Airport Retailing Market Forecast and CAGR
As per the analysis conducted by Fact.MR Report, Airport Retailing market is expected to witness a steady growth of approximately ~8% during the forecast period 2021-2031. The retailing world in the airport space has significantly ballooned in the past few years with increasing physical space for non-aviation activities, as the core aviation activities like check-in, bag-drops are conducted remotely. This is further expected to facilitate future growth during the period of forecast.
What is Driving Demand for Airport Retailing?
The players operating in the industry are undertaking constant efforts to find out the compelling factors that are encouraging the consumer to engage in shopping during travel. Convenience and boredom while waiting for the flight are a few of the prominent factors that have driven airport retail purchases among consumers. Besides this, tax-free is another prominent factor encouraging airport retail sales.
Apart from identifying the factors the players operating in the industry are also analyzing the consumer spending habits on airports. Travelers that are required to spend some time on airports before their journey located in the same vicinity are the prominent target consumers for players operating in the industry. Thus the efforts on the part of players to gain their attention are further expected to drive sales in the coming years.
Improving Services through Technology & Personalization Facilitating Retail Sales
Apart from the players in the industry airports are also engaged in increasing and enhancing traveler’s experience through personalization and technology. For instance, many of the airports are engaged in leveraging a traveler’s experience through augmented reality and virtual reality that guides a traveler or a prospective consumer towards the retail stores they desire at the airport.
Thus, the efforts on the part of airport hubs to ensure that the travelers make the best possible use of their waiting time is further expected to drive retail sales during the forecast period.
US and Canada Airport Retailing Market Outlook
The United States is one of the prominent hub. The airport retail sales in US is also projected to reflect a stable growth during the forecast period 2021-2031. Demand is expected to remain muted currently as the pandemic outbreak has extensively impacted the travel sector across the world.
Since past few years airport shopping corridors in the United States and Canada have now become significant tourist hubs. The growing frequency of travel and tourists in this region had led to an increase in the airport retail sales. However, with the pandemic outbreak causing a drastic decrease in the footfall of tourism has currently led to a slowdown in demand.
However, factors like growing attraction of brand towards airport retail arena, government initiatives to scale up revenues from airport are further expected to bring a slow recovery in the airport retail sales during the period of forecast.
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Europe Demand Outlook for Airport Retailing
In the past few years the consumer’s spending habits have changed dramatically. Unlike before where consumers used to make spontaneous buying decisions, the consumers now conduct an active research regarding product availability and compare prices online and then make a purchase decision at the airport. In light of this changing consumer habit, luxury travel purchases has gained popularity in Europe.
In light of this growing luxury trend at airport retail, many luxury brands are considering airport as an antidote to fading malls. Such changing perception on the part of luxury brands is further expected to drive penetration of brick and mortar stores in the airport hubs across Europe.
Many well-established brands have claimed that the revenue generation through airports is rapidly increasing than the traditional department stores. This is primarily observed in the case of beauty and fashion goods. However, the covid-19 pandemic outbreak has also significantly brought a downswing in Europe airport retail sales.
Who are the Key Manufacturers and Suppliers of Airport Retailing?
Some of the leading players in the industry include Dubai Duty Free, Airport Retail Group, LLC., Dufry AG, King Power International, DFS Group Ltd, China Duty Free Group Co. Ltd., Shilla Duty Free, Heinemann SE & Co. KG, Flemingo International, Japan Airport Terminal Co. Ltd. And among others.
Consumer’s specular shift towards online buying has led to the introduction of third part duty-free platforms. For instance, the launch of Fliggy Buy in 2019 is one such example. Such developments in the industry is further expected to reshape industry trends and consumer experience in the coming years. Considering the efforts on the part of government authorities and players the industry is expected to reflect stable growth opportunities.
An Adaptive Approach to Modern-day Research Needs
Airport Retailing Market Report Highlights:
- Detailed overview of parent market
- Changing market dynamics in the industry
- In-depth market segmentation
- Historical, current and projected market size in terms of volume and value
- Recent industry trends and developments
- Competitive landscape
- Strategies of key players and products offered
- Potential and niche segments, geographical regions exhibiting promising growth
- A neutral perspective on market performance
- Must-have information for market players to sustain and enhance their market footprint
- Fashion & Accessories
- Perfumes & Cosmetics
- Liquor & Tobacco
- Food & Beverages
- Direct Retailer
- Department Stores
- Specialty Retailers
By Airport Size
- North America
- US & Canada
- Latin America
- Brazil, Mexico, Others
- Western Europe
- Eastern Europe
- Asia Pacific
- Australia and New Zealand (ANZ)
- Greater China
- Rest of Asia Pacific
- Middle East and Africa
- GCC Countries
- Other Middle East
- North Africa
- South Africa
- Other Africa
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.