Airport retail sector to surge 70%
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The value of the global airport retail market is set to surge over the coming years, reaching US$59.2 billion in 2019 – a rise of 72.9% compared to 2013.
According to the new ‘Global Airport Retailing’ report by Verdict, the sector’s growth will outpace a 27.4% rise in global passenger traffic, and will be driven by increasing affluence in emerging markets.
Verdict forecasts that the Asia Pacific region will experience the fastest growth in airport retailing sales over the next six years, with the market more than doubling. Asia Pacific passenger numbers are expected to increase 37.8% in the six-year period and spending per passenger is forecast to increase from US$7.78 to US$11.37.
Europe and North America are also expected to see improvements.
“Beauty products and alcohol are set to benefit the most from rising passenger numbers, seeing an increase in global sales of 109.9% and 73.4% respectively up until 2019,” explained Verdict analyst Carly Syme.
“While the alcohol market has been difficult on the high street, with retailers having to discount heavily, it has remained more resilient in airport locations as consumers take advantage of the VAT-free prices and stock up. With high levels of innovation driving purchases, as well as an unwillingness to cut back in the sector, beauty sales will be the highest performing sector in the global airport channel,” she added.
Verdict said the figures meant there would be “huge opportunities for retailers” to expand into new regions, especially Asia Pacific.
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