The global agritourism market size was worth USD 45,395 million in 2021. It is estimated to reach an expected value of USD 141 billion by 2030, growing at a CAGR of 13.4% during the forecast period (2022–2030).
Agritourism is generally defined as visiting a working agricultural setting for leisure, recreation, or educational purposes. These usually include farm-based recreational activities. Agritourism is a part of tourism activities. It consents visitors to advance the knowledge of agriculture and escalate the exclusive rural lands and can be seldom liked as rural or farm tourism. Agritourism is generally indorsed in terms of a policy for protecting agricultural capitals and providing economic and social benefits.
Agritourism is a subset of rural tourism, and rural tourism is a considerable part of travel and tourism. The growth of the travel and tourism industry is likely to favor the development of the agritourism market during the forecast period. For instance, according to the World Tourism Organization, 1,440 million international tourist arrivals were recorded in 2018, increasing to 1,500 million international tourist arrivals. The growing popularity of agritourism activities, including farm stays, agritainment, and outdoor recreation, increasingly attracts tourists to agritourism centers.
Farmers have been strongly urged to adopt agro-allied businesses to supplement their income. Agri-allied businesses are business activities that can be carried out along with farming without investing more money. It includes agritourism, animal husbandry, dairying, and fishing. Farmers are recommended by Agriculture organizations and farmer's welfare organizations, and governments to have an agro-allied business along with farming, owing to benefits associated such as these businesses increase farm revenue instead of depending on one source, for example, a farmer keeping fish and growing maize is better than a farmer who grows maize only. The government provides financial assistance and technical guidance to farmers to improve their condition of the farmers. Many farmers commit suicide for not getting reasonable prices for their farm produces.
Most agritourism is not yet commercialized due to a lack of proper technical and financial guidance and assistance. Agritourism needs to have advertisement and marketing strategies to commercialize its status at the global level. With the current status of agritourism, most agritourism is facing electricity and accommodation challenges, which is expected to hamper the growth of the agritourism market during the forecast period.
The pollution-free environment, fresh foods, recreational activities, and other health benefits related to agritourism encourage people to opt for inbound and outbound agritourism actively. The on-farm farmer's markets, U-Pick operations, pumpkin picking patches, and various other operations associated with agritourism allow tourists to choose fresh fruits directly from farms, which attracts many people toward agritourism.
| Study Period | 2018-2030 | CAGR | 13.4% |
| Historical Period | 2018-2020 | Forecast Period | 2022-2030 |
| Base Year | 2021 | Base Year Market Size | USD 45,395 Million |
| Forecast Year | 2030 | Forecast Year Market Size | USD 141 Billion |
| Largest Market | North America | Fastest Growing Market | Asia Pacific |
By region, the global agritourism market share is segmented across North America, Europe, Asia-Pacific, and LAMEA.
North America holds the most commanding position in the market. It is estimated to reach an expected value of USD 29,080 billion by 2030 at a CAGR of 11.3%. The broad penetration of agritourism services in the US, Canada, and Mexico act as a catalyst in creating dominance. The growing consumer demand for economical, nature-based, and sustainable tourism among tourists drives the agritourism market. Agritourism is an untapped market and is gaining significant popularity. Therefore, many tourism services providing companies are increasingly entering the agritourism segment, which further bolsters the growth of the agritourism market during the forecast period.
The development of new innovative agritourism activities, commercialization of agritourism, and luxury farm stay accommodations are likely to attract tourists to agritourism centers. Growing tourist arrivals in North America further adds to the growth of the market in the region. For instance, according to a report published by the World Tourism Organization, North America gained a 16% share in 2019 for international tourism arrivals, which accounts for 216 million tourist arrivals.
Asia-Pacific is the fastest-growing region in the market. It is estimated to reach an expected value of USD 22,240 billion by 2030 at a CAGR of 16.9%. Asia-Pacific is an emerging and fast-growing market for agritourism. Countries are selected based on the production countries in this region, including China, India, Japan, Australia, Pakistan, Indonesia, Thailand, and the Rest of Asia-Pacific. Asia-Pacific has gained a considerable share in the global market for agritourism and is expected to sustain its claim during the forecast period. This is attributed to the government's growing financial and technical support for agritourism and increased demand for local food.
Furthermore, educational agritourism is an emerging segment of agritourism in which people are taking agritourism and rural tourism as the subject for study and R&D purposes. Many agritourism suppliers, along with the support of government officials, are promoting agriculture in the academic curriculums of schools and universities.
Europe stands second in the global agritourism market. It is estimated to reach an expected value of USD 27,090 billion by 2030 at a CAGR of 12.5%. Some of the major European countries are Germany, the UK, France, Russia, Italy, Spain, Finland, and the rest of Europe. The demand for agritourism is increasing significantly, owing to the rise in awareness of agritourism's mental and physical health benefits among consumers.
The Europe market for agritourism is experiencing impressive growth due to its establishment as a viable alternative to sustainable development and its ability to uncover new market opportunities for farm products and services. The surging demand of tourists for unspoiled destinations and personalized services in a natural environment also catalyzes the need for the agritourism European region. Italy has long been regarded as the world leader in agritourism. Three main criteria for its success were of particular interest to the Fellow –broad and innovative product range, sophisticated marketing systems, and, most importantly, extensive government support.
