Ginseng roots are the world’s 2874th most traded product. In 2019, the top exporters of Ginseng roots were China with 139 million dollars, Canada with 103 million dollars, South Korea with 79.7 million dollars, Hong Kong with 56.4 million dollars, and the United States with 46.2 million dollars. In 2019, the top importers of Ginseng roots were Hong Kong with 171 million dollars, China with 90.1 million dollars, Japan with 59 million dollars, Chinese Taipei with 44.4 million dollars, and the United States with 15.2 million dollars.
Global Ginseng Market is projected to reach 11.7 Billion Dollars by 2026. Growth in the global market is being driven by the rise in health consciousness among people, increasing demand for healthy food, and various health benefits associated with Ginseng. The use of Ginseng in different food and beverages to create flavored healthy consumables is aiding in market growth. The increasing usage of Ginseng as a diet supplement in developed nations is also aiding its demand.
Ginseng Top Importing And Exporting Countries
Cosmetics and beauty care products are using anti inflammatory, skin restoring, and anti aging features of Ginseng to formulate different products leading to the rising demand for this herb. In the last few years, Ginseng has been used as a major component in moisturizers, serums, cleansers, and essences. Pharmaceutical industries are capitalizing on hypertension, diabetes, and heart disease combating features of Ginseng leading to increased demand from this sector.
Amid the COVID 19 crisis, the global market for Ginseng estimated at 6.1 Billion dollars in the year 2020, is projected to reach a revised size of 11.7 Billion Dollars by 2026, growing at a CAGR of 11 percent over the analysis period. Asian Ginseng, one of the segments analyzed in the report, is projected to grow at a 10.7 percent CAGR to reach 7.9 Billion Dollars by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the American Ginseng segment is readjusted to a revised 11.5 percent CAGR for the next 7 year period.
This segment currently accounts for a 35.9 percent share of the global Ginseng market. Grown primarily in colder regions of South Korea and North Eastern China, the market for Asian ginseng is expected to benefit from rising demand from pharmaceutical, dietary supplements, and cosmetics markets. In China, the adoption of regulations enabling the use of ginseng in food products is fueling the market growth. American Ginseng segment is likely to record strong gains, as increased demand for this product is demonstrated by all industry domains including food and beverage, healthcare, personal care. American ginseng has calming, antioxidative, anti-inflammatory, and anti-cancer properties.
The U.S market is estimated at 379.9 Million Dollars in 2021, While China is Forecast to Reach 3.9 Billion Dollars by 2026.
The Ginseng market in the U.S. is estimated at 379.9 Million Dollars in the year 2021. The country currently accounts for a 5.47 percent share in the global market. China, the world’s second largest economy, is forecast to reach an estimated market size of 3.9 Billion dollars in the year 2026 trailing a CAGR of 13.1 percent through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 7.9 percent and 9.3 percent respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 9 percent CAGR while the rest of the European market will reach 4.3 Billion dollars by the end of the analysis period. Asia Pacific represents the leading regional market, driven by growing demand for dietary supplements and nutraceuticals and the trend towards personalized nutrition and natural supplements. Europe is another major market for ginseng, with the rising popularity of botanical products among consumers as part of efforts to maintain health fueling market growth. In North America, the growing popularity of alternative medicines specifically herbal products in recent times is giving impetus and the shift towards plant-based products is fueling demand for ginseng.
China has the most production with 44,749 tons, and it is estimated in the order of South Korea, 27,480 tons, ranking the 2nd, Canada 6,486 tons, the 3rd and the US 1,054 tons, etc. The total production by these four countries is 79,769 tons, which is approximately 99 percent of the world’s ginseng production which is 80,080 tons. Therefore, it is possible to say that they are responsible for the majority of the world ginseng production
Then, where is the largest market in the world in terms of distribution amount? It is none other than South Korea. As of 2009, its annual production is 27,480 tons, the 2nd largest in the world, and it is the world’s largest distribution market. Its domestic distribution size is approximately 649 million dollars in terms of the amount based on ginseng root and approximately 1,140 million dollars if including processed products.
South Korea’s exports as well in 2009 was 38 million dollars, but its domestic consumption is larger than the amount exported. In particular, the reason why the distribution amount is large in South Korea is that 100 percent ginseng root and a variety of processed products are thriving. In addition, ginseng products are divided according to distribution characteristics, and a wide variety of distribution channels such as department stores, road shops, large retailers, supermarkets, duty free shops, drugstores, traditional markets, home shopping, internet sales, door to door sales, etc. are open.
Also, if there is South Korea’s own unique distribution market, it is none other than the fresh ginseng distribution market. Fresh ginseng out in the field is distributed through the traditional markets and is used as an ingredient in various forms at home and in restaurants. Ginseng in South Korea is mostly estimated more than 90 percent distributed as food.
In terms of ginseng root which is fresh ginseng, processed white ginseng, red ginseng, and Taekuksam production amount and distribution size of ginseng being distributed around the world are estimated to be approximately 1,130 million dollars and if its processed goods such as, capsule, extract, drink are included, it can be estimated to be approximately 2,085 million dollars.
