Licorice Extracts Market Outlook

The global licorice extracts market is projected to reach approximately USD 1.5 billion by 2035, growing at a CAGR of around 4.5% during the forecast period from 2025 to 2035. The increasing demand for natural flavors in the food and beverage sector, coupled with the rising awareness of the health benefits associated with licorice extracts, are significant factors driving market growth. Additionally, the pharmaceutical industry's reliance on licorice for its therapeutic properties and the expanding cosmetic industry's inclination towards natural ingredients further propels the market. Moreover, the growing trend for plant-based and herbal products is expected to enhance market expansion. Environmental sustainability concerns and consumer preference for organic products are expected to influence market dynamics positively.

Growth Factor of the Market

The growth of the licorice extracts market is primarily fueled by the increasing consumption of herbal remedies and the rising trend of using natural products across various industries. Consumers are becoming more health-conscious and are opting for products that are free from artificial additives and chemicals. This shift in consumer preference is compelling food and beverage companies to incorporate natural flavors, such as licorice extracts, in their products. Furthermore, the pharmaceutical sector is experiencing a surge in the use of licorice due to its anti-inflammatory, antiviral, and antioxidant properties, making it a sought-after ingredient in many formulations. The rising popularity of dietary supplements that include licorice as a key ingredient is also contributing to market growth. Lastly, the cosmetic industry is increasingly adopting licorice extracts for their skin-brightening and soothing effects, leading to a broader application scope for these extracts.

Key Highlights of the Market

• The global licorice extracts market is anticipated to witness steady growth, with an increasing focus on natural ingredients across various sectors.
• Licorice powder is the leading product type, used extensively in the food and beverage industry.
• The pharmaceutical application segment is expected to dominate, driven by the increasing utilization of licorice extracts in traditional and modern medicine.
• Online sales channels are rapidly gaining traction, reflecting changing consumer shopping behaviors.
• The Asia Pacific region is projected to be the fastest-growing market, driven by high demand in food, beverages, and traditional medicine.

By Product Type

Powder:

Licorice powder is one of the most commonly used forms of licorice extracts, known for its versatility in various applications. It is extensively utilized in the food and beverage sector, where it imparts a sweet flavor and enhances the overall taste of products. The powder form allows for easy integration into baked goods, confectionery, and beverages, making it a popular choice among manufacturers. Its concentrated form ensures that even a small quantity can provide significant flavor and health benefits. Moreover, licorice powder is also gaining traction in the dietary supplements market, where it is used for its health-promoting properties. The rising demand for natural sweeteners and flavoring agents further underlines the importance of licorice powder in the market.

Liquid:

Licorice liquid extracts are gaining popularity due to their ease of use and quick absorption in formulations. This form is particularly favored in the beverage industry, where it can be easily mixed into drinks for a natural sweetening effect. The liquid form allows for greater flexibility in dosage and application, making it suitable for a wide range of products, from soft drinks to herbal teas. In the pharmaceutical sector, liquid licorice extracts are utilized in syrups and tonics, enhancing their palatability while providing therapeutic benefits. Furthermore, the liquid format is gaining traction in the cosmetic industry, as it can be seamlessly incorporated into formulations for skincare products, capitalizing on licorice's soothing properties.

Paste:

Licorice paste is a less common but increasingly utilized form of licorice extract, especially in traditional medicine and some cosmetic applications. The paste is known for its rich flavor and is often used in artisanal food products, where a concentrated flavor profile is desired. In the pharmaceutical industry, licorice paste is sometimes used in formulations that require a thicker consistency, providing a unique texture and flavor. Additionally, in cosmetic formulations, licorice paste can enhance the textural quality of creams and lotions, adding both cosmetic appeal and health benefits. Its multipurpose nature makes licorice paste an interesting segment in the licorice extracts market.

