Airport Retailing Market Size

Global Airport Retailing Market size was valued at USD 35.07 billion in 2023 and is poised to grow from USD 40.33 billion in 2024 to USD 123.37 billion by 2032, growing at a CAGR of 15.0% during the forecast period (2025-2032).

The on-going growth of world air passenger traffic, stimulated by expanding middle-class incomes, rising tourism, and cheap air travel, is a major driving force behind the airport retailing industry. With more passengers in the air year by year, airports become hotspots of foot traffic, exposing retailers to captive and multicultural clienteles. The boom generates an increased demand for duty-free articles, prestige items, and convenience products, driving brands to pour money into airport retailing centers. The greater passenger traffic is directly linked to higher retail transactions, and thus, air traffic expansion is a central driver of growing retail footprints and raising the revenue potential within the airport retailing value chain.

The efficiency of store location in retail stores and in-terminal customer experience is an important aspect influencing the global airport retailing market trends. Stores are placed strategically at high-traffic locations such as departure lounges and security exits, where dwell time is high and customers are more relaxed. By integrating attractive store designs, bespoke customer service, and focused product offerings, brands leverage impulse purchase and traveller convenience. This thoughtful integration of convenience and experience transforms idle time into purchase opportunities, ultimately increasing transaction volumes and boosting overall market growth through a refined, customer-centric approach.

How does AI Enable Personalized Shopping Experiences for Travelers?

AI is revolutionizing the global airport retailing market through improved operational effectiveness and enhanced individualized shopping. With superior data analysis and machine learning capabilities, AI helps retailers analyze passenger demography, journey patterns, and purchasing habits and, subsequently, provide personalized marketing and product offerings. This personalization boosts conversion ratios and shopper satisfaction. AI optimizes inventory allocation and staffing as a function of real-time flows of passengers to lower costs and enhance service. One of the key developments is Heathrow Airport's application of AI-powered digital assistants and facial recognition to optimize passenger journeys and drive targeted retail promotions, directly connecting AI innovation with higher retail engagement and revenue growth.

In August 2024, Heathrow Airport collaborated with BigBear.ai to adopt AI-based solutions for improving security and operational efficiency. By November 2024, they launched AIMEE, an AI pilot program, which would help air traffic controllers handle congested airspace by processing radar data and flight plans to anticipate and mitigate possible congestion.

What are One-Way Startups Maximizing Non-Aeronautical Revenue for Airports?

The global airport retailing market is experiencing a technology-led revolution, with start-ups being at the forefront of disruption. Such start-ups harness AI, data analytics, autonomous retail, and mobile platforms to meet changing customer expectations, simplify passenger convenience, and optimize sales in transit. With increasing air traffic and growing need for smooth experiences, start-ups are deploying personalized, touchless, and integrated solutions—transforming how passengers engage with retail environments and how airports optimize non-aeronautical revenues.

Founded in 2016, AiFi is a U.S.-based startup revolutionizing airport retail through autonomous shopping technology. AI-powered Autonomous Store Platform eliminates checkouts by using sensors and computer vision to track purchases and charge customers. It is deployed in airport terminals, adding speed to transactions and minimizing congestion. Certainly, a major breakthrough is AiFi's Spatial Intelligence Platform, which can provide real-time data on footfall and customer behavior, thus empowering retailers to optimize their layout, stock, and marketing in an effective manner.

Established in the year 2023, SkipQ is a deep tech company simplifying airport retail with a mobile-first pre-ordering platform. The app enables travelers to browse, order, and pay from various airport retailers, skipping long lines. It increases passenger convenience and retailer sales. The novel aspect at SkipQ is analyzing customer data and flight schedules by means of an AI-enabled recommendation engine and providing tailor-made offers to boost user engagement, transactions, and working capital for an airport-based food and retail business.