Ginseng Market Size 2024-2028

The ginseng market size is projected to increase by USD 195.03 million, at a CAGR of 5.05% between 2023 and 2028. The market is influenced by increasing awareness of the health benefits of ginseng, the rising popularity of herbal supplements, and growing demand for ginseng-based beauty and skincare products. Ginseng's recognized health benefits, including its adaptogenic properties and potential for enhancing overall well-being, drive consumer interest in dietary supplements. Concurrently, the preference for natural and herbal remedies fuels the popularity of ginseng and other botanical supplements. Moreover, the beauty and skincare industry's integration of ginseng extracts in anti-aging and rejuvenating products meets the growing consumer demand for natural and effective skincare solutions. These trends underscore a dynamic market landscape where health consciousness, natural remedies, and skincare innovation converge, offering opportunities for manufacturers and retailers to capitalize on the expanding consumer base seeking ginseng-infused products for health and beauty enhancement.

Market Overview

The market shows an Accelerate CAGR during the forecast period.

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Market Dynamics

The ginseng industry is thriving globally, driven by its immune-boosting properties and recognition as a natural supplement in both traditional Asian medicine and modern consumer health awareness. With a focus on longevity and cognitive benefits, ginseng's market extends into the food and beverages division where it enhances digestive health and supports immune systems. Global sales of ginseng are bolstered by its integration into functional foods, appealing to food manufacturers seeking to capitalize on its health benefits. The United States ginseng market particularly highlights its role in anxiety and erectile dysfunction, positioning it in peer or tangential markets alongside other health-related sectors.

Market Growth Analysis Driver 

Rising awareness of the health benefits of ginseng is notably driving the market growth. Increasing consumer awareness is a major driver in the global market as individuals become more conscious of the health benefits associated with this ancient root. This has long been revered for its adaptogenic properties, which are believed to help the body cope with stress and promote overall well-being. As consumers actively seek natural remedies and holistic approaches to health and wellness, This has gained traction as a key ingredient in various wellness products. The adaptogenic nature of this aligns with modern hectic lifestyles, where people are increasingly seeking solutions to manage high levels of stress and maintain optimal health.

Moreover, the rise of e-commerce has also facilitated access to these products, allowing consumers to make informed choices based on their health and wellness goals. With an expanding range of ginseng-infused products, such as teas, supplements, and energy drinks, consumers can now select products that align with their preferences and lifestyles. Thus, the rising awareness of the health benefits of it is expected to drive the growth of the market in focus during the forecast period.

Market Growth and Trends 

Increased demand for organic ginseng products is an emerging trend shaping the market development. This surge in demand is closely linked to evolving consumer preferences centered around health consciousness, environmental sustainability, and a preference for organic and natural products. Organic products is cultivated without the use of synthetic pesticides, herbicides, or chemical fertilizers, which is spurred by the growing awareness of the potential detrimental health and environmental impact associated with conventional agricultural practices. Consumers are becoming more discerning about the origin and production methods of the products that they consume. The shift toward organic Ginseng reflects a desire for cleaner, environment-friendly cultivation practices that avoid the use of synthetic chemicals. 

Moreover, as organic certifications become more standardized and widely recognized, consumers are gaining confidence in the authenticity of organic products. Nature Way Brands LLC is recognized for its commitment to high-quality herbal extracts. The company offers an "Organic Ginseng Root" liquid extract, which is USDA Organic-certified. This product is designed to support energy, vitality, and overall well-being. Thus, the increased demand for organic products is expected to drive the growth of the market during the forecast period.

Market Challenge 

The high susceptibility of ginseng plants to pests and diseases is a significant challenge hindering market growth. Pest infestation and diseases pose significant challenges to the global market, as these issues severely affect the cultivation and overall health of these plants. One of the primary pests impacting ginseng cultivation is the root-knot nematode (Meloidogyne spp.), which infests the roots of these plant, causing damage and negatively influencing plant growth. These microscopic nematodes (roundworms) can lead to reduced yields and lower-quality ginseng roots. In addition to nematodes, fungal diseases such as Alternaria blight (caused by Alternaria panax) and root rot (often caused by various species of Phytophthora) are commonly prevalent in ginseng cultivation. 

In addition, viral infections, such as the Cucumber mosaic virus (CMV), can cause stunted growth, mottling of leaves, and a decrease in root size. The challenges posed by pest infestation and diseases in these cultivation are compounded by the plant's slow maturation period. As Ginseng takes several years to reach maturity, the impact of pest infestation and diseases can be especially detrimental, leading to long-term consequences on the productivity and economic viability of ginseng farms. The above-mentioned factors can pose a major challenge to the growth of the market during the forecast period.

