Airport Duty-free Liquor Market By Product (Whiskey, Vodka, Rum, Gin, Wine, Cognac), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Airport Duty-free Liquor Market was valued at USD 9.3 billion in 2023 and will surpass USD 16.2 billion by 2030; growing at a CAGR of 8.2% during 2024 - 2030.

The airport duty-free liquor market is an essential component of the global travel retail industry, providing travelers with premium alcohol products at competitive prices, free from local taxes and duties. This market is fueled by the growth in international air travel, with a rising number of consumers looking to purchase high-quality spirits and liquors during their travels. Airports around the world have increasingly invested in their duty-free offerings, creating an attractive shopping environment with a wide variety of alcoholic beverages, often at a lower price than domestic stores. As international tourism rebounds and the travel sector grows, the airport duty-free liquor market is expected to continue expanding.

Whiskey Dominates the Airport Duty-Free Liquor Market

Among the various types of liquor sold at airports, whiskey stands out as the largest product category in the airport duty-free liquor market. Whiskey’s dominance can be attributed to its broad consumer appeal, particularly in regions such as Europe, North America, and Asia, where whiskey enjoys a loyal following. Brands like Johnnie Walker, Glenfiddich, and Jack Daniel’s are popular choices among travelers, and limited-edition or rare whiskey bottles available in duty-free stores often attract collectors and connoisseurs.

Whiskey’s status as a luxury item, often associated with celebrations or special occasions, further elevates its appeal in the airport shopping environment. Consumers are drawn to premium whiskey products, which are marketed as exclusive or high-end due to their limited availability in regular retail outlets. Additionally, whiskey-based gift sets and travel-exclusive bottles often feature attractive packaging, making them ideal for gifting or as a personal indulgence. The preference for whiskey over other types of liquor in duty-free stores reflects both its cultural significance and its association with sophistication and luxury.

Cognac Sees Strong Demand Due to Rising Affluence

On the other hand, cognac is experiencing strong demand in the airport duty-free market, particularly in regions with a growing affluent consumer base such as Asia-Pacific and the Middle East. Cognac is often perceived as a high-end, luxury product, and its appeal is heightened by the increasing number of travelers seeking premium or unique products during their journeys. This rise in affluence, particularly in emerging economies, has contributed to cognac's growing popularity among duty-free liquor consumers.

Cognac is also favored for its reputation as a refined drink, often consumed in social settings or used as a gift. As global travel has become more accessible, particularly in regions like China and India, cognac sales at airports have surged, with brands such as Hennessy, Rémy Martin, and Martell benefiting from this shift. Cognac’s association with status and luxury positions it as a desirable product in the airport retail environment, contributing to its rapid growth within the airport duty-free liquor segment.

Asia-Pacific Emerges as Fastest Growing Region in Airport Duty-Free Liquor Sales

The Asia-Pacific region is witnessing the fastest growth in the airport duty-free liquor market, driven by increasing disposable incomes, a rising middle class, and a surge in international travel. Countries like China, India, and Japan are seeing higher consumption of duty-free liquors, particularly in popular international airports like those in Singapore, Hong Kong, and Tokyo. The expanding network of international airports and growing regional tourism are fueling the demand for premium alcoholic beverages, with travelers often opting for high-quality liquor as part of their shopping experience.

The growing middle class in countries like China is particularly driving the demand for luxury items, including whiskey, cognac, and other premium spirits. Additionally, the cultural affinity for gifting alcoholic beverages during holidays and special occasions in this region has contributed to the rise in sales. As global tourism continues to recover and more travelers flock to Asia-Pacific airports, this region is expected to remain a key growth driver for the airport duty-free liquor market.

Leading Companies and Competitive Landscape

The competitive landscape of the airport duty-free liquor market is characterized by the presence of several global and regional players who are dominating the market through strong brand recognition and exclusive product offerings. Major retailers such as DFS Group, Dufry, and Lotte Duty Free hold substantial shares in the airport retail sector. These companies focus on providing travelers with premium alcoholic beverages and often partner with well-known brands to offer limited-edition or travel-exclusive products that attract high-spending consumers.

To stay competitive, these companies continue to innovate their retail experiences by offering personalized shopping services, enhancing store designs, and introducing digital solutions for a seamless purchasing experience. Additionally, collaboration with liquor brands for exclusive product launches and promotions is a common strategy. As consumer preferences continue to evolve, these companies will need to focus on sustainability, product variety, and premiumization to maintain their position in the highly competitive airport duty-free liquor market.

Recent Developments:

• In December 2023, DFS Group launched an exclusive luxury whiskey collection at select airports, featuring rare, limited-edition bottles from top Scottish distilleries.
• In November 2023, Heinemann Duty Free opened a whiskey tasting bar at Frankfurt Airport to provide travelers with a personalized experience, boosting luxury sales.
• In October 2023, Dufry reported increased liquor sales in Asia-Pacific, driven by rising demand from Chinese travelers, marking a strong recovery post-pandemic.
• In August 2023, The Shilla Duty Free debuted a premium liquor section at Seoul Incheon Airport, showcasing high-end whiskey, rum, and gin brands.
• In May 2023, Dubai Duty-Free set a new sales record, with rare whiskey and vintage wines driving growth in the liquor segment during the summer travel surge.

List of Leading Companies:

• Heineken N.V.
• Diageo plc
• Pernod Ricard
• Constellation Brands, Inc.
• The Brown-Forman Corporation
• Rémy Cointreau
• Edrington
• Glen Moray
• William Grant & Sons Ltd
• Bacardi Limited

Report Scope: