American Ginseng Extract Market By Type (Capsule, Tablet, Powder), Application (Pharma And Healthcare, Cosmetic and Skin Care, Food and Feed Additives), & Region for 2024-2031

American Ginseng Extract Market Valuation - 2024-2031

American Ginseng Extract is becoming increasingly popular as a natural health supplement. Consumers are increasingly turning to herbal medicines and natural supplements as part of a larger movement towards holistic health and wellness. American ginseng is highly appreciated for its adaptogenic characteristics which help the body handle stress, increase energy, and improve immune function. This has made it a popular element in nutritional supplements, functional meals, and beverages, particularly as individuals prioritize preventive health measures by enabling the market to surpass a revenue of USD 1.78 Billion valued in 2024 and reach a valuation of around USD 4.16 Billion by 2031.

The growing understanding of American ginseng's health benefits such as its ability to boost cognitive function, reduce inflammation, and support cardiovascular health has spurred its market expansion. As scientific studies confirm these health claims, the credibility and attraction of American ginseng extract grow leading to increased consumption. Furthermore, the increased use of American ginseng in traditional medicine, particularly in Asia, and its incorporation into modern health and wellness products in North America and Europe are extending its market base by enabling the market to grow at aCAGR of 11.20% from 2024 to 2031.

American Ginseng Extract Market: Definition/ Overview

American Ginseng Extract is a concentrated version of the American ginseng root, technically known as Panax quinquefolius. This plant is indigenous to North America, specifically the United States and Canada, and has been utilized in traditional medicine for generations. The extract is created by processing the root to retain its medicinal chemicals, specifically ginsenosides which are thought to be responsible for its health benefits. American ginseng is frequently seen as a milder alternative to its Asian equivalent providing a more balanced impact that is less stimulating and more soothing.

It is widely utilized due to its multiple health benefits making it an important element in a variety of applications. One of the most common uses is in nutritional supplements and herbal treatments. American Ginseng is known for its ability to increase energy, reduce weariness, and improve mental clarity making it a popular element in treatments that aim to promote general vitality and cognitive performance. Furthermore, it is said to boost the immune system assisting the body in fighting infections and maintaining overall health.

The future use of American ginseng extract is predicted to develop dramatically owing to rising knowledge of its health advantages and increased demand for natural and herbal supplements. As more people seek alternative and complementary treatments, American Ginseng is expected to become a popular option for improving general health. Its well-known qualities including increased energy, reduced stress, and improved immune function make it an appealing ingredient in a variety of health products.

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Will the Growing Prevalence of Chronic Diseases Drive the American Ginseng Extract Market?

The rising frequency of chronic diseases is a major driver for the American ginseng extract market. As more people look for natural and alternative treatments to manage their health concerns, American ginseng extract has gained popularity for its possible therapeutic benefits. According to the Centers for Disease Control and Prevention (CDC), six out of ten persons in the United States have a chronic disease with four out of ten having two or more chronic disorders. These numbers demonstrate the significant market potential for goods such as American ginseng extract which is said to provide a variety of health benefits.

Furthermore, the National Institutes of Health (NIH) has financed various research looking into the possible advantages of American ginseng in treating other chronic disorders including cardiovascular disease and cognitive decline. Heart disease is the biggest cause of mortality in the United States responsible for over 659,000 deaths each year, according to the CDC, thus there is a growing interest in natural supplements that may improve heart health. These factors contribute to the rising demand for American ginseng extract which is fueling market expansion as people seek alternative ways to manage their chronic health concerns.

Will the High Production Costs Hamper the American Ginseng Extract Market?

High production costs could be a concern for the American ginseng extract market. American ginseng is a luxury product owing to its lengthy cultivation process which might take up to six years before the roots are ready for harvest. This extended growing season necessitates major investment in land, manpower, and care raising overall production costs. Furthermore, the production of American ginseng is quite sensitive to environmental conditions, and maintaining the appropriate development environment adds to the costs. These high expenditures are frequently reflected in the price of the finished extract making it more expensive for consumers than other herbal supplements or cheaper ginseng types such as Asian ginseng.

The high production costs may hinder market expansion, particularly among price-sensitive consumers. While American ginseng is valued for its distinct health benefits such as adaptogenic characteristics and capacity to support the immune system, its greater price may deter some prospective purchasers. In markets where customers are more cost-conscious or when cheaper alternatives are readily available, American ginseng extract may see slower adoption and lower demand. To mitigate these consequences, producers may need to focus on differentiating their product through quality certifications promoting its unique health benefits, or identifying ways to cut production costs through innovative agricultural practices or supply chain efficiency.

Category-Wise Acumens

Will Growing Consumer Demand for Dietary Supplements Drive Growth in the Type Segment?

The capsule is expected to dominate the market. Consumers favor capsules for a variety of reasons including convenience, simplicity of use, and accurate dosing. Capsules are portable and easy to incorporate into everyday routines making them particularly appealing to people who are health-conscious but lead busy lives. Furthermore, the encapsulating technique helps to preserve the effectiveness of the ginseng extract ensuring that users benefit fully from the herb's therapeutic properties. Manufacturers choose this form because it has a longer shelf life and provides better protection against environmental variables like moisture and light which can destroy the extract's quality.

