Global Korean Red Ginseng Market - 2024-2031

Overview

Global Korean Red Ginseng Market reached US$ 80.21 million in 2023 and is expected to reach US$ 119.41 million by 2031, growing with a CAGR of 5.1% during the forecast period 2024-2031.

Increasing trend towards natural health remedies driven by consumer preferences for holistic wellness solutions. Korean red ginseng, with its reputation for promoting vitality and overall well-being, is witnessing rising demand in the market as consumers seek alternatives to synthetic supplements. Market players are investing in marketing campaigns to raise awareness about the health benefits of Korean red ginseng in a competitive market landscape.

For instance, on December 28, 2022, CheongKwanJang, the flagship red ginseng brand of Korea Ginseng Corp. (KGC), launched its inaugural tonic, Korean Red Ginseng Tonic 24/7, in the online market. This revitalizing beverage represents a modern reinterpretation of CheongKwanJang's life-enhancing Korean Red Ginseng Tonic brand.

The health and wellness trend in North America is spurring interest in Korean red ginseng as a natural remedy for supporting immune health, energy levels, and stress management. Market players are capitalizing on this trend by positioning Korean red ginseng as a premium health supplement with proven benefits supported by scientific research. Market players in North America are innovating and diversifying their Korean red ginseng product offerings to cater to diverse consumer preferences and needs.

Dynamics

Expanding Aging Population

As the aging population grows, there is a corresponding surge in demand for products that promote vitality, energy, and overall wellness. Korean red ginseng, renowned for its rejuvenating properties and traditional use in addressing age-related issues, is well-positioned to capture this heightened demand in the market. Market players can tailor their marketing strategies to resonate with the needs and preferences of the aging demographic, and drive market growth.

According to the World Health Organization (WHO) on October 1, 2022, projected that by 2030, approximately one out of every six individuals worldwide will be aged 60 years or older. During this period, the proportion of the population in this age group is expected to rise from 1 billion in 2020 to 1.4 billion. Furthermore, by 2050, the global population of individuals aged 60 years and above is anticipated to double, reaching 2.1 billion.

Rising Chronic Diseases

As awareness of the health benefits of Korean red ginseng spreads among consumers, driven by healthcare professionals, media coverage, and educational campaigns, there is a corresponding increase in demand for products that can help mitigate the risk factors associated with chronic diseases. Market players can capitalize on this trend by emphasizing the preventive and therapeutic properties of Korean red ginseng through targeted marketing and educational initiatives.

According to estimates from the Centers for Disease Control and Prevention (CDC) in May 2023, six out of every ten adults in the United States are currently affected by a chronic disease, such as cancer, heart disease, or diabetes. These chronic conditions rank among the top causes of mortality in the United States, with heart disease and cancer alone responsible for approximately 38 percent of all deaths.

Growing Stringent Regulations

Increasing regulatory requirements entail higher compliance costs for manufacturers and suppliers in the Korean red ginseng market. This can include expenses related to obtaining certifications, conducting quality control measures, and adhering to labeling and packaging standards. As compliance costs rise, it can exert upward pressure on product prices, potentially reducing market competitiveness and consumer affordability.

Stringent regulations pose barriers to entry for new market players looking to enter the Korean red ginseng market. Compliance with complex regulatory frameworks, especially in different regions or countries with varying requirements, can be challenging for smaller businesses or startups. Consequently, this limits market competition and innovation, as fewer players can navigate the regulatory landscape effectively.

For instance, according to the Korea Law Translation Centre, Article 3 of the amended provisions outlines the applicability of reporting requirements for ginseng varieties manufacturing businesses. These provisions come into effect when the head of a Si/Gun receives a report on such businesses or any changes therein after the enactment of this Act.

Similarly, Article 4 addresses the applicability of reporting requirements for succession to the status of a business entity, while Article 5 pertains to reporting changes by self-inspection enterprises. These amended provisions take effect when the relevant authorities receive reports on these matters following the enactment of the Act. Additionally, according to the Addenda (Act No. 19490, Jun. 20, 2023), the Act will be enforced six months after its promulgation date.

Segment Analysis

The global Korean red ginseng market is segmented based on form, application, distribution channel, and region.

Wide Availability and Consumption and Long Shelf Life of Onions

Onions holds the largest share of the global market. Onions are the most widely consumed vegetables globally, with a presence in various cuisines and culinary traditions worldwide. This widespread consumption contributes to the significant market share held by the onions segment. The high concentration of flavonoids in onions makes them highly sought after by health-conscious consumers, further boosting segment growth.

