PUBLISHER: UnivDatos Market Insights Pvt Ltd | PRODUCT CODE: 1840092
PUBLISHER: UnivDatos Market Insights Pvt Ltd | PRODUCT CODE: 1840092
In-flight shopping market is the retailing avenue available to passengers in the airline industry, where the airlines can get ancillary revenue on top of the ticket sales. The market has long been dedicated to the duty-free industry, including cosmetics, fragrances, liquor, and luxury goods, but recent digitalization and the increasing need for convenience have led to a widening of the market. Customers can now order through in-store catalogues, digital screens, or through linked devices and can have it delivered to their door or delivered to their seat. Among the drivers are the global rise in air traffic, the growth of disposable income, and the development of in-flight connectivity. Airlines act in partnership with brands as a means to increase both customer experience and profitability in a competitive aviation environment.
The Latin America Inflight Shopping market is set to show a growth rate of about 6% during the forecast period (2025- 2033F). The Latin American in-flight shopping market is gradually shifting towards new forms of ancillary revenue, and passengers are becoming increasingly interested in the onboard shopping experience. Due to the increasing traffic of air passengers in Brazil, Mexico, Colombia, and Chile, as well as the growing middle class and its need for high-quality products, growth is supported. Though the old-fashioned duty-free sales are still significant, the airlines are expanding to sell electronics, wellness, and travel accessories. The digital transformation via pre-order systems, in-store applications, and contactless payment systems is transforming the retailing model and aligning it to the global aviation trends. Nevertheless, the lack of cohesive regional infrastructure, unstable economic environment, and unequal consumer purchasing power are the obstacles to realizing steady progress in all markets.
Latin America's in-flight shopping market falls into first class, business class, premium economy, and economy based on the aircraft type. Among them, business class has had a large market share. This dominance is fueled by an increase in the disposable income of business travelers, their fondness for high-end products, and the customized retail service that airlines provide to this segment. The business class is even more supported by improved cabin services, an exclusive line of products, and the convenience of digital shopping platforms as a major contributor to in-flight retail revenues.
Based on Carrier Type, the market is bifurcated into Full Service and Low-Cost Carrier. Of these, the Full Service category has held a sizeable market share. With the customer opting for the full-service option, a sizable number of passengers can avail themselves of in-flight consumables, such as food and travel accessories, due to their higher purchasing power. Additionally, the low-cost carrier, which caters to a majority of the airline's customers, still holds a growing yet smaller share, as most customers opt for no-frills and budget-friendly services.
Based on the Shopping Segment, the market is segmented into travel essentials, accessories, beauty care, children, and others. Among these, travel essentials and accessories have been the most dominant segment, mainly because of their practicality, convenience, and frequent need among the passengers. Other products like power banks, travel adapters, neck pillows, and headphones are also a favorite product because they directly relate to the experience in the air. In the same manner, accessories such as watches, jewelry, and handbags are targeted towards travelers who want to purchase high-quality and luxury products. The steady supply of the above-mentioned categories guarantees a stable growth, which is why it is one of the main sources of revenue among both airlines and retail partners.
For a better understanding of the market adoption of Latin America Inflight Shopping, the market is analyzed based on its presence in countries such as Mexico, Brazil, Argentina, Chile, and the Rest of Latin America. Of these, Brazil has held the major market share, owing to the country's large fleet of aircraft and passengers. Additionally, the rising tourism and economic activities have further promoted the market growth of airlines and the in-flight shopping in Brazil. The growing middle class of the nation, along with a robust demand for high-end and duty-free services, has positioned in-flight retail as an important ancillary source of revenue among airlines within the region. Gol and LATAM airlines, the major players, have been considering the possibility of digital retailing, where passengers can order or do their shopping at a convenient time when on board. In addition, Brazil is strategically located as a regional center, which enhances its in-flight retail potential and draws global brands that are interested in visibility. Nonetheless, the volatility of economies and the complexities of regulations are still issues that the airlines have to grapple with in order to capitalize on this market.
Some major players running in the market include Azul, The Emirates Group, Lufthansa, Air Asia Group, British Airways (HighLife Shop), Singapore Airlines Limited, EasyJet Airline Company Limited, Cathay Pacific, and Others.