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    Europe Airline Ancillary Services Market Trends

    ID: MRFR/A&D/11144-HCR
    128 Pages
    Sejal Akre
    October 2025

    Europe Airline Ancillary Services Market Research Report Information By Applications (Full Service Carrier and Low-Cost Carrier), By Types (Baggage Fees, On-Board Retail & A la Carte, Airline Retail, FFP Miles Sale and Others) – and Europe Market Forecast Till 2035

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    Europe Airline Ancillary Services Market Infographic

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    Market Trends

    Key Emerging Trends in the Europe Airline Ancillary Services Market

    The airline ancillary services market in Europe has been experiencing notable trends and shifts, driven by changing consumer preferences, technological advancements, and evolving airline business models. One prominent trend in this market is the increasing adoption of ancillary services by airlines as a strategy to enhance revenue streams and improve profitability in an increasingly competitive industry. Ancillary services, which encompass a range of optional products and amenities beyond the basic airfare, such as baggage fees, seat selection, onboard meals, and Wi-Fi access, have become a significant source of revenue for airlines. With the pressure to remain competitive and offset operating costs, European airlines are increasingly focusing on optimizing ancillary offerings and leveraging innovative pricing strategies to meet customer demand while maximizing ancillary revenue. Moreover, technological advancements and digitalization are driving changes in how airlines market and deliver ancillary services to passengers. The widespread adoption of online booking platforms, mobile apps, and self-service kiosks has made it easier for travelers to customize their travel experience and purchase ancillary services at various touchpoints throughout their journey. Airlines are leveraging data analytics and customer insights to personalize ancillary offerings, target specific customer segments, and optimize pricing strategies dynamically. Additionally, partnerships with third-party service providers and digital platforms enable airlines to expand their ancillary product offerings, ranging from hotel accommodations and ground transportation to travel insurance and destination experiences, enhancing the overall customer experience and revenue potential. Furthermore, the COVID-19 pandemic has reshaped the landscape of airline ancillary services in Europe, leading to changes in traveler behavior, demand patterns, and service offerings. As travel restrictions and health concerns continue to impact passenger confidence and travel demand, airlines have adapted their ancillary strategies to align with evolving customer needs and safety requirements. Enhanced hygiene protocols, flexible booking policies, and travel insurance options have become key ancillary offerings, providing reassurance to travelers and addressing concerns related to travel uncertainty and disruptions. Additionally, contactless payment methods and digital vouchers for ancillary services have gained popularity as airlines prioritize touchless and seamless travel experiences in response to the pandemic. Moreover, sustainability and environmental consciousness are emerging as important considerations in the airline ancillary services market in Europe. With increasing awareness of the environmental impact of air travel, passengers are seeking eco-friendly options and sustainable travel alternatives, influencing their preferences for ancillary services. Airlines are responding to this trend by offering carbon offset programs, eco-friendly amenities, and sustainable travel products as part of their ancillary offerings. Additionally, initiatives to reduce single-use plastics, minimize food waste, and promote recycling onboard flights are gaining traction, reflecting a broader industry-wide commitment to sustainability and corporate social responsibility. However, despite the opportunities and advancements in the airline ancillary services market, several challenges remain, including regulatory constraints, competitive pressures, and customer perception issues. Regulatory oversight and consumer protection regulations may limit airlines' ability to implement certain ancillary pricing practices or impose transparency requirements on ancillary fee disclosures. Moreover, intense competition among airlines and online travel agencies can lead to price wars and commoditization of ancillary services, posing challenges for airlines to differentiate their offerings and capture market share effectively. Additionally, negative perceptions of ancillary fees as hidden costs or “nickel-and-diming” tactics by airlines can impact customer satisfaction and brand loyalty, highlighting the importance of transparent pricing practices and clear communication of ancillary value propositions to passengers.

    Market Summary

    The Europe Airline Ancillary Services market is projected to grow significantly from 25.5 USD Billion in 2024 to 45 USD Billion by 2035.

    Key Market Trends & Highlights

    Europe Airline Ancillary Services Key Trends and Highlights

    • The market is expected to achieve a compound annual growth rate of 5.3 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 45 USD Billion, indicating robust growth potential.
    • In 2024, the market is valued at 25.5 USD Billion, reflecting a strong foundation for future expansion.
    • Growing adoption of digital payment solutions due to increasing consumer demand for convenience is a major market driver.

