Sustainable tourism market to hit $11.4T by 2032 with growing environmental focus

Tuesday, January 16, 2024

Sustainable travel market valued at $3.3T in 2022, set to reach $11409.2B by 2032, driven by demand for sustainable, culturally rich experiences.

The Sustainable travel industry achieved a remarkable milestone, reaching a valuation of $3.3 trillion in 2022. Projections indicate a potential growth to an impressive $11409.2 billion by 2032, expanding at a compound annual growth rate (CAGR) of 14% from 2023 to 2032.

A comprehensive study by Allied Market Research titled “Sustainable Travel Market” sheds light on critical aspects of the industry including prime investment areas, successful strategies, driving factors, opportunities, market size, competitive dynamics, and evolving trends. The study highlights that in 2023, beach-based tourism emerged as the dominant segment, largely due to its worldwide popularity, picturesque landscapes, and the variety of outdoor activities linked to such locations.

Increasingly, travelers are seeking experiences that are environmentally respectful and contribute to conservation efforts. This trend significantly influences the Sustainable travel industry. There’s a growing preference for accommodations that emphasize sustainable practices, such as energy efficiency, use of renewable energy, waste reduction and recycling, water conservation, and active engagement with local communities. Hotels with eco-certifications or those adhering to green building standards are particularly appealing to environmentally aware tourists. In selecting tour operators, travelers are becoming more discerning, favoring those committed to ecological responsibility, cultural preservation, and positive community impact. Sustainable tour operators that offer genuine, educational, and ethical travel experiences align well with the values of these travelers.

The Sustainable travel market is categorized based on various criteria, including type, application, age group, and geography. The types are classified into beach tourism, mountain tourism, and island tourism. Applications are divided into individual, group, family, and couples’ travel. Age groups include millennials, baby boomers, Generation X, and the silver-haired demographic. Geographically, the market spans North America (including the USA, Canada, Mexico), Europe (UK, Germany, France, Italy, Spain, Netherlands, and others), Asia-Pacific (China, Japan, India, South Korea, Australia, and others), and LAMEA (Brazil, Argentina, Saudi Arabia, UAE, South Africa, and others).

In 2022, beach tourism held the largest share in the market, nearly half of the global revenue, thanks to unique features like sandy beaches, marine life, aquatic activities, and cultural diversity. However, island tourism is expected to grow the fastest, with a CAGR of 14.3% from 2023 to 2032, offering a mix of coastal and mountain tourism experiences.

In terms of application, the family segment led the market in 2022, with more than a third of the global revenue. Family vacations are increasingly popular for their educational value in teaching about the environment, sustainable lifestyles, and the importance of preserving natural resources across generations. On the other hand, the solo tourism segment is anticipated to grow at the highest CAGR of 14.8% from 2023 to 2032, providing travelers the opportunity to deeply engage with local communities and cultures.

Millennials represented the largest market share by age group in 2022, accounting for nearly three-quarters of the global revenue. This demographic is projected to continue its growth with the highest CAGR of 14.2% from 2023 to 2032, driven by their desire for authentic and meaningful experiences and interactions with local people, cultures, and traditions.

Regionally, Asia-Pacific dominated the market in revenue terms in 2022, representing over two-fifths of the global market. It’s also expected to experience the fastest growth, with a CAGR of 14.3% from 2022 to 2031. The region’s consumers highly value cultural traditions, both domestic and international, and are drawn to destinations featuring historical landmarks, UNESCO World Heritage sites, local handicrafts, and cultural festivals.

Key market players in the eco-friendly travel industry include Intrepid Group Pty Limited, G Adventures, Spiti Ecosphere, Basecamp Explorer Group, Wilderness Safaris, Loola Adventure Resort, Vagabond and Driftwood Small Group Tours of Ireland, Chumbe Island Coral Park, Inkaterra, and Tourism Holdings Limited. These companies have implemented various strategies to expand their market share, profitability, and competitive standing.

Stakeholders can benefit from this report as it provides a quantitative analysis of market segments, trends, estimations, and dynamics from 2022 to 2032, identifying key opportunities in the eco-friendly travel market. It includes information on major drivers, constraints, and opportunities, along with Porter’s five forces analysis to help stakeholders make informed decisions. The report offers an in-depth analysis of market segmentation, highlighting prevailing opportunities, and maps major countries in each region based on their revenue contribution. It also helps understand the current position of market players, providing a clear benchmarking, and includes analyses of regional and global market trends, key players, market segments, application areas, and growth strategies.

Source: Allied Market Research

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