Airport Duty-free Liquor Market Size, Share & Trends Analysis Report By Type (Whiskey), By Region (North America, Europe, Asia Pacific, Central & South America, Middle East & Africa) And Segment Forecasts, 2022 - 2028

Report 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.

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.

Type Insights

The others type segment dominated the market and captured a revenue share of over 85.0% in 2021. The others type segment consists of wines, beers, gin, vodka, and cognac. The significant adoption of California common beer contributed to the market share. The rising demand for Belgian-style Flanders to provide B-group vitamins further enhanced the sales of the beer. The sale of cognac in developing countries is on the rise as people prefer grape wines owing to their better taste. This segment is also expected to witness lucrative growth in the coming years owing to the expanding customer base.

The whiskey segment is expected to expand at the highest CAGR of 10.5% from 2022 to 2028. This can be credited to the rising demand for premium whiskey in developed economies of Europe. Premium whiskey is gaining popularity in the U.S. to fulfill the demand for flavored alcoholic beverages. Additionally, the demand for whiskey is expected to boom over the forecast period as whiskey is premium and known for its superior quality.

Regional Insights

Asia Pacific accounted for the largest share of more than 45.0% in 2021. The majority of passengers from developing countries spend on liquor as it is available at economical rates at the airports. Rising disposable income and improvement in economic conditions in developing countries are also important factors for the growth of this market. Increasing travel and tourism in this region owing to a larger millennial population, who are willing to spend on leisure tourism and exploration, will further drive the market.

Europe is expected to register a CAGR of 10.4% from 2022 to 2028. This can be attributed to the growing demand for premium liquors in developed countries. Furthermore, the U.K. is the largest seller of duty-free liquors from airport shops, thus boosting the regional market growth. The rising trend in the region to adopt the classic brand of alcoholic beverages such as Arnold Palmer Spiked Half & Half, Bergenbier, and Burgasko will boost the market growth. Moreover, the funding provided by the private firms of the region to procure premium alcoholic beverages at the airport is anticipated to boost the market growth.

Key Companies & Market Share Insights

Key players are increasingly investing in R&D for the production of non-alcoholic beverages for the consumers who prefer non-alcoholic beverages. Moreover, liquor manufacturers are focusing on the expansion and launches of recent developments. For instance, in May 2020, Pernod Ricard and the United Nations announced their partnership with the EducateAll platform to provide free sustainable and responsible bartending training online. These courses are available to all adults, with the mobile learning platform EdApp mobile, in collaboration with United Nations Institute for Training and Research (UNITAR) as part of the EducateAll initiative. This joint initiative of UNITAR and EdApp has started a free global course library and is already hosting approximately 50,000 lessons daily. 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

Airport Duty-free Liquor Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global airport duty-free liquor market report on the basis of type and region:

Type Outlook (Revenue, USD Million, 2017 - 2028)

• Whiskey

• Others

Regional Outlook (Revenue, USD Million, 2017 - 2028)

• North America

  • U.S.

• Europe

  • Germany

  • U.K.

  • France

• Asia Pacific

  • China

  • Japan

• Central & South America

  • Brazil

• Middle East & Africa

  • UAE