The ginseng extracts market is valued at USD 11,842.6 million in 2024 and is projected to grow at a CAGR of 4.4% during the forecast period, to reach a value of USD 18,146.7 million by 2034.
Ginseng is a slow-growing and short plant with fleshy roots, available in 11 different varieties, such as American ginseng, Oriental ginseng, Siberian ginseng, Asian ginseng, and others.
Ginseng extracts are used to enhance and restore well-being in human body with energy boosting properties, can lower cholesterol and blood sugar levels, promote relaxation, reduce stress, and treat diabetes. The medicinal herb can be obtained from a forked-shaped and light-colored root.
| Attribute | Details |
|---|---|
| Ginseng Extract Market Size (2024E) | USD 11,842.6 million |
| Ginseng Extract Market Projected Size (2034F) | USD 18,146.7 million |
| Value CAGR (2024 to 2034) | 4.4% |
| Top 3 Countries Market Share | 36.4% |
Ginseng has been known for three thousand years, with the Chinese using it as an herbal remedy. Oriental physicians have prescribed ginseng as an essential tonic to restore health. The medicinal effects of ginseng stem from a group of about two dozen substances in the root called ginsenosides, which constitute about 2-3% of the root.
Numerous studies have demonstrated ginseng's impact on specific body functions and the skin's immune defense system. It has been shown that ginseng increases phospholipid synthesis, stimulates protein synthesis, and inhibits protein enzymatic degradation in fibroblasts. When applied to the skin, ginseng helps optimize cutaneous metabolism. These properties are driving the growth of the ginseng industry, as consumers seek its health and skincare benefits.
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| Particular | Value CAGR |
|---|---|
| H1 | 4.2% (2023 to 2033) |
| H2 | 3.9% (2023 to 2033) |
| H1 | 4.6% (2024 to 2034) |
| H2 | 4.1% (2024 to 2034) |
The above table presents the expected CAGR for the global ginseng extracts industry over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 4.2%, followed by a slightly lower growth rate of 3.9% in the second half (H2) of the same decade.
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 4.6% in the first half and remain relatively moderate at 4.1% in the second half. In the first half (H1) the industry witnessed a increase of 30 BPS while in the second half (H2), the industry witnessed an increase of 20 BPS
Increasing Adoption of Ginseng in Personal Care Industry to Augment Sales Growth
The use of ginseng in personal care products is growing at the global level. This is attributable to the antioxidant properties of ginseng that help to heal dry and damaged skin. Ginseng also has anti-aging properties that help to reduce wrinkles. On the back of these factors, ginseng is being increasingly used in various beauty products such as moisturizers, serums, essences, softeners, and cleansers.
Positive Social Media Attention to Expand Consumer Base for Ginseng Manufacturers
Social media sites are creating a favorable perception of Ginseng products among consumers. This is seen especially through the use of ginseng by food bloggers, who are sharing new recipes that use ginseng and its derivatives, and are promoting other products.
Ginseng, which has an amazing revitalizing and rejuvenating effect on the skin, it is gaining attention from consumers on social networking sites such as Instagram. Instagram is one of the most powerful social networking sites in South Korea, with an increasing user-base year-on-year. 46% of Korean users are on the platform, with women in their 20s or 30s as its core users. However, the site also seems to be popular among men between 20-30 years.
Most importantly, it is a great source of macro and micro influencers in Korea, who create awareness of the benefits of using Ginseng for skin care as well as oral care and promote various brands to their large subscriber base. Moreover, the rapidly increasing use of smartphones and smart gadgets in untapped areas increases the influence of media on consumers in these regions.
High Demand for Vitamin Supplements from Vegetarians and Vegans to Improve Sales
Consumer preference for plant-based products has increased, as plant-based products reduce the risk of diseases that are transmitted through meat products. Moreover, the United Nations urged for a global move towards meat and dairy-free diets, while implying that plant-based diets are a solution to reduce the impacts of climate change.
This is expected to result in a massive shift towards vegetarian and vegan diets worldwide. In 2018, vegetarian, vegan, and semi-vegetarianism or flexitarian categories accounted for around 11% of the world population, and this percentage is anticipated to increase rapidly in the foreseeable future.
Vegans and vegetarians have a deficiency of vitamin B12 due to the lack of meat products in their diet as meat products and some bacteria are the only sources of vitamin B12. Deficiency of vitamin B12 leads to weakness and fatigue, and causes megaloblastic anemia, a type of anemia.
