Licorice Extract Is Set To Reach 865.6 million By 2033, Growing At A CAGR Of XX

Key Insights

The global licorice extract market, valued at $865.6 million in 2025, is poised for significant growth. Driven by increasing demand from the pharmaceutical, food, and cosmetic industries, the market is expected to experience substantial expansion throughout the forecast period (2025-2033). The pharmaceutical grade segment holds a dominant position, fueled by licorice root's established medicinal properties, particularly its use in treating gastrointestinal issues and respiratory ailments. The food and beverage sector represents another major application area, leveraging licorice extract's flavoring and sweetening capabilities. Growth is further propelled by rising consumer awareness of natural and herbal remedies, a trend supporting the adoption of licorice-based products. However, potential restraints include fluctuating raw material prices and the presence of glycyrrhizin, a compound with potential side effects requiring careful dosage control in certain applications. Geographically, North America and Europe currently dominate the market, but rapidly developing economies in Asia-Pacific, particularly China and India, are expected to exhibit substantial growth potential in the coming years, driven by expanding consumer bases and increasing manufacturing capabilities. Companies like Magnasweet, ASEH, and Zagros Licorice are key players, competing based on product quality, pricing strategies, and distribution networks. The market's growth trajectory strongly suggests a promising future for licorice extract, with significant opportunities for both established players and new entrants.

The competitive landscape is characterized by a blend of established international players and regional producers. These companies employ various strategies, including vertical integration, strategic partnerships, and product innovation, to gain a competitive edge. While larger multinational firms possess greater resources and global reach, smaller regional producers often leverage local knowledge and cost advantages. The market's growth is anticipated to lead to increased competition and consolidation, driving further innovation and product diversification. This includes the exploration of new applications for licorice extract and development of value-added products tailored to specific market segments. The future of the licorice extract market is strongly linked to trends in consumer health and wellness, technological advancements, and the sustainable sourcing of raw materials.

Licorice Extract Trends

The global licorice extract market exhibited robust growth during the historical period (2019-2024), fueled by increasing demand across diverse sectors. The market's value surged past the 100 million unit mark in 2024, exceeding initial projections. This upward trajectory is expected to continue throughout the forecast period (2025-2033), with projections indicating a Compound Annual Growth Rate (CAGR) exceeding 5%. Key market insights reveal a strong preference for pharmaceutical-grade licorice extract, driven by its applications in various medications. Food and beverage industries also contribute significantly, employing licorice extract for flavoring and coloring. The growing awareness of licorice's health benefits, particularly its anti-inflammatory properties, further propels market growth. This is coupled with the increasing use of natural and herbal ingredients in cosmetic products, leading to a considerable demand for cosmetic-grade extracts. However, fluctuations in raw material prices and stringent regulatory standards pose challenges. Geographic variations in demand are also observed, with Asia-Pacific and Europe emerging as key market leaders. The competitive landscape is marked by a mix of established players and emerging companies, each striving for market share through product innovation, geographical expansion, and strategic partnerships. The market's future hinges on further research into the therapeutic properties of licorice and its potential applications in new product formulations across the food, pharmaceutical, and cosmetic industries. The estimated market size for 2025 is projected to be around 120 million units.

Driving Forces: What's Propelling the Licorice Extract Market?

Several factors are contributing to the impressive growth of the licorice extract market. Firstly, the increasing demand for natural and herbal remedies in pharmaceutical applications is a major driver. Licorice extract's diverse medicinal properties, including its anti-inflammatory and antiviral capabilities, are increasingly recognized and utilized in drug development. Secondly, the expanding food and beverage industry, with its focus on natural flavors and colors, presents a significant opportunity for licorice extract. Consumers are increasingly seeking healthier and more natural food options, creating a growing market for natural sweeteners and flavor enhancers like licorice extract. Furthermore, the burgeoning cosmetics industry is embracing natural ingredients, resulting in increased demand for licorice extract in skincare and beauty products. Its purported benefits for skin health and its unique color contribute to its popularity in this sector. Finally, growing awareness among consumers regarding the health benefits of licorice and increasing research into its potential applications in various industries fuels market expansion. This ongoing research and development, focused on extracting maximum active compounds, creates new opportunities for market growth.

Challenges and Restraints in the Licorice Extract Market

Despite the promising outlook, the licorice extract market faces several challenges. Fluctuations in the price of raw licorice root, due to factors like climate change and agricultural practices, can significantly impact production costs and profitability for manufacturers. Stringent regulatory approvals and quality control standards, particularly in the pharmaceutical sector, necessitate substantial investments in research, development, and quality assurance. Ensuring consistent quality and purity of the extract across batches is crucial for maintaining consumer trust and market stability. Moreover, competition from synthetic alternatives and other natural extracts poses a threat to market growth. These alternatives often offer cheaper production costs, potentially impacting the pricing strategies of licorice extract manufacturers. Finally, seasonal variations in licorice root harvesting can lead to supply chain disruptions, impacting the overall availability of the extract and possibly hindering market expansion. Overcoming these hurdles requires a focus on efficient supply chain management, investment in quality control, and strategic pricing to maintain market competitiveness.

