Licorice Extract Sales Market Outlook

The global licorice extract market is projected to reach approximately USD 1.5 billion by 2035, growing at a CAGR of around 5.2% during the forecast period of 2025-2035. This robust growth can be attributed to the increasing demand for natural flavoring agents across various industries, particularly in food and beverages, as consumers continue to shift towards healthier options. Additionally, the rising awareness regarding the medicinal properties of licorice, including its anti-inflammatory and antioxidant effects, is further propelling market expansion. The pharmaceutical industry is also recognizing the value of licorice extract, leveraging its components for formulating various health-related products. This shift towards incorporating natural ingredients in products is a significant factor driving the demand for licorice extract. Moreover, technological advancements in extraction processes are improving yield and quality, making licorice more accessible for diverse applications.

Growth Factor of the Market

The growth of the licorice extract sales market can be primarily linked to the increasing consumer preference for natural ingredients over synthetic additives in food products. As health-consciousness rises globally, more consumers are seeking products that contain natural flavoring agents, thereby boosting the demand for licorice extract. Furthermore, the expanding food and beverage sector, particularly in emerging markets, is significantly contributing to this growth. The pharmaceutical industry's ongoing research and development into the therapeutic benefits of licorice, such as its potential in treating respiratory ailments and digestive disorders, is also a driving force. Additionally, the rising trend of herbal and natural supplements among consumers has led to an uptick in nutraceutical applications of licorice extract. This convergence of natural product utilization in multiple sectors is expected to sustain the market's upward trajectory.

Key Highlights of the Market

• The market is anticipated to reach USD 1.5 billion by 2035.
• Average CAGR of 5.2% during the forecast period of 2025-2035.
• Increasing demand for natural flavoring agents in food and beverages.
• Growing awareness of the medicinal properties of licorice.
• Advancements in extraction technologies improving quality and yield.

By Product Type

Powder:

Licorice powder is one of the most popular forms of licorice extract, primarily due to its versatility in various applications. It is widely used in the food and beverage industry as a natural sweetener and flavor enhancer. The powder form is easy to incorporate into recipes, making it a preferred choice for manufacturers looking to maintain a clean label. Moreover, the powder form is often favored in the pharmaceutical sector for its ease of dosage and formulation in supplements and medications. The growing trend of clean label products has further accelerated the demand for licorice powder, as consumers increasingly seek transparency regarding ingredient sourcing and formulation.

Liquid:

Liquid licorice extract is highly sought after for its concentrated flavor profile and ease of use in various formulations. It is commonly utilized in the production of beverages, including soft drinks and herbal teas, where its sweetening properties enhance the overall taste. The liquid form allows for better mixing, making it an ideal choice for manufacturers focusing on efficient production processes. Additionally, liquid licorice extract is often employed in the pharmaceutical industry in syrups and other liquid formulations aimed at providing therapeutic benefits. As the demand for liquid flavors in the food industry rises, the market for liquid licorice extract continues to expand.

Paste:

Licorice paste is another significant product form that caters to specific applications within the food and pharmaceutical industries. The paste is recognized for its robust flavor, making it particularly useful in confectionery products, where a more viscous consistency is desirable. It is often incorporated into candies and other sweet treats, where it serves both as a flavor enhancer and a binding agent. In the pharmaceutical sector, licorice paste is used in various formulations, including topical applications due to its soothing properties. The versatility of licorice paste across multiple applications supports its steady demand in the market.

Tablets:

Tableted licorice extract has gained popularity as a convenient and precise dosage form for consumers seeking the health benefits of licorice. This product type is commonly found in dietary supplements targeting digestive health, respiratory ailments, and overall wellness. The tablet form allows for easy consumption and standardized dosages, which appeals to health-conscious individuals looking for natural remedies. As the trend of self-medication continues to rise, the demand for licorice tablets is expected to grow significantly, driven by consumers' preference for convenient health solutions.

Capsules:

Capsules are another favored product form in the licorice extract market, primarily due to their convenience and the ability to mask the taste of licorice. This format is particularly appealing to consumers who may not enjoy the strong flavor of licorice but still wish to reap its health benefits. Capsules are widely used in dietary supplements and herbal formulations, providing a straightforward method of consumption. The growing popularity of herbal supplements and the increasing inclination towards self-health management are expected to bolster the demand for licorice capsules in the foreseeable future.