    Market Size & Forecast

    2024 Market Size 25.5 (USD Billion)
    2035 Market Size 45 (USD Billion)
    CAGR (2025 - 2035) 5.3%
    Largest Regional Market Share in 2024 Europe)

    Major Players

    Nestle (CH), Volkswagen (DE), BP (GB), Unilever (GB), Siemens (DE), L'Oréal (FR), Allianz (DE), Daimler (DE), Airbus (FR), SAP (DE)

    Market Trends

    Growing passenger demand is driving market growth

    In Europe, an important factor propelling the expansion of airline ancillary services market CAGR is rising passenger demand. Flying is becoming a more preferred means of transportation in Europe, whether for business or pleasure, as more people get used to flying. Passenger numbers consistently rise as a result of this trend throughout the region. Europe is a major center for corporate travel as well as a popular tourism destination. While Europe's robust economy encourages business travel, the continent's varied cultures and tourist attractions draw big numbers of visitors. The demand for passengers is rising in both groups.

    Moreover, travel expenses are becoming more affordable for consumers as the European economy expands. A greater number of people are flying and requesting a range of services to improve their travel experiences as a result of the rise in leisure travel. Furthermore, more travel options have been made possible by the opening of new routes and the entry of airlines into developing European markets, drawing in more travelers. There are routes to the Balkans, Eastern Europe, and other places.

    The expansion of airline auxiliary services in Europe may be significantly influenced by alliances and partnerships within the aviation sector. Airlines frequently join forces and form alliances with other travel-related organizations, including tour operators, hotels, and car rental agencies. This enables them to provide packaged packages that include lodging, activities, and transportation in addition to airfare. The provision of integrated offerings has the potential to expand the customer base, foster customer loyalty, and stimulate revenue generation from ancillary services such as in-flight meals, seat upgrades, and airport transfers.

    Additionally, through partnerships, airlines are able to advertise their supplementary services alongside those of their alliance partners. When a traveler books a flight, an airline may provide discounts or exclusive offers on things like travel insurance, airport lounges, or car rentals. By encouraging travelers to use extra services, this form of collaboration can increase supplementary revenue. In addition, multinational alliances like SkyTeam, Star Alliance, and oneworld give airlines access to a huge network of travelers and destinations. Opportunities to market and sell supplementary services to a wide range of customers are made possible by this worldwide reach.

    Thus, driving the airline ancillary services market revenue.

    Europe Airline Ancillary Services Market Market Drivers

    Market Segment Insights

    Airline Ancillary Services Applications Insights

    Airline Ancillary Services Applications Insights

    The Europe Airline Ancillary Services market segmentation, based on applications includes Full Service Carrier and Low-Cost Carrier. The full service carrier segment dominated the market mostly. In the airline industry, full-service carriers (FSCs) often offer a wide variety of services and amenities to passengers as part of their main product. To increase income and improve the traveler experience, FSCs also engage in the airline auxiliary services industry. Additionally, passengers can pre-order or buy a variety of meal options, including specific dietary alternatives, from FSCs on board.

    Figure 1: Europe Airline Ancillary Services Market, by Applications, 2022 & 2032 (USD Billion)

    Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

    Airline Ancillary Services Types Insights

    Airline Ancillary Services Types Insights

    The Europe Airline Ancillary Services market segmentation, based on types, includes Baggage Fees, On-Board Retail & A la Carte, Airline Retail, FFP Miles Sale and Others. The baggage fees category generated the most income. Airlines charge extra for checked baggage and extra bags carried on a flight. These payments are known as baggage fees. These additional costs, which differ depending on the airline, the location, and the quantity or weight of the luggage, are in addition to the main ticket price.

    In order to increase income and provide passengers with more flexible fare options, baggage taxes have become a standard practice in the airline business.

    Get more detailed insights about Europe Airline Ancillary Services Market Research Report—Forecast till 2032

    Regional Insights

    The growing number of passengers, airline operators, and non-stop flights have contributed to Europe's airline ancillary services market's substantial market share. Moreover, the fastest increase during the review period is expected to continue in this region. The European region has the third-largest market share in the global market because it is home to several powerful countries, such as Germany, Italy, Sweden, and Russia. The region has numerous growth potential due to the presence of important major players in the area.

    Furthermore, as low-cost airlines frequently depend on these services to increase their profitability, the emergence of these carriers in Europe has further boosted the need for ancillary services. Furthermore, airlines now find it simpler to upsell passengers on supplemental services throughout the booking process because to the growing trend of digitization and online booking platforms. Passengers can now more easily access and see these services as a result. Airlines are likely to look into new ventures and collaborations to improve their ancillary service offerings in light of the constantly changing travel scene.

    This will help to ensure the continued expansion of this sector within the European airline industry.