Market Segmentation

By Application

Ginseng is a popular ingredient in dietary supplements that are available in various forms, such as capsules, tablets, and powders. Consumers are drawn to these supplements due to their perceived health benefits, including improved energy levels, mental focus, and enhanced immune support. The adaptogenic properties of Ginseng, which are believed to help the body cope with stress and support overall well-being, contribute to its popularity in this category. Moreover, these supplements often target specific health concerns, including fatigue, cognitive function, and immune system support. Natures Way Brands LLC is a well-known brand that provides these supplements in different formulations, catering to diverse consumer needs. The company products often combine Ginseng with other vitamins and minerals to create comprehensive wellness solutions. Thus, the growing use of dietary supplements that contain Ginseng as a major ingredient will continue to drive the growth of the dietary supplements segment of the market in focus during the forecast period.

By Distribution Channel

The market share growth by the RS and CS segment will be significant during the forecast period. In the global market, retail channels play a pivotal role in making these health-enhancing products accessible to consumers. Supermarkets, with their extensive retail spaces, are key players, providing a diverse array of supplements, teas, and other products. Notable examples include major supermarket chains like Walmart Inc., Tesco PLC, and Carrefour S.A.

The RS and CS segment was the largest and was valued at USD 323.87 million in 2018. 

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Further, these retailers offer a one-stop shopping experience, allowing consumers to easily discover and purchase these products alongside their regular grocery needs. Convenience stores also contribute significantly to the distribution of products. Outlets like 7-Eleven, Circle K, and Wawa serve as convenient hubs for consumers seeking on-the-go access to Ginseng-infused beverages and other products. The accessibility and quick shopping experience offered by convenience stores make them crucial for consumers with busy lifestyles by ensuring that products are readily available in various retail environments. As consumer demand for health and wellness products continues to rise, both supermarket chains and convenience stores will play vital roles in meeting these preferences and driving the growth of the global market in this segment during the forecast period.

Key Regions for the Market

APAC is estimated to contribute 31% to the growth of the global market during the forecast period

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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Growing awareness of the importance of health and wellness across the region has further fueled the demand for ginseng-based products. Consumers in APAC countries actively seek natural and traditional remedies, and Ginseng aligns well with these preferences. Additionally, the increasing influence of traditional medicine practices, coupled with the perceived adaptogenic properties of Ginseng, continues to drive its consumption.

In addition, as the global interest in herbal supplements and natural health solutions rises, APAC remains a key player in shaping the market trends and analysis along with the dynamics in the global market. The cultural significance, historical usage, and continuous innovation in these cultivation and product development will continue to contribute to the growth of the regional market during the forecast period.

Company Overview

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.

• Key Offering- Auragin LLC: The company offers products such as Korean ginseng roots that are preserved using a traditional process of repeat steaming and drying, the same method that has been used in Korea for over a thousand years.
• Ky Offering- Bio Botanica Inc.: The company offers products such as White Chinese Root Panax Ginseng Root Extract which is used as a skin conditioning agent in a wide variety of applications, such as aftershave lotions, bath capsules and oils, body and hand preparations, colognes and fragrances, makeup, and much more.

The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including AOS Products Pvt. Ltd., Auragin LLC, Bio Botanica Inc., Botalys SA, Herbal Creations, KAVYA PHARMA, Korea Ginseng Corp., MotherTree Nutra Pvt. Ltd., Natures Way Brands LLC, Nestle SA, Uniray Life Sciences, Velnex Medicare, Zoic Pharmaceuticals Pvt. Ltd., Bob Ginseng LLC, Canada Royal Enoch Phytomedicine Ltd., Ethical Naturals Inc., FREDERIC M, and G and G Century M Sdn Bhd

The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research and growth report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Distribution Channel Outlook
  • RS and CS
  • Online

• Application Outlook
  • Dietary supplements
  • Pharmaceutical products
  • Functional food and beverage processing

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The ginseng extract industry is undergoing significant product innovation and growth, driven by increasing global focus on health and rising consumer demand for healthy and high quality products. In regions like Asia Pacific, where ginseng is widely cultivated with government support, there's a growing emphasis on sustainable practices to mitigate issues such as overharvesting and ensure quality control. The cultivated segment ensures consistent potency, shape, and consistency of ginseng products, addressing concerns about wild ginseng depletion. Moreover, the industry is adapting to new dietary trends like veganism, offering plant-based ginseng products that cater to diverse consumer preferences. With its low cost and diverse application in diabetes management and overall health, ginseng continues to expand its market presence globally.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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