Airport Retailing Market Size valued at USD 30.5 Billion in 2022. The Airport Retailing market industry is projected to grow from USD 35.07 Billion in 2023 to USD 107.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 15.00% during the forecast period (2023 - 2032). Increased disposable income and the development of the travel & tourism industry are the key market drivers enhancing market growth.
Source The Primary Research, Secondary Research, MRFR Database and Analyst Review
The market CAGR for airport retailing is being driven by the rising development of the travel & tourism industry. As more people look for comprehensive and enriching travel experiences, the need for transportation services, accommodation, and related amenities rises, resulting in increased business opportunities and revenue streams for different sectors. The airline industry, where the growth of travel and tourism drives an increased demand for air travel. Airlines expand their fleets, open new routes, and invest in modernizing their infrastructure to accommodate the rise in passenger traffic.
The hospitality sector also reaps the benefits of the growing travel and tourism industry. The requirement for accommodation options, ranging from hotels and resorts to vacation rentals, boosts construction and development projects. The tourism development also has a growing impact on the entertainment and leisure sectors. Hotel chains and hospitality companies strategically position themselves in order to cater to the broad preferences of travelers, leading to a surging number of establishments and generating jobs in the process. The growth in travel and tourism further boosts the transportation industry, including ground transportation services like ridesharing, taxis, and car rentals. Infrastructure development in the form of bridges, roads, and public transportation systems often follows, improving accessibility to tourist destinations and positively benefiting the local economies. Popular tourist destinations experience increased footfall, boosting the development of attractions, entertainment venues, and recreational facilities. This, in turn, generates revenue for local businesses and drives the growth of the entertainment industry.
Moreover, the requirement for travel-related services, like tour operators, travel agencies, and travel technology solutions, witnessed growth. As travelers look for personalized and seamless experiences, there is a surging market for innovative travel technologies to enhance the booking processes, convenience, and overall customer satisfaction. Further, the development of niche tourism segments, like adventure tourism, ecotourism, and cultural tourism, creates specialized markets with unique requirements. Local markets also benefit from tourist spending, promoting the sale of local products and crafts. The travel and tourism industry's growth has a profound effect on the retail sector, with duty-free shops and airport retail growing in popular tourist hubs. This diversification creates the emergence of new business opportunities, encouraging entrepreneurs to cater to specific preferences and interests within the travel and tourism landscape.
The rising development of the travel and tourism industry acts as a booster for economic growth across multiple sectors, including aviation, transportation, hospitality, entertainment, retail, technology, and more. As this industry continues to expand, it stimulates economic activity and also fosters cultural exchange and understanding on a scale. Thus, driving the Airport Retailing market revenue.
Airport Retailing Type Insights
The Airport retail market segmentation, based on type, includes Fashion and accessories, Perfumes and cosmetics, Liquor & tobacco, Food and beverages, and Others. The perfumes & cosmetics segment dominated the market, accounting for the largest market revenue due to their compact size, which makes them suited for travelers seeking luxury goods. The attraction of prestigious brands and exclusive collections generates a unique shopping experience, tempting customers to make impulse purchases. Duty-free shopping at airports permits passengers to take advantage of tax exemptions, making these products more affordable. Additionally, the duty-free environment encourages exploration and experimentation with new scents and beauty products, driving increased sales.
Airport Retailing Distribution Channel Insights
The Airport Retailing market segmentation, based on distribution channels, includes Direct retailers, Convenience Stores, Specialty Retailers, and Departmental Stores. The specialty retailers category dominates the market as its product offerings meet the unique demands and preferences of travelers. These retailers strategically curate their inventory to include luxury goods, travel essentials, and exclusive merchandise, appealing to a comprehensive and captive audience. With a focus on a niche market, they create a differentiated shopping experience that sets them apart from more generic retail outlets. Additionally, specialty retailers often leverage innovative marketing and promotional strategies, capturing the attention of travelers during their limited time in airports.
Airport Retailing Airport Size Insights
The Airport Retailing market segmentation, based on airport size, includes Medium airport, Small Airport, and Large Airport. The large airports category dominates the market due to their huge passenger traffic, offering a broad and diverse customer base. These airports attract a wide range of international and domestic travelers, which leads to increased opportunities for retail businesses to provide a audience. Additionally, large airports often provide extensive terminal facilities and different retail spaces, allowing for a large number and diversity of retail outlets. The competitive advantage of scale enables these airports to negotiate favorable terms with retailers and secure premium brands, enhancing the overall shopping experience for passengers.
