AGRITOURISM MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Agritourism Market Size and Trends

The Agritourism market is estimated to be valued at USD 8.23 Bn in 2024 and is expected to reach USD 17.51 Bn by 2031, growing at a compound annual growth rate (CAGR) of 11.4% from 2024 to 2031.

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The agritourism market has seen a consistent growth in the last few years driven by the increasing demand for experience-based travel among tourists. People are more interested in experiencing rural life, farm activities, and local culture. Many farmers have recognized agritourism as a way to diversify their business and attract visitors to farms. Some key trends driving the growth include the rising popularity of open farms, increasing focus on sustainability and organic farming, growth in experiential tourism, and use of digital platforms to connect farmers with potential visitors. However, factors such as high set up and maintenance costs associated with agritourism activities could pose a challenge to small farmers looking to enter this space.

Seeking Authentic Experiences

The modern lifestyle often leaves people disconnected from nature and the agricultural processes that put food on our tables. Busy schedules filled with city living and desk jobs drain both mental and physical energy. More and more travelers are increasingly seeking out authentic experiences that allow them to escape from the routines of daily life and reconnect with simpler pleasures. Agritourism offers this kind of respite by taking visitors back to a slower pace of life. Farm stays, picking fresh produce, helping with agricultural tasks, learning about farm animals and history - all of these allow tourists to spend a day immersed in rural settings and gain an appreciation for where their food comes from. Many visitors feel recharged and reinvigorated after interacting with the natural environment and partaking in physical activities outdoors. The desire to step away from urban settings and technology, even if just for a brief period, has grown steadily. Agritourism directly caters to this need by providing experiences that are real, hands-on and help people feel fulfilled through meaningful interaction with the land and farming traditions.

Market Concentration and Competitive Landscape

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With declining rural population and fewer young people taking up careers in agriculture, many farming traditions risk fading away without being passed onto new generations. While crop yields have risen dramatically, public understanding of agricultural practices has not kept pace. Many city-dwelling children are largely unaware of basic facts such as how vegetables are grown or where milk comes from. At the same time, schools have reduced field trips and hands-on learning activities due to budget and safety concerns. Agritourism has emerged as an effective way to educate visitors, especially children, about farming practices. By visiting working farms, people of all ages can make real-world connections between their food and how it is produced. They observe crop cultivation methods, animal husbandry, and use of equipment and experience changes over the seasons. Many farms also organize special learning activities, demonstrations, and programs tailored for students. By stimulating interest and appreciation at a young age, agritourism encourages more environmentally-aware and supportive customers for the agriculture industry in the future. It plays a valuable role in exposing generations to sustainable farming traditions and perhaps inspiring some to consider farming as a career path as well.

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The agritourism market faces several challenges. Farming as an industry has grown increasingly consolidated, making it difficult for small family farms to compete and turning to agritourism for additional revenue. Long-term droughts and extreme weather events tied to climate change also threaten crop yields and rural economies. Zoning regulations can inhibit how farms operate tourist attractions as well. Additionally, health and safety standards along with liability concerns present compliance challenges.

 Market Opportunities: Lack of funding & Startup Capital

Many consumers today seek out authentic experiences and want to better understand where their food comes from. Farm tours, and on-farm dining or lodging allow people to connect with rural livelihoods. Staycations and road trips grew in popularity during the pandemic, increasing interest in agritourism destinations. 

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In terms of activity, outdoor recreation contributed 31.6% share of the market. The outdoor recreation segment within the agritourism market has seen significant growth in recent years. As more travelers seek unique and authentic experiences when touring rural areas, activities like hiking, cycling, fishing, and hunting on farms have become hugely popular. The opportunity to engage with nature while also learning about agricultural practices is a big draw for many visitors. Farms across the country have capitalized on this trend by developing elaborate recreation programs. Guests can embark on guided nature walks led by knowledgeable local experts, participate in organized fishing expeditions to nearby lakes and streams, or go horseback riding through scenic pastures and fields. Some properties even host camping and glamping options so visitors can truly immerse themselves in the countryside setting. The health and wellness movement has been another major driver of outdoor recreation's dominance. People increasingly want active, outdoorsy activities when travelling as a way to decompress from daily stresses. Agritourism provides the perfect environment for those types of experiences through hiking trails of varying difficulties, yoga or meditation spots surrounded by farmland views, and other physical pursuits. Visitors feel they are getting exercise while learning about agriculture.

