In 2019, the global ginseng extract market value reached 22.9 billion U.S. dollars. It is expected that this market will grow at a compound annual growth rate of 6.2% from 2020 to 2027, and the market value will reach 37 billion U.S. dollars by then. Consumers in Asia and the East Increasing acceptance of flavored products and growing demand for herbal medicines will drive market growth over the forecast period.
Plant Derivatives Approved
The roots of American ginseng and Korean ginseng are often referred to as “panax ginseng.” Ginseng root is known for its high content of phenolic compounds, ginsenosides and saponins such as carotenoids and carbohydrates.
With changing socioeconomic status, consumers are more concerned about their health. In the past few years, plant-derived products with fewer side effects have been widely recognized, and people are more interested in ginseng, which has an increasing market value, as a functional food or health care product. Bioactive compounds and extracts isolated from ginseng are believed to have various health-promoting effects, such as anti-tumor, anti-oxidant, skin protection, hypoglycemic, anti-infective, anti-osteoporosis and respiratory diseases, etc.
Large share of powdered extracts
Powdered ginseng extracts accounted for the largest revenue share at 52.1% in 2019, and this segment is expected to witness significant growth over the forecast period due to their convenient handling in food form and ease of preservation. Powder products have low moisture content, which increases shelf life. However, powdered foods have been reported to biodegrade due to cross-contamination that occurs during production and processing. In addition, some microorganisms (including molds and xerophilic yeasts) can still grow under dry conditions even if the powdered food has a low moisture content.
Other beneficial properties of powdered ginseng extracts are also driving market growth, including antioxidant, anti-inflammatory, and anticancer properties. The growth of this segment is also driven by the wide application of products in food, beverage and cosmetics. Other factors supporting the growth of this segment include increasing internet penetration and consumer preference for online shopping, increasing the breadth of product assortment and ease of product acquisition.
The liquid product segment is expected to witness the fastest growth over the forecast period, liquid ginseng extracts are suitable for functional food and pharmaceutical formulations. Liquid ginseng extract can also help boost immune system function, relieve fatigue, improve focus, and boost energy in situations of poor concentration, fatigue, lack of energy, and recovery.
Dietary supplements are growing fast
By application, the ginseng extract market can be segmented into cosmetics and personal care products, pharmaceuticals, food & beverage, and dietary supplements. Due to the nutritional and medicinal value of ginseng extract, the pharmaceutical segment accounted for the largest share at 52.5% in 2019. Ginseng extract helps in the treatment of coma, gastrointestinal disorders and cardiovascular diseases and plays a vital role in various physiological processes such as neurodegenerative diseases, immune diseases, diabetic diseases and heart diseases.
In terms of revenue, the dietary supplement application segment will witness the fastest growth during the forecast period with a CAGR of 6.9% due to the role of the product in enhancing human immunity, fighting bacterial and viral infections, autoimmune diseases and cancer etc. are very important. Ginseng extracts in dietary supplements can boost the body’s resistance to disease while the immune system is at work. The use of botanicals and herbs as routine treatments has raised concerns among health professionals, especially in cases of mildly compromised immune systems, or where selective resistance treatments are required to mitigate adverse events.
In addition, ginseng extracts also have beneficial effects on liver function, brain function, sexuality and immune function. Traditional Chinese herbal medicines are increasingly used for dietary and medicinal purposes in Western countries, and ginseng extract is expected to become one of the best-selling herbal medicines globally.
Asia Pacific region with the highest sales
Asia Pacific accounted for the largest revenue share at 679% in 2019 owing to the rapid utilization of food production and the fastest growth rate compared to other industries. Consumer preference for natural food due to artificial additives causing side effects is also driving the growth of the local ginseng extract market.
The demand for ginseng extracts in North America will increase during the forecast period due to the widespread utilization of ginseng extracts as an adaptogen. According to industry trends and analysis, the opportunities for the expansion of the ginseng extract market mainly come from the increasing demand from the health food industry in North America and Asia Pacific. Rising consumer awareness regarding nutritious diets coupled with increased purchasing power is expected to increase demand from the food industry.
