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Adventure Tourism Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global adventure tourism products market was valued at USD 90.7 billion in 2022 and is projected to expand at a CAGR of 10.5% from 2023 to 2030. Adventure tourism has seen a surge in popularity as people are seeking more thrilling and out-of-the-ordinary experiences to break away from their daily routines. Activities such as trekking, mountaineering, bungee jumping, white-water rafting, and mountain biking are gaining traction.
Furthermore, the adventure tourism industry is being driven by the rising demand for experiential travel from the millennial and Gen Z population. These age groups prefer to explore the unexplored and spend their disposable income on unique vacation experiences. Additionally, the trend of solo traveling is also presenting a substantial opportunity to the adventure tourism market. The growing popularity of travel vlogs and blogs has encouraged people to go for adventure trips and explore destinations with unique cultures and experiences.
In addition, the rise in digitalization is facilitating the growth of the market. Adventure tourism providers are using various digital platforms to promote their services and engage the customers. Moreover, they are also leveraging the power of social media to reach out to a wider audience. Furthermore, the rise in disposable income, especially in emerging economies, is leading to an increase in expenditure on leisure activities. This is expected to drive the demand for adventure tourism products during the forecast period.
The market is highly competitive, with the presence of numerous large- and small-scale players. To gain a competitive edge, market participants are focusing on offering unique and personalized experiences to their customers. They are also investing heavily in the development of innovative products and services. For instance, in December 2021, India’s first adventure tourism park, called Adventure Valley, was launched in the city of Rishikesh. The park offers a range of adventure sports such as zip-lining, bungee jumping, and rock climbing. Moreover, the increasing mergers and acquisitions among key players is expected to further boost the market growth.
Product Insights
The air-based adventures segment held the largest share of the global adventure tourism market in 2019. Growing demand for adventure activities such as skydiving, paragliding, and hot air ballooning are some of the major factors driving the growth of this segment. According to an article published by the Adventure Travel Trade Association (ATTA), in April 2019, the number of certified skydiving centers had increased by 26% globally in 2018 as compared to 2017. Furthermore, the increasing number of operators offering air-based adventure activities and the rising trend of extreme sports activities is expected to drive the segment growth in the coming years.
The ground-based adventures segment is anticipated to witness the fastest CAGR of 11.9% over the forecast period. Growing demand for activities such as hiking, mountain climbing, and camping is propelling the growth of the segment. Additionally, increasing popularity of outdoor activities and adventurism among the younger population has been augmenting the demand for ground-based adventures across the globe. According to an article published by Outdoor Industry Association, in June 2019, around 15.5 million U.S. citizens participated in backpacking activities in 2017.
Distribution Channel Insights
The adventure tourism products market is primarily driven by the increasing popularity of travel and adventure activities across the globe. Adventure tourism products are distributed through various distribution channels, such as travel agents, direct sales, and online sales.
Travel agents are the major players in the adventure tourism products market as they are playing an active role in promoting the products. Travel agents are the primary source of information for adventure tourism activities and packages. Travel agents help to create customized packages and itineraries for adventure activities across the globe.
Direct sales have also become an important distribution channel for adventure tourism products. Many companies are opting for direct sales as it helps to build strong relationships with customers and increase their sales. Companies are marketing their products through direct sales by engaging in promotional activities, such as exhibitions, trade shows, and direct mail campaigns.
Online sales are also gaining traction in the adventure tourism products market as it helps to increase the reach of the products. Companies are leveraging the growing popularity of the internet to promote their products and services. Online stores are offering discounts and other incentives, such as free shipping, to attract more customers. Additionally, online stores
Type Insights
The adventure tourism products market is segmented into land, water, and air. The land segment accounted for the largest revenue share of 55.6% in the year 2022. The increasing number of adventure activities such as trekking, hiking, and camping, especially in developing countries, is driving the demand for adventure tourism products. For instance, in May 2022, a camp was organized in Kerala, India, with the aim of introducing trekking and camping activities to adventure tourists. Also, the rising trend of experiential tourism and increasing participation in adventure activities is expected to further propel the market growth.
The water segment is anticipated to witness the highest growth rate of 8.7% over the forecast period. The increasing number of water-based activities, such as river rafting, kayaking, and scuba diving, is driving the demand for related adventure tourism products. For instance, in March 2022, a company called Adventure Tours And Travel organized a river rafting event in Dubai, UAE, to promote water-based activities and adventure products. Furthermore, the rising awareness about the health benefits of adventure activities is a key factor contributing to the growth of the segment.
Regional Insights
Europe is estimated to be the largest and fastest-growing market for adventure tourism products. The increasing trend of outdoor recreational activities like hiking, mountaineering, skiing, and kayaking is expected to drive the growth of the market in the region. Additionally, the rising disposable income among consumers is also likely to fuel the growth of the market. For instance, in 2021, a survey revealed that more than 75% of British travelers are likely to take a trip within the U.K over the next three years.
The Asia Pacific region is expected to witness the fastest growth in the coming years. The growing awareness of travel and adventure activities among the young population is expected to be the key factor behind this growth. The region also has a number of adventure tourism destinations, such as Thailand, Nepal, and India, which are further driving the growth of the market in the region. Additionally, the presence of prominent players, such as TravelTriangle, is expected to further boost the growth of the market.
Financial Projections
In this part of the adventure tourism products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your adventure tourism products. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for an adventure tourism products business comes from the sale of adventure packages and activities, as well as booking fees and commissions. Here you will find a list with a description of each of them and other possible sources of profit such as souvenirs, rental equipment, and gift cards.
Projecting Expenses
In this section, all the regular expenses related to keeping the adventure tourism products business running will be described. The list of operating expenses includes personnel costs, insurance policies, advertising and marketing costs, equipment and supplies, taxes and fees, and others.
Key companies & market share insights
Some of the key companies operating in the adventure tourism market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, National Geographic launched an online platform for adventure travelers to book experiences around the world.
– In August 2022, Intrepid Travel launched its new line of adventure tours in Peru and Chile.
– In October 2022, Adventure.com launched a website showcasing the best adventure experiences around the world.
Some of the prominent players in the adventure tourism market include:
– Intrepid Travel
– G Adventures
– TUI Group
– REI Adventures
– National Geographic Expeditions
– Austin Adventures
– Adventure.com
– Wildland Adventures
– Abercrombie & Kent
– Exodus Travels
Global Adventure Tourism Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global adventure tourism products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Outdoor Clothing & Equipment
– Adventure Activities
– Adventure Tours
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Offline
– Online
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Adventure Activities
– Adventure Tours
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Factors Driving the Adventure Tourism Market?
[A]: The increasing demand for adventure activities, along with the rise in disposable income of people, is expected to drive the growth of the global adventure tourism market. Adventure activities such as trekking, mountain biking, rock climbing, and white water rafting are becoming increasingly popular among tourists. Moreover, the growing awareness among people regarding the health benefits of adventure activities is also expected to fuel the growth of the market.
[Q]: What are the Major Challenges Faced by Adventure Tourism Companies?
[A]: Major challenges faced by adventure tourism companies include the high cost of equipment, lack of skilled personnel, and stringent government regulations. Moreover, the advent of technology has enabled people to access information regarding different types of adventure activities and destinations, which has increased the competition in the market.
[Q]: What Regions Offer the Largest Opportunities for Adventure Tourism?
[A]: Asia Pacific is expected to be the largest and fastest-growing region in the global adventure tourism market. This region is expected to be driven by the increasing demand for adventure activities, such as trekking, mountain biking, and other extreme sports, among people. Additionally, the growing awareness of adventure activities among people in the region is expected to propel the growth of the market.
[Q]: Who are the Key Players in the Adventure Tourism Market?
[A]: Key players in the adventure tourism market include REI Co-op, The North Face, Inc., Timberland LLC, VF Corporation, Columbia Sportswear Company, and Patagonia, Inc.
[Q]: What is the Potential for Product Innovation?
[A]: Product innovation is expected to be a key factor driving the growth of the adventure tourism market. Companies are continuously introducing innovative products with advanced features to cater to the changing needs of customers. Moreover, companies are also introducing new activities to attract tourists, such as virtual reality, augmented reality, and other activities. These activities are expected to create lucrative opportunities for the market.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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