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The global agritourism market size was valued at USD 69.24 billion in 2019 and is projected to reach USD 117.37 billion by 2027, exhibiting a CAGR of 7.42% during the forecast period. Europe dominated the global market with a share of 47.06% in 2019.
The shift of behavior towards entrepreneurship among farmers around the globe is significantly influencing the agritourism sector. In addition, the global market is expanding rapidly on account of the rising adoption of relevant strategies by the governments of various economies to boost the revenue from agriculture, as well as the tourism industry. The growing consumer demand for economical, nature-based, and sustainable tourism among tourists is acting as a crucial driving force for the market. Moreover, the increasing initiatives by governments, private organizations, and associations to develop a strong industry by launching agritourism projects and programs will further boost agritourism market growth.
Increasing Demand for Agri-food Tourism is Emerging as a Significant Market Trend
Agri-food tourism is getting rapid recognition across several communities and is expanding at a significant pace. Agri-food tourism has a great potential to augment the earnings and profitability of agritourism farm owners, along with promoting their regional or local cuisines. In agri-food tourism, visitors are allowed to tour rural areas and farms and taste specialty food produced or prepared by the locals of the place. Agri-food tourism allows agrotourism farms to display their history, culture, and landscape through local cuisine, food and drinks, and agricultural products. Furthermore, agri-food tourism enables producers, artisans, and farmers to improve their skills and develop their brands and products among local visitors, as well as tourists coming from overseas. Furthermore, the rapid growth in urbanization and increasingly busier lifestyles have been shifting consumer expenditure behavior, which has fueled the curiosity towards fresh-produced food and rural and farm life among the urban population, thus being a significant factor driving the growth of agritourism in the global market.
Many agrotourism farms began to follow sustainable farming practices and prioritize environmental protection activities. Farmers often implement practices such as organic farming, agroforestry, water conservation, and biodiversity conservation. The visiting tourist population gains a better understanding of the practices adopted and their importance to the ecosystem.
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Governmental Support to Agritourism is Projected to Strengthen Growth
Governments across various economies are focusing on improving the agriculture economy by promoting agritourism, which is predicted to be a crucial growth-driving factor for the market. The government emphasizes the connection between nature, agriculture, and well-being under the agrotourism concept. The government is implementing policies to support the agrotourism concept, which includes financial incentives, infrastructure development, training and capacity building, collaboration with stakeholders, public-private partnerships, and promotional campaigns.
Moreover, the incorporation of agritourism departments and the launch of agro-tourism projects by the governments of different economies are expected to further augment the global market size.
Enhancement of the Rural Economy Through This Tourism is Positively Influencing Growth
High revenue generation associated with tourism and recreational activities at the agricultural farms is significantly driving the market. Farm owners are getting increasingly inclined towards developing their properties into agriculture tourism destinations to achieve higher revenues.
For farmers suffering from losses due to lower crop productivity, investing in the agriculture tourism business is becoming a significant option to support their livelihood and boost income, which is further projected to augment market growth across the globe.
Some agrotourism destinations were integrating technology to enhance the visitor experience. This included online booking platforms, virtual farm tours, and mobile apps providing information about the farm and its activities.
Prevalence of Less Organized Industry Across Developing Economies to Hinder Growth
A major restraint for the growth of the agritourism market is its unorganized structure. The concept of agrotourism is niche and it lacks legal definition across several economies, which is restricting the speedy growth of the market. The lack of awareness about these types of tourism destinations and the lower number of established tour agritourism operators in this industry, especially across the developing countries is acting as a major obstacle for the market growth.
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Event & Recreation Segment to Lead Attributed to Rising Consumer Interest in Rural Holidays
The event & recreation segment is expected to hold a prominent share of the global market. This can be attributed to a significant increase in the demand for recreational tours & activities at farms and at places that have a rural ambiance. The growth of on-farm recreation through the commencement of generic and specialized activities such as tours in orchard farms, fishing, and tea garden visits for leaf-picking in the western economies is beneficial for the segment’s growth. The rising number of comfortable and well-equipped farm stays in the rural areas across developed, as well as developing economies is playing a crucial role in luring tourists to spend their leisure at these places.
