Korean & Japanese Ginseng Tea Market - 2023-2030

Korean & Japanese Ginseng Tea Market - 2023-2030

Global Korean & Japanese Ginseng Tea Market reached US$ 350.12 million in 2022 and is expected to reach US$ 490.33 million by 2030, growing with a CAGR of 4.3% during the forecast period 2023-2030.

The growing consumer interest in natural and herbal products due to their perceived health benefits acts as a key trend in driving the Korean and Japanese ginseng tea market growth globally. Ginseng, known for its medicinal properties, is experiencing a surge in demand as consumers seek alternatives to traditional pharmaceuticals. As consumers become more aware of the health benefits associated with these traditional remedies, the demand for ginseng tea is expected to rise.

In June 2023, With the release of AriZona Hard, a malt-spiked beverage that was first introduced in Canada in 2020, AriZona Beverages announced that it is bringing customers a spiced-up, adult-only version of its well-known iced tea. The beverage comes in three of AriZona's well-known flavors: lemon, peach, and green tea. Green Tea is 100% real brewed tea with ginseng extract and just the right touch of honey.

Korean ginseng tea accounts for over half of the market share due to its superior quality and medicinal properties. Similarly, the Asia-Pacific dominates the Korean & Japanese ginseng tea market, capturing the largest market share. The region's large population, combined with increasing health consciousness and demand for natural remedies, contributes to its significant market share. Furthermore, the presence of key ginseng producers and exporters in Asia-Pacific further strengthens the region's dominance in the global market.

Dynamics

Growing Demand for Traditional and Herbal Tea

The growing demand for traditional and herbal beverages is a significant driver fueling the expansion of the global Korean and Japanese ginseng tea market. According To FAO, Over the past ten years, the amount of tea consumed globally per person has climbed by 2.5 percent, with notable increases in tea-producing nations. As consumers become increasingly health-conscious, there is a notable shift towards beverages perceived to offer natural health benefits.

Ginseng tea, deeply rooted in Asian traditional medicine, has gained popularity for its potential health-promoting properties. Consumers are drawn to ginseng tea for its reputation as a natural remedy that may help boost immunity, improve energy levels, and enhance overall well-being. This rising preference for herbal and traditional beverages over sugary or artificially flavored drinks has led to a surge in demand for Korean and Japanese ginseng tea.

Growing Awareness About the Health Benefits of Ginseng Extracts

Ginseng has long been revered in traditional medicine for its potential medicinal properties, including boosting immunity, improving cognitive function, and enhancing overall vitality. As consumers become more health-conscious and seek natural remedies to support their well-being, there is a growing interest in incorporating ginseng-based products into their daily routines.

Korean and Japanese Ginseng Tea, derived from high-quality ginseng extracts, offers a convenient and palatable way for consumers to enjoy the benefits of ginseng. These teas are often marketed as functional beverages, highlighting their potential to support immune health, enhance energy levels, and promote overall wellness. With consumers increasingly prioritizing products that offer both taste and health benefits, the demand for Korean and Japanese ginseng tea has been steadily rising.

Regulatory Constraints

Ginseng is subject to regulations and quality standards imposed by regulatory authorities in different countries. Compliance with these standards, such as labeling requirements and maximum residue limits for pesticides and contaminants, can pose challenges for manufacturers and exporters, especially when navigating international markets.

In March 2023, South Korea's Ministry of Food and Drug Safety (MFDS) announced to take strict measures against older consumers who are being sold liquid tea sachets marketed as healthful meals. This regulatory scrutiny creates challenges for ginseng tea manufacturers in ensuring compliance with stringent regulations and labeling requirements, potentially limiting their ability to introduce new products or expand market reach.

Segment Analysis

The global Korean & Japanese ginseng tea market is segmented based on product, type, form, distribution channel, end-user and region.

Korean Ginseng Tea Superior Quality and Medicinal Properties

By type, Korean ginseng tea holds a significant share in the global Korean and Japanese ginseng tea market due to its reputation for superior quality and potency. Korean ginseng is highly prized for its medicinal properties and is renowned for its unique flavor profile and aroma. According to PubMed Central, a study involving 100 participants showed that taking 2 g of Korean red ginseng daily for 8 weeks dramatically raised immune cell counts compared to a placebo.

