The global airport retailing market reached a value of US$ 20.1 Billion in 2021. Looking forward, the a new report expects the market to reach US$ 41.6 Billion by 2027, exhibiting at a CAGR of 10.06% during 2022-2027.
Keeping in mind the uncertainties of COVID-19, growth could be larger or smaller in the airport duty-free sector. But as travel grows, so too will airport shopping.
Airport retailing includes services like hotels, F&B, car rental outlets, exchange offices, banks, and drugstores. It also comprises books and magazines, gifts and crafts, jewelry, clothing and accessories, optics, and souvenirs stores, along with the expected duty-free stores.
In addition, airport retailing assists in providing convenience to people traveling by delivering a variety of merchandise and it also aids in generating brand awareness. Therefore airport retailing is finding extensive application in airports across the globe.
Airport Retailing Market Trends:
The flourishing travel and tourism industry on account of rising bleisure travel represents one of the key factors strengthening the growth of the market. Apart from this, a significant increase in the time spent by passengers at airports due to early check-in times for security and operational concerns has positively influenced the demand for airport retailing worldwide. This can also be attributed to the surging disposable incomes and changing lifestyles of individuals around the world.
Furthermore, as retail stores at airports are duty-free, which is exempted payment of local or national taxes, they allow travelers to purchase available products at a relatively cheaper rate. This, in confluence with numerous initiates undertaken by brands to customize their offering and improve the overall shopping experience of travelers, is creating a favorable market outlook.
Moreover, brands are engaging in extensive research activities to collect data related to location, flight schedules, and the number of passengers in the flight. These activities assist brands in keeping check of warehouses, adopting price skimming strategies, and conducting promotional activities to meet the preferences of the customer base. Additionally, the market is projected to impel on account of the rising trend of bringing souvenirs while traveling.