Figure 1: Airport Retailing Market by Airport Size, 2022 & 2032 (USD Billion)
Source The Primary Research, Secondary Research, MRFR Database and Analyst Review
Airport Retailing Regional Insights
By region, the study offers market insights of North America, Europe, Asia-Pacific, and the Rest of the World. The North American Airport Retailing market area dominates this market due to the increase in international air traffic and increased investment in analyzing revenue per visitor by offering an upgraded shopping experience. Further, the rise in the number of luxury stores at airports is boosting the market growth in this region.
Further, the prime countries observed in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.
Figure 2: AIRPORT RETAILING MARKET SHARE BY REGION 2022 (USD Billion)
Source The Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe's Airport Retailing market accounts for the second-largest market share due to the development of the travel & tourism industry and changes in lifestyle. Further, the German Airport Retailing market held the largest market share, and the UK Airport Retailing market was the fastest-growing market in European region.
The Asia-Pacific Airport Retailing Market is expected to grow at the fastest CAGR from the year 2023 to 2032. This is due to the improved standards of living and growth in disposable income, coupled with the expansion of the tourism industry. Moreover, China’s Airport Retailing market held the largest market share, and the Indian Airport Retailing market was the fastest-growing market in Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Airport Retailing market grow even more. Market players are also undertaking different strategic activities for exanding their footprint, with important market developments inclusive of mergers and acquisitions, new product launches, contractual agreements, higher investments, and collaboration with other organizations. To expand and survive in the more competitive and rising market climate, the Airport Retailing industry must offer cost-effective items.
Manufacturing locally to minimize the operational costs is one of the key business tactics used by the manufacturers in the Airport retail industry to benefit the clients and grow the market sector. In recent years, the Airport Retailing industry has offered some of the most significant advantages to the tourism industry. Major players in the Airport Retailing market, including DFS Group Ltd., The Shilla Duty-Free, Airport Retail Group, LLC, Dufry AG, Flemingo International, Dubai Duty-Free, Japan Airport Terminal Co., Ltd., China Duty-Free Group Co., Ltd., King Power International, Gebr. Heinemann Se & Co and others are trying to increase market requirements by investing in research and development operations.
HMSHost is a leader in offering dining and shopping experiences for travelers in airports and motorways. HMSHost is known for its innovative approach to food and beverage services, providing a comprehensive range of dining options that cater to the comprehensive tastes and preferences of travelers. The company has evolved into a prime player in the travel hospitality industry, operating in over 120 airports and serving millions of passengers annually. In October 2023, a major airport concessionaire, HMSHost, partnered with popular burger chain Shake Shack to open locations in multiple US airports. This collaboration brought a trendy and popular brand to airports, providing it to younger travelers and those looking for premium fast-food options.
SSP Group is a British multinational company specializing in offering catering and retail services to the travel industry. The company is popular for its broad portfolio of food and beverage brands, ranging from quick-service restaurants to casual dining and convenience stores. SSP operates in airports, train stations, motorway service areas, and other transportation hubs worldwide. SSP collaborates with popular brands and develops its own concepts tailored to the preferences of travelers. In September 2023, another major airport operator, SSP Group, partnered with Autogrill, an Italian food and beverage giant, to develop and operate "food courts of the future" in European airports. This partnership helps both companies' strengths to generate innovative and diverse dining experiences for travelers.
Key Companies in the Airport Retailing market include
For Instance, 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.
For Instance, 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.
For Instance, 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.
Airport Retailing Type Outlook
Airport Retailing Distribution Channel Outlook
Airport Retailing Airport Size Outlook
Airport Retailing Regional Outlook
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 30.5 Billion |
| Market Size 2023 | USD 35.07 Billion |
| Market Size 2032 | USD 107.2 Billion |
| Compound Annual Growth Rate (CAGR) | 15.00% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Distribution Channel, Airport Size, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | DFS Group Ltd., The Shilla Duty Free, Airport Retail Group, LLC, Dufry AG, Flemingo International, Dubai Duty Free, Japan Airport Terminal Co., Ltd., China Duty Free Group Co., Ltd., King Power International, Gebr. Heinemann Se & Co |
| Key Market Opportunities | Increased disposable income. |
| Key Market Dynamics | The development of the travel & tourism industry. |
Frequently Asked Questions (FAQ) :
The Airport Retailing market size valued at USD 30.5 Billion in 2022.
The market is foreseen to rise at a CAGR of 15.00% during the forecast period, 2023-2032.
North America had the biggest share in the market.
The key players in the market are DFS Group Ltd., The Shilla Duty Free, Airport Retail Group, LLC, Dufry AG, Flemingo International, Dubai Duty Free, Japan Airport Terminal Co., Ltd., China Duty Free Group Co., Ltd., King Power International, Gebr. Heinemann Se & Co.
The perfumes & cosmetics category dominated the market in 2022.
The specialty retailers had the largest share of the market.
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