Ginseng Market Size, Share & Industry Analysis, By Type (Red Ginseng, White Ginseng), By Application (Functional Food & Beverages, Dietary Supplements, Pharmaceuticals) And Regional Forecast, 2024-2032

The growing interest in natural health supplements to prevent the risk of chronic diseases and maintain health and wellness mainly fuels the growth of the global ginseng market. Ginseng is among the key dietary supplements and functional foods that provide immune modulation. Various scientific studies indicate that ginseng extracts improve cardiovascular health, nervous system and has anti-tumor effects on a human body. The trend of healthy hydration and functional food and beverages across the globe is anticipated to positively impact the growth of the ginseng market.  

In recent years, plant-based nutrition has gained popularity among consumers across the globe. Ginseng extract and powder is now extensively utilized in plethora of mainstream food and beverages to impart functional properties. It also finds extensive application in pharmaceuticals. The increasing innovation and product development activities to fulfill the growing demand for ginseng dietary supplements are expected to fuel the market growth in foreseeable years. For example, in July 2019, Korean ginseng leader, Korea Ginseng Corp expanded its business in China by introducing trendy packaging designs for younger generation consumers and developing products targeting the female population.

The demand for herbal products is increasing among consumers on account of the rising popularity of plant-based nutrition. Ginseng roots are traditionally used as adaptogens. Adaptogens are plants that are marketed as healing herbs and stress relievers. The growing popularity of adaptogens primarily drives the growth of the ginseng market. Ginseng has gained popularity for developing various nutrition products for human consumption. It has proved to have a range of bioactive compounds that boost the immune system, neural health and heart health. It is now increasingly being used as an ingredient in supplements and functional food and drinks, often in combination with other natural ingredients with perceived health benefits. The increasing use and rapidly growing market of herbal medicines and other herbal healthcare products, in both developing and developed countries, is driving the ginseng market.

Botanical extracts and phytochemicals generally impart bitter taste and off-flavors when added in the product. Although formulating with functional ingredients such as ginseng powders and extracts addresses consumer demand for customized health and wellness, the purchase of these products is often driven by taste and flavor. The challenges faced in overcoming the unpleasant notes of ginseng concentrate or powder are acting as a key restraint for the growth of the market. Various technologies such as microencapsulation, polymer coating and flavor solutions can be applied to mask and modify these unpleasant tastes and produce better tasting final products.

Key Players Covered:

Korea Ginseng Corporation, Ewha Company Ltd., Botalys S.A., Auragin, Nature’s Answer, The Nature’s Bounty Co., Solgar, Inc., Buddha’s Herbs, and Nature’s Way Products, LLC are the key players operating in the global ginseng market.

Red ginseng is expected to exhibit robust sales performance due to the growing knowledge of its multiple health benefits among consumers. There are an increasing number of studies that indicate health benefits of red ginseng such as immune support, antioxidant properties, improvement in heart health, cognitive enhancement, and fatigue relief. Red ginseng is considered to be rich in amounts of saponin and other nutrients that support health and wellness. The increasing demand for red ginseng is also attributed to its organoleptic properties superior to white ginseng.  

The functional food and beverage segment is expected to witness promising growth. The growing popularity of natural healthcare products is driving the innovations to develop healthy as well as indulgent products that attract wide consumer base. The modern-day consumer lifestyle drives the demand for on-the-go products that provide health benefits. Ginseng-based functional beverages are gaining popularity among fitness conscious consumers to boost immunity and prevent the risk of chronic diseases.

Regional Analysis:

The use of alternative medicines in North America, particularly herbal products has increased in the past few years. The rising popularity of natural products that support health and wellness is driving the demand for ginseng based dietary supplements and functional beverages in the region. In July 2018, the Department of Agriculture & Agrifood, Canada announced to invest USD 360 thousand to Ontario Ginseng Grower’s Association (OGGA) to help promote and pursue new markets. Such investments are expected to escalate the growth of the market in North America.

The popularity of botanical products is on the rise in Europe, with consumers using them to complement their diets or to maintain health, and products are taken in many different forms such as juices, herbal medicinal products and plant food supplements. The ‘good-for-you’ image of vegan, nutrient-rich diet among consumers is expected to boost the growth of the ginseng market in the region. The trend of healthy hydration has led to innovations and new product developments such as ginseng sachets that can be easily carried and consumed on-the-go when mixed with water.

Asia Pacific is expected to witness substantial growth owing to the rapidly growing nutraceutical industry in the region. The rising demand for herbal dietary supplements is fuelling the growth of the market in the region. The emerging trend of healthy aging, natural supplements, and personalized nutrition is expected to drive the demand for ginseng supplements and ginseng-based beverages in foreseeable years. Asia Pacific shows tremendous opportunities for research and developments for dietary supplements and functional foods that are based on herbs and natural extracts.

Segmentation

Key Industry Developments

• In February 2019, South Korean producer, Ewha Company announced an international launch of its food brand Nature Food’s signature red ginseng product to meet the growing demand for adaptogens.


• In May 2019, Botalys, a supplier of rare plant extracts launched HRG80, a bioactive ginseng powder at Vitafoods Europe, 2019. The launch is aimed fulfill the growing demand for adaptogens.