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The global agritourism market share has been segmented across activity, sales channels, and regions.
By activity, the global market is categorized into on-farm sales, outdoor recreation, agritainment, educational tourism, accommodations, and others.
The on-farm sales hold the most dominant position in the market. It is estimated to reach an expected value of USD 49,790 billion by 2030 at a CAGR of 12.7%. On-farm sales have been gaining a significant share in the global market for agritourism and are expected to sustain their share during the forecast period. This is attributed to the growing commercialization of the agritourism centers and the rise in demand for local food and handmade products. For commercialization of the agritourism centers, farm owners invite traditional craftspeople, traditional dresses and costume designers, and local specialty products. For instance, Rajasthan, India, is specialized and famous for Rajasthan Jodhpuri dresses.
A rise in demand for local food items and other non-food items and curiosity to know about the customs and traditions of the villages are likely to increase the growth of the agritourism market through the on-farm sales segment. Furthermore, pick your operations are gaining considerable popularity in agritourism. Farm visitors can go to the farm and select your farm products, which is fascinating to tourists.
The outdoor recreation segment holds the second-largest position in the market. It is estimated to reach an expected value of USD 17,825 billion by 2030 at a CAGR of 13.9%. Various outdoor recreation activities include hunting, fishing, horseback riding, hiking, camping, canoeing, kayaking and rafting, cross-country skiing, and picnicking and abseiling. Outdoor recreation or outdoor activity implies recreation engaged out of doors, most commonly in the natural environment. It includes nature-based tourism, camps, outdoor education, adventure therapy, and a full range of outdoor recreational activities such as cycling, fishing, bushwalking, canoeing, surfing, climbing, etc.
Outdoor recreation is gaining significant traction among tourists, owing to benefits such as prevention or reduction of stress, improved self-esteem, spiritual growth, and an increased sense of exhilaration. It improves mental health and physical health, including an enhanced immune system and the prevention of heart-related problems. Owing to these factors, its market is growing at the highest growth rate. For instance, according to the Bureau of Economic Analysis, the new US data show that the outdoor recreation economy accounted for 2.1% (USD 459.8 billion) of current-dollar gross domestic product (GDP) for the nation in 2019.
Accommodations are the fastest-growing segment in the market and are estimated to reach an expected value of USD 5,965 billion by 2030 at a CAGR of 18%. A farm stay (or farm stay) is the accommodation on a working farm. Some farm stays may be interactive. Some are family-focused, offering children opportunities to feed animals, collect eggs, and learn how a farm functions. Others do not allow children and instead provide a peaceful retreat for adults. Guests usually pay rates similar to area bed and breakfasts or vacation rentals for the accommodations, although pricing varies considerably.
Growth in disposable income, the standard of living, increase in demand for local food, and experiential rural lifestyle are significant drivers for developing accommodations on-farm or farm stays. Farm stays segment in agritourism has been growing at the highest growth rate and is expected to continue its growth rate during the forecast period. An increase in commercialization of agritourism and improvement in the accommodation facilities on-farm are further attracting visitors, which is expected to contribute to the market's growth. Due to the commercialization and marketing of agritourism, people can find nearby agritourism centers and book their family, couple, or individual farm stays.
Other activities in agritourism include hospitality services, events, trade, and exhibitions. For instance, events such as art shows, historical or culturally themed festivals (e.g., cowboy poets), and living history events. Growth in demand for innovative services is likely to attract tourists to agritourism. It is expected to increase the service value of agritourism, which can be further used for advertisement and marketing purposes.
Hospitality services in agritourism are becoming very famous as farm owners or agritourism owners offer commercialized hospitality services to their clients along with required facilities needed for the client's function or ceremony—hospitality services such as weddings, functions, restaurants, and social events. Growth in the popularity of agritourism and improvement in the assistance given by agritourism centers is likely to increase the development of the agritourism market through other agritourism activity segments.
Depending on the sales channel, the global market for agritourism is segregated into travel agents and direct.
The travel agents segment was the highest contributor to the market. It is estimated to reach an expected value of USD 30,070 billion by 2030 at a CAGR of 13.1%. Travel agents offer various attractive discounts, special rates, insider information, and special offers that help them provide the highest levels of expert advice for their customers. The travel agents segment has gained the highest share in the agritourism market and is expected to sustain its claim during the forecast period.
Since this market is a niche and emerging concept, very few people are aware of the concept of agritourism. In such a scenario, travel agents play a dual role, including advertiser and seller of agritourism packages. Most tourists use travel agents or agencies to book their holiday vacation trips due to benefits such as time and money-saving, perks, travel assistance, and travel recommendations. For instance, travel agents who book a high volume of trips often have access to perks that customers might not be able to get on their own. Travel agents often add perks to customer vacation plans, whether a room upgrade, a fee waiver, or even reservations at a hot resort or on a popular tour.
The direct sales channel is estimated to reach an expected value of USD 31,620 billion by 2030 at a CAGR of 14%. Agritourism's direct sales channel is expected to grow at the highest CAGR, owing to the increasing use of the internet for online booking and searching for information. The availability of data on the internet regarding agritourism and facilities to book holiday vacation trips with a single click is likely to increase the market for agritourism through the direct sales channel segment. People find as much information about agritourism and other tourism spots on the internet and through phone calls as they do not need a travel agent's guidance.