Tablets:

Licorice tablets are primarily found in the dietary supplements market, appealing to health-conscious consumers seeking convenient ways to incorporate licorice's benefits into their daily routine. These tablets are often marketed for their anti-inflammatory and digestive-supporting properties, making them attractive to consumers dealing with various health concerns. The tablet form allows for precise dosing, which is crucial in the supplement industry. Furthermore, the increasing trend of self-medication among consumers is driving the demand for licorice tablets, as they are perceived as natural and safe alternatives to conventional medications. This segment is expected to witness significant growth, particularly in markets where interest in herbal supplements is rising.

Capsules:

Capsules are another popular form of licorice extract in the dietary supplement industry, favored for their ease of ingestion and ability to mask the strong taste of licorice. They offer an effective way for consumers to derive the health benefits of licorice without having to deal with its flavor. The capsule format also allows for the inclusion of other herbal ingredients, catering to the growing trend of combination supplements. As consumers increasingly turn to natural remedies for health issues, the demand for licorice capsules is expected to rise. With the emphasis on quality and efficacy, manufacturers are investing in producing premium capsules that enhance bioavailability, ensuring that consumers receive maximum benefits from the licorice extract.

By Application

Pharmaceuticals:

The pharmaceuticals segment is one of the largest consumers of licorice extracts due to their numerous health benefits. Licorice is known for its anti-inflammatory, antiviral, and antioxidant properties, making it a valuable ingredient in various medicinal formulations. Traditionally, licorice has been used in herbal medicine for treating respiratory issues, digestive disorders, and skin ailments. The growing acceptance of herbal remedies in modern medicine is further boosting the demand for licorice extracts in pharmaceutical products. Moreover, as research continues to uncover the therapeutic potential of licorice, more pharmaceutical companies are likely to incorporate it into their formulations, driving growth in this application segment.

Food & Beverages:

The food and beverages sector is the largest application area for licorice extracts, fueled by their unique flavor and natural sweetness. Licorice is commonly used in confectionery products, soft drinks, and herbal teas, offering a distinct taste that appeals to many consumers. The growing trend of natural and organic products is leading manufacturers to explore licorice as a replacement for artificial sweeteners and flavor enhancers. Additionally, licorice extracts are increasingly being used in gourmet and specialty foods, where unique flavor profiles are desired. The versatility of licorice allows it to be used in both sweet and savory applications, making it an integral ingredient in the food and beverage industry.

Cosmetics:

The cosmetics industry is increasingly applying licorice extracts for their skin-brightening and anti-inflammatory properties. Licorice is known to help reduce hyperpigmentation and promote an even skin tone, making it a sought-after ingredient in skincare formulations. The rising consumer demand for natural and organic cosmetic products has led to the incorporation of licorice extracts in creams, serums, and lotions. As consumers become more aware of the benefits of using plant-based ingredients, the demand for licorice in cosmetics is anticipated to rise. Additionally, the soothing and anti-irritant properties of licorice make it ideal for sensitive skin formulations, expanding its application in the beauty industry.

Dietary Supplements:

Licorice extracts are widely used in dietary supplements due to their numerous health benefits, including their potential to support digestive health and act as a natural anti-inflammatory agent. The growing trend of preventive healthcare has led to a surge in demand for herbal supplements, with licorice being at the forefront due to its historical usage in traditional medicine. Furthermore, the rise in health-conscious consumers seeking alternatives to synthetic drugs is driving the market for licorice-based supplements. Manufacturers are increasingly formulating innovative products that combine licorice with other beneficial herbs, catering to the diverse needs of health-conscious consumers. This segment is expected to witness robust growth as awareness of herbal remedies continues to expand.

Tobacco Industry:

Licorice extracts have a long-standing application in the tobacco industry, where they are used primarily as a flavoring agent. The addition of licorice enhances the taste of tobacco products, making them more palatable to consumers. The growing popularity of flavored tobacco products has revitalized interest in licorice as a natural flavoring option. Additionally, licorice is believed to have some soothing properties, which may enhance the overall smoking experience. As regulations around tobacco products become more stringent, manufacturers are continuously seeking natural alternatives to synthetic flavors, which positions licorice extracts favorably in the tobacco market. This application segment is expected to maintain steady demand due to its entrenched position in traditional tobacco products.

