Agritourism Market By Visitors (Domestic & International), Activity (On-farm Sales, Outdoor Recreation, Entertainment, Educational Tourism, and Accommodations), and Sales Channel (Travel Agents & Direct Sales), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023 - 2032
Market Perspective
The global Agritourism Market is set to grow at a CAGR of roughly 6.62% between 2023 and 2032, with a projected market value of USD 118.63 billion by 2032 from USD 62.49 billion in 2022. This growth can be attributed to changes in farmer behavior and the global trend towards entrepreneurship, as well as the increasing popularity of farm activities and rural lifestyles among visitors.
Agritourism businesses are those that combine farm activities with tourism and include activities such as herb walks, corn mazes, breweries, barn dances, and agricultural museums and displays. Other activities, such as bird watching, farm cooking competitions, cutting flowers, and farm stores, are also popular. This type of tourism offers visitors the opportunity to experience agricultural activities, rural lifestyles, and the peaceful natural environment that is often difficult to find in urban areas.
Farmers are adopting agritourism as it provides an additional source of income while they continue to produce food, and it encourages greater sustainability. This type of tourism is affordable, and there is a growing demand for family-friendly recreation spaces, as well as a growing interest among young people in agricultural pursuits.
The growth of the global is not limited to a particular region, as it is a trend that is being observed across the world. With more and more people looking for unique and innovative ways to relax and unwind, agritourism offers a great opportunity for farmers to diversify their income streams while also promoting their local area and culture.
Key Insights
- Based on visitors, the domestic segment held the largest market share
- Based on activity, the outdoor recreation segment dominated the market
- Based on sales channel, the direct sales segment generated the highest revenue
- On the basis of region, North America accounted for the largest market share
Rising Focus on Rural Development is Propelling Agritourism Market Growth
Agritourism has emerged as a significant opportunity for farmers to gain a competitive edge and capitalize on the unique aspects of their farms and agricultural lifestyle. This trend has become a key driver of the market's growth, along with increased attention being paid to rural development. Agritourism offers a wide range of farm activities, such as wildlife photography, wagon or sleigh rides, horseback riding, sheep shearing, fishing, cooking lessons featuring farm-fresh ingredients, outdoor farm stays, harvest festivals, narrated animal tours, and historical re-enactments.
Moreover, farms are increasingly being used as venues for special occasions like weddings, gatherings, and private parties. These activities are helping the market expand, along with the growing interest in agritourism in multiple countries around the world. In addition, while visiting farms, tourists are drawn to the rural way of life and often purchase genuine farm goods and services. This is expected to create a positive outlook for the market in the coming years, along with the growing popularity of pick-your-own fruit activities.
Growing Support of Government for Agritourism
Governments around the world are increasingly recognizing the potential of agritourism to boost their agricultural economies and are actively promoting the sector. This has become a key driver of growth in the industry, as more American farmers and ranchers, as well as small- to medium-sized farms, are turning to agritourism to remain competitive. In addition to generating revenue from leisure or educational activities, agritourism can help preserve agricultural heritage, revitalize rural economies, and promote agriculture to the public.
Many countries and businesses are also placing a strong emphasis on agricultural campaigns and events to increase public awareness of agritourism. For instance, the Philippine Department of Tourism launched the "It's More Fun in Philippine Farms" campaign in 2017, which significantly raised awareness of inbound agritourism in the country. The Philippine government also passed the Farm Tourism Development Act in 2016 to advance and grow farm tourism in the country. As governments and businesses continue to focus on promoting and developing the agritourism sector, the outlook for the industry is positive, with strong growth potential in the years to come.
Recent Development
In February 2023: Montana State University (MSU) announced its 14 applicants for the Agritourism fellows program. These individuals include farmers from all throughout Montana, business leaders in the agricultural sector, and a Department of Agriculture representative.
Segmentation Analysis
The agritourism market can be segmented based on visitors and activities. When it comes to visitors, the market is divided into domestic and international. The domestic segment holds a major market share as agri-food tourism is gaining popularity in many regions. Agritourism farms are taking advantage of this trend by promoting local and regional cuisines, which can significantly boost their profitability.