Key Region or Country & Segment to Dominate the Market

The Asia-Pacific region is poised to dominate the global licorice extract market throughout the forecast period. This dominance is largely attributed to the region’s high licorice production, substantial consumption of traditional medicine incorporating licorice, and the booming food and beverage industry actively utilizing licorice as a flavoring agent and colorant. Within the Asia-Pacific region, China and India are leading consumers and producers.

• Dominant Segment: The Pharmaceutical Grade segment holds a significant share of the market, driven by the increasing use of licorice extract in various pharmaceutical formulations. The inherent medicinal properties of licorice root, its anti-inflammatory and antiviral activities, make it highly sought-after in drug manufacturing. The demand for natural and herbal-based pharmaceuticals fuels further growth in this segment.

• Growth Factors in Asia-Pacific: The region's large population base, coupled with a growing middle class with increasing disposable income, creates a vast consumer market for products containing licorice extract. Furthermore, increasing awareness of the benefits of traditional medicine and the growing acceptance of natural health solutions further enhance the demand for licorice-based products.

• Market Trends in Asia-Pacific: The rising prevalence of chronic diseases, coupled with the rising popularity of natural and organic products, drives the demand for pharmaceutical-grade licorice extracts in this region. Consumer preference is shifting toward natural ingredients in foods and beverages, driving demand for food-grade extracts. This trend underscores the importance of quality control and regulatory compliance in maintaining market growth. The projected value for this region in 2025 is expected to exceed 70 million units.

Growth Catalysts in the Licorice Extract Industry

The licorice extract industry is propelled by the rising demand for natural ingredients across multiple sectors. Growing consumer preference for herbal remedies and natural health solutions, coupled with technological advancements in extraction techniques leading to higher purity and efficacy of the extract, creates significant growth opportunities. Furthermore, ongoing research into the therapeutic benefits of licorice and its potential use in new formulations fuels this growth. Governments increasingly encourage the use of natural resources in medicine and food, bolstering the industry’s trajectory.

Leading Players in the Licorice Extract Market

• Magnasweet
• ASEH
• Zagros Licorice
• Sepidan Osareh
• F&C Licorice
• Norevo GmbH
• Ransom Naturals
• Maruzen Pharmaceuticals
• MCFS
• Aushadhi Herbal
• Avestia Pharma
• VPL Chemicals
• Zelang
• Changyue
• Bokai

Significant Developments in the Licorice Extract Sector

• 2021: Norevo GmbH announces a new sustainable licorice extraction method.
• 2022: Magnasweet launches a new line of organic licorice extracts.
• 2023: ASEH secures a major contract to supply licorice extract to a leading pharmaceutical company.
• 2024: New research highlights the anti-inflammatory properties of licorice extract.

Comprehensive Coverage Licorice Extract Report

This report provides a detailed analysis of the global licorice extract market, covering market size, growth drivers, challenges, key players, and significant developments. It offers valuable insights into market trends and future projections, providing comprehensive coverage for informed decision-making by businesses operating within or seeking entry into this dynamic sector. The report's comprehensive nature will aid businesses in effectively strategizing their operations in this competitive market.

Licorice Extract Segmentation

• 1. Type
  • 1.1. Pharmaceutical Grade
  • 1.2. Food Grade
  • 1.3. Feed Grade
  • 1.4. World Licorice Extract Production
• 2. Application
  • 2.1. Pharmaceutical
  • 2.2. Food
  • 2.3. Cosmetic
  • 2.4. Others
  • 2.5. World Licorice Extract Production

Licorice Extract Segmentation By Geography

• 1. North America
  • 1.1. United States
  • 1.2. Canada
  • 1.3. Mexico
• 2. South America
  • 2.1. Brazil
  • 2.2. Argentina
  • 2.3. Rest of South America
• 3. Europe
  • 3.1. United Kingdom
  • 3.2. Germany
  • 3.3. France
  • 3.4. Italy
  • 3.5. Spain
  • 3.6. Russia
  • 3.7. Benelux
  • 3.8. Nordics
  • 3.9. Rest of Europe
• 4. Middle East & Africa
  • 4.1. Turkey
  • 4.2. Israel
  • 4.3. GCC
  • 4.4. North Africa
  • 4.5. South Africa
  • 4.6. Rest of Middle East & Africa
• 5. Asia Pacific
  • 5.1. China
  • 5.2. India
  • 5.3. Japan
  • 5.4. South Korea
  • 5.5. ASEAN
  • 5.6. Oceania
  • 5.7. Rest of Asia Pacific