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Ginseng Extract Market Size
Ginseng Extract Market size was valued at USD 29.2 million in 2023 and is expected to grow at 6.3% CAGR from 2024 to 2032. Ginseng extract, sourced from the adaptogenic ginseng plant, is known for its ability to counteract chemical, biological, and physical stressors, thereby enhancing overall vitality. The ginseng root, prized for its ginsenosides, a potent chemical component, finds extensive use across diverse sectors. These include personal care and cosmetics, food and dietary supplements, and pharmaceuticals, thanks to the myriad benefits ginsenosides offer.
According to the United States Department of Agriculture (USDA), the global demand for ginseng has been steadily increasing, with the U.S. exporting over 1.5 million pounds of ginseng annually. Depending on the processing methods, ginseng extract is categorized into white ginseng, fresh ginseng, and red ginseng.
| Report Attributes | Details |
|---|---|
| Base Year: | 2023 |
| Market Size in 2023: | USD 29.2 Million |
| Forecast Period: | 2024–2032 |
| Forecast Period 2024–2032 CAGR: | 6.3% |
| 2024–2032 Value Projection: | USD 51.1 Million |
| Historical Data for: | 2021–2023 |
| No. of Pages: | 200 |
| Tables, Charts & Figures: | 172 |
| Segments covered: | By Form, By Application |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Stringent regulations on chemical seed treatments pose challenges to the market. Regulatory bodies are imposing stricter controls due to environmental and health concerns. This forces manufacturers to develop alternative, compliant solutions. It can lead to increased production costs and potential market limitations. High initial costs for small-scale farmers present another obstacle.
Advanced ginseng extract technologies and materials require significant upfront investment. This can be prohibitive for small-scale farmers, especially in developing regions. They may struggle to afford coated seeds or specialized equipment. It can slow market penetration in certain agricultural sectors and geographies. These factors create a complex landscape for industry players. They must balance innovation, cost-effectiveness, and regulatory compliance for sustainable growth.
Ginseng Extract Market Trends
The ginseng extract industry faces a significant challenge due to potential side effects and health risks associated with its consumption, which could dampen consumer demand. While ginseng is widely promoted for its health benefits, including improved energy levels, cognitive function, and immune support, some studies have highlighted potential side effects such as insomnia, headaches, gastrointestinal issues, and allergic reactions.
Additionally, concerns about interactions with medications and the lack of consistent regulatory standards for supplement quality have raised caution among consumers and healthcare providers. These risks could hinder market growth by reducing consumer confidence and prompting stricter regulatory scrutiny.
Ginseng Extract Market Analysis
The powder form segment is projected to capture USD 9.7 million in 2023 and exhibit a 6.4% CAGR by 2032. This strong growth is attributed to several key factors, including the rising consumer preference for convenient and easily consumable supplement formats. The powder form allows for versatile applications, including use in beverages, smoothies, and food products, catering to health-conscious consumers seeking natural energy boosters and immune support.
Additionally, increasing awareness of the health benefits of ginseng, combined with the expanding market for dietary supplements, particularly in regions with growing health and wellness trends, is further propelling the demand for ginseng extract in powder form.
The ginseng extract market from dietary supplement application segment will expand to USD 14.6 million in 2023 and garner a 6.4% CAGR from 2024 to 2032. This robust expansion is fueled by several key factors, including the growing consumer focus on health and wellness, increasing demand for natural and herbal supplements, and the rising awareness of ginseng's potential benefits, such as enhanced energy levels, cognitive function, and immune support.
The trend toward preventive healthcare and the rising popularity of supplements for addressing lifestyle-related health issues further bolster demand. Additionally, the expanding e-commerce sector and the availability of various supplement formats are contributing to the segment’s significant growth.
The Asia Pacific ginseng extract market is poised for remarkable growth, with a projected market value of USD 15.5 million in 2023 and an anticipated compound annual growth rate (CAGR) of 6.7% from 2024 to 2032. This strong expansion is driven by several regional factors, including the deep-rooted cultural significance of ginseng in traditional medicine across countries like China, South Korea, and Japan, where it is widely recognized for its health benefits.
The increasing adoption of herbal supplements and natural health products in these markets, coupled with rising disposable incomes and growing health consciousness, further fuels demand. Additionally, government support for the cultivation of medicinal plants and the expanding nutraceuticals industry in the region contribute to the sector's robust growth trajectory.
Ginseng Extract Market Share
The ginseng extract industry is highly competitive, with several prominent players leading the industry. Key companies such as RFI Ingredient, Shanti Natural, and KGEC have established themselves as major suppliers of high-quality ginseng extracts, catering to the growing demand for natural health supplements and nutraceuticals. These companies focus on maintaining strong production capabilities, innovative extraction processes, and robust quality control to ensure product efficacy and safety.
Along with them, Orkla Health and Hangzhou Skyherb are leveraging their expertise in herbal and health products to expand their market reach, particularly in regions like Europe and Asia, where the demand for herbal-based dietary supplements is rapidly increasing.
Other key players such as S.A. Herbal Bioactives, Nino Biotech, and Liuyang Naturalin Bio are also gaining traction by offering specialized ginseng extracts and bioactive ingredients tailored for various applications in the pharmaceutical, cosmetic, and food industries. Sinochem Pharmaceutical and Changsha Huir Biological-Tech bring additional competitive strength, with extensive experience in the medicinal plant sector and strong supply chains.
Meanwhile, Clariant, KOEI KOGYO, and Baoji Herbest Bio-Tech are focusing on product innovation, sustainable sourcing practices, and expanding their global footprints to meet the rising demand for natural, high-quality ginseng extracts in the global market. These players contribute significantly to shaping the industry's growth trajectory through strategic partnerships, product development, and geographical expansion.
Ginseng Extract Market Companies
Top companies operating in the ginseng extract industry include:
- RFI ingredient
- Shanti Natural
- KGEC
- Orkla Health
- Hangzhou Skyherb
- S.A. Herbal Bioactives
- Nino Biotech
- Liuyang Naturalin Bio
- Sinochem Pharmaceutical
- Changsha Huir Biological-Tech
- Clariant
- KOEI KOGYO
- Baoji Herbest Bio-Tech
Ginseng extract Industry News
- February 2024, Ginsa brands officially launched ginsa, the first-to-industry sparkling ginseng tonic centered around Korean red ginseng, an antioxidant-rich root celebrated for its ability to increase energy, enhance immunity, fight inflammation and improve focus.
- February 2024, South Korean cosmetics startup FM Biohealth Co. launched a new skincare product that contains ginseng fruit extracts as an active substance.
The ginseng extract market research report includes in-depth coverage of the industry, with estimates and forecasts in terms of revenue and volume (USD Million) (Kilo Tons) from 2021 to 2032, for the following segments:
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Market, By Form
- Polymers
- Colorants
- Pellets
- Minerals/Pumice
- Others (including biologicals)
Market, By Application
- Insecticides
- Fungicides
- Nutrients
- Bio-control agents
- Others
The above information is provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- South Korea
- Australia
- Rest of Asia Pacific
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- MEA
- Saudi Arabia
- UAE
- South Africa
- Rest of MEA
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