Consumers perceive Korean ginseng tea as a premium product with exceptional health benefits, driving its popularity and demand worldwide. Additionally, Korean ginseng tea is often preferred for its rich cultural heritage and traditional significance, further contributing to its dominance in the market segment. As a result, Korean ginseng tea continues to enjoy widespread consumer preference and market prominence in the global ginseng tea industry.

Geographical Penetration

Strong Cultural Heritage & High Consumption Rates OF Tea in Asia-Pacific

Ginseng has been an integral part of traditional Asian medicine for centuries. Korean and Japanese cultures have a long history of using ginseng in various forms, including tea, for its perceived health benefits such as boosting energy, improving mental clarity, and enhancing overall well-being. This cultural affinity drives significant demand for ginseng tea in the region. Ginseng tea, particularly from Korea and Japan, is highly valued for its health benefits and cultural significance in the region.

According to FAO, China continues to be the world's largest producer of tea, making up 47% of the world market with 3.1 million tonnes in 2021 compared to 2.9 million tonnes in 2020. Additionally, China is the world's top producer of ginseng, according to Earth Observatory, a division of the EOS Project Science Office at NASA Goddard Space Flight Centre. With increasing awareness about health and wellness, consumers in the Asia-Pacific region are seeking natural remedies and functional foods that offer health benefits.

COVID-19 Impact Analysis

The COVID-19 pandemic has led to disruptions in the global supply chain and affected consumer behavior, resulting in a mixed impact on the Korean and Japanese ginseng tea market. While there has been increased demand for healthful and immunity-boosting products, logistical challenges and economic uncertainties have hindered market growth to some extent. Additionally, fluctuating raw material prices and changing consumer preferences during the pandemic have further influenced market dynamics. Overall, the market has experienced both opportunities and challenges amid the ongoing pandemic

Russia-Ukraine War Impact Analysis

The Russia-Ukraine war has had a significant impact on the global Korean and Japanese ginseng tea market due to disruptions in trade routes, increased geopolitical tensions, and economic uncertainties. The conflict has led to supply chain disruptions and logistical challenges. This has resulted in fluctuating prices, limited availability of raw materials, and uncertainty in sourcing for manufacturers and suppliers in the ginseng tea market. Additionally, the geopolitical instability has affected consumer confidence and purchasing behavior, further impacting market demand and growth prospects.

By Product
● Pure Ginseng Tea
● Ginseng Blends

By Type
● Korean Red Ginseng Type
● Japanese Ginseng Type

By Form
● Loose Leaf Tea
● Tea Bags

By Distribution Channel
● Supermarkets/Hypermarkets
● Specialty Stores
● Online Retailers
● Others

By End User
● Household Consumers
● Food Service Industry
● 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
● In March 2020, National Food and Beverage, a prominent importer of Korean and Japanese FMCG (fast-moving consumer goods), introduced Japanese barley tea and ginseng tea. The tea, which needs to be drunk with hot water, has been prepared using the real advantages of pure, genuine Korean ginseng, which strengthens an individual's immune system by eliminating toxins from the body and allowing the body to absorb its inherent goodness.
● In November 2023, Danurim, a Daejeon-based producer of processed ginseng foods, launched its Black Ginseng Tea Total Infusion, a Red Ginseng Product with No Saponin Loss to accelerate its entry into the international market.
● In November 2020, Sathingla Shokwungnao, Agrippa Jagoi, and Machu Kora Zimik, three young entrepreneurs, opened the first-ever SAM Tea House on Wednesday in Phungreitang, Ukhrul. SAM Tea House offers tea for every mood and occasion. There are several options available, ranging from super-healthy Matcha and Korean Ginseng to stress-relieving organic Blue Tea.

Competitive Landscape

The major global players in the market include Korea Ginseng Corporation, KGE Co.Ltd., Sancha Tea, Hawaii Coffee Company, Wing Joo Loong, Dae Han Corporation, Portal Tea Company, Wallbox Chargers, S.L., Shiate, The Indian Chai.

Why Purchase the Report?
● To visualize the global Korean & Japanese ginseng tea market segmentation based on product, type, form, distribution channel, end-user and region, as well as understand key commercial assets and players.
● Identify commercial opportunities by analyzing trends and co-development.
● Excel data sheet with numerous data points of Korean & Japanese Ginseng Tea market-level 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 key products of all the major players.

The global Korean & Japanese ginseng tea market report would provide approximately 78 tables, 70 figures and 186 Pages.

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