Airport Duty-free Liquor Industry Overview
The global airport duty-free liquor market size was valued at USD 6.15 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 10.4% from 2022 to 2028.
The market growth can be credited to the rising number of travelers at airports. At the airport, the liquors are excluded from government taxes and duties, so the passengers prefer to buy them at economical rates. Additionally, the travelers before leaving for their home countries choose to spend their surplus foreign currency to buy liquor from duty-free shops. All these factors are expected to boost market growth over the forecast period.
Gather more insights about the market drivers, restrains and growth of the Global Airport Duty-free Liquor Market
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.
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.
Browse through Grand View Research's Alcohol & Tobacco Industry Research Reports.
- Hard Seltzer Market – The global hard seltzer market size was valued at USD 8.95 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 22.9% from 2022 to 2030. The rising adoption of low alcohol content beverages among millennials and the younger generation is driving the product demand. Moreover, consumers are trying to reduce their alcohol consumption or becoming ‘sober-curious’, which has further led to an increase in the demand for low-alcoholic beverages.
- Beer Market – The global beer market size was valued at USD 680.9 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 7.0% from 2022 to 2030. Beer consumption patterns have shifted dramatically, with declining consumption in traditional drinking countries and high gains in emerging markets and places where wine and spirits were traditionally consumed.
Airport Duty-free Liquor Market Segmentation
Grand View Research has segmented the global airport duty-free liquor market on the basis of type and region:
Airport Duty-free Liquor Type Outlook (Revenue, USD Million, 2017 – 2028)
- Whiskey
- Others
Airport Duty-free Liquor Regional Outlook (Revenue, USD Million, 2017 – 2028)
- North America
- Europe
- Asia Pacific
- Central & South America
- Middle East & Africa
Market Share Insights
- 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.
- May 2020: Pernod Ricard and the United Nations announced their partnership with the EducateAll platform to provide free sustainable and responsible bartending training online.
Key Companies profiled:
Some prominent players in the global airport duty-free liquor market include
- Heineken
- Diageo
- Pernod Ricard
- Constellation Brands, Inc.
- Brown-Forman
- REMY COINTREAU
- Erdington
- Glen Moray
- Accolade Wines
- Bacardi
Order a free sample PDF of the Airport Duty-free Liquor Market Intelligence Study, published by Grand View Research.
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