Global Siberian Ginseng Market - 2024-2031

Global Siberian Ginseng Market - 2024-2031

Global Siberian Ginseng Market reached US$ 21.25 million in 2023 and is expected to reach US$ 21.37 million by 2031, growing with a CAGR of 7.1% during the forecast period 2024-2031.

Consumers are increasingly turning to botanical supplements like Siberian ginseng for their purported health benefits, driving the market growth. Market players are focusing on product innovation and differentiation to stand out in a competitive market. This includes the development of new formulations, combination products, and delivery systems to enhance efficacy and appeal to diverse consumer preferences.

For instance, on March 13, 2024, Cheong Kwan Jang, a brand owned by Korea Ginseng Corporation (KGC), extended its selection of red ginseng snacks to capture the interest of younger consumers amidst a growing trend for retro products. It is recognized for its immune-boosting properties and capacity to aid in energy revitalization, Korean ginseng is cultivated in premium soil, ensuring exceptional quality.

Siberian ginseng is gaining popularity in the sports nutrition market in North America. Athletes and fitness enthusiasts are incorporating Siberian ginseng supplements into their regimens to enhance endurance, stamina, and recovery, driving market growth in this segment. Market players are responding to this trend by offering Siberian Ginseng supplements made with organic and sustainably sourced ingredients, appealing to consumers seeking natural and environmentally friendly options.

Dynamics

Increasing Demand for Herbal Supplements

The rising demand for herbal supplements contributes to the expansion of the overall Siberian Ginseng market. As more consumers seek natural alternatives to conventional medications, the market for herbal supplements, including those containing Siberian ginseng, experiences growth. The demand for herbal supplements cuts across various demographic segments, including health-conscious individuals, and aging populations seeking alternative healthcare options. This broad consumer base drives market growth.

Consumers prefer natural remedies over synthetic medications due to concerns about potential side effects and a desire for holistic health approaches. Siberian ginseng aligns with this preference and attracts consumers looking for natural solutions to health issues. The growing demand for herbal supplements encourages market players to innovate and expand their product portfolios.

Expanding Pharmaceutical Applications

The incorporation of Siberian Ginseng into pharmaceutical formulations diversifies its market usage beyond traditional herbal supplements. As pharmaceutical companies explore its potential therapeutic properties, Siberian Ginseng gains traction as a key ingredient in prescription and over-the-counter medications. Patients are more inclined to trust products recommended by healthcare professionals, thereby boosting the acceptance and adoption of Siberian Ginseng-based pharmaceuticals.

The expansion of pharmaceutical applications broadens the demand for Siberian Ginseng, as it becomes sought after by healthcare professionals and patients for its potential health benefits, and stimulates market growth. The exploration of Siberian Ginseng's pharmaceutical potential spurs investments in research and development within the market. Pharmaceutical companies invest in clinical trials, efficacy studies, and formulation development to validate its medicinal properties and create market-ready products.

High Regulatory Challenges

Stringent regulatory requirements for the sale and distribution of Siberian Ginseng products can create significant barriers to market entry. Compliance with diverse regulations across different regions increases the complexity and cost of bringing products to market, deterring potential market entrants. Regulatory hurdles, such as registration, licensing, and compliance with quality standards, limit the availability of Siberian Ginseng products in certain markets.

The associated costs pose a burden on manufacturers and lead to higher product prices, reducing consumer affordability and potentially dampening market demand. Lengthy regulatory approval processes can delay the introduction of new Siberian Ginseng products to the market. This sluggish pace of market expansion impedes the growth potential of the Siberian Ginseng market, particularly in regions with stringent regulatory regimes or complex approval procedures.

For instance, on August 8, 2023, The Food and Drug Administration (FDA) maintained its implementation of import alerts as part of its efforts to uphold stringent food safety regulations for imported food products. These alerts are regularly reviewed and adjusted by the agency to ensure compliance with regulatory standards, which factors are restraining the market growth.

Segment Analysis

The global Siberian ginseng market is segmented based on product type, source, application, and region.

Ease of Use and Versatility and Longer Shelf Life of Powdered Extracts

Powdered extracts hold the largest share of the global Siberian ginseng market. Powdered extracts offer convenience and versatility, making them popular among consumers. They can be easily mixed into various formulations, catering to diverse consumer preferences and usage scenarios. Powdered extracts are concentrated forms of Siberian ginseng, containing higher levels of active compounds compared to other forms, enhancing their efficacy and perceived value, and boosting demand in the market.

