Airline Retailing Market By Type (Ancillary Services, In-Flight Retailing, Airport Retailing), By Product Type (Food & Beverages, Duty-Free Products, Travel Accessories, Personal Care Products), By Technology (Mobile Apps & Digital Platforms, Self-Check-In Kiosks, In-Flight Connectivity), By Distribution Channel (Online, Offline), By End-Use (Leisure Travel, Business Travel), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Airline Retailing Market was valued at USD 21.4 billion in 2023 and will surpass USD 38.4 billion by 2030; growing at a CAGR of 8.8% during 2024 - 2030.

The airline retailing market has become an increasingly essential component of the global aviation industry. With the rise of low-cost carriers and the evolution of the passenger experience, airlines are focusing on enhancing their retail services both onboard and at airports. The market has seen a considerable shift, as airlines now recognize the importance of ancillary services and in-flight retailing as key revenue drivers. These services cater to a growing demand for convenience and premium products, while also addressing the evolving expectations of passengers. The increasing adoption of technology to streamline the purchasing experience has further accelerated market growth. Airlines and airports alike are continuously innovating to provide seamless and efficient shopping experiences, enhancing customer satisfaction and loyalty.

The airline retailing market is also benefiting from the growth of international travel, particularly in regions like Asia-Pacific and the Middle East, where the demand for both leisure and business travel has surged. As airlines strive to differentiate themselves and improve the customer journey, the integration of retail offerings with personalized services has become a priority. Passengers are looking for easy access to products that enhance their travel experience, whether through in-flight retail, duty-free purchases at airports, or pre-flight shopping via mobile apps. Consequently, airline retailing is transforming into a multifaceted service that combines convenience, personalization, and modern technology to cater to the evolving needs of today’s traveler.

Ancillary Services Are Key Drivers for Airline Retailing Market Growth

Ancillary services, such as in-flight retailing and airport retailing, have emerged as significant contributors to the airline retailing market. Airlines are increasingly recognizing the potential of these services not just as a way to increase revenue but also as a means to enhance the overall passenger experience. By offering a wide range of products, from travel accessories to duty-free items, airlines can cater to various customer preferences while adding value to their service. Ancillary services provide an additional touchpoint to engage passengers, allowing them to enjoy shopping and convenience while traveling. This service diversification has enabled airlines to tap into new revenue streams, making ancillary services a pivotal aspect of their business models.

In-flight retailing, for instance, has evolved from a simple duty-free cart to a fully integrated retail experience, allowing passengers to purchase items directly through in-flight entertainment systems or via mobile apps. Airports, as key hubs in global travel, also play a major role in airline retailing. Airport retailing has grown to encompass not only traditional duty-free stores but also lifestyle and luxury brand offerings, catering to a broad range of passengers. The continued growth of these ancillary services will be a driving force behind the market’s expansion, providing airlines with opportunities to enhance their services while improving profitability.

 Airline Retailing Market Size

Duty-Free Products and Food & Beverages Leading Product Categories

Duty-free products and food & beverages are the largest product categories within the airline retailing market, driven by the growing demand for convenience and luxury during travel. Duty-free shopping is particularly popular among international travelers, allowing passengers to purchase products without incurring taxes and duties. This product category includes high-end items such as perfumes, cosmetics, liquor, tobacco, and luxury goods, which are often marketed as exclusive travel-only offers. With the increasing affluence of travelers and their desire for premium goods, duty-free retailing has remained a cornerstone of the airline retailing market.

Food & beverages, on the other hand, are a significant part of the in-flight retail experience, particularly as airlines strive to offer higher-quality meals and snacks. The demand for gourmet food, healthy snacks, and premium beverages has surged, as passengers increasingly expect more than basic offerings during flights. The variety and quality of food available in-flight contribute directly to customer satisfaction, making it a critical aspect of the overall airline experience. Airlines are also adapting to passenger preferences for healthier or specialty diets, including vegetarian, gluten-free, and organic options. As passenger expectations for in-flight food offerings continue to rise, the food and beverage segment is expected to remain a central part of airline retailing strategies.

Mobile Apps & Digital Platforms Are Shaping the Future of Airline Retailing

Technology, particularly mobile apps and digital platforms, is significantly shaping the future of airline retailing. Airlines and airports are investing in these technologies to create more personalized and convenient shopping experiences for passengers. Mobile apps allow travelers to pre-order meals, shop for duty-free products, and access exclusive offers, all from the convenience of their smartphones. These digital platforms enable airlines to provide a more personalized shopping experience by offering targeted recommendations based on passenger preferences and past purchases. This level of customization enhances the overall travel experience and fosters customer loyalty.

