India’s airport retail business is moving beyond traditional duty-free shopping, with food and beverage, premium brands, wellness, convenience and experiential offerings emerging as key growth areas. As passenger traffic rises and travellers spend more time at terminals, airport operators are increasingly looking at commercial spaces as an important source of non-aeronautical revenue.
The shift is also changing how passengers use airports. Terminals are increasingly being developed as lifestyle and commercial destinations, with operators expanding their mix of shopping, dining, entertainment and other experiences to encourage passenger spending.
Food, premium dining and experiences drive spending
Vandana Singh, Chairperson, Aviation Cargo Federation of Aviation Industry in India (FAII), speaking exclusively to FinancialExpress.com, said food and beverage is currently among the strongest and most consistent growth categories at Indian airports.
“Passenger spending at Indian airports is becoming far more diversified than it was a few years ago. Food and beverage continues to witness the strongest and most consistent growth,” Singh said.
She attributed the trend to longer passenger dwell times, rising disposable incomes and growing demand for premium dining experiences. Luxury retail, beauty, travel essentials and fashion are also expanding as airports attract more affluent domestic and international travellers.
“Another emerging category is experiential retail, where passengers engage with interactive brand experiences, wellness lounges, and digital shopping concepts,” Singh said.
Capt. B.V.J.K. Sharma, Chief Executive Officer (CEO) of Navi Mumbai International Airport (NMIA), speaking exclusively to FinancialExpress.com, said the growth is increasingly being seen across premium food and beverage, specialty coffee, quick-service restaurants, wellness products, travel convenience and experiential retail.
“While duty-free remains an important category for international travellers, the fastest growth is now coming from premium food & beverage, specialty coffee, quick-service restaurants, wellness products, travel convenience, and experiential retail,” Sharma said.
He added that demand for Indian premium brands, regional handicrafts, gourmet foods and travel essentials is also strong, particularly as passengers increasingly look for convenience and experiences rather than routine purchases.
Travellers seek convenience and personalised experiences
Passenger behaviour has also changed as air travel becomes more accessible and travellers become increasingly exposed to global retail and hospitality standards. Passengers are spending more time exploring airport offerings and are looking for premium dining, local products, wellness facilities and digitally enabled services.
Singh said airports are no longer viewed merely as places to board flights, with travellers increasingly treating them as an extension of their overall journey.
“Passenger expectations have shifted significantly, with airports no longer viewed merely as transit points but as extensions of the travel experience,” she said.
Travellers are arriving earlier and spending more time exploring retail and dining options, while younger passengers are showing greater interest in personalised, contactless and curated experiences. Singh said the growth of domestic aviation, rising middle-class incomes and greater exposure to global travel standards are encouraging airports to cater to both functional needs and aspirational lifestyles.
Sharma said passengers now expect airport facilities to offer experiences comparable with those available in modern urban centres.
“Indian passengers have become more discerning and experience-oriented. They expect airports to offer the same quality of shopping, dining, and digital convenience that they enjoy in modern urban centres,” he said.
He added that demand is rising for wider food choices, healthier dining options, premium lounges, family-friendly facilities and digital services. Younger travellers, meanwhile, are increasingly attracted to entertainment, local cultural offerings and experiential retail.
Non-aeronautical revenue emerges as key growth driver
The expansion of airport retail is closely linked to the growing importance of non-aeronautical revenue. Income from retail, food and beverage, lounges, advertising, parking, hospitality and commercial real estate can provide airports with revenue streams beyond airline-related charges.
Singh said these revenues will become increasingly important as Indian airports expand their capacity and invest in infrastructure and technology.
“Non-aeronautical revenue will become one of the most important pillars of financial sustainability for Indian airports as passenger volumes continue to rise,” she said.
According to Singh, diversified commercial revenue can help airports invest in capacity expansion, technology upgrades and passenger infrastructure without depending solely on aeronautical revenues. She expects airport commercial ecosystems to become more sophisticated as India develops more world-class airports and aviation hubs.
Sharma also sees non-aeronautical revenue becoming central to the economics of India’s next generation of airports.
“Non-aeronautical revenues will become one of the defining pillars of sustainable airport economics in India,” he said.
He said future airports are likely to combine retail, hospitality, food and beverage, entertainment, business facilities and digital services, allowing operators to improve asset utilisation while enhancing the passenger experience.
“With India projected to become one of the world’s largest aviation markets over the coming decade, airports that successfully create vibrant commercial ecosystems alongside efficient operations will be best positioned to deliver sustainable growth and world-class passenger experiences,” Sharma said.