dior, Ambre Nuit and Jasmin des Anges with each scent packaged in a customised Dior box.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.