In-flight connectivity is another technological innovation transforming airline retailing. With the growing adoption of Wi-Fi on flights, passengers can access the internet and make purchases in real-time while onboard. This connectivity opens up new possibilities for engaging passengers through online shopping portals, enabling them to shop for a wide range of products during their flight. Furthermore, self-check-in kiosks, which are increasingly being implemented in airports, help streamline the travel experience by allowing passengers to check in and make purchases quickly and efficiently. These technological advancements are driving the airline retailing market forward by improving the convenience, speed, and overall customer experience.

Online Distribution Channels Leading the Way

The online distribution channel is expected to dominate the airline retailing market, with an increasing number of passengers opting for online shopping before and during their travels. This trend is driven by the growing reliance on smartphones and the increasing demand for convenience. Airline websites and mobile apps are becoming the go-to platforms for purchasing food, beverages, and duty-free products before passengers even board their flights. By offering pre-ordering options, airlines are able to streamline the purchasing process, reduce wait times, and improve in-flight service efficiency. Online shopping also allows airlines to provide a wider range of products than they could offer through traditional in-flight retail services.

The ability to shop online provides passengers with the flexibility to browse and compare products at their own pace, enhancing their overall travel experience. For airlines, online retailing offers the opportunity to increase sales by reaching a broader audience and providing personalized offers to customers. Furthermore, online platforms enable airlines to track passenger preferences, allowing them to tailor product recommendations and promotions accordingly. As a result, online distribution channels are expected to continue growing in importance, reshaping the airline retailing market.

Leisure Travel Dominates End-Use Segment Due to High Travel Demand

Leisure travel is the largest end-use segment in the airline retailing market, driven by the increasing number of individuals traveling for vacations, family visits, and recreational purposes. This segment benefits from the growth of the global middle class, with more people able to afford international travel and indulge in retail experiences during their journeys. As the demand for leisure travel continues to rise, particularly in emerging markets, airlines are focusing on enhancing their retail offerings to cater to these passengers' preferences. From exclusive travel accessories to luxury goods and entertainment options, airlines are seeking to provide a tailored experience for leisure travelers.

Business travel, although smaller than leisure travel, also plays a significant role in the market, with corporate passengers often opting for premium services and products during their flights. Business travelers tend to spend more on high-end retail products such as duty-free luxury items, electronics, and travel accessories, contributing to the growth of the airline retailing market. Both segments are benefiting from technological advancements and improved airline services, ensuring that the market remains dynamic and competitive.

Asia Pacific Leads the Charge in Airline Retailing Growth

The Asia Pacific region is leading the airline retailing market, driven by significant factors such as increasing disposable incomes, a rapidly expanding middle class, and a growing appetite for air travel. Countries such as China, India, and other Southeast Asian nations are witnessing a surge in both domestic and international flight activity, presenting airlines with ample opportunities to enhance their retail offerings. The rise in passenger traffic has prompted airlines to adopt innovative strategies, including personalized services and a broad range of in-flight retail options. This trend is expected to continue, with the region anticipated to grow at a compound annual growth rate (CAGR) of approximately 9.2%, highlighting its status as the fastest-growing market​

As airlines in the Asia Pacific region embrace digital platforms, the retail landscape is evolving to meet the diverse preferences of modern passengers. Mobile applications, online pre-order systems, and seamless shopping experiences are becoming increasingly commonplace, providing both convenience and customization. Additionally, airlines are integrating local cultural elements into their retail strategies to further appeal to their customer base. With a strong focus on technological innovation and the growing demand for personalized services, Asia Pacific is expected to remain the dominant force in the global airline retailing market for the foreseeable future

 Airline Retailing Market Size by Region 2030

Competitive Landscape: Focus on Enhancing the Customer Experience

The airline retailing market is highly competitive, with major players constantly looking for innovative ways to enhance the passenger experience and drive sales. Companies like Dufry, Aer Rianta International, and LSG Sky Chefs are at the forefront of the market, offering a wide range of products and services to cater to the diverse needs of travelers. As the market evolves, these companies are increasingly focusing on improving customer engagement through digital platforms, personalized shopping experiences, and exclusive offers. Additionally, partnerships between airlines and retail brands are becoming more common, enabling airlines to offer premium and exclusive products onboard and at airports.

To stay ahead of the competition, airlines are also diversifying their retail offerings and integrating more technology into the shopping experience. By focusing on customer satisfaction and leveraging technology to streamline the purchasing process, airlines and airport retailers are enhancing the overall travel experience, ensuring long-term growth and success in the market.

