The global airport retailing market size is projected to reach USD 51.4 billion by 2030 from USD 19.9 billion in 2021, growing at a CAGR of 12.6% from 2022 to 2030. The global airport retailing market has been growing rapidly in the last few years owing to the increase in the inclination of people toward traveling and exploring unique holiday destinations. The market’s growth is further driven by the upsurge in disposable income and improvement in the living standard of living. An increase in the number of high net worth individual (HNIs) in emerging markets further propels the market’s growth.
The rise in tourism promotion, changes in lifestyle, and increased accessibility of transportation facilities are all factors that are expected to boost the growth of the airport retailing market. Technological advancements, for instance, have made it easier to book hotels and transportation through online portals, boosting the market growth. Moreover, the inclination of consumers toward a luxurious lifestyle is one of the factors that drive the growth of the airport retailing market.
However, the implementation of stringent baggage rules changes the buying behavior of customers, which hampers the sales of duty-free and other products on the airport premises, thereby restraining the development of the airport retailing market. On the contrary, untapped countries in Asia-Pacific and MEA possess huge growth prospects in the coming years. For instance, strengthening of the economy in several countries in the MEA boosts market growth. In addition, an increase in the number of millennials is projected to drive the growth of the airport retailing market.
Request for a sample report here: https://www.marketstatsville.com/request-sample/airport-retailing-market
Definition of Global Airport Retailing Market
Airport retailing refers to several retail services such as jewelry, books & magazines, gifts & crafts, clothing & accessories, convenience stores, and perfumes in the airport premises to provide enhanced convenience to travelers. In addition, airport retailing offers a wide range of merchandise and is a relatively easy choice for travelers.
COVID–19 Impact on the Global Airport Retailing Market
The COVID-19 pandemic has impacted every industry on the planet. The tourism industry has been hit hard worldwide, affecting related industries such as travel agencies, hotels, tour operators, and various modes of transportation. Around 90% of the world’s population adapted to their new lifestyles due to several travel restrictions, while the rest stayed at home out of fear of the virus. As a result, the tourism industry came to a halt. The World Travel and Tourism Council (WTCC) published an article in August 2020 estimating that the COVID-19 pandemic will cost the tourism industry nearly $25 billion in revenue and nearly 100 million jobs worldwide. The coronavirus outbreak has impacted airport retail stores as well as the tourism industry.
Global Airport Retailing Market Dynamics
Drivers: Rise in disposable income
The two main factors that drive the market growth are an improvement in the economy and an increase in disposable income. The global economy came to a halt following the 2009 economic crisis in Europe and the economic crisis in China. This economic crisis impacted almost every country on the planet. A strong recovery from the crisis, on the other hand, resulted in strong economic growth, particularly in developing countries. As a result, middle-income groups’ disposable income has increased, resulting in an increase in the middle-class population. Furthermore, disposable income in Europe and Asia-Pacific has increased significantly, fueling the expansion of the airport retailing market.
Restraints: Stringent baggage rules
The limitation over luggage weightage has restricted the market growth over the forecast period. For Instance, India’s national carrier, Air India, and its budget airline have restricted the weight of hand luggage carried by passengers from the UAE. The free allowances for hand luggage are restricted to 8Kg for Air India and 7kg for its budget airline Air India Express, including duty-free items. Turkish Airlines allows not more than 8kg handbags, while the luggage is limited up to 32kgs. Lufthansa permits its passengers to follow a baggage allowance of not more than 32–40kgs. Owing to such restrictions, people try to purchase the limited stock of gifts and liquor from airport retail stores. Furthermore, the buying behavior of customers changes, owing to the enforcement of stringent baggage rules, which hampers the sales of duty-free and other products on airport premises, thus limiting the growth of the airport retailing market.
You Can Purchase Complete Report: https://www.marketstatsville.com/buy-now/airport-retailing-market?opt=2950
Global Airport Retailing Market Segmentation
The study categorizes the airport retailing market-based on the product, airport size, and distribution channel at the regional and global levels.