Vegans add fortified food supplements to their diets to reduce the risk of vitamin B12 deficiency. Ginseng supplements with vitamin B12 are marketed as a convenient and easy to consume solution as they are available in form of capsules or tablets.
Ginseng Cultivation under Simulated Conditions
Ginseng is mainly produced in Korea, China, the USA, and a few other places across the globe. Wild ginseng thrives in deeply shaded woodlands where the soil is moist, well-drained, and high in organic matter.
It grows best in a well-drained, or moist soil and occurs in locations where herbaceous plants such as ferns, bloodroot, Jack-in the-pulpit, and Solomon's seal grow. Other countries must import ginseng to produce ginseng-derived products, which makes it less cost-effective.
Field-cultivated ginseng is grown in well-tilled raised beds in an open area. Artificial shade is provided by wooden lath houses or black polypropylene shade cloth. Leaves, rotted sawdust, or woodland soil may be added to the beds.
This method requires an intensive level of management. Well-funded manufacturers can invest in such cultivation to increase production on a global level, as well as to make procurement of ginseng more cost-effective for their own products in the long-term.
Principal Consultant
Ginseng extracts demand grew at 4.6% CAGR between 2019 and 2023. Being an herbal supplement, the product is used in wide range of industries from food and beverages to pharmaceuticals to cosmetics and personal care industry.
Due to its anti-inflammatory effects and antioxidant properties, the product can help regulate blood sugar levels, strengthen immune system, fight fatigue, enhance brain function, improve erectile dysfunction symptoms and have benefits for some cancers.
Recent researches have revolutionized the industry over the period and it is further projected to grow at a CAGR worth 4.4% in the forecasted year of 2024-2034. The industry has experience exponential rise during the covid period between 2020 to 2022.
Ginseng extracts sales along with Siberian ginseng type, capsule form, and beverage industry as application segment are projected to reflect favorable growth outlook in terms of revenue, according to the annual industry analysis conducted by FMI.
The ginseng extract industry exhibits a moderate to high level of player’s concentration, with a mix of well-established major players and smaller, regional companies shaping the industry. Dominated by large companies such as Korea Ginseng Corp., Clariant AG, and Korean Ginseng Export Corporation, these key players hold significant shares due to their extensive product lines, strong distribution networks, and substantial investment in research and development.
These companies benefit from economies of scale, established brand recognition, and stringent quality control measures. Alongside these giants, numerous smaller and regional companies compete by focusing on niche segments or specific geographic areas, offering unique product formulations, and emphasizing organic and sustainable practices.
The market competition is driven by continuous innovation, quality sourcing, regulatory compliance, and the rising consumer preference for natural health products. This dynamic environment, characterized by the interplay between major and minor players, fosters overall market growth and innovation
As per FMI analysis, tier 1 players hold 25% to 30% of the company share, tier 2 players account for 35% to 40%, and the remaining sales is catered to by tier 3 players. The industry value chain involves sourcing raw ginseng from regions like South Korea, China, and the United States, where optimal growing conditions exist.
These regions are known for their high-quality ginseng due to favorable climate and soil conditions. The raw ginseng is then processed and extracted by various companies into different forms such as powders, liquids, capsules, and gels. This extracted ginseng is subsequently distributed through various channels, including pharmaceuticals, dietary supplements, cosmetics, and food and beverage industries, to reach the end consumers.
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The following table shows the estimated growth rates of the top five markets. Australia and India are set to exhibit high Ginseng Extract consumption, recording CAGRs of 8.4% and 11.5%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 6.7% |
| Germany | 5.6% |
| China | 7.8% |
| Australia | 8.4% |
| India | 11.5% |
Ginseng extracts, as herbal supplements, are used in Chinese medicine for centuries. The main reason behind using the product is its antioxidant properties. Antioxidants, being able to inhibit the oxidation of other molecules, can cause free radicals growth, and help in boosting immunity shield of human body.
According to research, the extract contains enough antioxidants even to fight cancer, which is driving the consumption of the product among consumers in China.
American ginseng, also known as Panax quinquefolius, is a medicinal herb, which grows in many part of the USA, and is becoming an endangered species because of its high demand. The extract is known to act as adaptogen, which can stimulate resistance to environmental, physical, and emotional stressors within the body. Also, the extract contains ginsenosides, which can lower blood sugar and affects insulin levels of the body.
As a result, consumers in the USA take ginseng as a medicinal herb to boost the immune system, for stress and upper airway infections, along with diabetes, and many other medical conditions, which is driving forward the industry in the country.
