Airport Duty-Free Sales Struggle to Keep Pace with Increasing Air Traffic
Published: October 1, 2026
A recent study by Oliver Wyman indicates that airport duty-free sales have not matched the growth in air traffic since the pandemic. The report, which surveyed 3,825 travelers and industry executives, reveals that while passenger numbers increased by 7% from 2019 to 2025, overall duty-free revenue remained nearly stagnant, dropping by 0.2% during this period.
Despite these challenges, there are promising signs for the sector. The Global Travel Retail Pulse report highlights significant regional disparities. Notably, the Asia-Pacific region has fallen short of projected duty-free revenue by $7.6 billion. In this market, average sales per traveler dropped by 22% to $7.56, even as passenger traffic grew by 6%.
Conversely, Europe reported a $3.1 billion surplus, benefiting from a 14% increase in passenger spending, averaging $9.89. This growth is attributed to factors such as infrastructure investment, a wealthy traveler demographic, and the resurgence of duty-free shopping following Brexit.
The trends diverge in North America, the Middle East, and South America, which have reported revenue deficits of $0.9 billion, $0.6 billion, and $0.2 billion, respectively.
Growth Sectors in Duty-Free Sales
Outside of the Asia-Pacific region, sales of perfumes and cosmetics are proving to be a significant growth driver, with average sales per traveler at $1.74—an average annual increase of 4.3% since 2023. In contrast, fashion and accessories have seen a decline, averaging $1.32 per traveler, while wines and spirits have edged down slightly to $1.06. Tobacco sales, however, are thriving, with revenue per traveler estimated at $1.07, a growth of 6% annually.
Evolving Consumer Behavior
Younger generations, particularly Millennials and Generation Z, are reshaping airport retail dynamics as they are projected to account for 81% of air travel-related spending by 2035. Generation Z travelers undertake 1.7 times more journeys than baby boomers but spend 10 minutes less in boarding areas. They show less preference for airport shops, with only 19% favoring them over high street or abroad shopping compared to 49% of older travelers. Product quality ranks highest in their selection criteria (64%), followed by price (51%) and brand trust (43%).
The research highlights that nearly all young travelers (96%) discover brands in airport retail spaces, with half of them (49%) making purchases right after discovering new products.
Pierre-Alexandre Koch, partner at Oliver Wyman, emphasizes that travelers increasingly seek novelty through emerging brands, exclusive products, and locally-inspired offerings. To adapt, airport retailers must focus on immersive experiences and transparent pricing to meet this demand for innovation.
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