The global airport retail market is set to reach $59.2bn in 2019 – a rise of 72.9% on 2013. This will be driven by stronger passenger growth (27.4% rise in the period) as well as growing affluence in emerging markets which will boost spend.
Verdict forecasts that Asia Pacific will have the fastest growth in airport retailing sales over the next six years, with the market more than doubling. Passenger numbers will increase by 37.8% in the period and spend per passenger will rise from $7.78 to $11.37.
While the weak economy has dampened passenger number growth in Europe and North America over the last five years, growth is set to pick up again as the economy shows signs of improvement.
“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,” said 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,” said Syme.
“With global airport retail sales set to surge over the next six years there are huge opportunities for retailers to grow their presence in existing countries as well as expand into new regions, particularly in Asia Pacific where spend per passenger is expected to almost double between now and 2019,” said Syme.