    Figure 2: EUROPE AIRLINE ANCILLARY SERVICES MARKET SHARE BY REGION 2022 (USD Billion)

    EUROPE AIRLINE ANCILLARY SERVICES MARKET SHARE BY REGION 2022

    Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

    Key Players and Competitive Insights

    Leading market players are investing heavily in research and development in order to expand their product lines, which will help the airline ancillary services market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, airline ancillary services industry must offer cost-effective items.

    Key Companies in the Europe Airline Ancillary Services Market market include

    Industry Developments

    Market Segmentation

    Airline Ancillary Services Types Outlook

    • Baggage Fees
    • On-Board Retail & A la Carte
    • Airline Retail
    • FFP Miles Sale
    • Others

    Airline Ancillary Services Regional Outlook

    • Europe
    • Germany
    • France
    • UK
    • Italy
    • Spain
    • Sweden
    • Denmark
    • Luxembourg
    • Norway
    • Austria
    • Rest of Europe

    Airline Ancillary Services Applications Outlook

    • Full Service Carrier
    • Low-Cost Carrier

    Report Scope

    Report Attribute/Metric Details
    Market Size 2022 significant value
    Market Size 2023significant value significant value
    Market Size 2032 significant value
    Compound Annual Growth Rate (CAGR) significant value% (2023-2032)
    Base Year 2022
    Market Forecast Period 2023-2032
    Historical Data 2018- 2022
    Market Forecast Units Value (USD Billion)
    Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
    Segments Covered Type, Process, Applications, and Region
    Region Covered Europe
    Countries Covered Germany, France, UK, Italy, Spain, Sweden, Denmark, Luxembourg, Norway, Austria, and Rest of Europe
    Key Companies Profiled United Airlines Holdings Inc, American Airlines Group Inc, Delta Air Lines Inc, EasyJet Plc, Deutsche Lufthansa AG, Qantas Airways Ltd, Ryanair Holdings Plc, Southwest Airlines Co, The Emirates, Air France KLM SA
    Key Market Opportunities Improvements to in-flight amenities Industry-wide research and development
    Key Market Dynamics Increasing expansion of the working population  Growing interest in first-class premium economy

    Market Highlights

    Author

    Sejal Akre
    Senior Research Analyst

    She holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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    This is a great article! Really helped me understand the topic better.

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    FAQs

    How much is the airline ancillary services market?

    The Europe Airline Ancillary Services market size was valued at USD significant value Billion in 2022.

    What is the growth rate of the airline ancillary services market?

    The market is projected to grow at a CAGR of significant value% during the forecast period, 2023-2032.

    Who are the key players in the airline ancillary services market?

    The key players in the market are United Airlines Holdings Inc, American Airlines Group Inc, Delta Air Lines Inc, EasyJet Plc, Deutsche Lufthansa AG, Qantas Airways Ltd, Ryanair Holdings Plc, Southwest Airlines Co, The Emirates, Air France KLM SA.

    Which applications led the airline ancillary services market?

    The full service carrier category dominated the market in 2022.

    Which types had the largest market share in the airline ancillary services market?

    The baggage fees category had the largest share in the market.

