The increasing number of government efforts targeted at promoting agritourism as a means of supporting the agricultural economy is expected to propel the global agritourism market into extraordinary growth in the years to come. As per the latest report by Fortune Business InsightsTM, "Agritourism Market Size, Share & Industry Analysis, By Type (Direct-market Agritourism, Education & Experience Agritourism, and Event & Recreation Agritourism), and Regional Forecast, 2020 – 2032," the market for agritourism was assessed to be worth USD 69.24 billion in 2019 and is anticipated to grow at a compound annual growth rate (CAGR) of 8.88% between 2020 and 2032.
Businesses that combine farming and tourism for leisure and amusement are referred to as being in the agritourism industry. Agritourism can be referred to by a number of names, including farm tourism, agricultural tourism, sustainable agriculture, and village tourism. Agritourism encompasses many different activities, such as barn dances, bicycle paths, bird viewing, breweries, corn mazes, cut flowers, farm cuisine competitions, farm stores, and herb walks.
Individuals are discovering more and more creative and novel approaches to amusement and relaxation in their lives, as well as alternative travel and lodging options in rural places. One such method is agritourism, which opens up new travel opportunities by allowing people to experience farm activities, a rural lifestyle, and a peaceful, green environment that are difficult to find in cities.
Information Source: https://www.fortunebusinessinsights.com/agritourism-market-103297
Drivers & Restraints-
Farmers Convert Properties into Agritourism Attractions to Promote Growth
Across the globe, tourism and recreational activities play a major role in the substantial income that farms provide. As a result, a lot of farmers these days are rapidly developing their properties into tourist destinations for agricultural tourism. This is a major factor propelling the agritourism industry's expansion. For instance, according to Census of Agriculture data, agritourism-related farm profits in the United States tripled between 2002 and 2017. This illustrates how investments in agrotourism are rising swiftly, despite farmers suffering significant financial losses as a result of low agricultural yield.
How will COVID-19 Pandemic Impact the Global Market?
- The present outbreak of the COVID-19 pandemic has severely impacted the tourism sector.
- Lockdown measures, as well as the complete halt in transportation in many countries across the globe have majorly affected this industry.
- The market statistics is unpredictable owing to the uncertainty associated with this situation.
- But, the growth is likely to revive in the near future stoked by the improvements in this situation.
Segment-
Direct-market Agritourism Segment to Gain from Rising Sales of Farm Products
In terms of type, the direct-market agritourism segment generated 36.06% in terms of agritourism market share. This growth is attributable to the rising government investments to enhance the agricultural economy. The agencies are aiming to surge sales of farm products to achieve their goals. Many tourists admiring the rural lifestyle are seeking to purchase authentic farm products and services while visiting the farms. It would further help in augmenting the economy of farmers. Since the past few years, several farm owners have been offering a wide range of vegetables, fruits, and other farm-grown products to tourists. This factor would also contribute to the growth of this segment in the coming years.
Regional Analysis-
Europe will continue to lead thanks to the implementation of novel marketing techniques.
Geographically, Europe brought in USD 32.59 billion in sales in 2019 and is predicted to hold the top spot in the industry going forward. The main cause of this increase is the growing popularity of on-farm agritourism among domestic and international tourists for both leisure and educational objectives. Furthermore, the market in the region would grow as a result of the government's strong support, farmers' growth of their product lines, and their adoption of cutting-edge marketing strategies to enhance sales of agricultural goods and services.
Competitive Landscape-
Key Companies Engage in Collaborative Efforts to Gain Competitive Edge
The market is highly fragmented with the presence of numerous small, medium, and large sized companies operating from various parts of the world. They are mainly focusing on collaborating with local start-ups to promote their businesses and generate more income for the farmers. Below are two of the significant industry developments:
- 2019: Field Farm Tours, specialist in the organization of farming based tours worldwide headquartered in the U.K., organized the Devon World Conference, IFMA Pre & Post Tours, World Charolais Congress, Red Poll World Conference, and the 4th World Guernsey Conference to accelerate its revenue and strengthen their position.
- January 2017: Stayzilla, a homestay network in India, joined hands with the Agri Tourism Development Company (ATDC) to promote agritourism home stays in the country. It would help the company in broadening its footprint in the field of rural tourism.
Fortune Business Insights™ presents a list of all the prominent companies operating in the global market. They are as follows:
- 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
This Report Answers the Following Questions:
- What are the growth drivers and obstacles in this market?
- What are the opportunities and challenges in this market?
- Which segment is expected to lead in the coming years?
- Which region is anticipated to dominate in the near future?
- Which strategies are being adopted by companies to promote agro-tourism?
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