Recent Developments:

  • In November 2024, Dufry AG launched a new digital retail platform to enhance its airport retailing experience, offering personalized promotions to travelers.
  • In October 2024, Lagardère Travel Retail expanded its in-flight retail offerings by partnering with several airlines to provide exclusive product bundles.
  • In September 2024, SSP Group plc introduced self-check-in kiosks at several major airports, enhancing the customer experience and increasing in-terminal purchases.
  • In August 2024, Dubai Duty-Free opened a new luxury retail outlet at Dubai International Airport, expanding its product range to cater to high-end travelers.
  • In July 2024, The Estée Lauder Companies expanded its duty-free presence in airports worldwide, introducing exclusive travel retail products.

List of Leading Companies:

  • Dufry AG
  • Dubai Duty-Free
  • Lagardère Travel Retail
  • SSP Group plc
  • Incheon Airport Corporation
  • Lotte Duty Free
  • The Estée Lauder Companies
  • AerRianta International
  • The Shilla Duty Free
  • Heathrow Airport Limited
  • DFS Group
  • China National Service Corporation (CNSC)
  • Gebr. Heinemann
  • Beijing Capital International Airport
  • Airport Retail Group

Report Scope:

Report Features

Description

Market Size (2023)

USD 21.4 billion

Forecasted Value (2030)

USD 38.4 billion

CAGR (2024 – 2030)

8.8%

Base Year for Estimation

2023

Historic Year

2022

Forecast Period

2024 – 2030

Report Coverage

Market Forecast, Market Dynamics, Competitive Landscape, Recent Developments

Segments Covered

Airline Retailing Market By Type (Ancillary Services, In-Flight Retailing, Airport Retailing), By Product Type (Food & Beverages, Duty-Free Products, Travel Accessories, Personal Care Products), By Technology (Mobile Apps & Digital Platforms, Self-Check-In Kiosks, In-Flight Connectivity), By Distribution Channel (Online, Offline), By End-Use (Leisure Travel, Business Travel)

Regional Analysis

North America (US, Canada, Mexico), Europe (Germany, France, UK, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, South Korea, Australia, India, and Rest of Asia-Pacific), Latin America (Brazil, Argentina, and Rest of Latin America), Middle East & Africa (Saudi Arabia, UAE, Rest of Middle East & Africa)

Major Companies

Dufry AG, Dubai Duty-Free, Lagardère Travel Retail, SSP Group plc, Incheon Airport Corporation, Lotte Duty Free, The Estée Lauder Companies, AerRianta International, The Shilla Duty Free, Heathrow Airport Limited, DFS Group, China National Service Corporation (CNSC), Gebr. Heinemann, Beijing Capital International Airport, Airport Retail Group

