Ginger Extracts Market

The global ginger extract market has witnessed significant growth over the last few years and is projected to register a CAGR of 5.1% during the forecast period. The growth of the global ginger extract market is expected to be driven by the increasing consumption of dietary supplements across the globe. Ginger extract is also used widely in the production of ready-to-eat food products, which is accelerating market growth. Moreover, the introduction of several ginger-infused beverages is positively impacting the demand for ginger extract. However, ginger production depends heavily on climatic conditions which is anticipated to restrict the growth of the global ginger extract market. Consumer preference for organic food & beverages is anticipated to increase the consumption of organic ginger extract.

Ginger is used widely as a spice in households across the world. However, ginger extract is mostly used for industrial purposes. Ginger extract is available in several forms including powder, liquid, and paste. The use of ginger extract is increasing rapidly in ready-to-eat food products. Ginger paste is especially gaining traction among food manufacturers. The demand for ready-to-eat food products has been increasing both in developed and developing economies over the last few years due to several factors such as urbanization, increasing per capita disposable incomes, and hectic lifestyles. According to MRFR analysis, the global ready meals market was valued at USD 210.25 billion in 2018. The food service industry has also witnessed substantial growth over the last few years. Ginger is an essential spice in the majority of world cuisines and is used widely in the food service industry. According to MRFR analysis, the global food service market was valued at USD 3.12 trillion in 2018 and projected to register a CAGR of 4.35% during the forecast period of 2019 to 2025. Ginger extract also finds application in several non-alcoholic beverages. Herbal tea infused with ginger is widely preferred across the globe. Ginger herbal tea offers several health benefits and is used to treat dizziness, nausea, and cold sweats. Beverage manufacturers are introducing ginger-based products, which is accelerating the demand for ginger extract.

Thus, the widespread use of ginger extract in several segments of the food & beverage industry is expected to drive the growth of the market during the forecast period.

The demand for organic food & beverages is exceptionally high in developed regions such as North America and Europe. Consumers in these regions are aware of the adverse impact of chemicals on health. This increased health consciousness has led to a preference for products with minimal or no chemicals. Rising health consciousness and consumer inclination toward healthy and nutritional food products are driving the demand for organic food & beverages in Europe and North America. Consumers are also concerned about the impact of chemicals on the environment, resulting in a shift to organically cultivated and processed products. Consumers are willing to pay a premium for healthy food products, propelling the adoption of organic ginger extract in the food industry. As per the Forschungsinstitut für Biologischen Landbau (FiBL), the research institute of organic agriculture, organic food sales in Europe were worth EUR 30.7 billion (USD 34.2 billion) in 2016, which reflected a market growth of 11.4% from 2015. The demand for organic food & beverages is also increasing gradually among consumers in emerging economies in Asia-Pacific.

The inclination towards organic ingredients in food & beverage products presents market players with lucrative opportunities for growth.

Soil and climatic conditions play vital roles in the production of fruits, vegetables, herbs, and spices. Specific temperature requirements are essential for the optimum production of spices. Climatic conditions, therefore, greatly affect crop production. Ginger grows well in warm and humid climate and the crop is cultivated from sea level to an altitude of 1500 meters. Ginger can be grown in both rain-fed and irrigated conditions. However, crop rotation is advised for the optimal cultivation of ginger, which restricts production. Apart from that, natural disasters which include hurricanes, landslides, and floods and hostile weather conditions can adversely affect the overall production of ginger. Moreover, the production of ginger is limited to certain countries, which increases dependability. China, India, Thailand, Indonesia, Bangladesh, the Philippines, South Korea, and Sri Lanka are the major producers of ginger. The production of ginger is low in North America and Europe, making market players based in these regions dependent on imports. Thus, difficulties in the cultivation of ginger are expected to restrict the growth of the global ginger extract market during the review period.