HYDERABAD, India, May 31, 2022 /PRNewswire/ — Market Review
According to a report published by ReAnIn, the global airport retail market is valued at US$30.2 trillion in 2021 and is projected to reach US$82.3 trillion by 2028, registering a CAGR of 15.4% over the forecast period. Most of the retail channels operating at airports are duty-free and therefore can sell goods at a much lower price. A growing number of international travelers, the availability of luxury goods at a significantly lower cost at airports, and a growing focus on digitalization are the leading drivers of the global airport retail market. For example, in October 2020Dufry AG, a leading duty-free retail channel, has partnered with Alibaba Group to jointly develop its tourism retail business in China and improve Dufry’s digital transformation. COVID-driven travel restrictions have been the biggest hurdle to airport retail growth in the recent past.
Free Sample Download: Global Airport Retail Market Growth, Share, Size, Trends and Forecast (2022-2028)
Duty Free Shop and Travel Retail: Digitalization a Must in the Post-COVID Era
According to a study carried out in May 2020 among 1,500 international passengers (flying in the last 12 months), 69% purchased items that stand out on the shelf/display/counter and 91% touched/viewed/read product information before making a purchase decision. However, the same study shows that 60% of customers will avoid contact with retail staff, and more than 50% will not shop at airport stores in the post-pandemic world. In addition, around 90% of customers expect more digitalization in travel retail.
Industry leaders are also recognizing this need for digitalization. Speaking at the Global Industry Survey 2021, Dufry Group CEO Julián Diaz said: “The digitalization trend and the need to actively engage with customers through an omnichannel approach will intensify. This means that retailers will also have to go through a digital transformation phase.”
Key highlights of the report:
- The COVID-19 pandemic has forced governments around the world to impose some travel restrictions, and air travel has been hardest hit. This COVID-induced air travel restriction has led to a significant downturn in the airport retail market. However, as the number of vaccinated people increases and air traffic reaches pre-pandemic levels, the airport retail market is also bouncing back.
- The beauty and personal care segment accounts for the majority (about 50%) of the global airport retail market and is expected to maintain its dominant position throughout the forecast period.
- Currently, major airports have the majority of these retail channels and therefore account for the largest market share. However, the number of medium-sized airports has increased significantly in…