Ginger has remained one of the key ingredients in Ayurveda for ages, known for its medicinal & nutraceutical properties. Even today, ginger is widely used in various cuisines worldwide. Thanks to its unique flavor & aroma, it has been the perfect choice for many savory & sweet dishes, beverages, snacks, & condiments over the years, particularly in Asia-Pacific regions.
Besides its original form, ginger-derived products like ginger Oil, powdered Ginger, or dried ginger have also been witnessing high sales over the years. It may be why the market for ginger has experienced ascension in recent years. As per our report, The Global Ginger Market size was valued at USD 4.5 billion in 2023 and is likely to grow at a CAGR of around 6.9% during the forecast period, i.e., 2024-30. Moving ahead, let us find out what factors have been supporting market growth alongside challenges and opportunities lurking ahead for the market players.
Rising Inclination Towards Healthy And Natural Ingredients Extends Market Growth
Ginger, known for its anti-inflammatory properties and digestive benefits, has gained widespread recognition for its health benefits and has become popular in traditional medicine. It aligns well with these preferences as people seek natural remedies and functional foods to support their health. For example, ginger-based tea bags, ginger tea, or ginger-honey water have been widely preferred, usually in the morning.
Also, there is a growing trend toward choosing natural and clean-label ingredients that are minimally processed and free from artificial additives. As more and more consumers look for healthy and natural ingredients, the demand for products that promote well-being, including ginger, is aggravating.
Volatility Of Ginger Prices Due To Climate Conditions May Hinder Market Expansion
Besides elevating growth, the fluctuation in ginger prices caused by unpredictable climate conditions may impede market growth. Ginger cultivation heavily depends on rainfall, temperature, and sunlight. Unfavorable weather events such as droughts, floods, or storms can reduce ginger yields and increase production costs. Consequently, this can result in market price instability.
Moreover, the imposition of trade policies, import/export regulations, and tariffs by various governments adds another layer of complexity. Changes in these regulations or introducing new tariffs could disrupt the flow of ginger across borders. Such uncertainties in trade dynamics can further negatively impact ginger prices. Therefore, these factors are expected to act as growth restraints for the global ginger market in the future.
The Asia-Pacific Region Seems Highly Promising For The Ginger Sales
The Asia-Pacific region, particularly India, plays a significant role in the Ginger Market. This area is home to major ginger-producing countries such as China, India, Indonesia, Thailand, and Vietnam, which benefit from favorable climate conditions and suitable agricultural practices for ginger cultivation. The extensive cultivation areas and large-scale production in these countries are key factors contributing to the regional market's growth.
China holds the title of the world's largest producer and exporter of ginger, boasting well-established trade networks and infrastructure for ginger exports to various regions globally. Besides being a major producer, India has a rich tradition of incorporating ginger into its cuisine and traditional medicine. Ginger is a crucial ingredient in various Asian dishes and beverages, and its medicinal properties are highly valued in traditional remedies. The strong domestic demand for ginger in China and India further solidifies their dominance in the global market.
Moreover, Asian countries enjoy cost advantages in ginger production due to lower labor costs, leading to competitive pricing of ginger on a global scale. The collective experience of these countries in ginger cultivation, harvesting, and processing gives them a competitive edge over other regions. In summary, the dominance of the Asia-Pacific region in the Ginger Market is evident, driven by factors such as extensive cultivation, strong domestic demand, and cost advantages.
What’s new in the Market?
Specnova introduced GingerT3™ extract, characterized by its high potency, organic nature, and fermentation process, which sets itself apart as the sole low-dose, fast-acting ginger extract in the market. It exhibits remarkable bioavailability and superior solubility and stability, facilitating easy formulation. It also features a clean label, free from excipients or fillers.
In a separate initiative, on April 26, 2022, the Meghalaya government initiated the 'Ginger Mission.' This strategic endeavor aims to increase ginger production within the state substantially. The mission targets to double the annual ginger production to at least 1.5 lakh MT over the next three years, surpassing the current yearly production of approximately 60,000 MT.
Taking Everything Into Account,
With a current valuation of USD 4.5 billion and an anticipated CAGR of 6.9%, the ginger market seems highly promising for the next five years. As people continue to include natural, organic, healthy ingredients in their daily routine, the demand for ginger derivatives is aggravating and making the market thrive in the coming years.