Global Agritourism Market - 2022-2029

Global Agritourism Market - 2022-2029

Market Overview

The global agritourism market valued USD xx million in 2021 and is forecast to reach USD xx million by 2029, growing at a high CAGR during the forecast period (2022-2029).

Agritourism is a form of economic venture that combines agriculture productivity and/or processing with tourism to attract customers to a farm, plantation, or other agro-based business to educate or entertain the tourists while also earning money for the farm or business owner. Agritourism involves various activities of the farm, ranch, or other agricultural, aquacultures, horticultural, or forestry operations. People are increasingly finding innovative and new ways of entertainment and peace in their life and finding different ways to go and stay in village areas. Agritourism is one way of opening a new door for tourism where people can experience farm activities of a rural lifestyle. The growing consumer demand for economical, nature-based, and sustainable tourism among tourists is a crucial driving force for the market. Moreover, the increasing initiatives by the governments, private organizations, and associations to develop a strong industry by launching agritourism projects and programs will boost the agritourism market growth.

Market Dynamics:

The increasing initiatives by government and associations to support agritourism

The governments and agriculture associations of various countries worldwide, such as India, China, Taiwan, Brazil, and the U.S., are undertaking initiatives to protect and nurture the environment and agricultural land in their respective countries. The governments focus on improvements in the agro-industry, as they have understood the importance of creating a sustainable environment. These initiatives have majorly boosted the demand for agritourism in these regions. For instance, Agritourism Associations and Networks has several hundred members across North Carolina, from small seasonal agritourism farms to larger farms that are open most of the year. The association's annual conference is designed to train and educate members and potential members. Moreover, Maharashtra is the pioneer state in developing and promoting agritourism in India. In 2005 the Agritourism Development Corporation incorporated and owned the pilot agritourism project of 28 acres in Palshiwadi, 70 km from Pune city. The main activities include operating its agritourism center encouraging more farmers to take up agritourism and conducting training and research programs. Furthermore, in September 2021, Kerala government launched the Kerala Agri Tourism Network-Farm tourism as a major initiative of the globally-acclaimed Responsible Tourism project to ensure monetary benefits to the agricultural community by linking farming activities with tourism. The governments across various countries are focusing on enhancing the agriculture economy by promoting agritourism, which is predicted to be a robust growth driving factor for the market.

However, the agritourism market is an unorganized structure. It lacks legal definition across several economies, restricting the speedy growth of the market. The lack of awareness about these types of tourism destinations and the smaller number of established tours agritourism operators in this industry, especially in developing countries, hinders the market growth.

Market Segmentation:

The event & recreation segment held the highest market revenue share of xx% in the year 2021

Based on the activity, the event & recreation segment accounted for the largest share of more than xx% in 2021. The segment can be attributed to a significant increase in the demand for recreational tours & activities on farms and at places with a rural atmosphere. Growth of the on-farm recreation through the source 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 visits in the rural areas across developed and developing countries. These comfortable farms play a crucial role in attracting tourists to leisure at these places.

Based on the booking channel, the online booking channel accounted for the largest revenue share of xx% in 2021 and is expected to maintain its lead over the forecast period. Online booking is recognized as a comfortable option by tourists crosswise the globe. Furthermore, the approach of social media and the efficient distribution of customer surveys have provided a surge in online reservations in the exchange. Social media tools help improve client engagement and information. Consequently, the successful prevalence of online bookings will promote the growth of the agritourism market during the forecast period.

Geographical Penetration:

Europe is dominating the global agritourism market in the year 2021

Europe dominated the global Agritourism market in 2021, 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. The gain of agriculture tourism contributes significantly to aiding the region's market growth. According to the Eurostat statistics, in 2019, EU residents spent an estimated €479 billion on tourism trips. In addition, EU residents spent 83% of their tourism expenditure on trips inside Europe. These tourism statistics indicate positive demand for the agritourism market in this region. Moreover, in the upcoming year, the adoption of sophisticated marketing systems for agritourism, amplification of product range sold at farms, and extensive governmental support can immensely boost the market within Europe.

Competitive Landscape:

The prominent players operating in the global agritourism market are Agrilys Voyages, Bay Farm Tours, Harvest Fresh Farms, Field Farm Tours Ltd, Harvest Travel International, Farm to Farm International, Select Holidays, Agritours Canada Inc., Kisima Safaris, and Greenmount Travel, among others. The market is anticipated to showcase grown consolidation in the forthcoming years due to the rising collaboration between agrotourism businesses and the rising number of acquisitions and partnerships.

For instance, in April 2022, Hawaii Farm Trails partnered with the Polynesian Voyaging Society and launched a new Hawaii Farm Trails app. The app provides statewide information on agritourism and local farmers' markets and ways to give back to the community through aina-based activities.

In December 2021, The American Farm Bureau Foundation for Agriculture planned to launch the app American Farm Trail in spring 2022. It is sponsored by Corteva Agriscience. the mobile app is designed to give people and families a convenient way to search for local farms and agribusiness operations like orchards, U-pick farms, corn mazes, wineries, etc.

Covid-19 Impact: Negative impact on the global agritourism market

During the COVID pandemic, the travel and tourism industry is completely shut down. As a result, the agritourism industry is facing a decline. The COVID-19 outbreak resulted in a lockdown situation in various countries across the globe, affecting every industry in the market. The COVID-19 protocols include social distancing, and the farms that feature agritourism need to follow certain guidelines. The tourism sector is a majorly affected industry, owing to the growth of coronavirus cases in the world. However, a decrease in COVID cases and the development of coronavirus vaccination have further supported the tourism industry in retrieving its position.