The global airport duty-free liquor market size was valued at $8.9 billion in 2019 and is expected to grow at a CAGR of 22.22% to reach $10.4 billion by 2027. Airport duty-free liquor refers to the liquor exempted from the payment of national taxes and duties, and other certain local taxes. It is sold to travelers travelling to some other country. Shops or retail outlets selling duty-free liquor are available at various airports. People also buy liquor from airport duty-free stores to spend the surplus foreign currency before going back to their home country. Various countries have their own rules and regulations on the airport duty-free shops. For example, Singapore does not allow passenger to carry cigarettes without paying duty while India allows inbound international passengers to buy two bottle or two liters of alcohol and one carton of cigarettes from duty-free shops.
Due to COVID-19 crisis, there is a decrease in international travel, which has affected airport duty-free sales in large proportion. As the lockdown continues in major parts of the world, airport duty-free retailers have unsold stock, while some retailers are finding imaginative ways to keep trading. As the travel retail sector market is temporarily on hold, airport duty-free liquor has experienced crucial sales channel cutoff. Airport duty-free liquor sales declined to large proportion due to the closure of international flight operations.
The airport duty-free shops have become a favorite destination for travelers who like to shop before starting their journey. This is due to the elimination of local import tax or the duties implemented by the government bodies. This results in lesser pricing of liquor or any other products such as cosmetics, perfumes, souvenir, and others, which are available at duty-free shops.
India and China are the two major countries with an increase in urban population and potential regions for the airport duty-free liquor market. The global airport duty-free liquor market is driven by rise in the development of travel & tourism industry, which is also anticipated to propel the market growth during the forecast period. This is because travel & tourism includes leisure tourism, business tourism, and others. Continuous growth in global aviation, air traffic, and growth of the tourism industry are the key factors that boost the growth of the airport duty-free liquor industry.
The factors that promote the growth of the travel & tourism industry include changes in lifestyle, rise in tourism promotion, increase in number of passengers and frequent fliers, and others, which in turn are expected to fuel the growth of the airport duty-free liquor market. Consumers mostly tend to purchase liquor from airport duty-free stores located at airports as it is available at a cheaper price as compared to liquor available at regular stores. Also, rise in disposable income is a crucial factor expected to propel the growth of the airport duty-free liquor market in the upcoming years.
Improvement in economic condition and rise in disposable income are the two key factors that propel the airport duty-free liquor market growth. After the 2009 economic crisis in Europe, the world economy witnessed a standstill. Almost all the countries in the world were affected by this economic crisis. However, strong recovery from the crisis results in strong economic growth, especially in the developing economies, and has led to increase in disposable income among the middle-income groups, consequentially adding to the middle-class population.
In addition, disposable income of individuals in Europe and Asia-Pacific has witnessed an increase, thus driving the overall growth of the airport duty-free liquor market. However, stringent government rules, especially for airport retailing are expected to hamper the market growth. This is due the strict baggage rules for air travel passengers that limit the baggage capacity or charge extra for excess baggage.
In 2019, by type, the others segment, which includes beer, wine, vodka, and cognac, accounted for the maximum share in airport duty-free liquor market size, owing to increase in consumer base across the globe. The whiskey segment accounted for second maximum share in the airport duty-free liquor market, driven by increase in demand for whiskey, due to its superior quality and premium products.
By Type
The Others segment would witness the fastest growth, registering a CAGR of 22.81% during the forecast.
By region, Europe accounted for the highest revenue in 2019 owing to the tourists from the Middle East, China, the U.S., and Russia contributing a significant part in the market. Also, love for travel is on an upward trend among Germans, which significantly contributes to the growth of the airport duty-free liquor market.
By Region
Asia segment would witness the fastest growth, registering a CAGR of 27.34% during the forecast period.
The key players operating in the global airport duty-free liquor market analysis focus on prominent strategy to overcome competition and to maintain as well as improve their share worldwide. The key players profiled in the report include Brown-Forman, Diageo, Erdington, Bacardi, Heineken, Glen Moray, Accolade Wines, Constellation Brands, Inc, REMY COINTREAU, Pernod, and Ricard.
Key Benefits For Stakeholders
- The report provides a quantitative analysis of the current industry, estimations, trends, dynamics and airport duty-free liquor market share from 2019 to 2027 to identify the prevailing industry opportunities.
- The key countries in all the major regions are mapped based on the airport duty-free liquor market trends and share.
- Porter’s five forces analysis highlights the potency of the buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier–buyer network.
- In-depth airport duty-free liquor market share analysis of the industry segment and size assists to determine the prevailing industry opportunities.
- Industry player positioning segment facilitates benchmarking and provides a clear understanding of the present position of players along with the airport duty-free liquor market forecast.