    1. Table of Contents
    2. Executive Summary
    3. Market Introduction
      1. Definition
      2. Scope of the Study
        1. Research Objective
        2. Assumptions
        3. Limitations
    4. Research Methodology
      1. Overview
      2. Data Mining
      3. Secondary Research
      4. Primary Research
        1. Primary Interviews and Information Gathering Process
        2. Breakdown of Primary Respondents
      5. Forecasting Model
      6. Market Size Estimation
        1. Bottom-up Approach
        2. Top-Down Approach
      7. Data Triangulation
      8. Validation
    5. MARKET DYNAMICS
      1. Overview
      2. Drivers
      3. Restraints
      4. Opportunities
    6. MARKET FACTOR ANALYSIS
      1. Value Chain Analysis
      2. Porter’s Five Forces Analysis
        1. Bargaining Power of Suppliers
        2. Bargaining Power of Buyers
        3. Threat of New Entrants
        4. Threat of Substitutes
        5. Intensity of Rivalry
      3. COVID-19 Impact Analysis
        1. Market Impact Analysis
        2. Regional Impact
        3. Opportunity and Threat Analysis
    7. EUROPE AIRLINE ANCILLARY SERVICES MARKET, BY APPLICATIONS
      1. Overview
      2. Full Service Carrier
      3. Low-Cost Carrier
    8. EUROPE AIRLINE ANCILLARY SERVICES MARKET, BY TYPES
      1. Overview
      2. Baggage Fees
      3. On-Board Retail & A la Carte
      4. Airline Retail
      5. FFP Miles Sale
      6. Others
    9. EUROPE AIRLINE ANCILLARY SERVICES MARKET, BY REGION
      1. Overview
      2. Europe
        1. Germany
        2. France
        3. UK
        4. Italy
        5. Spain
        6. Sweden
        7. Denmark
        8. Luxembourg
        9. Norway
        10. Austria
        11. Rest of Europe
    10. Competitive Landscape
      1. Overview
      2. Competitive Analysis
      3. Market Share Analysis
      4. Major Growth Strategy in the Europe Airline Ancillary Services Market,
      5. Competitive Benchmarking
      6. Leading Players in Terms of Number of Developments in the Europe Airline Ancillary Services Market,
      7. Key developments and Growth Strategies
        1. New Product Launch/Service Deployment
        2. Merger & Acquisitions
        3. Joint Ventures
      8. Major Players Financial Matrix
        1. Sales & Operating Income, 2022
        2. Major Players R&D Expenditure. 2022
    11. COMPANY PROFILES
      1. United Airlines Holdings Inc
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      2. AMERICAN AIRLINES GROUP INC
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      3. DELTA AIR LINES INC
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      4. EASYJET PLC
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      5. Deutsche Lufthansa AG
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      6. Qantas Airways Ltd
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      7. Ryanair Holdings Plc
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      8. SOUTHWEST AIRLINES CO
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      9. THE EMIRATES
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
      10. Air France KLM SA
        1. Company Overview
        2. Financial Overview
        3. Products Offered
        4. Key Developments
        5. SWOT Analysis
        6. Key Strategies
    12. APPENDIX
      1. References
      2. Related Reports
    13.  
    14. List of Tables and Figures
      1. LIST OF TABLES
      2. TABLE 1 EUROPE AIRLINE ANCILLARY SERVICES MARKET, SYNOPSIS, 2018-2032
      3. TABLE 2 EUROPE AIRLINE ANCILLARY SERVICES MARKET, ESTIMATES & FORECAST, 2018-2032 (USD BILLION)
      4. TABLE 3 EUROPE AIRLINE ANCILLARY SERVICES MARKET, BY APPLICATIONS, 2018-2032 (USD BILLION)
      5. TABLE 4 EUROPE AIRLINE ANCILLARY SERVICES MARKET, BY TYPES, 2018-2032 (USD BILLION)
      6. TABLE 1 GERMANY: AIRLINE ANCILLARY SERVICES MARKET, BY APPLICATIONS, 2018-2032 (USD BILLION)
      7. TABLE 2 GERMANY: AIRLINE ANCILLARY SERVICES MARKET, BY TYPES, 2018-2032 (USD BILLION)
      8. TABLE 3 FRANCE: AIRLINE ANCILLARY SERVICES MARKET, BY APPLICATIONS, 2018-2032 (USD BILLION)
