Global Ginseng Tea Market - 2024-2031

Global Ginseng Tea Market - 2024-2031

Global Ginseng Tea Market reached US$ 89.1 million in 2023 and is expected to reach US$ 129.6 million by 2031, growing with a CAGR of 4.8% during the forecast period 2024-2031.

The growing trend towards natural and herbal health products, including ginseng tea, is driven by increasing consumer awareness of the health benefits associated with these products. This trend is fueling market growth as consumers seek healthier beverage alternatives. Market players are innovating to meet consumer preferences and expand the appeal of ginseng tea. This includes introducing new flavors, blends, and formulations to cater to diverse tastes and preferences in the market.

For instance, on November 2, 2023, Danurim, a manufacturer of processed ginseng foods headquartered in Daejeon, announced its global expansion by introducing its Black Ginseng Tea Total Infusion to international markets. Renowned for its premium health products domestically and internationally, the company is focusing on overseas markets, with an initial emphasis on China, Hong Kong, and Vietnam. It is in the process of obtaining licensing for distribution in the United States and Europe.

North American consumers are increasingly prioritizing health and wellness, driving the demand for functional beverages like ginseng tea. Market players are innovating to cater to diverse consumer preferences by introducing a variety of flavors and formulations of ginseng tea. This includes offerings such as flavored ginseng teas, blends with other herbs or fruits, and ready-to-drink options, providing consumers with a wider range of choices in the market.

Dynamics

Rising Demand for Natural and Herbal Products

Consumers are gravitating towards natural and herbal products like ginseng tea with an increasing emphasis on health and wellness. The perceived health benefits of ginseng, including its antioxidant properties and potential to boost immunity and energy levels, align with consumer preferences for functional beverages, thereby driving market growth. As more consumers become informed about the potential advantages of ginseng consumption, demand for ginseng tea is likely to rise in the market.

Market players are innovating to meet evolving consumer preferences and demands. This includes introducing new ginseng tea formulations, flavors, and packaging formats to cater to diverse consumer segments. For instance, on March 2, 2020, National Food and Beverage, a prominent importer of fast-moving consumer goods (FMCG) specializing in Japanese and Korean cuisine, introduced ginseng tea and Japanese barley tea under its brand, Seoul.

Expansion of Distribution Channels

The diversification of distribution channels allows ginseng tea to reach a broader market audience. Market players can target traditional retail outlets, specialty health stores, supermarkets, convenience stores, online platforms, and direct-to-consumer channels, ensuring product availability across various touchpoints and catering to consumer preferences.

The expansion of distribution channels necessitates improvements in supply chain efficiency to meet increased demand and ensure product availability. Market players can optimize logistics, inventory management, and fulfillment processes to streamline operations and enhance market responsiveness, fostering customer satisfaction and loyalty, and driving the ginseng tea market growth.

High Cost of Ginseng

Consumers are price-sensitive when it comes to purchasing ginseng tea, the cost of ginseng significantly impacts the retail price of the product. Higher prices deter some consumers from purchasing ginseng tea regularly, particularly in regions where disposable incomes are relatively low or where there are competing lower-priced alternatives in ginseng tea, hindering market growth.

The high cost of ginseng can affect the affordability of ginseng tea for certain consumer segments, potentially limiting market penetration and overall consumption. Consumers perceive ginseng tea as a premium product and are reluctant to purchase it regularly beyond their budget constraints. Market players face challenges in competitively positioning ginseng tea against other beverage options, particularly those that are more affordable.

According to the U.S. Forest Service, the challenges faced by the global ginseng tea market are due to the high cost of ginseng. Growers of field-cultivated ginseng have experienced declining prices in recent years, primarily attributed to oversupply. Currently, prices range from approximately $12 to $20 per pound for dried roots. It's worth noting that properly dried ginseng roots typically weigh about one-third of their original fresh weight, further impacting the cost dynamics in the market.

Segment Analysis

The global ginseng tea market is segmented based on type, packaging, distribution channel, and region.

Growing Demand for Premium Products and Innovations in Korean Red Ginseng Tea

Korean red ginseng tea holds the largest share of the global ginseng tea market. Korean red ginseng is renowned for its superior quality and efficacy, making Korean red ginseng tea highly sought after in the market. Consumers perceive Korean red ginseng as a premium product with potent health benefits, boosting its popularity and ginseng tea market growth and dominance.

Korean red ginseng tea enjoys strong demand in its domestic market and internationally. Its reputation for quality and effectiveness is leading to widespread adoption and consumption in global markets, further contributing to its market dominance. Market players continually innovate to enhance the appeal of Korean red ginseng tea by introducing new flavors, blends, and formulations to cater to diverse consumer preferences.