Visitors from urban areas are keen to explore rural communities and farms to experience local specialties as part of agri-food tourism. This enables agrotourism farms to highlight their culture, history, and surroundings through local beverages, cuisine, and agricultural products. Furthermore, artisans, producers, and farmers can expand their brands and products in front of both domestic and foreign tourists through agri-food tourism. As domestic travelers are increasingly choosing to spend more time in rural areas and stay on farms, the market is expected to continue to grow.
By activities, the market can be segmented into on-farm sales, outdoor recreation, entertainment, educational tourism, and accommodations. The outdoor recreation segment currently dominates the market share as tourists are becoming more interested in leisure activities such as fishing, horseback riding, hiking, and hunting, among others. The market growth is expected to accelerate in the projected period due to the lower risk level and growing popularity of outdoor leisure among millennials and children. Moreover, the rising interest in agritourism among older age groups and the increasing desire for adventure activities are additional factors that are expected to contribute to the market's expansion.
By sales, the market is divided into two categories: travel agents and direct sales. During the forecast period, the direct sales segment is expected to grow significantly due to an increasing number of trips and travel packages offered by travel agencies. This growth is driven by a focus on meeting the financial and comfort needs of tourists worldwide. Additionally, more tourists are choosing to purchase their travel packages and tours directly, as it offers greater convenience and a more personalized experience.
Industry initiatives such as online campaigns and social media advertising are expected to further encourage customers to book directly, leading to accelerated market expansion. The growth of the direct sales segment is projected to continue playing a vital role in driving the overall expansion of the travel market.
North America is Dominating the Market Share Due to Increasing Government Support
North America has dominated the market share due to several factors. Firstly, the increasing income levels across the region have led to a rise in demand for farm tourist activities. Secondly, the improving business climate in Canada and the US has created a favorable environment for the expansion of the industry. Additionally, governmental initiatives to promote farm tourist activities have contributed to the growth of the market.
Furthermore, farmers in the region are increasingly diversifying their activities by incorporating supplemental enterprises and revenue sources into their routine farming activities. This trend is expected to drive market expansion during the forecast period. Moreover, the United States is actively promoting farm tourism by encouraging people to visit its farms and agro-based enterprises, providing hands-on experiences and showcasing how production is handled. This strategy is expected to accelerate market expansion by attracting more visitors to the region.
Asia Pacific is the Fastest Growing Market Due to the Strong Presence of Largscale Agricultural Economies
The Asia Pacific region is currently the fastest-growing market for agritourism. This growth can be attributed to the active participation of governments in the region, which are making efforts to increase the size of the agriculture tourism industry to foster economic and job growth. Additionally, there is a growing trend of urban families and individuals visiting agrotourism farms, which is driving the market growth. These farm visits provide an opportunity for families to spend quality time together while learning about local culture and enjoying the countryside.
Moreover, the increasing living standards and rising spending power in the region are significant factors fueling consumer interest in the agritourism sector, which is driving market expansion. As people have more disposable income and an increased desire for unique experiences, they are looking for ways to explore the region's rural areas and learn about local farming practices.
Competitive Landscape
- Agricultural Tour Operators International
- Agrilys Voyages
- Blackberry Farms, LLC.
- Greenmount Travel
- Farm To Farm Tours
- Star Destinations
- G T I Travels Private Limited
- Trump Tours Inc.
- Kansas Tourism
- Field Farm Tours
The global agritourism market is segmented as follows:
By Visitors
- Domestic
- International
By Activity
- On-farm Sales
- Outdoor Recreation
- Entertainment
- Educational Tourism
- Accommodations
By Sales Channel
- Travel Agents
- Direct Sales
By Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic countries
- Denmark
- Finland
- Iceland
- Sweden
- Norway
- Benelux Reunion
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Agritourism Market By Visitors
- February-2023
- 148
- Global
- agritech
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