By Application

Food & Beverage:

The food and beverage sector is one of the largest application areas for licorice extract, accounting for a significant share of the market. Licorice is extensively used as a natural sweetener, flavor enhancer, and coloring agent in various food products, including candies, baked goods, and beverages. The rising consumer preference for natural ingredients over artificial additives has propelled the demand for licorice in this sector, as manufacturers seek to create healthier and more appealing products. Additionally, the versatility of licorice as a flavor profile contributes to its widespread application in diverse food items, sustaining its growth in this segment.

Pharmaceutical:

In the pharmaceutical industry, licorice extract is valued for its therapeutic properties and is commonly incorporated into various formulations aimed at treating respiratory and digestive issues. The active compounds found in licorice, such as glycyrrhizin, have been shown to possess anti-inflammatory and antiviral properties, making them beneficial for health applications. The increasing focus on herbal remedies and natural products in healthcare has bolstered the demand for licorice extract in pharmaceuticals. Furthermore, ongoing research into its health benefits continues to drive innovation in product development.

Personal Care:

Licorice extract has found a place in the personal care industry, where it is used for its skin-soothing and anti-inflammatory properties. It is often included in skincare products, such as creams and serums, due to its ability to reduce redness and irritation. The growing consumer awareness regarding the benefits of natural ingredients in personal care products has fostered the use of licorice extract. As more consumers seek out products that are clean, natural, and effective, the demand for licorice in personal care is expected to rise sharply, reflecting the broader trend towards holistic health and wellness.

Tobacco:

The tobacco industry utilizes licorice extract as a flavoring agent in various tobacco products, such as cigars and smokeless tobacco. Licorice provides a unique flavor profile that enhances the overall smoking experience, making it a preferred choice among manufacturers. The demand for licorice in this application is driven by consumer preferences for flavored tobacco products. As regulations around tobacco consumption evolve, manufacturers are likely to focus on enhancing product appeal through flavoring agents, sustaining the demand for licorice extract in this segment.

Nutraceuticals:

In the nutraceutical sector, licorice extract is gaining traction as a natural supplement that offers numerous health benefits. Its anti-inflammatory properties and potential to support digestive health make it an attractive ingredient in dietary supplements targeted at wellness. The growing trend of preventive healthcare and the rising consumer interest in natural and herbal supplements are significant factors driving the demand for licorice in this application. As the nutraceutical market expands, the role of licorice extract is expected to become increasingly prominent, supported by ongoing research into its health benefits and applications.

By Distribution Channel

Online Retail:

Online retail has emerged as a significant distribution channel for licorice extract, driven by the increasing popularity of e-commerce platforms and the convenience they offer consumers. Many health-conscious individuals prefer shopping online for dietary supplements and natural products, making this channel a vital avenue for market growth. Online retailers often provide a broader selection of licorice products, catering to diverse consumer preferences. As the trend towards online shopping continues to rise, the demand for licorice extract through this distribution channel is expected to grow substantially in the coming years.

Supermarkets/Hypermarkets:

Supermarkets and hypermarkets serve as essential distribution channels for licorice extract, offering a wide range of products to consumers. These retail outlets provide customers with the convenience of purchasing licorice extract alongside other grocery items, making it an attractive option for health-conscious shoppers. The increasing trend of consumers seeking natural ingredients in their diets has led to supermarkets expanding their product offerings to include more natural sweeteners and flavoring agents, thereby bolstering the demand for licorice extract in this channel. Additionally, the promotional activities and collaborations with manufacturers often seen in large retail chains can drive sales and product visibility.

Specialty Stores:

Specialty stores focusing on health foods, organic products, and herbal remedies play a crucial role in the distribution of licorice extract. These stores often cater to a niche market of consumers who prioritize quality and ingredient sourcing, making them an essential channel for reaching health-conscious buyers. The knowledgeable staff in specialty stores can provide valuable information about the benefits and applications of licorice extract, further encouraging consumer purchases. As the trend towards natural and herbal products continues to grow, specialty stores are likely to see an increase in demand for licorice extract, contributing to market expansion.

Convenience Stores:

Convenience stores provide an accessible distribution channel for licorice extract, targeting on-the-go consumers who are seeking quick and healthy snack options. These stores often stock a variety of licorice-based products, such as licorice candy or dietary supplements, making them a convenient choice for busy individuals. As the trend of health awareness spreads, consumers are increasingly looking for healthier snack alternatives, which positions licorice extract as a favorable option. The ability to quickly grab licorice products while shopping for other essentials enhances its market presence through convenience stores.

Pharmacies:

Pharmacies are an essential distribution channel for licorice extract, particularly in its application within the pharmaceutical and nutraceutical sectors. Many consumers turn to pharmacies for health supplements and natural remedies, seeking effective products to support their wellness goals. Licorice extract, known for its therapeutic properties, is often found in various health formulations available at pharmacies. The growing trend of self-medication and the increasing awareness of natural ingredients in health products are likely to contribute to rising sales of licorice extract through this distribution channel, reinforcing its place in the health market.

By Ingredient Type

Glycyrrhizin:

Glycyrrhizin is one of the primary active components derived from licorice extract, known for its characteristic sweetness and therapeutic properties. It is widely utilized in the food and beverage industry as a natural sweetener due to its intense flavor profile, which is significantly sweeter than sugar. Furthermore, glycyrrhizin is recognized for its potential health benefits, including anti-inflammatory and antiviral effects, making it a sought-after ingredient in the pharmaceutical sector for various formulations. The dual utility of glycyrrhizin as both a flavor enhancer and a health-promoting compound drives its demand in the licorice extract market.

Flavonoids:

Flavonoids extracted from licorice have garnered attention for their numerous health benefits, including antioxidant and anti-inflammatory properties. These compounds are increasingly incorporated into dietary supplements and nutraceuticals aimed at enhancing overall health and wellness. Flavonoids are also utilized in the food industry to provide color and flavor in various products. As consumers become more aware of the health benefits associated with natural ingredients, the demand for flavonoids derived from licorice is expected to rise, contributing to the growth of this segment within the market.

Coumarins:

Coumarins are another group of compounds found in licorice extract, known for their aromatic properties. These compounds are often used in the food and beverage industry to enhance flavor profiles, particularly in confectionery and baked goods. Additionally, coumarins possess potential health benefits, which positions them favorably in the nutraceutical sector. As the focus on natural flavoring agents in food production continues to grow, the market for coumarins from licorice extract is expected to witness steady demand, driven by their multifaceted applications.

Stilbenoids:

Stilbenoids derived from licorice are less common but hold significant potential due to their antioxidant properties. These compounds are being explored for their health benefits, particularly in the context of chronic diseases and inflammation. As research into the health properties of stilbenoids progresses, they are likely to find more applications in dietary supplements and functional foods. The increasing consumer interest in natural health products is expected to drive the demand for stilbenoids derived from licorice, supporting their growth in the market.

Chalcones:

Chalcones present in licorice extract are recognized for their diverse biological activities, including anti-inflammatory and antimicrobial effects. These compounds are gradually gaining traction within the nutraceutical and functional food sectors as consumers seek products that offer health benefits. Chalcones can be incorporated into dietary supplements to enhance their therapeutic potential, making them an attractive ingredient for manufacturers focusing on health-oriented products. As awareness of the health benefits of chalcones continues to grow, their demand from licorice extract is likely to increase, further propelling market growth.

By Region

The regional analysis of the licorice extract market reveals a diverse landscape, with North America and Europe holding substantial market shares due to their established food and beverage industries and growing consumer interest in natural ingredients. North America is projected to witness a CAGR of 5.7% during the forecast period, driven by the increasing adoption of clean label products and the demand for herbal supplements. Europe, with its strong tradition of herbal and natural products, is also expected to maintain steady growth, influenced by the rising consumer preference for natural flavoring agents in both food and personal care sectors. Meanwhile, the Asia Pacific region is emerging as a key player, with rapid growth in the food and beverage industry, particularly in countries like China and India.

In the Asia Pacific region, the increasing cultivation of licorice roots and growing awareness of its health benefits are expected to significantly contribute to market expansion. This region is projected to experience a robust growth rate of approximately 6.2% during the forecast period, driven primarily by rising demand in the nutraceuticals and personal care segments. Latin America and the Middle East & Africa are also experiencing growth, albeit at a slower pace, as consumers gradually shift towards natural products. The overall regional dynamics indicate a promising future for the licorice extract market, with potential for growth across multiple geographies, aligning with global trends toward natural ingredients.

Opportunities

The licorice extract market presents numerous opportunities for innovation and growth, especially as consumers increasingly seek natural alternatives to artificial additives. The rising trend towards clean label products creates a unique opportunity for manufacturers to capitalize on the demand for licorice extract as a natural flavoring and sweetening agent. By positioning licorice as a key ingredient in health-focused products, companies can tap into the growing market of health-conscious consumers. Additionally, advancements in extraction technologies are enabling better yields and purity of licorice extract, enhancing its appeal across various applications. The potential for product diversification, including new formulations for dietary supplements and personal care items, further illustrates the opportunities within this market segment.

Another significant opportunity lies in the expansion of the licorice extract market within emerging economies, where increasing disposable incomes and shifting consumer preferences toward healthier lifestyles are creating a burgeoning demand for natural products. As the food and beverage sector continues to grow in regions like Asia Pacific and Latin America, there is a significant potential for licorice extract to penetrate new markets. Furthermore, collaborations with health and wellness brands to develop innovative licorice-based products can lead to increased market share and consumer engagement. As awareness of the therapeutic benefits of licorice expands, opportunities for its application in nutraceuticals and functional foods are likely to proliferate, presenting a promising outlook for industry players.

Threats

Despite the promising outlook for the licorice extract market, certain threats could hinder its growth trajectory. One significant challenge is the potential for regulatory changes and restrictions on the use of licorice in food and beverage products due to health concerns surrounding glycyrrhizin consumption. Excessive intake of glycyrrhizin can lead to adverse health effects, including hypertension and electrolyte imbalances, which may prompt regulatory bodies to impose stricter guidelines. Additionally, the increasing popularity of alternative natural sweeteners, such as stevia and monk fruit, poses a competitive threat to licorice extract, as consumers may opt for these alternatives that offer similar benefits without the associated health risks.

Moreover, the licorice extract market is susceptible to fluctuations in raw material supply and pricing. Environmental factors, such as drought and changing climate conditions, can affect licorice root cultivation, leading to potential shortages and increased costs. This volatility may impact manufacturers' ability to maintain consistent product quality and pricing, posing a risk to long-term profitability. Lastly, the ongoing COVID-19 pandemic has introduced uncertainties in the supply chain and consumer purchasing behavior, which may have lingering effects on the licorice extract market. Stakeholders must navigate these threats strategically to ensure sustained growth and market stability.

Competitor Outlook

• Reed's Inc.
• Dandy Blend
• Huangpu Shennong
• Genuine Health
• NutraGreen
• Herbalife
• Vitae Naturals
• Flavex Naturextrakte GmbH
• The Natural Ingredients Company
• McCormick & Company
• Bell Flavors and Fragrances
• Fennel and Licorice Company
• Starwest Botanicals
• Archer Daniels Midland Company
• Market Botanicals

The competitive landscape of the licorice extract market is characterized by a diverse array of players, ranging from established food manufacturers to specialized herbal extract suppliers. Companies are increasingly focusing on innovation and product development to cater to the rising demand for natural ingredients in food, pharmaceuticals, and personal care products. The competition is not solely based on product offerings but also on factors such as brand reputation, quality, and the sourcing of raw materials. Many companies are leveraging partnerships and collaborations with health and wellness brands to expand their product portfolios and reach new consumer segments, enhancing their market presence.

Major players, such as Archer Daniels Midland Company and McCormick & Company, are known for their extensive capabilities in ingredient sourcing and product formulation. These companies have established a solid foothold in the market by consistently providing high-quality licorice extract products. Additionally, smaller, specialized companies like Reed's Inc. and Starwest Botanicals are gaining traction by focusing on niche markets that prioritize organic and natural ingredients. The emphasis on sustainability and clean labeling is shaping the competitive strategies of these firms, motivating them to invest in environmentally-friendly production practices and transparency in ingredient sourcing.

Furthermore, companies are increasingly investing in research and development to explore new applications and health benefits of licorice extract, which can provide a competitive advantage in the market. Collaborations with research institutions and health organizations are becoming more common, as companies seek to substantiate claims about the health benefits of licorice extract and expand its potential applications. The dynamic nature of the licorice extract market presents both challenges and opportunities for players, as they navigate shifting consumer preferences while striving to maintain quality and innovation. As the market continues to evolve, companies that can effectively respond to consumer demands and regulatory challenges are likely to thrive.