Ginseng is now among the newest ingredients to take the spotlight in the global market, according to a new trend report from Mintel.
The global market research company said that with the growing attention consumers bestow on health and medicinal ingredients, ginseng is being increasingly favored by more manufacturers.
Ginseng is a naturally occurring root regarded as a precious medicinal herb and widely known for its immune-boosting, antioxidant, energy-enhancing and anxiety-relieving effects.
Research in the “Mintel Reports China, Functional Drinks, 2022” found that over 70% of Chinese respondents said they had and would continue to drink functional drinks with energy supplement-related claims over functional drinks with other claims.
Among the new launches tracked in the Mintel Global New Products Database over the past three years (January 2020-December 2022), the number of new food and drink products containing ginseng in China has grown by 193.3%.
Sports and energy drinks are the most widely used category and have continued to grow globally. Hot beverages are following closely and the growth is worth monitoring. In addition, there is a similar growth in breakfast cereal foods, which may present new opportunities.
Among the new product launches mentioned in the report is a fruit tea containing ginseng. Another is a plant-based hot beverage with Ejiao and ginseng, while a natural fruit drink touted to maintain focus boasts added aromatic spices including ginseng and chili to ehance flavor. Another new launch is a superfood bar containing ashwagandha extract and ginseng, claimed to helped the brain and emotion to relax.
Meanwhile, Straits Research said the global ginseng market size was valued at US$679 million in 2022 and forecasts that it will reach about U$1,019 million between 2023 and 2031, growing at a compound annual growth rate of 4.6%.
China and South Korea are the two largest producers of ginseng, followed by the United States and Canada.
With the growing popularity of ginseng-derived goods like dietary supplements and personal care products, the demand for ginseng is anticipated to increase significantly. Ginseng is used in medical and pharmaceutical products because it has various health advantages, said the report. Additionally, it is a component of various food and beverage products.
Ginseng products are relatively expensive compared to other processed goods made from organic herbs. As a result, consumers in developed nations with high purchasing power parity account for a sizable portion of the demand.
The report noted that people are now increasingly prone to experimenting with spices in their food due to rising internet penetration, comparatively lax immigration laws, and ease of business. Further, there has been a notable rise in public awareness of the benefits of eating nutritious food without sacrificing flavor.
The demand for ginseng, which is often combined with different spices like ginger, rosemary, cinnamon, chilies, and clove, is likely to rise due to these factors, it added.
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