Airline Retailing Market Overview, Growth, Trends, Analysis, Research Report (2021-2031)

Airline Retailing Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Retail Type (Pre-Boarding and Post-Boarding), Shopping Type (Accessories, Alcohol, Beauty Products, Merchandise, and Others), Carrier Type (Full Service Carrier and Low Cost Carrier), and Geography

  • Report Code : TIPRE00006366
  • Category : Aerospace and Defense
  • No. of Pages : 150
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The airline retailing market size is projected to reach US$ 40.77 billion by 2031 from US$ 24.08 billion in 2023. The market is expected to register a CAGR of 6.8% during 2023–2031. The moving trend from desktop to mobile, voice, and automated machines is likely to remain a key trend in the market.

Airline Retailing Market Analysis

Retailing is driving a transformation in how travel is purchased. In the broader sphere, retailers have established advanced merchandising practices to better serve their clients. Also, airlines are discovering new forms of travel services to add value to their passengers’ and enhance profitability. Airline retail helps in boosting airline revenue along with enhancing the level of customer satisfaction. The airlines offer retailing services through two different modes i.e. pre-boarding and post-boarding. Some of the airline companies offer both modes, however, certain airlines offer one of the mentioned modes.

Airline Retailing Market Overview

Several airlines offer both pre-boarding retailing sales and post-boarding retailing sales in the current market scenario. The pre-boarding sales segment has dominated the market in recent years and is also anticipated to drive the airline retailing market in the forthcoming years. This is due to the fact that some airlines are terminating in-flight merchandising options from their entire fleet. This is resulting in increased emphasis on the pre-boarding segment. Various airlines have their in-house retailers with significant product lines. For example, Singapore Airline’s in-house retailer KrisShop Pte. Ltd. offers an extensive range of perfumes, bags, electronics, watches, and wine & spirits, among others. Similarly, British Airways High Life Shop is an in-house retailer of British Airways, which offers significantly large product lines. Various airlines with no in-house retailers collaborate with retailers.

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Airline Retailing Market: Strategic Insights

Airline Retailing Market

  • CAGR (2023 - 2031)
  • Market Size 2023
    US$ 24.08 Billion
  • Market Size 2031
    US$ 40.77 Billion

Market Dynamics

  • Increasing demand for enhanced customer experience
  • Increasing demand for air travel
  • The moving trend from desktop to mobile, voice, and automated machines
  • Need for Intelligent Technology Infrastructure is a Key Opportunity for Vendors

Key Players

  • Air Asia Group
  • Air France – KLM SA
  • British Airways Plc
  • easyJet Plc
  • Korean Air Lines Co Ltd
  • Duetsche Lufthansa AG Qantas Airways Limited Singapore Airline Limited Thai Airways International Public Co Ltd
  • The Emirates Group

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

Retail Type
  • Pre-Boarding
  • Post-Boarding
Shopping Type
  • Accessories
  • Alcohol
  • Beauty Products
  • Merchandise
Carrier Type
  • Full Service Carrier
  • Low Cost Carrier
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Airline Retailing Market Drivers and Opportunities

Increasing Demand for Enhanced Customer Experience

The airline sector is a highly competitive market. The operational cost of airlines is very high, and the demand is subject to significant seasonal fluctuations. With the increasing number of airline companies, businesses are looking for alternatives that could help airlines to gain an edge in the competitive market. In order to gain an edge in the market, airline companies are highly focused on enhancing their services for high customer satisfaction.

Advanced technology and customer intelligence are enabling new opportunities for improving customer experiences. The implementation of customer intelligence is enabling new opportunities for airline retail. The airline has a captive audience and extensive customer knowledge, enabled by digital applications, which can be stimulated with smart and entertaining in-flight retail opportunities utilizing emotional momentum.  Most of the airlines are on the learning curve when it comes to retail opportunities. With the external recruits, who have experience in retail, airlines are improving their retail performance. Big data utilization is also impacting airline retail and is optimizing customer value and experiences.  The introduction of advanced technologies and the increasing demand for enhanced customer experience are significantly driving the airline retail market.

The need for Intelligent Technology Infrastructure is a Key Opportunity for Vendors

To operate in a customer-centric environment, airlines are focusing on implementing intelligent retail solutions and are creating potential demand for intelligent technology infrastructure. The intelligent technology infrastructure combines artificial intelligence (AI), machine learning (ML), sophisticated operations-research (OR) models, and customer data to provide relevant insights. The customer data enables airlines to identify, analyze, and predict consumer behavior.

Intelligent technology also empowers departments to schedule synchronization, deploy schedules faster to increase revenue and reduce recommendation costs, monitor and analyze fares automatically, deliver persona-based, flight-plus-ancillary bundled offers, provide pricing recommendations that use multi-channel availability and are buffered from abrupt market changes, and provide personalized offers and services that are consistent across all channels.

Airline Retailing Market Report Segmentation Analysis

Key segments that contributed to the derivation of the airline retailing market analysis are retailing type, shopping type, and carrier type.

  • Based on retail type, the airline retailing market is segmented into pre-boarding and post-boarding. The pre-boarding segment held a larger market share in 2023.
  • Based on shopping type, the airline retailing market is segmented into accessories, alcohol, beauty products, merchandise, and others. The merchandise segment held a larger market share in 2023.
  • Based on carrier type, the airline retailing market is segmented into full service carrier and low cost carrier. The full-service carrier segment held a larger market share in 2023.

Airline Retailing Market Share Analysis by Geography

The geographic scope of the airline retailing market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Asia Pacific has dominated the market in 2023 followed by North America and Europe regions. Further, Asia Pacific is also likely to witness highest CAGR in the coming years. China dominated the Asia Pacific airline retailing market in 2023. APAC includes some of the fastest growing world economies such as China and India. Along with that, Japan is the most technologically advanced country in the region giving an opportunity for the development of deployment of IoT/smart solution in the region. Also, emerging economies of Asia such as South Korea, Taiwan, Singapore, and others are experiencing a growth in their technological and smart trend thus, propelling the growth of various services. Furthermore, the developing economies in the APAC region have witnessed exponential growth in their economies in the last few years. This has also led to higher employment percentages, as well as higher disposable incomes with individuals. High disposable incomes has facilitated the middle class and the upper middle class population in the countries to avail for luxurious services such as airplane travel. There has been a marked increase in the number of passengers that travel through flight in these countries.

Airline Retailing Market Report Scope

Report Attribute Details
Market size in 2023 US$ 24.08 Billion
Market Size by 2031 US$ 40.77 Billion
Global CAGR (2023 - 2031) 6.8%
Historical Data 2021-2022
Forecast period 2024-2031
Segments Covered By Retail Type
  • Pre-Boarding
  • Post-Boarding
By Shopping Type
  • Accessories
  • Alcohol
  • Beauty Products
  • Merchandise
By Carrier Type
  • Full Service Carrier
  • Low Cost Carrier
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • Air Asia Group
  • Air France – KLM SA
  • British Airways Plc
  • easyJet Plc
  • Korean Air Lines Co Ltd
  • Duetsche Lufthansa AG Qantas Airways Limited Singapore Airline Limited Thai Airways International Public Co Ltd
  • The Emirates Group
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

    Airline Retailing Market News and Recent Developments

    The airline retailing market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the airline retailing market are listed below:

    • British Airways’ Gatwick-based short-haul subsidiary, BA Euroflyer, has expanded the options available for customers to purchase in Euro Traveller (economy) and launched new seasonal menus in Club Europe (business class). The airline, working with its retail partner Tourvest, has expanded its onboard offering by introducing new options for customers to purchase during the flight. Customers were previously only able to pre-order fresh food, or purchase ambient snacks during their journey. New options for customers include fresh Tom Kerridge Chicken Coronation sandwiches and Sweet & Spicy Falafel wraps, which can be bought on board without pre-ordering. Customers can pair this with Jimmy’s Iced Coffee or Punchy soft drinks.. (Source: British Airways, Press Release, Apr 2023)
    • Qatar Airways introduces new menu items onboard sourced from local organic farms in Qatar. The airline’s latest delicious additions available for passengers travelling from Doha until March 2024. (Source: Qatar Airways, Press Release, Nov 2023)

    Airline Retailing Market Report Coverage and Deliverables

    The “Airline Retailing Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

    • Airline retailing market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
    • Airline retailing market trends as well as market dynamics such as drivers, restraints, and key opportunities
    • Detailed porter’s five forces analysis
    • Airline retailing market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
    • Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the airline retailing market
    • Detailed company profiles
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    Retail Type ; Shopping Type ; Carrier Type

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina

    Frequently Asked Questions

    Which region dominated the airline retailing market in 2023?

    Asia Pacific region dominated the airline retailing market in 2023.

    What are the driving factors impacting the airline retailing market ?

    Increasing demand for enhanced customer experience and increasing demand for air travel are some of the factors driving the growth for airline retailing market.

    What are the future trends of the airline retailing market ?

    The moving trend from desktop to mobile, voice, and automated machines is one of the major trends of the market.

    Which are the leading players operating in the airline retailing market ?

    Air Asia Group, Air France – KLM SA, British Airways Plc, easyJet Plc, Korean Air Lines Co Ltd, Duetsche Lufthansa AG Qantas Airways Limited Singapore Airline Limited Thai Airways International Public Co Ltd, and The Emirates Group are some of the key players profiled under the report.

    What would be the estimated value of the airline retailing market by 2031?

    The estimated value of the airline retailing market by 2031 would be around US$ 40.77 billion.

    The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

    1. Data Collection and Secondary Research:

    As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

    Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

    1. Primary Research:

    The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

    For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

    A typical research interview fulfils the following functions:

    • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
    • Validates and strengthens in-house secondary research findings
    • Develops the analysis team’s expertise and market understanding

    Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

    • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
    • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

    Below is the breakup of our primary respondents by company, designation, and region:

    Research Methodology

    Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

    1. Data Analysis:

    Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

    • 3.1 Macro-Economic Factor Analysis:

    We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

    • 3.2 Country Level Data:

    Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

    • 3.3 Company Profile:

    The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

    • 3.4 Developing Base Number:

    Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

    1. Data Triangulation and Final Review:

    The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

    We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

    We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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