Sustainable Tourism Market to reach USD 10.50 Bn by 2032 - Coherent Market Insights

The global sustainable tourism market size is expected to be valued at USD 3.11 billion in 2025. It is forecast to reach USD 10.50 billion by 2032, exhibiting a CAGR of 19% during the forecast period (2025-2032).  

The protection of natural and cultural heritage sites has driven the demand for sustainable tourism practices globally. Rising environmental concerns among travelers and stringent regulations pertaining to eco-sensitive areas can drive the global market growth significantly. The rise of experience-seeking travelers and understanding of local cultures can further create more market opportunities.

Key Market Insights

The sustainable tourism market is expected to expand over the forecast period owing to a surge of environmentally conscious travelers and the initiative of governments to preserve historical places.

• By type, the coastal tourism segment can account for a 38.3% market share in 2025 owing to people’s attraction to beaches and water bodies. Coastal bodies allow travelers to soak in the sun and enjoy water-based activities of surfing, swimming, and water skiing. The boom in wellness as well as the therapeutic effects of being near the water on stress levels can drive the segment growth over the forecast period.
• By traveler type, the family segment is expected to contribute 39.8% market share in 2025. Sustainable destinations allow families to enjoy in a community-focused environment and bond over good memories. The rise of multi-generational family trips and the need to understand local cultures can drive the segment’s growth in the sustainable tourism market.
• By age group, millennials segment is expected to account for 39% market share in 2025. The awareness of climate change and advocacy of sustainability make the segment highly lucrative for the sustainable tourism market. Contribution to conservational causes and the influence of social media are factors expected to drive the segment growth.
• In terms of region, North America is expected to lead the sustainable tourism market with a 39.3% market share in 2025. The U.S. is the largest contributor to the regional market share owing to sustainability initiatives by hotels and restaurant owners to reduce their impact on the environment. The strong support by local governments and the promotion of eco-friendly practices can continue to drive demand for the regional market.

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Sustainable Tourism Market Report Coverage

Market Dynamics

The sustainable tourism market growth is driven by the awareness of the impact of overcrowding on heritage and historical sites. World heritage sites (WHSs) face challenges of overcrowding, poor service quality, and inadequate tourism facilities. New experience-seeking travelers are also driving market demand as such sites offer adventure and a connection with nature. Rural areas across countries are attracting sustainable travelers in hordes due to nearby areas untouched by development initiatives.

Efforts by countries to preserve historical sites and patches of forests to save them from the effects of climate change can drive the demand for sustainable tourism. Renovations of dilapidated structures and government grants for preserving historical spaces can drive the market growth considerably.

Market Opportunities

Growing Awareness of Environmental and Social Impacts of Tourism

Travelers seeking meaningful experiences and awareness among eco-conscious travelers can create new opportunities for leaders in the sustainable tourism market. For instance, Portugal’s rural areas are attracting attention from travelers and property dealers. Moreover, two buildings in the Sertã district were acquired by the local government for renovation. The shift in consumer behavior and availability of services aligned with the demand for sustainable products can drive the market growth.

Market Challenges

Lack of Standardization and Certification of Sustainability Practices

The lack of standardization in sustainability practices is a challenge for market leaders and travelers. But, efforts by countries and federal associations to create standards and stick to them can make a difference in the sustainable tourism market.

High costs incurred for investments in sustainable operations by small businesses and awareness of climate change can pose major hurdles for the market growth. Small businesses undertake huge risks by creating awareness about sustainability and investing in solar-powered lodges and zero-energy properties. But the heavy entry costs for integration of such measures and limited access to resources and technology can veer away potential small businesses.

Analyst’s View

“The sustainable tourism market is predicted for a boom due to awareness of eco-sensitive areas by young travelers and the impact of tourism on historical sites. Younger tourists are conscious of reducing their environmental footprint and maintaining a clean environment.”, says Mr. Yash Doshi, a senior management consultant of Coherent Market Insights.

“Europe can dominate the sustainable tourism space due to efforts undertaken by the countries of Sweden, Finland, and Portugal. However, the markets in parts of Asia Pacific and Latin America are likely to emerge as fast-growing destinations.”

Recent Developments

The Federation of Hotel & Restaurant Associations of India (FHRAI), in collaboration with The PHD Chamber of Commerce and Industry (PHDCCI), launched a handbook on sustainable tourism on March 27, 2025. It requires commitment from hoteliers and restaurant owners in India to minimize ecological impact and increase operational efficiency.

Competitor Insights

• Undiscovered Mountains
• Inkaterra Tourism Holdings Limited
• Wilderness Safaris
• Gondwana Ecotours
• Intrepid Group Pty Limited
• Basecamp Explorer AS
• NATIVE TOURS, INC.
• Bouteco
• Cheeseman’s Ecological Safaris
• Vagabond Tours Limited
• Wild Frontiers Adventures Travel
• Sustainable Travel International
• LooLa Adventure Resort
• Beyonder Experiences
• Row Adventures

Market Segmentation

• Type
• Coastal Tourism
• Mountain Tourism
• Island Tourism
• Others
•  Traveler Type
• Solo
• Group
• Family
• Couples
•  Age Group
• Millennial
• Baby Boomers
• Generation X
• Silver Hair

Regional Insights

• North America
  • U.S.
  • Canada
• Latin America
  • Mexico
  • Brazil
  • Argentina
  • Rest of Latin America
• Europe
  • Italy
  • Germany
  • U.K.
  • Spain
  • France
  • Russia
  • Rest of Europe
• Asia Pacific
  • Australia
  • India
  • Japan
  • China
  • South Korea
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC Countries
  • Israel
  • Rest of Middle East & Africa