The direct-market segment is projected to exhibit a significant rise during the forthcoming years due to the increasing government investments and efforts to boost the agricultural economy through farm product sales. Many tourists who admire the rural lifestyle prefer to purchase farm products and services during their visits to farms to help boost the economy of farmers. In recent years, it has been observed that farm owners are inclined towards offering a range of fresh farm-grown products such as fruits, vegetables, and others to visitors to give a boost to their income. The factor is expected to accelerate the growth of the direct-market segment crucially.
Europe Agritourism Market Size, 2019 (USD Billion)
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Europe to Dominate the Global Market Due to Presence of an Abundance of Agritourism Destinations
At present, Europe holds the dominant agritourism market share in the global market, and the region is predicted to lead throughout the forecast period. The presence of countries such as the U.K., France, Italy, Belgium, Croatia, Germany, and others where farm and agriculture tourism has gained significant recognition in the past decades is contributing significantly to aiding the market growth of the region. The presence of an abundance of dispersed and small-scale agribusiness and farms in the European countries, which are mostly family-owned, is a huge opportunity for the development of agrotourism business within Europe. Moreover, the legalization and formal recognition of this particular tourism by countries such as Italy is fueling the market across the region. In the forthcoming years, the adoption of sophisticated marketing systems for agritourism, the amplification of the product range sold at farms, and the extensive governmental support can immensely boost the market within Europe.
Asia Pacific is expected to be the fastest-growing region in the global market. This can be attributed to the presence of agri-dominant countries such as China and India within the region. The government across the aforementioned countries and other Southeast Asian countries are intensifying their efforts to develop the agrotourism business to improve the agricultural and tourism economy remarkably. High investment by the government in the sector, coupled with the increased involvement of private and semi-government organizations in this business can fetch abundant success to the industry of Asia Pacific in the upcoming years. Furthermore, the swiftly growing industry in Australia is playing a significant role in augmenting the market size across Asia. The increasing preference of domestic tourists and tourists from overseas to visit Australia for rural holidays and farm stays is expected to boost this market in Australia.
Expansion of Businesses across Various Countries to Aid Them in Intensifying Competition
The global agritourism market is highly fragmented due to the presence of a large number of small and large market key players existing in different regions of the globe. Select Holidays, STAR Destinations, Liberty Hill Farm, and Stita Group are some of the well-established agrotourism firms that offer farm stays and other activities. One of the primary reasons for the high fragmentation within the market is its varying technical definitions across different countries and regions. In the forthcoming years, the market is expected to showcase increased consolidation due to the rising collaboration between agrotourism firms and the rising number of acquisitions and partnerships.
Suspension of Travel & Tourism Activities Reported Worldwide
The current global outbreak of COVID-19, followed by lockdowns across several economies is impacting almost all the industry and this market is no exception. Tourism is one of the worst-hit industries that is facing severe economic loss. For instance, as per the report published by the International Monetary Fund in December 2020, the tourism industry is one of the most adversely affected industries due to the pandemic. In addition, the report mentions that tourist arrivals fell globally by around 65% in the first half of 2020. The crisis is expected to continue in the upcoming months due to the complete or partial suspension of all travel and tourism activities across several economies. The uncertainty associated with the situation is making it difficult to predict the market statistics for this agritourism industry for the future years, however, with improvement in the situation, the market is expected to revive at a decent pace. The spread of the virus in urban set-ups, where the population is dense is high, which is predicted to motivate travelers in the upcoming time to opt for rural and nature tourism for refreshments. This will help the market to grow.
The market research report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of its types for which they are used, their market size, and the growth rate for all possible segments in the market.
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Along with this, the report provides an elaborative analysis of the market dynamics and the competitive landscape. Various key insights presented in the report are an overview of the related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.
Value (USD Billion)
Fortune Business Insights says that the agritourism market size was valued at USD 69.24 billion in 2019 and is projected to reach USD 117.37 billion by 2027.
Registering a CAGR of 7.42%, the market will exhibit steady growth during the forecast period (2020-2027).
The event & recreation is expected to be the leading type segment with major market share during the forecast period.
The increasing promotion and advertisement of farm tourism by the farm owners and the governments is expected to aid the growth of the market.
Liberty Hill Farm, Star Destinations, Select Holidays, Blackberry Farm, and Stita Group are few of the top players in the global market.
Europe is expected to hold the highest market share throughout the forecast period.
Rising interest of consumers in on-farm tourism or farm stays is one of the major market growth drivers.
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