Aviation

North American airport retail market to double to 9.9 bn by 2020

DELHI

The North American airport retailing market is expected to more than double over the next five years to grow from $4.15 bn in 2015 to $9.90 billion by 2020, at a 19% CAGR as per a report on the same by Micro Market Monitor.

The report found that the aviation industry was looking for alternate revenue streams with rising jet fuel prices and airport retail became a necessity for airlines and airports to sustain their margins. Airport retail has helped the aviation industry cope with its sluggish growth, offering various opportunities to substantiate revenue sources said the research firm.

It added that the North American airport retailing market has been increasing due to rise in international air traffic to and from the United States that totaled more than 80 million passengers in 2015, a 5% increase as compared to 2014. Canada too has also witnessed air traffic of more than 27.5 million passengers, a 7% increase on year-on-year basis.

In North America, the proportion of duty-free airport retailing market is estimated to account for more than 25% of the global duty-free airport retailing market in 2015. The same grew by 16.3% in 2014, as compared to 2013. The US was the top performer in this market owing to increase in the number of flights that further results in rise in footfall at airports.

MicroMarketMonitor broadly segments the North America airport retailing market on the basis of category, type, airport size, and geography. On the basis of category, the market is further segmented into liquor & tobacco, perfumes & cosmetics, fashion & accessories, and food & confectionery.

Key Players of the North America Airport Retailing Market include Dufry AG, World Duty Free Group (WDFG), Duty Free Americas (DFA), and Gebr. Heinemann among others.

Musafir Namah Bureau

 

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