Farm tourism is a rapidly growing niche segment of global tourism industry
Agri-tourism or farm tourism is a rapidly growing niche segment of global tourism industry and this sector is set to record a healthy growth rate in the decade from 2019 to 2029, says a report by Future Market Insights, a market research and analysis firm.
FMI says that a significant percentage of the general population across the globe may have little or no contact with agriculture. Thus, agritourism plays a key role in making such a demographic aware of the agricultural methods and crop cultivation at farms.
On-farm tourism also is one mechanism which enables non-farmers to learn about agriculture and, in turn, support farm products through purchases made directly or indirectly from family farms, says FMI report. For example, in California, agricultural and on-farm nature tourism has increased in popularity among suppliers, notably farmers & ranchers and end users like tourists & consumers of agricultural products and services.
According to the report, key market players are likely to focus on the product service innovation and penetration in untapped market in Latin America, and Middle East Africa. Companies in agritourism market are focused on advertising their tour packages through social media networks and through marketing campaigns.
FMI says that millennials are expected to further drive growth of the global agritourism market during the forecast period due to their active participation in the agritourism activities for recreation purpose and participation in off the farm buying activities.
Individual travellers are expected to increase during the forecast period due to increasing number of farm study tour and increasing awareness pertaining to the agritourism in the developing countries, says the report. There will be high growth in the demand for agritourism over the next decade, with market value increasing from USD 213.9 billion in 2019 at a CAGR of over 11.3 pc to reach USD 622.1 billion in 2029, predicts FMI.
“Companies are recommended to focus on adoption of innovative and attractive services pertaining to various agritourism farm activities for increasing sales of agritourism market. The low awareness among consumers about agritourism when compared with other tourism in some of the developing countries such as India, Thailand, Mexico, and others is major barrier to the market growth. Consequently, effective advertising is essential for the rapid growth of agritourism market,” says an FMI analyst.
FMI goes on to say that the trend of farms and ranches stay is gaining traction globally at a significant rate, especially in North America. Moreover, promotional activities and campaigns undertaken by various agritourism companies are attracting customers towards farm stay vacations. This is supported by the increasing stress and pollution in the daily life of the urban population, which improves their inclination to spend long-time vacations at farms. This trend is expected to be a major factor fueling the growth of the agritourism market during the forecast period.
Key players in the sector
Some of the key players operating in the agritourism market are as Missao, Field Farm Tours, Bay Farm Tours, Agrilys Voyages, Agriturismo France, Bay Farm Tours, Al Verneto, ACT Tours, Kansas Agritourism, Farm To Farm Tours, Trump Tours, Star Destinations, Select Holidays, Quadrant Australia, Domiruth PeruTravel, Expedia Group and others.
Several leading market players are engaged in acquisition, partnership with other companies to increase their product offering across the world. Moreover, companies are engaged in service innovation, launches and advertisement on social networks to promote their products, says the report.
In the 2019, Field Farm Tours organised Red Poll World Conference, World Charolais Congress, the 14th World Guernsey Conference, Devon World Conference, and IFMA Pre & Post Tours and others. This helps the company to significantly increase its revenue, says FMI.
In the year 2015, Expedia acquired ‘HomeAway’ for approximately USD 3.9 billion. This acquisition helped the company to significantly expand its business by increasing its service offerings through various new websites.
Innovative services offered by agritourism farm vendor such as haunted hay rides, music festivals ate farms and others is expected to increase people attraction towards agritourism which is expected to generate lucrative opportunities in the market. FMI adds that off the farm activities including farmer’s direct market, vendors at fairs, and roadside product stands is expected to hold a dominant position throughout the forecasted years. Active participation and an opportunity to earn extra revenue by farms by farmers provides significant share of the off the farm activities in the global agritourism market.
Online mode is the most preferred booking mode by the tourism and increasing internet and smartphone penetration across the world is expected to further provide growth to the online booking mode during the forecast period.
Governments promote agritourism
FMI says that the governments of various countries across the world such as India, China, Taiwan, and Brazil are undertaking initiatives to protect as well as nurture the environment and agriculture land in their respective countries. These governments are also focusing 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.
Government and companies in various countries mainly focus on agricultural campaigns and are organizing events aimed at boosting awareness regarding agritourism among people. For instance, in 2017, the Department of Tourism (DoT) of Philippines launched It’s More Fun in Philippine Farms campaign. This campaign significantly helped to make people aware of inbound agritourism.
Another factor driving the growth of the sector in the future is growing awareness about advantages of holidaying in farms such as a pollution free environment, fresh foods, recreation activities and other health benefits related with agritourism are encouraging people to actively opt for inbound and outbound agritourism. The on-farm farmer’s markets, U-Pick operations, pumpkin picking patches and various other operations associated with agritourism allow tourists to choose fresh fruits directly from farms, which attracts a large number of people towards agritourism.