By Distribution Channel

Online Stores:

Online retail channels are becoming increasingly popular for purchasing licorice extracts, driven by the convenience and accessibility of e-commerce platforms. Consumers are increasingly turning to online shopping for dietary supplements, food, and cosmetics, facilitating a growing demand for licorice extracts available through these channels. Online stores provide consumers with a wide range of options, allowing them to compare products and read reviews, which plays a critical role in their purchasing decisions. Moreover, the COVID-19 pandemic has accelerated the shift to online shopping, with many consumers preferring to purchase health and wellness products online. This trend is expected to drive the growth of licorice extracts sold via online platforms, further broadening market reach.

Supermarkets/Hypermarkets:

Supermarkets and hypermarkets remain a vital distribution channel for licorice extracts, providing consumers with easy access to a variety of products. These large retail outlets typically carry a diverse range of food and beverage items, including those that contain licorice extracts. The visibility and convenience of purchasing licorice products, such as candies, beverages, and dietary supplements, in supermarkets contribute significantly to their sales. Additionally, these retail formats often employ promotional strategies to attract customers, which can lead to increased awareness and consumption of licorice-based products. As such, supermarkets and hypermarkets are anticipated to remain a dominant distribution channel in the licorice extracts market.

Specialty Stores:

Specialty stores play a crucial role in the distribution of licorice extracts, particularly those focusing on health foods, organic products, and herbal supplements. These stores often carry high-quality, niche licorice products that appeal to health-conscious consumers seeking natural alternatives. The knowledgeable staff in specialty stores can provide valuable information and recommendations, enhancing the shopping experience for consumers. Furthermore, as interest in herbal remedies and natural products continues to rise, specialty stores are likely to see increased foot traffic and sales of licorice extracts. This distribution channel is expected to thrive, particularly among consumers who prioritize quality and sourcing transparency in their purchases.

Convenience Stores:

Convenience stores serve as an important distribution channel for licorice extracts, particularly for impulse purchases and on-the-go consumption. These stores often stock a limited selection of licorice-based snacks, beverages, and candies that cater to busy consumers looking for quick and convenient options. The accessibility of convenience stores allows for increased visibility of licorice products, which can lead to spontaneous purchasing decisions. As consumers continue to seek out convenient and portable snack options, the demand for licorice extracts in convenience stores is expected to grow, making this channel a key player in the overall market.

Direct Sales:

Direct sales channels, including health and wellness consultants or multi-level marketing companies, have also become a noteworthy distribution method for licorice extracts, particularly in the dietary supplement industry. These channels provide a personalized approach to selling licorice products, allowing consumers to receive tailored recommendations based on their health needs. The direct sales model fosters brand loyalty and customer relationships, which can positively influence repeat purchases. Additionally, as consumers increasingly seek trusted sources for health products, the direct sales approach can offer assurances about product quality and efficacy. This segment is expected to grow as more companies explore direct-to-consumer strategies, enhancing their market presence.

By Ingredient Type

Glycyrrhizin:

Glycyrrhizin is one of the most significant compounds found in licorice extracts, known for its unique sweet flavor and numerous health benefits. It is often used in various food and beverage applications as a natural sweetener, significantly sweeter than sucrose, allowing manufacturers to reduce sugar content while maintaining flavor. Glycyrrhizin is also recognized for its therapeutic properties, including its anti-inflammatory and antiviral effects, making it a popular ingredient in healthcare formulations. The demand for glycyrrhizin is on the rise as consumers increasingly opt for natural ingredients in their diets, driving its application in dietary supplements and functional foods. As awareness of glycyrrhizin's potential benefits continues to grow, it is expected to play a crucial role in the licorice extracts market.

