Global Cruise Market to Reach Over $15 Billion by 2028

Caribbean News…
29 October 2022 7:15pm

The global cruise ship market size is expected to reach USD 15.10 billion by 2028, registering a CAGR of 11.0% during the forecast period from 2022 to 2028.

Market growth is substantially driven by the growing popularity of theme cruises that appeal to various consumer groups. The children's theme, yoga theme, mystery theme, and adventure theme are likely to offer additional fun with destination travel, rather than traditional cruises.

According to the Cruise Lines International Association, Gen Z is likely to become the largest consumer in the cruise industry, surpassing millennials. This generation seeks unique and authentic experiences and seeks to travel with more enthusiasm, which is expected to drive the expansion of the cruise market. Market growth is restricted by limited companies participating in the market and growing concerns about environmental pollution from ocean bodies, which destroy marine wildlife.

The COVID-19 pandemic has negatively affected the global cruise industry. When the pandemic broke out, a significant number of cruise ships were stranded in 2019 and were canceled in 2020. According to the Cruise Lines International Association, passenger volume fell more than 80.0% globally from 2019 to 2020. However , With the vaccination process and activities resumed along with relaxed restrictions, the ocean and river cruise industry is slowly starting to operate with the required care.

The ocean-going cruise segment dominated the market and had more than 80.0% revenue share in 2021. The global ocean-going cruise industry is more developed compared to the equivalent cruise type, with more ocean-going cruise lines operating in the segment. Vacationers' preference for ocean cruises is higher compared to river cruises due to the spacious decks and rooms, exciting onboard/land activities, and more intercontinental destinations.

North America dominated the global cruise market in 2021, occupying around 50.0% market revenue share. The developed travel and tourism industry, the strong presence of the key players and the increased consumer spending are the factors that are attributed to the higher revenue share of the market.

River cruises are expected to experience the highest growth rate, recording a CAGR of 13.3% from 2022 to 2028. The growing popularity of river cruise packages and the limited operational capacity of ocean cruises, due to restrictions of COVID-19, are the factors that are likely to help type of river cruise, driving the growth rate.

Europe was the second dominant region in terms of revenue share and accounted for more than 25.0% share in 2021. Increasing demand for sustainable tourism is driving the market growth during the forecast period. 

The growing demand for sustainable tourism within the region leads to being more beneficial to small and medium-sized tour operators and attracting them in large numbers, contributing to higher revenue generation.

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