Luxury Shopping Emerges as the Driving Force Behind Airport Retail Growth

As most travellers at Delhi Airport in 1991 wanted to buy something only to pass the time, they had very few options apart from a handful of small duty-free shops selling perfumes, chocolates and imported accessories. Today, Delhi Airport has large retail spaces featuring carefully selected international luxury brands, much like the airports in Singapore and Dubai, which have become major shopping destinations. India’s airport and retail sectors have witnessed this remarkable transformation in recent years.

Airport Retail Has Grown with Aviation

Air travel became more popular after the economic reforms of the 1990s and the arrival of low-cost airlines in the 2000s. The government aims to have at least 300 operational airports by 2035. Every new airport creates fresh opportunities for shopping, business and commercial growth. India’s airport retail market was valued at USD 2.98 billion in 2024 and is expected to reach USD 13.42 billion by 2032, growing at more than 20 per cent annually.

Luxury Products Are Driving Growth

Airport retail has been growing rapidly because of increasing demand for luxury products. Indian travellers are now much more willing to spend at airport stores than they were a few years ago. In 2023, average spending at airport retail shops increased by 35 per cent.

Among all product categories, luxury goods and electronics were the top sellers. Sales of perfumes and cosmetics have also grown rapidly, while India’s luxury beauty market is expected to reach USD 1.6 billion by 2028. Luxury fashion, premium alcohol and accessories are also witnessing strong demand.

Why Luxury Brands Prefer Airports

Travellers enjoy buying premium products at airports during their journeys. Airports offer exclusive products that are not easily available in regular retail stores. Luxury shopping has become an important part of the travel experience. Many brands also sell duty-free products that are available only at airports.

Airports Offer More Than Shopping Malls

Shopping malls mainly serve local residents, whereas airports attract travellers from different cities and countries. Airport customers generally have higher spending power and are more willing to explore international brands. Airport stores also offer a wider range of luxury products than most city malls, allowing travellers to buy premium items that may not be easily available elsewhere.

Indian Retailers Have a Strong Advantage

Global retailers have extensive experience and large business networks. However, Indian companies have a better understanding of local customers. They know what travellers in different parts of the country prefer to buy. Since shopping habits vary from region to region, a single retail strategy cannot work everywhere.

Indian retailers can create better shopping experiences by understanding local tastes, preferences and culture. This local expertise can help Indian companies succeed as India’s airport retail market continues to expand.