Korean red ginseng, also known as Asian ginseng, or panax ginseng, is capable of inhibiting inflammation for ginsenoside compounds present in the extract and can protect brain damage caused by free radicals. Further, Korean red ginseng had shown 60% improvement in ED (erectile dysfunction) symptoms, when compared to only 30% improvement by medications for the same.
Ginseng extracts manufacturers, like Korea Ginseng Corp., are working on the know-how with strict quality control of the product and propelling the industry growth in the country with 120 years of tradition and craftsmanship of Korean red ginseng.
| Segment | Product Type (Siberian Ginseng) |
|---|---|
| Value Share (2024) | 39.7% |
Siberian ginseng, or eleuthero, is traditionally used as performance enhancer, adaptogen, and immunostimulant with active components including polysaccharides and eleutherosides. Extract of the species is in soaring demand from pharmaceuticals industry due to its hypoglycemic, neuroprotective, cell protective, and steroid receptor binding effects.
The product can relieve pain and enhance physical function of patients with knee osteoarthritis, while giving benefit to bone remodelling, improving endurance, and helping in manage cholesterol levels as well.
| Segment | End Use (Nutraceuticals & Dietary Supplements) |
|---|---|
| Value Share (2024) | 56.7% |
Apart from the fact of longer shelf life and ease of use, ginseng extracts capsule can easily help in losing weight, due to which its demand is increasing in dietary supplements industry. As the product can convert fat into energy faster with the help of BAT (brown adipose tissue), it helps in better absorption of fat and gives high energy in return.
Further, this herbal supplement induces gut bacteria production, which changes calorie burn pattern to improve metabolism, and ultimately helping in weight loss. Along with that, the product also keeps the sugar level in check within the blood function system, resulting in better absorption of nutrients in the body while reducing fat accumulation.
Key ginseng extracts manufacturers are focusing on expanding product portfolio with new product innovations and going for research and development, while top ginseng extracts brands are expanding comapny share with inorganic growth strategies involving new footprints in different other countries.
For instance
As per product type the industry has been categorized into American Ginseng, Oriental Ginseng, Siberian Ginseng , Asian Ginseng, Others
The segment is further categorized into Powder, Liquid, Tablet, Capsule, Gel and Others
Application in further categorized into Food & Beverages, Nutraceuticals & Dietary Supplements, Pharmaceutical, Cosmetics & Personal Care, Others
Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania and Middle East & Africa
The ginseng extracts sales is estimated to reach sales nearly USD 11,842.6 million by 2024.
Ginseng extracts industry revenue is expected to increase at a CAGR of around 4.4% during the period 2024 to 2034.
Ginseng extracts sales increased a CAGR of around 4.6% over the past half-decade.
The global ginseng extracts industry value will be around USD 18,146.7 million in 2034.
Korea Ginseng Corp., Clariant, Korean Ginseng Export Corporation, RFI Ingredients, Inc, and Ilhwa Co., Ltd. are expected to be the top players driving the industry growth.
Top countries driving the ginseng extracts demand are South Korea, China, India, Brazil, and the USA.
Innovative applications, research formulations, and medicinal properties are the factors driving growth of ginseng extracts market.
1. Executive Summary 2. Industry Introduction, Including Taxonomy and Market Definition 3. Market Trends and Success Factors, Including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Product Type 6.2. Form 6.3. Application 6.4. Region 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Product Type 7.1. American Ginseng 7.2. Oriental Ginseng 7.3. Siberian Ginseng 7.4. Asian Ginseng 7.5. Others 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Form 8.1. Powder 8.2. Liquid 8.3. Tablet 8.4. Capsule 8.5. Gel 8.6. Others 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Application 9.1. Food & Beverages 9.2. Nutraceuticals & Dietary Supplements 9.3. Pharmaceutical 9.4. Cosmetics & Personal Care 9.5. Others 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region 10.1. North America 10.2. Latin America 10.3. Europe 10.4. East Asia 10.5. South Asia 10.6. Oceania 10.7. Middle East and Africa 11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Oceania Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Sales Forecast 2024 to 2034 by Product Type, Form, and Application for 30 Countries 19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 20. Company Profile 20.1. Korea Ginseng Corp. 20.2. Clariant 20.3. Korean Ginseng Export Corporation 20.4. RFI Ingredients, Inc 20.5. Ilhwa Co., Ltd. 20.6. Organika Health Products Inc 20.7. Nature's Way Products, LLC 20.8. Orkla Health A/S 20.9. Shanghai FanPharma Co., Ltd. 20.10. Koshiro Company Limited 20.11. Others
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Ginseng Extracts Market
