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

Music Tourism Market Size and Trends

The music tourism market is estimated to be valued at USD 7.17 Bn in 2024 and is expected to reach USD 12.77 Bn by 2031, growing at a compound annual growth rate (CAGR) of 8.6% from 2024 to 2031.

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The music tourism market is expected to witness robust growth over the forecast period. The increasing popularity of music concerts and festivals globally is one of the major factors driving the growth of the music tourism market. International music festivals are gaining traction which is attracting music enthusiasts from across the world. This is positively influencing the demand for music-driven travel. Moreover, the easy availability of tickets and travel packages for music festivals through online channels are propelling the music tourism market growth. However, the seasonal nature of music festivals may hamper the market growth to some extent.

The rising popularity of music festivals

The growing popularity and rising demand for music festivals around the world has significantly contributed to the boom in music tourism industry in recent years. Youthfulness and willingness to explore new cultures have motivated many people to travel to various destinations globally, just to experience live music performances by their favorite artists. Some of the largest music festivals like Coachella, Lollapalooza, Tomorrow land etc. have become a cultural phenomenon, attracting hundreds of thousands of attendees annually from across the world. These mega-festivals offer unique experience with diverse musical LINEUPS spread over few days, alongside other activities which enhances the experience manifold. The success of mega-festivals has inspired many smaller cities and countries to host their own multi-genre outdoor festivals, offering tourists an immersive cultural experience through medium of music. For example, festivals like Paléo Festival in Switzerland, Sziget festival in Hungary, and Rock in Rio in Brazil attract music lovers from different countries and become a major economic growth driver for their respective regions. As per United Nations World Tourism Organization data, international tourist arrivals grew by 5% in the year 2022. Music tourism played an important role in contributing to this growth, with many tourists specifically planning their holidays around music festivals. Some destinations have even started strategic festival tourism programs to position themselves as year-round music destinations. 

Market Concentration and Competitive Landscape

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While mainstream pop and rock still dominate commercial radio, in recent years eclectic genres like indie folk, Americana, jazz, world music, and electronica have gained legions of new fans. Streaming services have exposed listeners to a far more diverse musical landscape than just top 40 hits. Underground genres from past eras like blues, ska, and psychedelia have also seen surging interest from younger demographics exploring their parents' record collections. As a result, legacy artists from these esoteric genres are coming out of retirement to play shows again. This has created new touring and festival opportunities focused on niche audiences with disposable income willing to travel for live performances. 

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The music tourism market faces challenges in attracting and retaining tourists. With many entertainment options available, it can be difficult to motivate people to travel purely for music-related activities. Factors such as high travel costs, limited time off from work, and unpredictable concert schedules may prevent some tourists from choosing music destinations. Constantly evolving music trends also make it challenging to sustain tourist interest in certain artists or genres over long periods.

Opportunity: Global Popularity and Widespread Distribution of Music through Digital Platforms

The global popularity and widespread distribution of music through digital platforms and streaming services have generated significant opportunities for music tourism. More people are exploring new artists and sounds from around the world, fueling greater interest to visit places closely associated with beloved musicians and genres. This widespread music discovery allows destinations to build unique experiences that capitalize on intimate ties between locations and certain songs or musicians.

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In terms of type, international music tourism fest contributes 61.2% share of the market owing to the growing popularity of global music genres and artists. International music festivals see tremendous footfalls as they offer music enthusiasts a chance to listen to diverse performances from around the world in a single event. The cultural exchange through music at these festivals has become one of the primary drivers for international travel. While local festivals cater to specific regional tastes, international festivals curate lineups keeping a global audience in mind. They feature top touring acts from different countries and continents, bringing the world of music under one roof. The opportunity to watch renowned artists from varied genres and countries performing live in one place is a huge attraction for music aficionados. Over the years, international festivals have gained recognition worldwide for hosting globally renowned pop, rock, jazz, electronic and other musical acts. Their popularity has been rising consistently with exponential growth in their scale and budgets. Tourism boards across many countries proactively promote and host marquee international music events to boost visitor numbers from overseas. As the music universe shrinks through technology and streaming, such festivals spotlight cross-cultural connections in a vibrant live experience, thus driving significant international tourist footfall. 