The dominance of capsules in the American ginseng extract market is also influenced by rising customer desire for dietary supplements that are simple to use and have few adverse effects. Capsules are often considered more appetizing than other forms such as powders or tablets which can have a harsh or bitter flavor that is unpleasant. The encapsulation conceals the flavor of the ginseng extract making it more appealing to a larger audience. Furthermore, the growing trend toward individualized healthcare and natural therapies contributes to capsule popularity. Consumers seeking specific health benefits such as increased energy, improved immune function, or improved mental clarity, frequently use ginseng capsules as part of their wellness program.

Will the Growing Focus on Preventive Healthcare Drive the Application Segment?

The pharma and healthcare segment is the most prevalent application area. This dominance is partly due to American ginseng's long-standing reputation as an effective natural treatment with numerous health advantages. American ginseng is well-known for its adaptogenic qualities which assist the body regulate stress and promote general health. It is also believed to strengthen the immune system, improve cognitive function, and reduce inflammation. These advantages make it a popular element in a variety of pharmaceutical and healthcare products including supplements, herbal medicines, and wellness formulae. The growing preference among consumers for natural and herbal medicines over synthetic pharmaceuticals has boosted demand for American ginseng in this area strengthening its market leadership.

The expanding emphasis on preventative healthcare as well as the rising prevalence of chronic diseases are important drivers of demand for American ginseng in the pharmaceutical and healthcare industries. As more people seek natural ways to preserve their health, the use of American ginseng extract in a variety of medicinal formulations grows. The aging population, notably in North America and Asia contributes to this development as older persons frequently use herbal supplements to manage age-related health conditions. Furthermore, ongoing research and clinical trials that support the health advantages of American ginseng are helping to broaden its use in modern medicine, reinforcing its position in the pharmaceutical and healthcare markets.

Country/Region-wise Acumens

Will the Growing Interest in Natural Health Products and Supplements Drive the Market in the North American Region?

The growing demand for natural health products and supplements is a prominent driver of the American ginseng extract market in North America. This tendency is especially strong in the United States which is the world's largest market for nutritional supplements. The growing consumer preference for natural and plant-based therapies is driving demand for American ginseng extracts. According to the National Center for Complementary and Integrative Health (NCCIH), a component of the National Institutes of Health, roughly 17.7% of American adults consumed natural goods in 2012 including herbal supplements such as ginseng.

Consumer knowledge of the possible health advantages of American ginseng extract is also helping to drive market expansion. The National Institutes of Health (NIH) has supported several studies looking into the effects of ginseng on various health issues demonstrating scientific interest in its medicinal potential. According to the NCCIH, several research indicates that ginseng may lower blood glucose levels in persons with type 2 diabetes and lessen the incidence of some malignancies. Furthermore, the United States Department of Agriculture (USDA) classifies American ginseng as a specialty crop emphasizing its economic significance.

Will Technological Advancements Drive the Market in the Asia Pacific Region?

The Asia-Pacific region is expected to be the fastest-growing market for American ginseng extract owing to significant technological advances in extraction and processing processes. This technical advancement enables more efficient production and higher quality extracts satisfying rising customer demand in the region. Technological advancements are projected to fuel the American ginseng extract market in the Asia Pacific region. According to the World Intellectual Property Organization (WIPO), patent applications for ginseng extraction and processing technology from Asia Pacific countries have surged by 37% in the last five years.

Furthermore, the application of artificial intelligence (AI) and machine learning to agriculture and processing is transforming the ginseng sector. The Australian Department of Agriculture, Water, and the Environment revealed that AI-powered precision farming techniques enhanced ginseng crop yields by up to 20% in test operations. This technology optimizes growing conditions, forecasts harvest periods, and improves crop quality. In the processing sector, the Japan Patent Office reported a 30% increase in automation-related patents for herbal extract production including ginseng. These automated systems improve extract quality uniformity while also decreasing human errors.

Competitive Landscape

The American Ginseng Extract Market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support. The organizations are focusing on innovating their product line to serve the vast population in diverse regions.

Some of the prominent players operating in the American ginseng extract market include:

RFI ingredient

Shanti Natural

KGEC

Orkla Health

Hangzhou Skyherb

A. Herbal Bioactives

Nino Biotech

Liuyang Naturalin Bio

Sinochem Pharmaceutical

Changsha Huir Biological-Tech

Clariant

KOEI KOGYO

Baoji Herbest Bio-Tech

Latest Developments

In December 2023, Jung Kwan Jang will celebrate its 124th anniversary with the Red Ginseng Legacy Edition, which respects Korean cultural legacy.

In November 2022, Mankind Pharma subsidiary companies bought a majority stake in Upakarma Ayurveda Private Limited. Upakarma Ayurveda is a brand that creates, manufactures and sells Ayurvedic and herbal products. With the acquisition, Upakarma Ayurveda hopes to expand its product and service offerings while also penetrating the market through Mankind Pharma's strong distribution network.