      9. TABLE 4 FRANCE: AIRLINE ANCILLARY SERVICES MARKET, BY TYPES, 2018-2032 (USD BILLION)
      10. TABLE 5 ITALY: AIRLINE ANCILLARY SERVICES MARKET, BY APPLICATIONS, 2018-2032 (USD BILLION)
      11. TABLE 6 ITALY: AIRLINE ANCILLARY SERVICES MARKET, BY TYPES, 2018-2032 (USD BILLION)
      12. TABLE 7 SPAIN: AIRLINE ANCILLARY SERVICES MARKET, BY APPLICATIONS, 2018-2032 (USD BILLION)
      13. TABLE 8 SPAIN: AIRLINE ANCILLARY SERVICES MARKET, BY TYPES, 2018-2032 (USD BILLION)
      14. TABLE 9 UK: AIRLINE ANCILLARY SERVICES MARKET, BY APPLICATIONS, 2018-2032 (USD BILLION)
      15. TABLE 10 UK: AIRLINE ANCILLARY SERVICES MARKET, BY TYPES, 2018-2032 (USD BILLION)
      16. TABLE 11 SWEDEN: AIRLINE ANCILLARY SERVICES MARKET, BY APPLICATIONS, 2018-2032 (USD BILLION)
      17. TABLE 12 SWEDEN: AIRLINE ANCILLARY SERVICES MARKET, BY TYPES, 2018-2032 (USD BILLION)
      18. TABLE 13 DENMARK: AIRLINE ANCILLARY SERVICES MARKET, BY APPLICATIONS, 2018-2032 (USD BILLION)
      19. TABLE 14 DENMARK: AIRLINE ANCILLARY SERVICES MARKET, BY TYPES, 2018-2032 (USD BILLION)
      20. TABLE 15 LUXEMBOURG: AIRLINE ANCILLARY SERVICES MARKET, BY APPLICATIONS, 2018-2032 (USD BILLION)
      21. TABLE 16 LUXEMBOURG: AIRLINE ANCILLARY SERVICES MARKET, BY TYPES, 2018-2032 (USD BILLION)
      22. TABLE 17 NORWAY: AIRLINE ANCILLARY SERVICES MARKET, BY APPLICATIONS, 2018-2032 (USD BILLION)
      23. TABLE 18 NORWAY: AIRLINE ANCILLARY SERVICES MARKET, BY TYPES, 2018-2032 (USD BILLION)
      24. TABLE 19 AUSTRIA: AIRLINE ANCILLARY SERVICES MARKET, BY APPLICATIONS, 2018-2032 (USD BILLION)
      25. TABLE 20 AUSTRIA: AIRLINE ANCILLARY SERVICES MARKET, BY TYPES, 2018-2032 (USD BILLION)
      26. TABLE 21 REST OF EUROPE: AIRLINE ANCILLARY SERVICES MARKET, BY APPLICATIONS, 2018-2032 (USD BILLION)
      27. TABLE 22 REST OF EUROPE: AIRLINE ANCILLARY SERVICES MARKET, BY TYPES, 2018-2032 (USD BILLION) LIST OF FIGURES
      28. FIGURE 1 RESEARCH PROCESS
      29. FIGURE 2 MARKET STRUCTURE FOR THE EUROPE AIRLINE ANCILLARY SERVICES MARKET
      30. FIGURE 3 MARKET DYNAMICS FOR THE EUROPE AIRLINE ANCILLARY SERVICES MARKET
      31. FIGURE 4 EUROPE AIRLINE ANCILLARY SERVICES MARKET, SHARE (%), BY APPLICATIONS, 2021
      32. FIGURE 5 EUROPE AIRLINE ANCILLARY SERVICES MARKET, SHARE (%), BY TYPES, 2021
      33. FIGURE 6 EUROPE AIRLINE ANCILLARY SERVICES MARKET, SHARE (%), BY REGION, 2021
      34. FIGURE 7 EUROPE AIRLINE ANCILLARY SERVICES MARKET: COMPANY SHARE ANALYSIS, 2021 (%)
      35. FIGURE 8 UNITED AIRLINES HOLDINGS INC: FINANCIAL OVERVIEW SNAPSHOT
      36. FIGURE 9 UNITED AIRLINES HOLDINGS INC: SWOT ANALYSIS
      37. FIGURE 10 AMERICAN AIRLINES GROUP INC: FINANCIAL OVERVIEW SNAPSHOT
      38. FIGURE 11 AMERICAN AIRLINES GROUP INC: SWOT ANALYSIS
      39. FIGURE 12 DELTA AIR LINES INC: FINANCIAL OVERVIEW SNAPSHOT
      40. FIGURE 13 DELTA AIR LINES INC: SWOT ANALYSIS
      41. FIGURE 14 EASYJET PLC: FINANCIAL OVERVIEW SNAPSHOT
      42. FIGURE 15 EASYJET PLC: SWOT ANALYSIS
      43. FIGURE 16 DEUTSCHE LUFTHANSA AG: FINANCIAL OVERVIEW SNAPSHOT
      44. FIGURE 17 DEUTSCHE LUFTHANSA AG: SWOT ANALYSIS
      45. FIGURE 18 QANTAS AIRWAYS LTD: FINANCIAL OVERVIEW SNAPSHOT
      46. FIGURE 19 QANTAS AIRWAYS LTD: SWOT ANALYSIS
      47. FIGURE 20 RYANAIR HOLDINGS PLC: FINANCIAL OVERVIEW SNAPSHOT
      48. FIGURE 21 RYANAIR HOLDINGS PLC: SWOT ANALYSIS
      49. FIGURE 22 SOUTHWEST AIRLINES CO: FINANCIAL OVERVIEW SNAPSHOT
      50. FIGURE 23 SOUTHWEST AIRLINES CO: SWOT ANALYSIS
      51. FIGURE 24 THE EMIRATES: FINANCIAL OVERVIEW SNAPSHOT
      52. FIGURE 25 THE EMIRATES: SWOT ANALYSIS
      53. FIGURE 26 AIR FRANCE KLM SA: FINANCIAL OVERVIEW SNAPSHOT
      54. FIGURE 27 AIR FRANCE KLM SA: SWOT ANALYSIS

    Europe Airline Ancillary Services Market Segmentation

    Market Segmentation Overview

    • Detailed segmentation data will be available in the full report
    • Comprehensive analysis by multiple parameters
    • Regional and country-level breakdowns
    • Market size forecasts by segment
    Infographic

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