For instance, according to the U.S. National Onion Association, global onion production is estimated to reach around 105 billion pounds annually. On average, each person worldwide consumes approximately 13.67 pounds of onions per year. Notably, Libya stands out with the highest onion consumption, boasting an impressive average per capita intake of 66.8 pounds.

Onions have a relatively long shelf life and can be stored for extended periods under proper conditions. This characteristic makes them a preferred choice for consumers and food manufacturers alike, ensuring consistent demand for the onions segment. Market players are capitalizing on the popularity of onions by developing value-added products such as onion powder, flakes, and extracts, further contributing to the market dominance of the onions segment within the flavonoid vegetables market.

Geographical Penetration

Growing Consumer Demand and Health and Wellness Trends in North America

North America dominates the global Korean Red Ginseng market. North America has a large and diverse consumer base with a growing preference for natural health remedies and supplements. The increasing awareness of the health benefits of Korean red ginseng, coupled with rising health consciousness, boosts demand for such products in the region's Korean red ginseng market.

Consumers are increasingly seeking products that promote vitality, boost immunity, and support overall well-being, aligning with the perceived benefits of Korean red ginseng. Market players in North America are known for their innovation and product development capabilities. They continually introduce new and diverse Korean red ginseng formulations, including beverages, dietary supplements, skincare products, and functional foods, catering to various consumer preferences and lifestyles.

COVID-19 Impact Analysis

During the pandemic, disruptions in transportation, logistics, and trade restrictions have affected the supply chain of Korean red ginseng, leading to delays in production, distribution, and procurement of raw materials. These disruptions have resulted in sporadic shortages and fluctuations in supply, impacting market stability contributing to price volatility, and restrained market growth.

With lockdowns and social distancing measures in place, there has been a surge in online shopping and e-commerce adoption. Market players have capitalized on this trend by enhancing their online presence and expanding e-commerce channels for Korean red ginseng products. This shift towards online retailing has helped maintain market continuity amidst physical retail closures and restrictions.

Russia-Ukraine War Impact Analysis

The conflict disrupted trade routes and transportation networks, leading to delays in the import and distribution of Korean red ginseng products. These disruptions destabilized the market, affecting availability and contributing to price fluctuations. Market players adjusted pricing strategies to mitigate the impact on consumer purchasing power and maintain market competitiveness.

Russia and Ukraine served as significant export markets for Korean red ginseng. Trade disruptions, including tariffs and import bans, and revenue for Korean red ginseng exporters, constrain market growth opportunities. The conflict created uncertainty and dampened consumer confidence in affected regions, leading to cautious spending behavior. This reluctance to purchase non-essential goods, including Korean red ginseng products, contributed to a decline in market demand.

By Form

• Capsule
• Powder
• Liquid
• Others

By Application

• Immune System
• Diabetes
• Heart Health
• Impotence
• Others

By Distribution Channel

• Online
• Offline

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 March 14, 2024, Korea Ginseng Corporation (KGC)-)-owned brand Cheong Kwan Jang announced a strategic broadening of its red ginseng snacks portfolio to capture the interest of young consumers amidst a burgeoning retro trend.
• On March 8, 2022, Korea Ginseng Corporation (KGC), recognized as the leading ginseng brand globally, introduced its KORESELECT product line to the U.S. market. The premium supplements, exclusively featuring six-year-grown red ginseng, are being showcased at the Natural Products Expo West 2022. The KORESELECT range offers plant-based products that harness the time-tested benefits of red ginseng, providing a natural solution for essential aspects of health and wellness.
• On April 15, 2021, Youguth, a South Korean probiotic supplement brand, introduced its fermented red ginseng with a probiotic supplement for immune health in Singapore. The brand aims to leverage the gifting culture to boost sales and promote awareness of the product's health benefits.

Competitive Landscape

The major global players in the Korean red ginseng market include Korea Ginseng Corp., Daedong Korea Ginseng Co., Ltd., Korea Ginseng Bio-Science, KT&G Corp, The Himalayan Organics, Auragin, Solgar Inc., aSquared Brands, LLC, Swanson Vitamins, and Prominent Nutrition.

Why Purchase the Report?

• To visualize the global Korean red ginseng market segmentation based on form, application, 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 Korean red 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 Korean red ginseng market report would provide approximately 62 tables, 58 figures, and 213 Pages.

Target Audience 2023

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