Airport Duty-free Liquor Market Expected To Witness A Substantial Growth Of $12.26 Billion By 2028: Grand View Research Inc.
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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Owing to the
COVID-19 pandemic, there is a decline in international travel, consequently
leading to a negative impact on industry growth. With the ongoing lockdown, the
travel market is provisionally on hold, and therefore the sales in the
duty-free shops at the airports have partially stopped, thus hindering the
growth of the market. The supply chain of the market was slightly disrupted
during the Covid-19 era. The distribution channels in airports such as liquor
stores, grocery shops, and supermarkets were hampered due to the lockdown
imposed by several governments across the globe.
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
Moreover,
government regulations play an integral part in the growth of the market.
Various nations have their own regulations and rules for duty-free shops. For
instance, the Indian government allows international travelers to buy two
liters or two bottles of alcohol. Additionally, airport duty-free shops are
favorite spots for buying things for some people before traveling abroad. This
is owing to the exclusions of local import duties or taxes by the local
governing bodies.
Additionally, the
growing consumption of premium alcoholic drinks at the airport from developed
economies such as the U.S. and the U.K. is expected to contribute to the market
growth over the forecast period. The growing demand for beer, wine, and dark
spirits is enhancing the sales of alcoholic beverages at airport premises.
Moreover, the rising popularity of lounges, bars, and restaurants in the tourism
sector is anticipated to boost the market growth over the forecast period.
The rising demand
for the striking flavors of beers to aid the digestive system is the key factor
motivating the industry's growth. Along with that, the rising demand for
artisanal spirits in emerging economies such as China and India is anticipated
to boost market growth. Growing demand to procure value-added hard seltzer
products at an affordable cost is expected to present a growth opportunity for
the market. However, the rising inclination to consume non-alcoholic beverages
is hindering market growth.
Increasing
investment from the U.K-based primary players to procure high-quality Scotch
whisky products is refueling the market growth. The key players are acquiring
superior quality cider, perry, and rice wine. Promptly growing demand for lower
calorie-based beer supplements from U.S. consumers is driving the alcoholic
industry, which is further propelling the market growth.
List of Key Players of Airport Duty-free Liquor Market
- Heineken
- Diageo
- Pernod Ricard
- Constellation
Brands, Inc.
- Brown-Forman
- REMY COINTREAU
- Erdington
- Glen Moray
- Accolade Wines
- Bacardi
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