The global ginseng extracts market was valued at USD 26.2 million in 2020 and is expected to grow at a CAGR of 6.5 % during the forecast period. The global market has grown significantly due to factors such as increased consumer awareness towards the importance of living a healthy lifestyle. Furthermore, the growing demand for the product across numerous end-use sectors, including cosmetics, pharmaceuticals, and others, creates a substantial market opportunity for the major players in the ginseng extracts market.
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Globally, cardiovascular disease affects more than 420 million people, and it is the leading cause of death across the globe. Cancer cases are also showing a rapid increase, with 19.3 million people diagnosed with cancer in 2020 alone. Lifestyle diseases are also becoming more prevalent due to stress and unhealthy food habits.
Currently, more than 1.1 billion people are living with hypertension and in China alone, there are an estimated 270 million people suffering from the disease. This increase in the prevalence of chronic disease will contribute to the upward growth of the ginseng extracts market.
The emergence of COVID-19 is expected to drive the growth of the global market for ginseng extracts as the intake of ginseng will improve the immunity of a person. Hence ginseng is used as herbal medicine in treating COVID-19.
For instance, in late 2020, Health and Ayush ministries in India jointly launched the National Ayush treatment protocol. Most of the medication advised in the protocol have ashwagandha (Withania somnifera or Indian ginseng) and guduchi (Tinospora cordifolia) as the base with different forms and formulations.
The growth of the global market for ginseng extracts is driven by the factors such as an increasing case of chronic diseases along with a rapid rise in the geriatric population. The use of ginseng in nutraceuticals and pharmaceuticals and the growing awareness for herbs and plant extracts among people is expected to further drive the growth of the market during the forecast period.
The increase in the geriatric population is significantly contributing to the rapid rise in chronic diseases such as diabetes, heart disease, and cancer. In 2019, more than 700 million people aged 65 years were living across the world and the number is expected to double, by 2050, to reach around 1.5 billion. This is expected to drive the growth of the global market for ginseng extracts.
Many new developments are taking place in the global market owing to its increasing popularity. For instance, in March 2021, Mankind Pharma launched its OTC (over the counter) multivitamin tablet and food supplement called ‘Health OK’. This tablet contains ginseng, taurine, 20 multivitamin, and minerals that are expected to improve the immune system and the overall health of a person.
Similarly, Asmara launched two ginseng para-probiotic powdered blends known as Yin Elixir and Yang Elixir in 2020. In 2019, Botalys entered into a partnership, thereby becoming a supplier of ginseng raw material for Terry Naturally Vitamins based out of the U.S. and also for Belgian bases Nutrisan.
The market is primarily segmented on the basis of form, application, and region.
· Cosmetics & Personal Care
· Dietary Supplements
· Food & Beverages
· North America (U.S., Canada)
· Europe (Germany, UK, Italy, France, Spain Austria, Netherlands)
· Asia Pacific (China, Japan, India, Indonesia, Malaysia, South Korea)
· Latin America (Brazil, Argentina, Mexico)
· Middle East & Africa (Israel, Saudi Arabia, South Africa, UAE)
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Insight by Form
The powder form market segment dominated the market and generated the highest revenue in 2020, owing to the growing list of product benefits like anti-cancerous, anti-inflammatory, and antioxidant properties. The growth of the segment is also due to its broad range of applications in the food and beverage industry and the cosmetics industry.
Also, rising internet penetration and shifting consumer preferences toward online purchases, due to easy access to an extensive range of product diversity in customer-friendly packaging options, are projected to drive the extracts industry segment forward.
The liquid extracts from the market segment are projected to have a high growth rate due to their high preference for functional food and medicinal preparations. It also helps boost the immune system, prevent tiredness, and improve mental and physical ability in cases of lack of focus, vitality, and fatigue as well as during convalescence.
Insight by Application
The pharmaceutical segment dominated the industry for ginseng extracts and generated the highest revenue, in 2020, owing to growing awareness and increased usage of biologically derived compounds in the pharmaceutical sector. It also plays a vital role in physiological processes like neurodegenerative disorders, immunological diseases, and various heart illnesses.
The dietary supplements application segment of extracts is likely to grow rapidly during an estimated period due to its critical role in improving immunity against autoimmune disease, viral and bacterial infections, and cancer. Ginseng extracts are nutritional supplements that increase the body's resistance to infection by boosting the immune system.
Asia Pacific is expected to be the most prominent region for the global extracts market owing to its increasing adoption of herbal extracts in traditional medicinal practices in countries such as China, Japan, South Korea, and India. China has the highest number of diabetic and hypertension populations across the globe.
The incidence of cancer is also highest in the country. In addition, the shift in consumer preferences for natural food products due to the negative impacts of human-made chemicals is another factor that drives the market growth for ginseng extracts in the region.
North America is also contributing significantly to the growth of the global industry for ginseng extracts during the forecast period owing to the increasing focus on alternative medicines made from plant extracts and natural extracts in the region. In recent years, developed economies such as the U.S. are using ginseng in nutraceuticals and food supplements and these factors will favor the growth of the extracts market in the region.
The major players in the market for ginseng extracts are investing heavily in research and development to develop ginseng as a pharmaceutical and nutraceutical product to treat many chronic diseases and to improve the overall health of an individual. Companies are launching new products and are entering into partnerships and collaborations to strengthen their presence in the market.
Some of the major players operating in the market for ginseng extracts include Koei Kogyo, RFI ingredient, Liuyang Naturalin Bio, Shanti Natural, Orkla Health, KGEC, Hangzhou Skyherb, Sinochem Pharmaceutical, Nino Biotech, Herbal Bioactives, Changsha Huir Biological-Tech, and Baoji Herbest Bio-Tech.
Ginseng Extracts Market Report Scope
Market size value in 2020
USD 26.2 million
Revenue forecast in 2028
USD 43.07 million
6.5% from 2021 - 2028
2016 - 2019
2021 - 2028
Revenue in USD million and CAGR from 2021 to 2028
By Form, By Application, By Region
North America, Europe, Asia Pacific, Latin America, Middle East & Africa
Baoji Herbest Bio-Tech, Changsha Huir Biological-Tech, Clariant, Hangzhou Skyherb, Herbal Bioactives KGEC, KOEI KOGYO, Liuyang Naturalin Bio, Nino Biotech, Orkla Health, RFI ingredient, Shanti Natural, Sinochem Pharmaceutical