By Product Outlook (Sales/Revenue, USD Million, 2017–2030)
- Liquor & Tobacco
- Perfumes & Cosmetics
- Fashion & Accessories
- Food & Beverages
By Airport Size Outlook (Sales/Revenue, USD Million, 2017–2030)
- Large Airport
- Medium Airport
- Small Airport
By Distribution Channel Outlook (Sales/Revenue, USD Million, 2017–2030)
- Direct Retailer
- Convenience Store
- Specialty Retailer
- Departmental store
By Region Outlook (Sales/Revenue, USD Million, 2017–2030)
- North America (US, Canada, Mexico)
- South America (Brazil, Argentina, Colombia, Peru, Rest of Latin America)
- Europe (Germany, Italy, France, UK, Spain, Poland, Russia, Slovenia, Slovakia, Hungary, Czech Republic, Belgium, the Netherlands, Norway, Sweden, Denmark, Rest of Europe)
- Asia Pacific (China, Japan, India, South Korea, Indonesia, Malaysia, Thailand, Vietnam, Myanmar, Cambodia, the Philippines, Singapore, Australia & New Zealand, Rest of Asia Pacific)
- The Middle East & Africa (Saudi Arabia, UAE, South Africa, Northern Africa, Rest of MEA)
Access full Report Description, TOC, Table of figures, Chart, etc: https://www.marketstatsville.com/table-of-content/airport-retailing-market
The perfumes & cosmetics segment is projected to account for the largest market share, by product type
Depending on product type, the market is categorized into liquor & tobacco, perfumes & cosmetics, fashion & accessories, food & beverages, and others. In 2021, The perfumes & cosmetics segment was the highest contributor to the market, with 39.5% of the global airport retailing market share. Liquor such as whiskey, aperitif, champagne, tequila, Armagnac, rum, beer, and wine are available in airport retail shops.
The consumption of wines, particularly luxury wines, and spirits, has increased significantly in the past few years. With an increase in the number of middle-aged consumers between 35 and 55 years prefer wine. This is anticipated to encourage liquor manufacturers to launch special duty-free and travel retail products. In addition, liquor producers launch regional and international flavors of various wines, beers, and whiskeys, which attract consumers to try new flavors, thus contributing toward the market growth. For tobacco products, consumers are more likely to buy international editions of cigars, cigarettes, and regional tobacco products. Consumers get a wide variety of cigarettes in the airport retail shops at lower prices than the open market, as they are duty-free.
Asia Pacific accounts for the highest CAGR during the forecast period
Region-wise, the market is segmented into North America, Asia–Pacific, Europe, South America, and the Middle East & Africa. Worldwide, Asia Pacific is projected to hold the highest CAGR of 13.7% in the global airport retailing market during the forecast period. Asia-Pacific in the airport retailing market is studied across China, Thailand, Japan, India, Australia, and South Korea. Asia-Pacific is growing at the fastest rate owing to improvement in living standards, rise in disposable income, and growth in the tourism industry.
After the Asia Pacific, Europe is the fastest-growing region with a CAGR of 11.9% in the global airport retailing market. North American airports heavily invest in analyzing revenue per visitor by providing an upgraded shopping experience with facilities, such as boarding, lodging, catering, parking, and advertising. In addition, focusing on promotional activities such as campaigns, digital advertising, events, and press activities are fueling the dutyfree shopping and product visibility.
Request For Report Description: https://www.marketstatsville.com/airport-retailing-market
Key Market Players
The key players profiled in the airport retailing market report are Dubai Duty-Free, Airport Retail Group LLC, DFS Group Ltd., China Duty-Free Group Co., Ltd., King Power International, the Shilla Duty-Free, Dufry AG, Japan Airport Terminal Co., Ltd., Gebr. Heinemann SE & Co. KG, and Flemingo International.
A study of the leading players in the airport retailing market analyzes top winning strategies. A thorough examination of recent developments and growth curves of various companies aids in understanding their growth strategies and their potential market impact. The following are the key strategies deduced from an examination of recent developments among the key players: