Sustainable tourism market to reach $11.4 trillion globally by 2032

According to a report from Allied Market Research, the global sustainable tourism market was valued at $3.3 trillion in 2022, and is projected to reach $11.4 trillion by 2032, growing at a compound annual growth rate (CAGR) of 14 per cent from 2023 to 2032.

The report is entitled ‘Sustainable Tourism Market By Type (Coastal Tourism, Mountain Tourism, Island Tourism), By Application (Solo, Group, Family, Couples), By Age Group (Millennial, Baby Boomers, Generation X, Silver Hair): Global Opportunity Analysis And Industry Forecast, 2023–2032’.

The growth in this market is driven by the increasing demand for tourist destinations and experiences that minimise environmental harm and promote protection.

Higher costs and lack of understanding of sustainable tourism was expected to hamper the market’s growth. However, rising environmental consciousness among younger generations is expected to offer remunerative opportunities for the expansion of the market during the forecast period.

Sustainability segments

Based on type, the coastal tourism segment held the highest market share in 2022, accounting for nearly half of the global sustainable tourism market revenue.

However, the island tourism segment is projected to manifest the highest CAGR of 14.3 per cent from 2023 to 2032, as island tourism helps in providing combined experiences from both coastal as well as mountain tourism.

Based on application, the family segment held the highest market share in 2022, accounting for more than one third of the global sustainable tourism market revenue. It is also expected to maintain its leadership status throughout the forecast period as family vacations offer opportunities for learning about the environment and helps educators to impart knowledge on parents, children, and older generations.

However, the solo tourism segment is projected to manifest the highest CAGR of 14.8 per cent from 2023 to 2032, as solo travellers have the chance to interact more intimately with the community and experience the culture.

In terms of age, millennials held the highest market share in 2022, accounting for around three quarters of the market revenue and is also projected to manifest the highest CAGR (14.2 per cent) from 2023 to 2032, as they look for real experiences and chances to interact with local people, cultures, and traditions.

The Asia-Pacific region held the highest market share in terms of revenue in 2022, accounting for more than two fifths of the global sustainable tourism market revenue and is also expected to witness the fastest CAGR of 14.3 per cent from 2022 to 2032.