For instance, Kaizen Group and Korea Ginseng Corp. partnered to make a significant impact. Their collaborative grand launch event, held on September 6, 2023, at the renowned Huntington Beach venue, Kabuki's signature location, marked the inception of their joint venture. Embracing the ""food as medicine"" trend, their unique approach promises to redefine wellness through Korean Red Ginseng Tea and innovative culinary offerings.

Geographical Penetration

Growing Consumer Demand and Innovations in North America

North America dominates the global ginseng tea market. North America exhibits a robust consumer demand for health and wellness products, including ginseng tea. The region's affluent population, coupled with a growing awareness of the health benefits of ginseng, boosts significant ginseng tea market growth and consumption. Market players are at the forefront of product innovation, continually introducing new flavors, formulations, and packaging designs to cater to evolving consumer preferences.

Ginseng tea has become integrated into North American culture, with consumers incorporating it into their daily routines for its perceived health benefits and refreshing taste. This cultural integration fosters sustained demand and market dominance in the region. Market players in the region invest heavily in marketing and promotional activities to raise awareness and drive consumer engagement with ginseng tea products.

For instance, on June 21, 2023, Arizona announced the introduction of hard tea presents a promising option for summer refreshment, reminiscent of their beloved original beverages. The new line features three iconic flavors: Lemon, Peach, and Green Tea. The Green Tea variant boasts an infusion of ""100% real brewed tea with ginseng extract and a subtle hint of honey,"" while the Arizona Lemon Tea Hard offers a sophisticated twist with ""premium steeped black tea complemented by citrus notes, delivering an adult rendition of the cherished flavor.

COVID-19 Impact Analysis

The pandemic led to disruptions in global supply chains, affecting the sourcing and distribution of ginseng and other raw materials used in ginseng tea production. The closure of restaurants, cafes, and other food service establishments during lockdowns resulted in a decline in out-of-home consumption of ginseng tea, leading to revenue losses for ginseng tea suppliers catering to this market segment.

The pandemic prompted changes in consumer behavior, with an increased focus on health and wellness. Consumers sought out immune-boosting and health-promoting products, including ginseng tea, leading to a surge in demand. Consumers turned to online channels to purchase ginseng tea, driving growth in the online ginseng tea market. Market players adapted by strengthening their online presence, expanding digital marketing efforts, and optimizing e-commerce platforms to capitalize on this trend.

Russia-Ukraine War Impact Analysis

The conflict disrupted trade routes and transportation networks, affecting the supply chain of ginseng and other raw materials used in ginseng tea production. These disruptions led to shortages and delays in the availability of ginseng tea products in the market. The conflict disrupted trade relations between these countries and ginseng tea exporting nations, resulting in trade restrictions, tariffs, and import bans. This reduced export volumes and revenue for ginseng tea suppliers, impacting market growth and profitability.

Geopolitical tensions caused fluctuations in currency exchange rates and commodity prices, including the cost of ginseng and ginseng tea. Market players adjusted pricing strategies to account for increased costs or uncertainties associated with sourcing ginseng, affecting consumer affordability and market competitiveness. Heightened geopolitical tensions and uncertainties surrounding the Russia-Ukraine conflict influenced consumer confidence and sentiment in ginseng tea markets.

By Type
• Korean Red Ginseng Tea
• American Ginseng Tea
• Others

By Packaging
• Sachet
• Box
• Bottle
• Others

By Distribution Channel
• Supermarkets and Hypermarkets
• Convenience Stores
• Online Stores
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• On May 10, 2023, Korea Ginseng Corp., recognized as the world's leading ginseng brand, introduced its summer menu at the CheongKwanJang Ginseng Museum Café in New York City. They have expanded their presence by introducing their HSW beverage line in retail stores. This includes the introduction of a new hydrating sparkling ginseng drink, highlighting the broad appeal of Korea's smart herb.
• On May 8, 2023, Korea Ginseng Corp inaugurated a new Research and Development center, marking a significant step towards solidifying its position as the foremost herbal health company globally. The company is implementing strategies such as diversifying product categories and formats to propel its ambitious growth initiatives.
• On January 9, 2024, Ginseng tea, a traditional Korean beverage, emerged as a notable trend among health enthusiasts globally. This beverage, celebrated for its energy-boosting properties, is increasingly gaining popularity for its associated beauty benefits.

Competitive Landscape

The major global players in the ginseng tea market include Green Gold Ginseng LLC, Inc., Ten Ren Tea Inc., Burma Burma, Curious Tea Ltd, TenFu’s Tea, CHASH The Fine Tea Company Limited, OrientalTeaBox, What-Cha, TeaCupsFull, and Dragon Tea House.

Why Purchase the Report?
• To visualize the global ginseng tea market segmentation based on type, packaging, distribution channel, and region, as well as understand critical commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous global ginseng tea market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of critical products of all the major players.

The global ginseng tea market report would provide approximately 62 tables, 54 figures, and 213 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies