Like red ginseng, the originator of K-food, has established itself as a popular gift in Asia where the New Year holidays are celebrated, the demand in foreign markets is also increasing. The growing interest in health worldwide, along with the growing awareness due to the influence of K-drama, seems to have boosted the market due to an increase in the influx of the younger generation. The diversification of sales channels via e-commerce as well as the variation of products also had an impact.
The overseas export performance of KGC, Korea’s leading red ginseng manufacturing company, is also remarkable. Compared to annual sales of ’19, before the Covid-19 outbreak, ’20 increased by 4.8%, and cumulative sales in the third quarter of ’21 also increased by about 20% compared to annual sales of ’19.
continent China, and the most popular product is ‘Korean Red Ginseng Roots’>
Continent China accounts for the largest share of the overseas red ginseng market. Continent China has historically referred to the red ginseng produced in Korea as “Koryo Ginseng” and recognized it as a premium medicine.
‘Korean red ginseng roots‘ sold in continent China has been recognized for its quality and established itself as a favorite brand that consumers buy for their health and the gifts that surround them.
In continent China, where the Lunar New Year culture is similar to Korea, sales in January and February account for more than 20% of annual sales. ‘Korean red ginseng roots‘, the top-selling product, also sells over 20% during Lunar New Year. There is a culture of filial piety similar to that of Korea, so it is often visited as a gift for the elderly.
In the case of Taiwan region and hong kong region, there was a great perception, ‘a product for the elderly which has good medicinal effects but is expensive’, but it is analyzed only after the launch of a stick-type red ginseng product’Everytime‘, the impression of red ginseng on the market has completely changed.
In Taiwan Region, ‘Everytime‘ ranked first in sales with a market share of 38%, playing an important role in transforming the ginseng root-oriented market into a product-oriented market. While maintaining the excellent efficacy of red ginseng, it managed to emphasize portability and convenience of consumption, targeting office workers in their thirties. Thanks to these efforts, sales in Taiwan region, in 2020 jumped 259% from 2017, achieving remarkable growth. The region also shows a high proportion of sales during the Lunar New Year period, accounting for 19-20% of annual sales.
In hong kong region, the love of red ginseng is also remarkable. For a long time the hong kong The area was famous for its ginseng center, which imported Korean ginseng from Korea and distributed it worldwide. Awareness and acceptance of traditional medicines in hong kong region are high as a market for traditional Chinese medicine, which is larger than the Korean medical market, has formed.
In hong kong Region, ‘Everytime‘ also ranks first in sales. The recognition that it is a hit product in Korea and the convenience of ingestion are welcomed, and it seems that all age groups are buying it for their own consumption. Next come pomegranate sticks and chokeberry products containing red ginseng.
The Korean hot wave brings the popularity of Korean red ginseng into South East Asia, in particular there is a strong growth of Singapore and Vietnam>
Among the countries to which red ginseng is exported, the countries with strong growth in recent years are Southeast Asian regions such as Singapore, Vietnam, and Malaysia. As various K contents are popular due to the Korean wave, Korean red ginseng products are also welcomed by locals.
In Singapore and Malaysia, Chinese consumers are the main consumers, and they have a basic understanding of ginseng.
Singapore also showed the highest proportion of ‘Everytime‘ Sales. Although it is an Asian country, there is no objection to accepting new things as it is a place where various ethnic groups live together and where Eastern and Western cultures cross. In Malaysia, also, Chinese consumers are the main consumer group, and sales occur the most in the new year(January 1st), the biggest party. ‘Everytime‘ also took the top spot in local sales. It is because Korean dramas are very popular and are interested in ‘Everytime‘, which frequently appeared as a PPL in the work, increased in the local area.
Vietnam has a great preference for Korean ginseng and regards it as the most luxurious and precious healthy gift. In Vietnam, ‘Everytime‘ sells the most. Since the percentage of the young population is high, they prefer products that are easy to transport and eat. During the longest holidays of Vietnam, TET (the 1st day of the lunar calendar), it was popular with locals as a premium healthy gift, and ranked first among ginseng products in from vietnam online market. “Red Ginseng Tablet”, which contains 100% red ginseng concentrate, was popular as a luxury gift and ranked second.
Japanese consumers value product quality, and after buying a small amount for the experience, they show a tendency to buy regularly only when they feel it suits them.
‘Everytime‘, a stick-shaped red ginseng product, is also popular in Japan. In the past, red ginseng tablets in the form of pills were sold a lot, but recently, the younger generation, who have often seen eating stick-type red ginseng through Korean dramas, are enjoying it more and more.
In the United States, the largest market outside Asian countries, “Red Ginseng Extract” ranks first in the United States for its large capacity and excellent efficacy>
Outside of Asian countries, United States is the largest ginseng products market and ginseng exporter in the world. CheongKwanJang is also working hard in the local market by setting up more than 30 stores across United States.
In September last year, CheongKwanJang opened the Ginseng Museum Cafe, an experiential store in Manhattan, New York. It is a place where foreigners who are unfamiliar with red ginseng can learn about and explain the history and effectiveness of Korean ginseng.
Although the majority of visitors to the store are Asians, non-Asians also keep coming. In particular, the answer to the ‘Red ginseng root liquid‘ done every day at the store is good. The taste is not as bitter as expected, and the fact that it is homemade is much appreciated.
The most popular product in the local market is ‘Red Ginseng Extract‘, a concentrate of red ginseng. Compared to the vast territory of United States, there are not many stores, so consumers prefer products that can be consumed for a long time once purchased. ‘Red Ginseng Extract‘ has a capacity of 240g and can be consumed for about 3 months, and has the rich taste and aroma of red ginseng, so it is also called an essential item for middle-aged Koreans in the United States.
Russia, and ‘Red Ginseng Extract’ in the
In Australia, ‘Hong Sam won‘, a drink-type product, took the top spot in sales. Walking into a large retail store such as Costco, the experience is expanded and the taste is mild, so it’s perfect for locals to learn about red ginseng. 2nd place was ‘Red Ginseng Extract‘.
‘Hong Sam won‘ is the best-selling product in Russia also. It tastes similar to the traditional Russian drink (kvass) and is said to be good for health, and is popular with locals. It is popular with local women over 40.
The most popular product in the Middle East is ‘Red Ginseng Extract‘ in the concentrate form.
Visible results by diversifying sales channels through product development and e-commerce>
In the ‘Red Ginseng World Map‘, different countries have different cultures of consuming red ginseng, and the kinds of products they prefer are also varied. Although red ginseng has a long history of advancing overseas to be called the ancestor of K-food, it has suffered difficulties due to many countries’ health food regulations. Recently, various red ginseng products have been developed and tangible results are manifesting as product registration and market development continues steadily.
In particular, as online shopping has become more active after Covid-19, sales of red ginseng are increasing significantly, mainly via e-commerce. KGC is also transforming all the homepages of its overseas subsidiaries into online shopping malls and expanding sales of CheongKwanJang products to major overseas e-commerce sites such as Tmall, Amazon, Lazada and Shopee.
“Red ginseng is a cultural pride of Korea and an important heritage passed down from our ancestors,” said Kim Nae-soo, Director of Global CIC at KGC. He added, “We will do our best to promote our red ginseng to the world with a sense of duty as a representative.”
SOURCE KGC (Korea Ginseng Corp.)