APAC to drive over $60b global airport retail market: report

This will be driven by an increase in retail space, and rising passenger numbers amongst others.

The Asia Pacific region is expected to continue driving the global airport retail market as it is projected to grow to $63.4b in 2026, GlobalData said.

This represented a 7.8% compound annual growth rate from only $20b in 2019.

GlobalData linked this growth projection to the increase in retail space, rising passenger numbers as well as the relaxation of duty-free regulations across countries in the region.

Retail Analyst Koyel Ray noted airport retail sales in the region dropped by $10b in 2020 from $20b in 2019 (-49.9% growth YoY). This grew slightly to $11.8b (17.0% YoY) in 2021 and will likely grow to $33.8b by 2026.

“Favorable demographic profiles improved economic performances the consumer desire to travel, and continued investments in airport infrastructure will support a rise in APAC passenger numbers and airport channel growth,” Ray said.

“Digitization measures helped provide normalcy after the pandemic by incorporating automated retail concepts like self-service vending machines, contactless payment systems, and antimicrobial coatings on self-service devices to keep shops clean.”

Amongst travel retail categories, beauty is one of the larger sectors, on which travel retailers can capitalise.