Ginseng Extracts Market (2020 - 2027)

Ginseng Extracts Market Summary

The global ginseng extracts market size was valued at USD 24.5 million in 2019 and is projected to reach USD 40.1 million by 2027, growing at a CAGR of 6.3% from 2020 to 2027. An increase in consumer acceptance for Asian and oriental flavors and demand for Chinese herbal medicine are expected to boost the growth of the market over the forecast period.

Ginseng extract is derived from plant ginseng, which is considered to be an adaptogenic plant. Such extract is commonly referred to as an adaptogen, which resists biological, physical, and chemical stress and increases general vitality. Additionally, ginseng roots are widely known to comprise significant levels of highly bioactive compounds, including salicylic acid, phenolic acids maltol, p-coumaric acid, and vanillic acid.

Ginseng roots entail a distinctive variety of saponin known as ginsenosides that exhibit health-beneficial effects, including antihypertensive, antioxidant, insulin resistance reduction, antitumor, immunomodulating, chemoprotective, phytoestrogens, and antidiabetic effects. Ginseng extract is classified as fresh ginseng, red ginseng, and white ginseng, depending upon processing measures.

The roots of Panax quinquefolius and Panax ginseng are generally known as ‘ginseng’, which is a valuable and significant folk medicine in Asian countries, such as Korea, Japan, and China. Ginseng roots are well known for their high content of phenolic compounds, ginsenosides, and saponins, such as carotenoids and carbohydrates.

Additionally, with the continuously changing socioeconomic status, customers have now become more concerned about their health. Consumption of plant-derived products having considerably fewer side effects is gaining immense recognition over the last few years. Furthermore, it has a wide scope in functional foods and dietary supplements that can impart health benefits beyond traditional nutrients.

In recent years, there is an increasing interest in the role of ginseng as a functional food or nutraceutical with growing market value. Bioactive compounds and extracts isolated from ginseng are considered for their numerous health-promoting activities, such as antitumor, antioxidant, skin protecting, antihyperglycemic, anti-infective, anti-osteoporotic anticancer, and respiratory problems.

Form Insights

The powder form segment accounted for the largest revenue share of 52.1% in 2019 and is expected to witness significant growth in the forecast period as they are convenient to handle in the form of food and are highly preservable. Moreover, powder forms of products increase the shelf life on account of low water content and exhibit a high degree of preservability.

However, the outbreak of biological decline has been reported for powder form of foods owing to cross-contamination during the course of producing and processing. Additionally, even if powder foods have low water content, some microorganisms, including molds and xerophilic yeasts, can grow under dry conditions.

The powder segment is driven by other beneficial attributes, including antioxidant, anti-inflammatory, and anti-cancer properties. The segment growth is also attributed to its substantial application scope in food and beverages and cosmetic segments. Additional factors supporting the segment growth are increasing internet penetration and changing consumer preference towards online shopping, which has resulted in a broad range of product variety and easy product accessibility.

The liquid segment is anticipated to witness the fastest growth over the forecast period as it is preferably used in functional food and medicinal preparations where the exact amount of liquid can be mixed to get the correct mix of solution. It also helps in strengthening the immune system, preventing exhaustion, and enhancing mental and physical capacity in cases of lack of concentration, fatigue, lack of vitality, and during convalescence.

Application Insights

Based on the application, the market is categorized into cosmetic and personal care, pharmaceutical, food and beverage, and dietary supplements. The pharmaceutical segment accounted for the largest revenue share of 54.3% in 2019 on account of the nutritional and medicinal benefits of ginseng extract. It helps in the treatment of coma, gastrointestinal disease, and cardiovascular disease. Furthermore, it plays a vital role in physiological processes, such as neurodegenerative disorders, immunological diseases, diabetic disorders, and several heart diseases.

The dietary supplements application segment is expected to register the fastest CAGR of 7.0% in terms of revenue over the forecast period on account of its vital role in enhancing immunity against bacterial and viral infections, autoimmune disease, and cancer. Ginseng extract in dietary supplements reinforces the resistance of the body to illness during the effects on the immune system. The use of botanicals and herbs as a substitute remedy to conventional therapy has concerned health professionals, particularly where the immune system is moderately compromised or selective resistant treatment is required to lessen the adverse events.

Additionally, it has a favorable impact on liver function, brain function, sexual, and immune function. Since the use of conventional Chinese herbs for dietary and medicinal purposes is becoming increasingly popular in Western countries, ginseng extract is anticipated to grow as one of the best-selling herbs across the globe.

Regional Insights

The Asia Pacific accounted for the largest revenue share of 67.2% in 2019 on account of rapid utilization in food product manufacturing that has witnessed the highest growth than others. Changing consumer preferences towards natural food products due to side effects caused by human-made additives is another factor fueling market growth in the region.

North America is expected to witness increased demand over the forecast period owing to the extensive utilization of ginseng extract as an adaptogen and it is measured as the significant selling nutritional and herbal supplements in the country for thousands of years.

As per the industry trends and analysis, broadening market opportunities for ginseng extracts are primarily owing to growing health foods industry demand in North America and the Asia Pacific. The food industry is projected to witness increased demand on account of rising awareness regarding nutritional diet and increasing consumer purchasing power.

Countries such as U.S., China, and South Korea are significantly driving the ginseng extract industry owing to the surge in demand for dietary supplements on account of the growing trend towards preventive health management practice due to increasing health care costs. Additionally, European countries such as the U.K., Germany, and France are projected to foster growth on account of the rapid expansion of the pharmaceutical sector over the coming years.

Key Companies & Market Share Insights

The presence of internationally-renowned companies in the market space is expected to lead to increased instances of mergers & acquisitions over the coming years, given the incapability of privately-held and smaller players to compete with international market participants in terms of global/regional presence, the establishment of distribution channels, and revenue generation. Some of the prominent players in the global ginseng extracts market are:

• Shanti Natural

• RFI ingredient

• Orkla Health

• KGEC

• Herbal Bioactives

• Hangzhou Skyherb

• Nino Biotech

• Sinochem Pharmaceutical

• Liuyang Naturalin Bio

• Clariant

• Changsha Huir Biological-Tech

• Baoji Herbest Bio-Tech

• Koei Kogyo

Ginseng Extracts Market