Ginseng is being consumed in various forms depending on the nature of consumer culture in each country. Asian countries such as South Korea and China have a long history of ginseng consumption that goes back as far as 1,000 years. Looking at the consumption pattern by each country, while ginseng root product is the mainstream in China and Taiwan, it is consumed in the form of a solid type such as capsule, tablet, etc. and tonic nutrition beverage in addition to ginseng root product in Canada, US, Japan.
On the other hand, in the case of South Korea, the world’s strongest ginseng distribution market, a wide variety of products are being consumed to the extent that it is no exaggeration to say any kind of ginseng product can be found in South Korea.
In South Korea, ginseng root is consumed and distributed in 4 types. The first is fresh ginseng right out of the field, the second is processed white ginseng which is dried ginseng, the third is Taekuksam which is the fresh ginseng blanched in the water dried, and the fourth is red ginseng which is steamed fresh ginseng with vapor and dry.
Among them, while the full quantity of fresh ginseng and Taekuksam are consumed in ginseng root type and approximately 95 percent of white ginseng is consumed as ginseng root and only approximately 5 percent is distributed as processed products, red ginseng is more consumed in various processed forms around 67 percent than in ginseng root which is 33 percent form. In particular, the representative ginseng of South Korea is red ginseng and its related products are widely consumed as health supplements, general food, medicine, and the majority estimating more than 90 percent is consumed as health foods majorly agricultural products, health supplements, and general food.
Due to a growing well being trend around the world, the health food market focusing on natural food, medicine, and other end products of chemical synthesis of health food is expanding greatly. As of 2009, the market size of the world health foods is estimated to be 254,237 million dollars. Since the value of ginseng is evaluated as the highest among natural health foods, if health products with various functions using this ingredient are developed, they will be able to tremendously enhance the quality of life and become the world’s bestseller.
Until now, the ginseng market maintained the premium around Asia based on the traditional efficacy. However, if a variety of products and marketing appropriate for the international market and customers are developed along with scientific research on the efficacy, the value could expand beyond Asia and to the world in the future.
According to the international spread of ginseng consumption, the marketing strategies such as new distribution development, brands, design, packaging, price, product differentiation, etc. should be accompanied along with continuous investment in research and development in ginseng cultivation, new material development, efficacy, new product development, etc.
Ginseng is the root of plants in the genus Panax, such as Korean ginseng, South China ginseng, and American ginseng, typically characterized by the presence of ginsenosides and gintonin.
Although ginseng has been used in traditional medicine for centuries, modern clinical research is inconclusive about its medical effectiveness. There is no substantial evidence that ginseng is effective for treating any medical condition, and its use has not been approved by the US Food and Drug Administration as a prescription drug. Although ginseng is commonly sold as a dietary supplement, inconsistent manufacturing practices for supplements have led to analyses showing that ginseng products may be contaminated with toxic metals or unrelated filler compounds, and its excessive use may have adverse effects or untoward interactions with prescription drugs.
Ginseng roots are the world’s 2874th most traded product.
In 2019, the top exporters of Ginseng roots were China with 139 million dollars, Canada with 103 million dollars, South Korea with 79.7 million dollars, Hong Kong with 56.4 million dollars, and the United States with 46.2 million dollars. In 2019, the top importers of Ginseng roots were Hong Kong with 171 million dollars, China with 90.1 million dollars, Japan with 59 million dollars, Chinese Taipei with 44.4 million dollars, and the United States with 15.2 million dollars.
Benefits of Ginseng:
People have traditionally taken ginseng to help with a range of medical conditions. Researchers suggest that ginseng may have the following health benefits:
Increased energy: Ginseng may help stimulate physical and mental activity in people who feel weak and tired.
Sharper cognitive function: Ginseng may improve thinking processes and cognition.
Anti inflammatory effects: Ginseng may reduce inflammation. Ginsenosides, the active components of ginseng, may target pathways in the immune system that could reduce inflammation.
Treatment of erectile dysfunction: Men may take ginseng to treat erectile dysfunction. A systematic review of 119 men with mild to moderate erectile dysfunction found that ginseng berry extract improved overall sexual function.
Flu prevention: Research on the effects of ginseng on mice suggests a possible link between ginseng and the treatment and prevention of influenza and respiratory syncytial virus (RSV). Findings of another study suggested that red ginseng extract could improve the survival of human lung epithelial cells infected with the influenza virus.
Lowering blood sugar: A 2014 study suggests that ginseng may help lower blood sugar and help treat diabetes. Ginsenosides may affect insulin production in the pancreas and improve insulin resistance using other mechanisms.
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Ginseng is the root of plants in the genus Panax, such as Korean and South China ginseng. Ginseng roots are the world’s 2874th most traded product. Cosmetics and beauty care products are using anti inflammatory, skin restoring, and anti aging features of Ginseng.