Insights, By Sales Channel: Increased consumer preference for personalized experiences

In terms of sales channel, direct sales contributes 73.2% share of the market. Within the agritourism industry's sales channels, direct sales have emerged as the most lucrative segment in recent years. As visitors seek out more customized, meaningful experiences, turning directly to farms for bookings has become increasingly attractive. Consumers are able to hand-pick properties that most closely match their interests and get personalized service from the source. Farms have shifted their marketing strategies in response, devoting more resources to company websites, social media campaigns and on-location promotion. Direct engagement allows them to highlight their unique selling points and build genuine rapport with potential guests. It also means collecting valuable first-party consumer data that can inform future business decisions. Eliminating the middleman through direct sales provides benefits for both parties. Farms retain more of each booking dollar rather than paying commissions. They also have greater control over inventory and pricing. For customers, it leads to a more seamless, stress-free planning process. Any special requests can be dealt with directly by the farm staff. This personalized, convenient experience has resonated strongly as people seek authentic, meaningful travel. The direct sales channel within agritourism looks poised to continue outpacing other segments thanks to its emphasis on forging strong connections between farms and their customers.

Regional Insights

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North America has emerged as the dominant region in the global agritourism market with 38.9% share. The U.S. accounts for over 60% of the regional market value led by the presence of a large number of agritourism farms across states. Farmers in US have been proactively adopting agritourism activities to supplement their income from farming. States like California, New York, and Pennsylvania have witnessed rapid growth in agritourism activities in recent years. The regional market has also benefited from increasing awareness among urban population to spend their weekends exploring farms and interact with rural communities. Apart from generating additional revenue streams, agritourism has helped American farmers to connect with consumers and educate them about modern farming practices. Several state Agriculture departments support agritourism activities through training programs and promotional events. Leading players in the American food processing industry also collaborate with agritourism businesses to promote consumption of locally grown food and beverages. This has boosted the overall competitiveness of American agriculture.

Asia Pacific region is witnessing the fastest growth over the past five years. Within Asia Pacific, India has emerged as a promising agritourism destination. Led by initiatives like Rural Tourism by the Indian government, farm visits and homestays in rural villages have gained tremendous popularity among domestic tourists as well international travelers. Major Agritourism attractions in India include farms that offer experiences like milking cows, making fresh ghee and butter. Traditional agricultural activities associated with crops like rice, sugarcane, and fresh produce have become popular experiences. This is enabling farmers to diversify their income sources. Growth has also been facilitated by reliable air connectivity to rural areas as well as promotion through social media platforms. As Indian farm tourism continues to expand its offerings, Asia Pacific is expected to emerge the fastest growing regional market.

Market Report Scope

Agritourism Industry News

• 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
• In April 2023, Assisi Aid Projects Australia's collaboration with Dreamdelion Indonesia on the Jajal Wae Sustainable Agritourism project marks a significant step towards empowering women in rural Indonesia. This initiative not only fosters economic stability but also promotes sustainable development through agritourism.
• In December 2022, URD, a global leader in sustainable infrastructure development, announced its plan to build one of the largest decarbonized agritourism hubs in Dubai
• In October 2022, the U.S. Department of Agriculture (USDA) announced a 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.

*Definition: Agritourism market refers to the market of farm or agricultural based tourism activities and experiences offered to visitors. It allows visitors to experience and engage in various agricultural activities like picking fresh fruits and vegetables, feeding farm animals, exploring corn mazes and enjoying other farm attractions. Agritourism aims to provide educational, recreational, and hospitality services to tourists by exposing them to agricultural lifestyle and rural environment. It helps generate additional income from the visitors for farmers and supports the local agricultural economy.

Market Segmentation

• Activity Insights (Revenue, USD Bn, 2019 - 2031)
• • On-farm Sales
  • Outdoor Recreation
  • Entertainment
  • Educational Tourism
  • Accommodations
  • Others
•  Sales Channel Insights (Revenue, USD Bn, 2019 - 2031)
• • Travel Agents
  • Direct Sales
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Field Farm Tours Limited
  • Farm to Farm Tours
  • Bay Farm Tours.
  • Star Destinations 
  • Expedia, Inc. 
  • Select Holidays
  • Green mount Travel.
  • Blackberry Farm, LLC.
  • GTI Travel
  • Kansas Tourism
  • Trump Tours Inc.
  • Tour De Farm
  • Kisan Eco Farm and Farm Stay
  • Liberty Hill Farm
  • Harvest Travel International
  • Farm to Farm International
  • STAR Destinations
  • Stita Group
  • Select Holidays
  • Agritours Canada Inc.