Airport Duty-free Liquor Market Report Highlights
| Aspects | Details |
 By Type |
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 By Region |
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 Key Market Players | DIAGEO., PERNOD RICARD, HEINEKEN HOLDING NV. (HEINEKEN N.V.) ., THE EDRINGTON GROUP LIMITED, RÉMY COINTREAU, SOCIETE DES VINS ET SPIRITUEUX LA MARTINIQUAISE S.A.S., BACARDÍ, BROWN-FORMAN., CONSTELLATION BRANDS, INC., ACCOLADE WINES. |
Analyst Review
The airport duty-free liquor market is experiencing growth at a significant pace, and is anticipated to continue this trend in the coming years. Travel & tourism industry is playing a vital role in revenue generation. It has been witnessed that consumers mostly tend to purchase liquor from duty-free stores located at airports as they can purchase it at a cheaper price as compared to liquor available at regular stores.
Travel & tourism includes leisure tourism, business tourism, and others. The factors that promote the growth of the travel & tourism industry include changes in lifestyle, rise in tourism promotion, increase in number of passengers and frequent fliers, and others, which in turn are expected to fuel the growth of the airport duty-free liquor market.
Due to the COVID-19 crisis, international flights and travels were banned in several countries, which affected the growth of the airport duty free liquor market and hampered the sales of liquor. Vaccination has started all over the world, which is expected to resume all the banned international flights and travels. COVID-19 has made a major impact on the airport duty free liquor market, due to forced closure of trade of liquor in various countries such as the U.S., UK, India, and others to control the impact of pandemic. Growth in vaccination practices and decrease in cases of COVID-19 are expected to favor growth of the airport duty free liquor market.
Improvement in economic condition and increase in disposable income are the two key factors that propel the airport duty-free liquor market growth. However, stringent government rules, especially for airport retailing, are expected to hamper the market growth. This is due to strict baggage rules for air travel passengers that limit the baggage capacity or charge extra for excess baggage.
The global airport duty-free liquor market size was valued at $8.9 billion in 2019 and is expected to grow at a CAGR of 22.22% to reach $10.4 billion by 2027. Airport duty-free liquor refers to the liquor exempted from the payment of national taxes and duties, and other certain local taxes. It is sold to travelers travelling to some other country. Shops or retail outlets selling duty-free liquor are available at various airports
The top companies in the Airport Duty-free Liquor Market are Brown-Forman, Diageo, Erdington, Bacardi, Heineken, Glen Moray, Accolade Wines, Constellation Brands, Inc, REMY COINTREAU, Pernod, and Ricard.
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The CAGR of Airport Duty-free Liquor Market is 22.22% for forecast period of 2021 to 2027. The airport duty-free shops have become a favorite destination for travelers who like to shop before starting their journey. This is due to the elimination of local import tax or the duties implemented by the government bodies. This results in lesser pricing of liquor or any other products such as cosmetics, perfumes, souvenir, and others, which are available at duty-free shops
The global airport duty-free liquor market is segmented on the basis of type into whiskey and others. The outbreak of the COVID-19 pandemic has adversely affected the growth of the duty-free liquor market. People are restricted to stay at their homes to stop the spread of the diseases. Governments have been forced to introduce and maintain social and mobility restrictions in an attempt to control spread of the disease. Many international flights have been cancelled during the lockdown period, which is expected to halt growth of the airport duty-free liquor market.
The growth of the global airport duty-free liquor is majorly driven by development of the travel & tourism industry. The rise in tourism promotion, increase in number of passengers and frequent fliers, and others, are expected to fuel the growth of the airport duty-free liquor market. Also, increase in disposable income of individuals, particularly in Europe and Asia-Pacific, is anticipated to witness high growth, thus driving the overall growth of the market.
The forecast period in the market report is from 2021 to 2027. Improvement in economic condition and rise in disposable income are the two key factors that propel the airport duty-free liquor market growth. After the 2009 economic crisis in Europe, the world economy witnessed a standstill. Almost all the countries in the world were affected by this economic crisis.
In 2019, by type, the others segment, which includes beer, wine, vodka, and cognac, accounted for the maximum share in airport duty-free liquor market size, owing to increase in consumer base across the globe. The whiskey segment accounted for second maximum share in the airport duty-free liquor market, driven by increase in demand for whiskey, due to its superior quality and premium products
Due to COVID-19 crisis, there is a decrease in international travel, which has affected airport duty-free sales in large proportion. As the lockdown continues in major parts of the world, airport duty-free retailers have unsold stock, while some retailers are finding imaginative ways to keep trading. As the travel retail sector market is temporarily on hold, airport duty-free liquor has experienced crucial sales channel cutoff. Airport duty-free liquor sales declined to large proportion due to the closure of international flight operations
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