Flavonoids:

Flavonoids are a group of naturally occurring compounds in licorice known for their antioxidant properties. These compounds are increasingly sought after for their potential health benefits, including anti-inflammatory effects and the ability to support cardiovascular health. In the dietary supplement sector, flavonoids from licorice extracts are gaining traction as consumers look for natural ways to improve their health. Their incorporation into functional foods and beverages is also increasing, as manufacturers leverage their health-promoting properties to attract health-conscious consumers. The rising interest in antioxidants and their role in disease prevention is likely to drive the demand for flavonoids in licorice extracts, further enhancing their market presence.

Coumarins:

Coumarins are another group of active compounds found in licorice extracts that possess varying therapeutic properties. They are often used in traditional medicine for their anti-inflammatory and anticoagulant effects. The growing interest in natural remedies has led to an increased focus on coumarins in the dietary supplements market, where they are marketed for their health-promoting benefits. Moreover, coumarins are also explored in the cosmetics industry for their potential skin-benefiting properties, including their ability to enhance skin health and appearance. As research uncovers more about the benefits of coumarins, their application in various industries is expected to expand, fueling their demand within the licorice extracts market.

Stilbenoids:

Stilbenoids, while less prevalent than other compounds, are a notable component of licorice extracts with emerging health benefits. These compounds are being studied for their potential in promoting health and wellness, particularly in relation to oxidative stress and inflammation. They are not commonly used in mainstream products yet but are gradually gaining attention in the health and wellness sector, particularly in supplements targeting anti-aging and overall health. As consumer interest in holistic health persists, the incorporation of stilbenoids in licorice extracts may see increased adoption, leading to an expanding market segment dedicated to these compounds.

Triterpenoids:

Triterpenoids are another class of bioactive compounds found in licorice, renowned for their variety of health benefits, including liver protection and immune system support. As consumers continue to prioritize health-enhancing ingredients in their diets, the demand for triterpenoid-rich licorice extracts is poised for growth. These compounds are primarily utilized in the dietary supplements industry, where their incorporation into formulations enhances product efficacy. Additionally, ongoing research into the diverse benefits of triterpenoids may lead to increased applications in food and beverage products as well. As awareness about their health benefits becomes more widespread, triterpenoids are expected to gain prominence within the licorice extracts market.

By Region

The licorice extracts market is witnessing diverse growth across various regions, reflecting differing consumer preferences and market dynamics. In the Asia Pacific region, the market is poised for significant growth, driven by the traditional use of licorice in herbal medicine and the rising demand for natural products. The region is projected to grow at a CAGR of approximately 5.2% from 2025 to 2035, supported by an increasing population that values natural remedies, especially in countries like China, India, and Japan. The growing food and beverage sector in this region is also anticipated to contribute significantly to the rising demand for licorice extracts, particularly in product offerings featuring herbal teas and traditional sweets.

In North America, the licorice extracts market is expected to experience steady growth, primarily due to the rising demand for natural flavors in food and beverages and the increasing prevalence of dietary supplements. The growing trend of health consciousness among consumers is leading to greater interest in herbal products, propelling the market forward. Additionally, Europe is a key region for licorice extracts, driven by the established regulatory frameworks supporting the use of natural ingredients in food and cosmetics. However, the European market's growth may be comparatively slower than that of the Asia Pacific due to stringent regulations and consumer preference for local ingredients. Overall, the regional dynamics of the licorice extracts market are characterized by varying growth rates and demand patterns, reflecting local consumer preferences.

Opportunities

The licorice extracts market presents numerous opportunities for growth, particularly in the realm of product innovation. With the increasing consumer preference for natural and organic ingredients, companies have the potential to develop new formulations that leverage the benefits of licorice extracts. By creating innovative product lines that cater to health-conscious consumers, such as functional beverages, herbal teas, and dietary supplements, manufacturers can capitalize on the growing trend of preventive healthcare. Furthermore, the expanding cosmetic industry represents another opportunity for incorporating licorice extracts into skincare and cosmetic formulations. As consumers seek products that promote not only beauty but also overall wellness, the versatility of licorice extracts can be leveraged to create unique offerings that meet these demands.

