Product Profile: Ginger
HS CODE: 091011, 091012 & 091010
• Global trade of ginger almost remained static in terms of its growth rate in past five years. In value terms ginger trade slightly fell from US$ 967.2 million in 2014 to US$ 884.7 million in 2018.
• The global ginger & ginger processing market was valued worth of US$ 2.16 billion in 2018. This figure is expected to reach at US$ 3.42 billion by 2023, proliferating at a CAGR of 6.6%.
• China is the largest exporter of ginger across world, exporting over 50%, followed by Netherlands, Thailand, Peru and India. On the other hand, US is the world largest importer of ginger followed by Japan, Netherlands, Pakistan and Germany.
• There has been a regular decline in exports of Indian ginger both in value and volume terms. From 2014 to 2018, value of exported ginger plummeted from US$ 51.1 million to US$ 31.5 million in value terms and from 46.3 thousand tons to 20.5 thousand tons in volume terms.
The global ginger & ginger processing market was valued worth of US$ 2.16 billion in 2018. This figure is expected to reach US$ 3.42 billion by 2023, proliferating at a CAGR of 6.6%. It is a type of spice that belongs to the plant family of Zingiberaceae. It is an excellent source of dietary fiber, vitamin E (alpha-tocopherol), vitamin B6, iron, magnesium, manganese, potassium and selenium. Being aromatic and pungent, ginger enhances distinctive flavors to several food products and has been used as a primary ingredient in Asian cuisines for centuries. The spicy aroma of ginger is mainly due to the presence of ketones, especially gingerols, which have significant importance in its food and health-related applications. To extend its shelf-life (increasing perishability), ginger can be artificially processed into different versions, such as paste, oil and powder. Some of the basic steps included in processing are harvesting, washing, drying and packaging.
Figure 1: Global Trade volumes
Source: ITC Trade Map
Global trade almost remained static in terms of its growth rate in past five years. In value terms, ginger trade slightly fell from US$ 967.2 million in 2014 to US$ 884.7 million in 2018.
Top Trading Economies of Ginger
|Exports in US$ million||Imports in US$ million|
Source: ITC Trade Map
China is the largest exporter of ginger across world exporting over 50%, followed by Netherlands, Thailand, Peru and India. On the other hand, US is the world largest importer of ginger followed by Japan, Netherlands, Pakistan and Germany. Export markets are much more concentrated than imports as ginger importers are well distributed among importing economies.
Usage by Form: Ginger is used in either Ginger Powder or Ginger Oil, at present, it is majorly consumed in powder form as it does not have the strong pungent flavor from the roots due to which it is also utilized for giving a mild taste to the dishes.
With respect to industry usage as an end product, it is used in Food Industry, Pharmaceutical Industry, Cosmetic Industry and Others. The food industry currently represents the largest segment for processed ginger products owing to their usage in the preparation of numerous food products ranging from breads and other bakery products to smoothies and curries.
With burgeoning health-consciousness, consumers being salubrious across the globe, are preferring nutrition-rich food products, which is providing a boost to the growing popularity of processed ginger. In the food industry, the powdered form of ginger is widely used as a condiment or flavoring agent in salad dressings, tomato ketchup and sauces, pickles, gravies, meat sausages and curry dishes. Other than this, ginger powder is regarded as an excellent carminative ingredient that reduces intestinal gas. As a result, they are used in the treatment of a number of skin disorders in Ayurvedic medicines. Also, the regular consumption of processed ginger products reduces the risk of diabetes, obesity, heart diseases, resulting in increased energy, reduced weight and a healthy complexion. Ginger powder is also utilized for adding aroma in soaps and personal care products. Moreover, the oil obtained from ginger is mainly employed in the flavoring of beverages, confectioneries and perfumes.
Ginger market growth is boosting as growing demand for the ginger from the food & beverages industry. Growing usage of ginger in various food products like alcoholic & non-alcoholic beverages and soups & sauces, which is expected to boom the global ginger market growth during the forecast period. The increasing popularity of bakery and convenience food products among consumers across the globe is also expected to fuel the global ginger market across the globe in a positive way. However, mouth irritation & heartburn caused by a huge dose of ginger is estimated to hamper market growth in the forecast period.
In China, ginger is used in the preparation fish or meat dishes, herbal tea and can also be found as a component in candy boxes.
In Japan, ginger is used to make candy known as shoga and grated on uncooked noodles or tofu.
In Burma, ginger is used as a primary ingredient in the preparation of traditional medicines, cooking, and eaten as a salad dish.
In India ginger plays a major role in the preparation of Masala Chai, vegetables, and curries.
In terms of region, the Asia Pacific is expected to hold the largest share in the ginger market owing to the rising popularity of ginger as an herbal medicine among consumers. India and China are estimated to drive the global ginger market during the forecast period. Burgeoning consumption of alcoholic and non-alcoholic food & beverages in this region. In addition, growing living standards juxtaposed with surging disposable income of consumers is another driving factor of the global ginger market growth. North America is also expected to generate the highest CAGR in the global ginger market during the forecast period as growing awareness regarding benefits of ginger among consumers in this region.
India’s Ginger Trade
In 2018, India exported around US$ 31.5 million worth of ginger and imported approximately US$ 19.6 million. India is a major producer of ginger, other than China, Nepal and Indonesia.
Source: ITC Trade Map
There has been a regular decline in the exports of Indian ginger both in value terms and volume terms. From 2014 to 2018, value of exported ginger plummeted from US$ 51.1 million to US$ 31.5 million in value terms and from 46.3 thousand tons to 20.5 thousand tons in volume terms. One of the reasons for this decline is our per unit price of ginger. China’s export of ginger is on continuous rise due its price competitiveness. There is almost a gap of US$ 600-650 per ton in the price of ginger per unit between India and China, China being price competitive.
Major export destinations of Indian ginger are Bangladesh, Saudi Arabia, UAE, Morocco, UK and US. As per the last year’s trend, higher returns have prompted more farmers in Kerala, Karnataka and Maharashtra to substitute maize, cotton and tobacco with ginger. Now the issue to address is, if stakeholders will be satisfied with the domestic market, who will escalate and promote ginger exports knowing the tough competition given by China and Indonesia? This needs to be highlighted at policy discussion table and needs to revisit for accentuating the exports side.1