Customization Scope

Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements

1. Introduction

   1.1. Market Definition

   1.2. Scope of the Study

   1.3. Research Assumptions

   1.4. Study Limitations

2. Research Methodology

   2.1. Research Approach

      2.1.1. Top-Down Method

      2.1.2. Bottom-Up Method

      2.1.3. Factor Impact Analysis

  2.2. Insights & Data Collection Process

      2.2.1. Secondary Research

      2.2.2. Primary Research

   2.3. Data Mining Process

      2.3.1. Data Analysis

      2.3.2. Data Validation and Revalidation

      2.3.3. Data Triangulation

3. Executive Summary

   3.1. Major Markets & Segments

   3.2. Highest Growing Regions and Respective Countries

   3.3. Impact of Growth Drivers & Inhibitors

   3.4. Regulatory Overview by Country

4. Airline Retailing Market, by Type (Market Size & Forecast: USD Million, 2022 – 2030)

   4.1. Ancillary Services

   4.2. In-Flight Retailing

   4.3. Airport Retailing

5. Airline Retailing Market, by Product Type (Market Size & Forecast: USD Million, 2022 – 2030)

   5.1. Food & Beverages

   5.2. Duty-Free Products

   5.3. Travel Accessories

   5.4. Personal Care Products

   5.5. Others

6. Airline Retailing Market, by Technology (Market Size & Forecast: USD Million, 2022 – 2030)

   6.1. Mobile Apps & Digital Platforms

   6.2. Self-Check-In Kiosks

   6.3. In-Flight Connectivity

7. Airline Retailing Market, by Distribution Channel (Market Size & Forecast: USD Million, 2022 – 2030)

   7.1. Online

   7.2. Offline

8. Airline Retailing Market, by End-Use (Market Size & Forecast: USD Million, 2022 – 2030)

   8.1. Leisure Travel

   8.2. Business Travel

   8.3. Others

9. Regional Analysis (Market Size & Forecast: USD Million, 2022 – 2030)

   9.1. Regional Overview

   9.2. North America

      9.2.1. Regional Trends & Growth Drivers

      9.2.2. Barriers & Challenges

      9.2.3. Opportunities

      9.2.4. Factor Impact Analysis

      9.2.5. Technology Trends

      9.2.6. North America Airline Retailing Market, by Type

      9.2.7. North America Airline Retailing Market, by Product Type

      9.2.8. North America Airline Retailing Market, by Technology

      9.2.9. North America Airline Retailing Market, by Distribution Channel

      9.2.10. North America Airline Retailing Market, by End-Use

      9.2.11. By Country

         9.2.11.1. US

               9.2.11.1.1. US Airline Retailing Market, by Type

               9.2.11.1.2. US Airline Retailing Market, by Product Type

               9.2.11.1.3. US Airline Retailing Market, by Technology

               9.2.11.1.4. US Airline Retailing Market, by Distribution Channel

               9.2.11.1.5. US Airline Retailing Market, by End-Use

         9.2.11.2. Canada

         9.2.11.3. Mexico

    *Similar segmentation will be provided for each region and country

   9.3. Europe

   9.4. Asia-Pacific

   9.5. Latin America

   9.6. Middle East & Africa

10. Competitive Landscape

   10.1. Overview of the Key Players

   10.2. Competitive Ecosystem

      10.2.1. Level of Fragmentation

      10.2.2. Market Consolidation

      10.2.3. Product Innovation

   10.3. Company Share Analysis

   10.4. Company Benchmarking Matrix

      10.4.1. Strategic Overview

      10.4.2. Product Innovations

   10.5. Start-up Ecosystem

   10.6. Strategic Competitive Insights/ Customer Imperatives

   10.7. ESG Matrix/ Sustainability Matrix

   10.8. Manufacturing Network

      10.8.1. Locations

      10.8.2. Supply Chain and Logistics

      10.8.3. Product Flexibility/Customization

      10.8.4. Digital Transformation and Connectivity

      10.8.5. Environmental and Regulatory Compliance

   10.9. Technology Readiness Level Matrix

   10.10. Technology Maturity Curve

   10.11. Buying Criteria

11. Company Profiles

   11.1. Dufry AG

      11.1.1. Company Overview

      11.1.2. Company Financials

      11.1.3. Product/Service Portfolio

      11.1.4. Recent Developments

      11.1.5. IMR Analysis

    *Similar information will be provided for other companies 

   11.2. Dubai Duty-Free

   11.3. Lagardère Travel Retail

   11.4. SSP Group plc

   11.5. Incheon Airport Corporation

   11.6. Lotte Duty Free

   11.7. The Estée Lauder Companies

   11.8. AerRianta International

   11.9. The Shilla Duty Free

   11.10. Heathrow Airport Limited

   11.11. DFS Group

   11.12. China National Service Corporation (CNSC)

   11.13. Gebr. Heinemann

   11.14. Beijing Capital International Airport

   11.15. Airport Retail Group

12. Appendix

A comprehensive market research approach was employed to gather and analyze data on the Airline Retailing Market. In the process, the analysis was also done to analyze the parent market and relevant adjacencies to measure the impact of them on the Airline Retailing Market. The research methodology encompassed both secondary and primary research techniques, ensuring the accuracy and credibility of the findings.

Research Approach - Airline Retailing Market

Secondary Research

Secondary research involved a thorough review of pertinent industry reports, journals, articles, and publications. Additionally, annual reports, press releases, and investor presentations of industry players were scrutinized to gain insights into their market positioning and strategies.

Primary Research

Primary research involved conducting in-depth interviews with industry experts, stakeholders, and market participants across the Airline Retailing ecosystem. The primary research objectives included:

  • Validating findings and assumptions derived from secondary research
  • Gathering qualitative and quantitative data on market trends, drivers, and challenges
  • Understanding the demand-side dynamics, encompassing end-users, component manufacturers, facility providers, and service providers
  • Assessing the supply-side landscape, including technological advancements and recent developments

Market Size Assessment

A combination of top-down and bottom-up approaches was utilized to analyze the overall size of the Airline Retailing Market. These methods were also employed to assess the size of various subsegments within the market. The market size assessment methodology encompassed the following steps:

  1. Identification of key industry players and relevant revenues through extensive secondary research
  2. Determination of the industry's supply chain and market size, in terms of value, through primary and secondary research processes
  3. Calculation of percentage shares, splits, and breakdowns using secondary sources and verification through primary sources

Data Triangulation

To ensure the accuracy and reliability of the market size, data triangulation was implemented. This involved cross-referencing data from various sources, including demand and supply side factors, market trends, and expert opinions. Additionally, top-down and bottom-up approaches were employed to validate the market size assessment.

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