Licorice Extract Market Insightful Market Analysis: Trends and Opportunities 2025-2033

Key Insights

The size of the Licorice Extract Market was valued at USD 2.23 Billion in 2024 and is projected to reach USD 3.03 Billion by 2033, with an expected CAGR of 4.5% during the forecast period. Licorice extract is a natural substance derived from the root of the licorice plant (Glycyrrhiza glabra), which is native to parts of Europe and Asia. The extract is obtained through a process of boiling and filtering the root to concentrate its active compounds, primarily glycyrrhizin, which imparts its characteristic sweet flavor and medicinal properties. Licorice extract is known for its intense sweetness—approximately 30-50 times sweeter than sucrose—and is often used as a flavoring agent in candies, beverages, and herbal teas. In addition to its culinary applications, licorice extract has been used for centuries in traditional medicine for its potential health benefits, such as soothing sore throats, aiding digestion, and acting as an anti-inflammatory agent. However, due to its glycyrrhizin content, excessive consumption of licorice extract can have adverse effects, including raising blood pressure and causing electrolyte imbalances. As a result, its use in food products is often regulated, and it is typically consumed in moderation. Licorice extract is also valued in the cosmetic industry for its skin-soothing and brightening properties, making it a common ingredient in skincare formulations. This growth is driven by several factors, including the benefits of hybrid seeds, government initiatives, rising food security concerns, and technological advancements. Hybrid seeds offer improved yield, disease resistance, and adaptability to different climatic conditions. Government initiatives to promote sustainable agriculture and reduce chemical pesticide use are also contributing to the market growth. Growing awareness about the health benefits of licorice extract, particularly its antibacterial and antiviral properties, is driving demand in the food and beverage, pharmaceuticals, and tobacco industries.

Licorice Extract Market Concentration & Characteristics

The Licorice Extract Market is moderately concentrated, with the top players accounting for a significant market share. Innovation is a key characteristic of the market, with companies investing in research and development to create new products and applications. Government regulations related to the use of chemicals in food and agriculture are influencing the market landscape. Product substitutes, such as artificial sweeteners and flavors, may pose a competitive challenge to licorice extract. End-user concentration is high in the food and beverage industry, while M&A activity is moderate, with occasional acquisitions and mergers to expand market reach and product portfolios.

Licorice Extract Market Trends

Key market insights include the increasing demand for natural and organic ingredients in food and beverages, as well as the growing popularity of traditional herbal remedies. Technological advancements are enabling the extraction and purification of licorice extract with improved efficiency and purity. Additionally, the rising prevalence of chronic diseases is fueling the demand for licorice extract in pharmaceuticals due to its anti-inflammatory and antioxidant properties.

Key Region or Country & Segment to Dominate the Market

Asia-Pacific region dominates the Licorice Extract Market, accounting for the largest market share. China, India, and Japan are the major contributors to the regional market growth. The pharmaceutical grade segment is projected to witness significant growth due to its application in the treatment of various diseases and conditions.

Driving Forces: What's Propelling the Licorice Extract Market

• Growing demand for natural and organic ingredients in food and beverages
• Increasing popularity of traditional herbal remedies
• Technological advancements in extraction and purification
• Rising prevalence of chronic diseases

Challenges and Restraints in Licorice Extract Market

• Government regulations on the use of chemicals in food and agriculture
• Competition from product substitutes, such as artificial sweeteners and flavors
• Availability of low-cost, synthetic alternatives

Emerging Trends in Licorice Extract Market

• Research and development on new applications in healthcare and cosmetics
• Development of more sustainable and environmentally friendly extraction methods
• Growing interest in personalized nutrition and tailored herbal remedies

Licorice Extract Industry News

• In July 2022: Givaudan, Buhler, and Cargill collaborated to build a food innovation center in Brazil to develop sustainable food and beverage products.
• In January 2021: Mafco launched a multi-tasking product addressing flavor-formulation problems, emphasizing the cost-effectiveness and productivity of selective compounding for taste modulation.

Leading Players in the Licorice Extract Market

• Alfard Corporation Ltd.
• AOS Products Pvt. Ltd
• Avestia Pharma
• C.E. Roeper GmbH
• F&C Licorice Extract Ltd.
• Herbochem
• Hyundai Bioland
• Mafco Worldwide LLC
• Maruzen Pharmaceuticals Co. Ltd.
• Norevo GmbH
• VPL Chemicals
• Shaanxi FUJIE Pharmaceutical Co. Ltd.

Licorice Extract Market Segmentation

• 1. Grade
  • 1.1. Pharmaceutical Grade
  • 1.2. Food Grade
  • 1.3. Feed Grade
• 2. Form
  • 2.1. Liquid
  • 2.2. Powder
  • 2.3. Block
  • 2.4. Others
• 3. Application
  • 3.1. Food & Beverages
  • 3.2. Pharmaceuticals
  • 3.3. Tobacco
  • 3.4. Others

Licorice Extract Market Segmentation By Geography

• 1. North America
  • 1.1. U.S.
  • 1.2. Canada
• 2. Europe
  • 2.1. Germany
  • 2.2. UK
  • 2.3. France
  • 2.4. Spain
  • 2.5. Poland
  • 2.6. Italy
  • 2.7. Russia
• 3. Asia Pacific
  • 3.1. China
  • 3.2. India
  • 3.3. Japan
  • 3.4. South Korea
  • 3.5. Indonesia
  • 3.6. Australia
  • 3.7. Malaysia
• 4. Latin America
  • 4.1. Brazil
  • 4.2. Mexico
  • 4.3. Argentina
• 5. MEA
  • 5.1. South Africa
  • 5.2. Saudi Arabia
  • 5.3. UAE
  • 5.4. Egypt