Moreover, the growing e-commerce landscape offers a significant opportunity for companies in the licorice extracts market. As consumers increasingly prefer shopping online, establishing a strong online presence can help manufacturers reach a broader audience and boost sales. Collaborations with health and wellness influencers can also enhance brand visibility and consumer engagement, further driving growth in this segment. Additionally, the rising interest in herbal remedies and supplements presents opportunities for companies to educate consumers about the health benefits of licorice extracts, thereby fostering greater demand. By harnessing these opportunities, businesses can position themselves favorably within the competitive landscape of the licorice extracts market.

Threats

Despite the growth prospects, the licorice extracts market faces several threats that could hinder its expansion. One of the primary concerns is the fluctuating supply of licorice root, which can be affected by factors such as climate change and agricultural practices. Variability in weather patterns may lead to decreased yields and increased prices, impacting manufacturersÔÇÖ ability to source quality raw materials consistently. Furthermore, the presence of synthetic substitutes in the market can pose a competitive threat to natural licorice extracts, as consumers may gravitate toward cheaper alternatives. Additionally, regulatory challenges regarding the use of herbal ingredients in food, beverages, and supplements may create barriers for companies seeking to innovate or expand their product lines.

Moreover, the rising consumer awareness surrounding health and wellness may lead to increased scrutiny of product formulations, compelling manufacturers to provide transparent information regarding the sourcing and quality of their licorice extracts. This heightened focus on transparency may challenge companies that are unable to meet these demands. Additionally, competitive pressure within the dietary supplements and cosmetic industries could lead to price wars, which may adversely affect profit margins for companies operating in the licorice extracts market. As such, businesses must navigate these threats strategically to ensure sustainable growth and maintain their market position.

Competitor Outlook

• Allergy Research Group
• Nature's Way
• Herb Pharm
• Starwest Botanicals
• Gaia Herbs
• Swanson Health Products
• NutraBlast
• Organic India
• NOW Foods
• Himalaya Herbal Healthcare
• Bramble Berry
• Pure Encapsulations
• BioCare Copenhagen
• Herbivore Botanicals
• Mountain Rose Herbs

The competitive landscape of the licorice extracts market is characterized by a diverse array of companies, each vying to leverage the growing demand for natural and herbal products. Key players are increasingly focusing on product innovation and the development of high-quality formulations that highlight the health benefits of licorice extracts. As consumer preferences shift towards natural alternatives, companies are investing in research and development to enhance their offerings and meet market needs. This focus on innovation is leading to the introduction of new products across various segments, from dietary supplements to cosmetics, thereby intensifying competition in the market.

Additionally, established players are often engaging in strategic partnerships and collaborations to expand their market reach and strengthen their product portfolios. These collaborations can take various forms, including joint ventures, distribution agreements, and co-branding initiatives. By pooling resources and expertise, companies can enhance their competitive positioning and drive growth in a rapidly evolving market landscape. Moreover, as the trend toward sustainability continues to gain momentum, companies that prioritize ethical sourcing and environmentally friendly practices are likely to attract a loyal customer base.

Among the key players in the licorice extracts market, notable companies include Allergy Research Group, known for its high-quality dietary supplements; Nature's Way, a trusted brand in herbal products; and Gaia Herbs, which emphasizes transparency and quality sourcing in its formulations. Companies such as NOW Foods and Swanson Health Products have established themselves as leaders in the health and wellness sector, providing a wide range of natural products. Each of these companies is capitalizing on the increasing interest in licorice extracts, focusing on product quality, consumer education, and innovative marketing strategies to capture market share. As the licorice extracts market continues to evolve, these companies will play a pivotal role in shaping its future.