Airport Duty-free Liquor Market Growth & Trends
The global airport duty-free liquor market size is expected to reach USD 12.26 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 10.4% from 2022 to 2028. The growing air travel across developed and developing nations is anticipated to propel the market growth over the forecast period. Duty-free shoppers are growing across the Asia Pacific owing to the ease of purchase with the help of digital platforms. Additionally, the rising number of passengers, changing lifestyle of individuals, and the advancement of tourism are affecting the growth of the travel and tourism sectors, subsequently leading to the growth of the market. A constant increase in air traffic and growth of the tourism sector are the prime factors nurturing the market demand.
The key players in the market are collaborating and launching premium alcoholic beverages to meet the desired targets of the consumers at the airport. At present, key players are focusing to adopt canned packaging techniques to accomplish the demand for ambient alcoholic beverages at the airport. For instance, Asahi introduced the new aluminum package, which is the barreled shape package named “Mini-Daru“ beer. In September 2021, Asahi Japan and BrewDog announced their partnership to create a Japanese joint venture. With this partnership, BrewDog can function as a separate unit with its back-office, marketing, sales, and teams and can also focus solely on the marketing and distribution of key BrewDog brands in Japan.
During the financial year 2020–2021, the coronavirus disease affected the market to a larger extent across the globe. The market for airport duty-free liquor was negatively impacted due to the shutdown of the airports owing to the travel restrictions by the government during the pandemic. Along with this, the supply chain of the market was disrupted during the Covid-19 era. The distribution channels such as liquor stores, grocery shops, and supermarkets were hampered due to the lockdown imposed by several governments across the globe.
The others type segment held the largest revenue share of above 85.0% in 2021. The new fancies and change in taste among customers and a rise in demand for the exotic and new variety of wines, such as tropical fruit wines, are anticipated to propel the growth of the others segment. Moreover, the new launches of liquor by key players may attract individuals to purchase, further estimated to fuel the growth of the market in the upcoming years.
The Asia Pacific dominated the market with a revenue share of more than 45.0% in 2021. The majority of passengers from developing countries spend on liquor as it is available at very economical rates. Rising disposable income and improvement in economic conditions in developing countries are also important factors for the growth of this market. Increasing travel and tourism owing to a larger millennial population, who are willing to spend on leisure tourism and exploration, will further drive the market.
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Airport Duty-free Liquors Market Report
Airport Duty-free Liquor Market Report Highlights
- The others type segment held the largest revenue share of over 85.0% in 2021 due to the rising purchasing of wines, beer, and cognac by various passengers at airports
- The Asia Pacific dominated the market with a revenue share of more than 45.0% in 2021 and is expected to register the fastest growth rate from 2022 to 2028. This is due to the increasing air travel in developing economies, rising millennial population, and growing aviation tourism in developing countries, including India
- Europe is expected to register a CAGR of 10.4% from 2022 to 2028. This can be attributed to the growing demand for premium liquors in developed countries