Insights, By Tourist: Paid Performance Drives Music Tourism Volumes

In terms of tourist, get paid to visit contributes 61.3% share of the market. The major factors propelling this segment’s growth is the growing opportunities for paid musical performances and collaborations across the world. Many aspiring and established artists eagerly seek to expand their outreach through live shows in new territories, which has led to a surge in music tourism volumes on the ‘get paid to visit’ model. Musicians are constantly on the lookout for lucrative offers to perform at various venues worldwide such as festivals, concerts, live gigs, music events and more. Spurred by higher payment prospects, they invest heavily in overseas touring activities to enriched creative experiences and revenues. Over time, international music circuits have also expanded with new performance destinations emerging across cities and countries. With attractive performance fees and production budgets, several global tours are nowadays carefully designed to rope in international music talents. At the same time, offering paid live gigs is a rewarding prospect for visiting artists to directly engage with diverse fan communities abroad while earning recognition. Consequently, a profitable and vibrant paid performance environment overseas greatly stimulates travel in this music tourism segment.

Regional Insights

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North America has dominated the global music tourism market for several years owing to a strong music culture and industry presence across the region with 37.8% of the market share. Countries like the U.S. and Canada have a deep heritage in music genres like rock, pop, blues, and jazz. This rich history coupled with vibrant music scenes in cities like New York, Los Angeles, Nashville, and New Orleans attracts millions of music enthusiasts annually. North America also hosts some of the world's largest music festivals and concerts. Events like Coachella, Lollapalooza, and Burning Man have become global phenomena, drawing visitors internationally. The scale of music-related infrastructure, venues, festivals, and artist presence has made North America the flagship destination for music tourism globally.

 One region that has emerged as an extremely fast-growing market for music tourism lately is Latin America. Countries like Brazil, Mexico, Chile, Colombia, and Argentina have seen exponential growth in music tourist arrivals over the past decade due to increasing social and economic developments in the region. Latin America has a strong cultural identity centered on music genres like salsa, merengue, reggaeton, and Latin pop. Cities like Rio de Janeiro, Sao Paulo, Mexico City, and Buenos Aires have become hotspots attracting locals and foreigners alike to music shows, festivals, and cultural experiences influenced by native Latin sounds. The improving security situation, rising middle class, growth in regional air connectivity, and global popularity of Latin artists have propelled music tourism in the region. The tropical climate and vibrant party culture associated with Latin countries have also boosted their appeal as music destinations for domestic and international audiences. While still developing, Latin America promises high potential for continued expansion in music tourism.

Market Report Scope

Music Tourism Industry News

• In June 2023, Sweden’s Beyonce Blip showed its potential as a music tourism destination. Sweden's inflation rate for May increased by about 0.2 percentage points when Beyoncé's Renaissance tour played two dates at Stockholm's 46,000-seat Friend Arena.
• In July 2023, music tourists contributed USD 171.6 Mn to Northern Ireland’s economy

*Definition: The music tourism market caters to people who travel to places specifically to attend music festivals, concerts or shows by their favorite artists. It enables people to visit destinations renowned for their music heritage or see live performances in a new city or country. Music tourism helps promote local music scenes and cultural destinations while generating revenue through ticket sales, hotel bookings, dining, and other spends by music lovers traveling to experience live music performances.

Market Segmentation

• Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Local Music Tourism Fest
  • International Music Tourism Fest
• Tourist Insights (Revenue, USD Bn, 2019 - 2031)
  • Pay to Visit
  • Get Paid to Visit
• 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
  • LiveStyle
  • Live Nation Entertainment
  • Global Spectrum LP
  • Venu Works Inc.
  • ID&T Belgium
  • SFX Entertainment
  • Percept Ltd
  • TAG Group
  • ACFEA Tour Consultants
  • AEG Worldwide
  • BToS
  • BCD Travel
  • Music Travel
  • Love Music Travel Ltd
  • Club Europe Group Travel