Agritourism Market Size, Share & COVID-19 Impact Analysis, By Type (Direct-market, Education & Experience, and Event & Recreation), and Regional Forecast, 2020-2032

The global agritourism market size was valued at USD 69.24 billion in 2019 and is projected to reach USD 197.37 billion by 2032, exhibiting a CAGR of 8.88% during the forecast period based on our analysis in the existing report. Europe dominated the agritourism market with a market share of 47.07% 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.

AGRITOURISM MARKET TRENDS

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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DRIVING FACTORS

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.

• For instance, in Thailand, the Ministry of Agriculture and Cooperatives works closely with the Ministry of Tourism and Sports to promote domestic agriculture tourism, as well as to encourage local tourism across the country.

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.

• For instance, in 2005, the Agri Tourism Development Corporation was incorporated in India with a focus on encouraging farmers to take up agriculture tourism, conducting research & training programs for them, and various other industry-related activities.

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 instance, according to the Census of Agriculture data, agrotourism revenues from farms tripled between the years 2002 and 2017 in the U.S.

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.

RESTRAINING FACTORS

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.

AGRITOURISM MARKET SEGMENTATION ANALYSIS

By Type Analysis

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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.

REGIONAL INSIGHTS

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.

KEY INDUSTRY PLAYERS

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.

COVID-19 Impact Analysis

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.

LIST OF KEY COMPANIES PROFILED:

• Liberty Hill Farm - United States


• Harvest Travel International – United States


• Farm to Farm International – New Zealand


• STAR Destinations – United States


• Stita Group – United Kingdom


• Select Holidays – Canada


• Agritours Canada Inc. – Canada


• Kisima Safaris – Kenya


• Field Farm Tours Limited – United Kingdom


• Greenmount Travel - Australia

KEY INDUSTRY DEVELOPMENTS:

• In August 2023, the Pacific Agritourism Conference organized by the members of the Global Agritourism Network Pacific Committee and Global Sustainable Tourism Council aimed to boost agritourism in the Pacific with the help of indigenous voices.


• In April 2023, Assisi Aid Projects Australia announced the launch of its new short-term project called as Jajal Wae Sustainable Agri-Tourism in partnership with Dreamdelion Indonesia. The project is aimed at empowering women in rural Indonesia to build their economic stability and growth through agritourism.


• In April 2023, leading practitioners, experts, and scholars of agritourism joined hands to form the Global Agritourism Network (GAN) to assist and fuel the market growth further. The network will consist of researchers, farmers, agriculture producers, educators, government entities, and others, which will further assist in the development of the industry.


• In December 2022, the URD, a global leader in sustainable infrastructure development, announced its plan to build one of the largest decarbonized agritourism hubs in Dubai. As per the reports published by the company, the project is said to create 10,000 jobs, provide security and entertainment, and further fuel the growth of tourism in Dubai.


• In October 2022, the U.S. Department of Agriculture (USDA) announced USD 64 million in grant awards to strengthen local & regional food systems. The fund will be distributed through the Local Agriculture Market Program’s (LAMP) Farmers Market and Local Food Promotion Programs (FMLFPP) and the Regional Food System Partnerships (RFSP) grant program. Agrotourism is one of the project fields along with other fields will receive funds for infrastructure development.


• In November 2021, the Scottish government announced the launch of its agritourism strategy called Scottish Agritourism 2030 – The Strategy for Sustainable Growth at its Scottish Agritourism Conference. The new strategy aims to build sustainable economic development in rural areas, protect family farms in the country, and build consumer awareness and other factors that will further fuel the growth of the agritourism industry.


• In September 2021, Kerala, a tourism-driven state in India, announced the launch of its Agri Tourism Network to build a better farm tourism infrastructure and assist in the growth of agri tourism in the state.

Report Coverage

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.

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