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Inflight Shopping Market Size was valued at USD 6.5 Billion in 2022. The Inflight Shopping market industry is projected to grow from USD 7.23 Billion in 2024 to USD 11.05 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.45% during the forecast period (2024 - 2032). Increased passengers and increasing interest in online shopping are the key market drivers enhancing market growth.
Source Secondary Research, Primary Research, MRFR Database, and Analyst Review
The market CAGR for inflight shopping is driven by the significant increase in the number of people choosing to take flights, both domestically and internationally. The growth of the market is expected to be fueled by the increasing number of airlines using online booking platforms to purchase various consumer goods. More and more airlines and service providers are working together to provide passengers with a high-quality, affordable experience as automation and online in-flight buying gain popularity. Aside from this, various public and private entities are boosting their commitments to the aviation industry.
Additionally, automation and the widespread availability of online in-flight shopping management have made it possible for providers and airlines to work together and give a high-quality service at a low price. Online in-flight shopping companies are anticipated to invest more and raise their market share substantially due to increased investment in the aviation sector. The in-flight retail industry is expanding because of the rising popularity of high-tech planes and the proliferation of online distribution channels. The convenience of in-flight shopping is increased by the availability of a wide range of goods, including but not limited to books and periodicals, gifts and crafts, apparel and accessories, food and beverages, and perfumes. Since many shoppers are after rare items, finding them in the air is easy. As a bonus, this platform allows customers who prefer international brands to purchase their best cigars, cigarettes, perfumes, cosmetics, and watches. For instance, with the new pre-book feature on air-Asia rides, passengers flying to Kuala Lumpur, Bangkok, or Bali can reserve their airport transfers as early as three days and as late as four hours before their flight. As a result, it is anticipated that demand for inflight shopping will increase throughout the projection period due to the rising facilities. Thus, the driving factor is inflight shopping market revenue.
The inflight shopping market segmentation, based on aircraft class, includes first class, business class, premium economy class, and economy class. In 2022, the first-class segment led the inflight shopping market in revenue because there has been a recent trend toward incorporating cutting-edge technology into in-flight e-commerce offerings, such as using various smart devices for in-flight food ordering has greatly contributed to the expansion of the in-flight shopping market.
The inflight shopping market segmentation, based on carrier type, includes full-service and low-cost. The full-service sector is expected to develop at a CAGR of 5.45% over the projected period, making up the largest market share due to In-flight meals, drinks, and entertainment options, as well as comfort items like headphones, pillows, and blankets, are typically more extensive on full-service airlines. However, some full-service airlines have reduced or eliminated these perks; others now charge for them or sell them online. The impact of this variable on market expansion is anticipated.
Figure 1: Inflight Shopping Market by Carrier Type, 2022 & 2032 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database, and Analyst Review
The Inflight Shopping market segmentation, based on shopping type, includes travel essentials, accessories, beauty & care, children, and others. Â The segment with the largest market share in others is expected to grow fastest at a CAGR of 10.93% over the next several years. As incomes have risen, so have the number of high-end options available at airports. Another factor contributing to expanding the in-flight retail sector is the growing social importance of material affluence.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American inflight shopping market will dominate because the high volume of air passengers. As more planes are delivered to commercial airlines, the market for online purchases made while in flight expands. In addition, this is mostly attributable to airlines' increasing reliance on in-flight entertainment systems in this region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: INFLIGHT SHOPPING MARKET SHARE BY REGION 2022 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe’s inflight shopping market accounts for the second-largest market share because of many budget carriers and heavy business and vacation travel throughout Europe. Further, the German inflight shopping market held the largest market share, and the UK inflight shopping market was the fastest-growing market in the European region.
The Asia-Pacific inflight shopping market is expected to grow at the fastest CAGR from 2023 to 2032. It is due to digitalization improving the aircraft industry's technical outlook, population growth, the rise of low-cost flights, and the development of airports. Therefore, increased rates of expansion are anticipated for the foreseeable future. Moreover, China’s inflight shopping market held the largest market share, and the Indian inflight shopping market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the inflight shopping market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the inflight shopping industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer use in the inflight shopping industry to benefit clients and increase the market sector. In recent years, the inflight shopping industry has offered some of the most significant technological advancements. Major players in the inflight shopping market, including Inmarsat plc (UK), Lufthansa (Germany), AirAsia Group (Malaysia), The Emirates Group (UAE), Swiss International Air Lines AG (Switzerland), Thomas Cook Airlines Ltd. (UK), Singapore Airlines Limited (Singapore), EasyJet Airline Company Limited (UK), and others, are attempting to increase market demand by investing in research and development operations.
Inmarsat delivers world-leading, innovative, advanced, and exceptionally reliable mobile communications worldwide – in the air, at sea, and on land - enabling a new generation of commercial, government, and mission-critical services. Inmarsat is powering the digitalization of the maritime industry, making operations more efficient and safer than ever before. It is paving the way for a new era of in-flight passenger services and ensuring the safest, most efficient flight possible for airplanes. Additionally, Inmarsat is enabling the rapid expansion of the Internet of Things (IoT) and the next wave of game-changing technologies that will support the connected society and contribute to the establishment of a more sustainable future. And now Inmarsat is constructing the first-of-its-kind, multi-dimensional communications network of the future, ORCHESTRA. In April 2023, Inmarsat, a leading provider of mobile satellite communications services, and Viasat, a communications company, are relieved that the UK's Competition & Markets Authority (CMA) has announced the conclusion of its Phase II review, confirming its provisional findings that the transaction does not raise competition concerns and allowing Viasat's proposed acquisition of Inmarsat to proceed without remedies.
Emirates is a gateway to and from our hub in Dubai for travelers worldwide. We operate modern, efficient, and comfortable airplanes, and our culturally diversified team delivers award-winning services to our customers across six continents every day. Emirates Group, headquartered in Dubai, has over 103,363 employees representing more than 160 countries. The Emirates Group's wide and diverse international business comprises the world's largest international airline, Emirates, and one of the world's largest integrated air services providers, dnata. In April 2023, With the new pre-book feature on Airasia ride, passengers flying to Kuala Lumpur, Bangkok, or Bali can reserve their airport transfers as early as three days and as late as four hours before their flight. The United Nations Worldwide Compact (UNGC) is a voluntary, worldwide movement that promotes responsible business practices and the development of the Sustainable Development Goals (SDGs). Both Emirates and dnata have joined the UNGC to further their sustainability efforts.
For Instance, March 2023 Dubai Future Foundation and the Emirates Group signed a landmark cooperation to establish the Emirates Centre of Excellence for Aviation Robotics (ECEAR). ForsaTEK, the Group's innovation forum, was the setting for signing the agreement.
For Instance, February 2023 The business partnership between Vietnam Airlines and Singapore Airlines (SIA) has been formalized by signing of a Memorandum of Understanding (MoU). The carriers will initially explore opportunities for codeshare arrangements to facilitate better connectivity between Vietnam and Singapore.
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