Powdered extracts generally have a longer shelf life, making them more suitable for storage and distribution. This extended shelf life reduces the risk of product spoilage and wastage, contributing to their popularity in the market. Powdered extracts of Siberian ginseng are used in various industries. Their broad application range expands market opportunities and contributes to their dominance in the global Siberian ginseng market.

Geographical Penetration

Rising Consumer Demand and Innovations in North America

North America dominates the global Siberian ginseng market. The region boasts a substantial consumer base interested in natural health remedies and supplements. This sizable market demand drives significant sales of Siberian ginseng products. North American companies are often at the forefront of marketing and branding efforts. They employ sophisticated strategies to promote Siberian ginseng products, creating consumer awareness and driving sales both domestically and internationally.

North America is an innovation hub for dietary supplements and functional foods. Companies in the region are continually developing new formulations and product variations, driving market growth and maintaining competitiveness on a global scale. North American research institutions and companies actively contribute to the scientific understanding of Siberian Ginseng and its potential health benefits. This research fuels product development and innovation, driving market expansion and dominance.

COVID-19 Impact Analysis

The pandemic disrupted global supply chains, affecting the sourcing and distribution of Siberian Ginseng raw materials and finished products. Lockdowns, travel restrictions, and trade disruptions hindered the movement of goods, leading to delays in production and supply chain bottlenecks, thereby impacting the market. Market players faced compliance challenges and increased scrutiny, necessitating adjustments to their operations and marketing strategies to ensure regulatory compliance.

The pandemic underscored the importance of maintaining health and wellness, leading to a surge in demand for dietary supplements and herbal remedies. This heightened awareness of preventive healthcare measures contributed to increased sales of Siberian Ginseng products, particularly those marketed for immune support and stress relief. With lockdowns and social distancing measures in place, there was a significant shift towards online shopping.

Russia-Ukraine War Impact Analysis

The conflict disrupted supply chains as both Russia and Ukraine are significant producers of Siberian Ginseng. Disruptions in transportation routes, trade restrictions, and logistical challenges hindered the movement of raw materials and finished products, impacting the market's supply chain. Uncertainty surrounding supply disruptions and geopolitical developments led to fluctuations in prices, affecting market dynamics and profitability for market players.

The Russia-Ukraine war created market uncertainty, prompting caution among buyers and investors. Concerns about the stability of supply, geopolitical risks, and potential market disruptions led to hesitancy in purchasing decisions, impacting market sentiment and activity. Market participants sought to diversify their sourcing strategies to mitigate risks associated with the conflict.

By Product Type
• Powdered Extracts
• Liquid Extracts
• Capsules
• Others

By Source
• Wild
• Cultivated

By Application
• Pharmaceuticals
• Dietary Supplements
• Cosmetics
• Food and Beverages
• 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 October 16, 2023, Korea Ginseng Corp. US, the owner of the globally acclaimed ginseng brand CheongKwanJang, announced the launch of HSW, a sparkling herbal drink infused with six-year-old Korean Red Ginseng, to cater to health-conscious patrons of WaBa Grill. WaBa Grill recognized as one of the nation's premier chains offering healthy rice bowl options, will now provide its discerning customers with this innovative beverage option.
• On December 27, 2023, JungKwanJang, the foremost red ginseng brand in South Korea under Korean Ginseng Corp., announced the introduction of a new red ginseng product incorporating edible bird’s nests, tailored specifically for the Chinese market. It is recognized as a delicacy in Chinese culinary traditions, swallow’s nests have gained popularity in skincare products due to their rich content of sialic acid, minerals, and collagen, providing additional allure to the new offering.
• On February 14, 2024, Ginsa Brands introduced ginsa, the inaugural sparkling ginseng tonic spotlighting Korean red ginseng. This antioxidant-rich root, esteemed for its capacity to boost energy, bolster immunity, combat inflammation, and enhance focus, takes center stage in this pioneering product.

Competitive Landscape

The major global players in the Siberian ginseng market include Speedrange Ltd., Lamberts Healthcare Ltd., OstroVit Sp. z o.o., MyFitFuel, Amway India Enterprises Pvt. Ltd., SimplySupplements, Nature’s Way Products, Inc., NOW Health Group, Inc., Harmonic Arts, and Natural Factors Canada.

Why Purchase the Report?
• To visualize the global Siberian ginseng market segmentation based on product type, source, application, 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 Siberian ginseng 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 Siberian ginseng 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