Licorice Root Market Outlook

The global licorice root market was valued at approximately USD 5.8 billion in 2023 and is projected to reach around USD 8.5 billion by 2035, growing at a robust CAGR of 4.8% during the forecast period. The growth is primarily driven by the increasing demand for natural and organic products across various sectors such as food and beverages, pharmaceuticals, and cosmetics. Furthermore, the rising awareness of the health benefits associated with licorice root, including its anti-inflammatory and antioxidant properties, is significantly contributing to market expansion. The versatility of licorice root, which can be used in different forms like powder, extract, and tea, also adds to its appeal in the market. Additionally, the growing trend toward herbal and natural remedies is expected to stimulate demand, particularly in regions with strong herbal traditions.

Growth Factor of the Market

The licorice root market is experiencing substantial growth due to various factors that are shaping consumer preferences and industry dynamics. One of the primary drivers is the increasing inclination towards health and wellness products, with consumers seeking natural alternatives to synthetic ingredients. This trend is reflected in the rising use of licorice root in dietary supplements and herbal medicines. Another significant factor is the expanding food and beverage sector, where licorice root is valued for its unique flavor and potential health benefits. Additionally, the pharmaceutical industry is leveraging licorice root for its medicinal properties, integrating it into various formulations aimed at treating respiratory issues and gastrointestinal disorders. The cosmetic industry is also tapping into licorice root's skin-soothing and brightening effects, leading to a broader application range. Finally, growing investments in research and development for exploring new applications of licorice root further bolster market growth.

Key Highlights of the Market

• The global licorice root market is projected to grow at a CAGR of 4.8% from 2023 to 2035.
• Licorice root is increasingly used in herbal medicine, food & beverages, and cosmetics.
• The powder form of licorice root holds a significant market share due to its versatility.
• Online distribution channels are rapidly growing, driven by e-commerce trends.
• Asia Pacific is expected to dominate the market, accounting for a large percentage of the overall share.

By Product Type

Powder:

Licorice root powder is one of the most popular forms of licorice in the market, known for its versatility and efficacy. It is commonly used in herbal remedies, food products, and dietary supplements. The powder form allows for easy incorporation into various formulations, making it a preferred choice among manufacturers. Its natural sweetness, coupled with potential health benefits such as anti-inflammatory and immune-boosting properties, makes it an attractive ingredient in health food products. Moreover, as consumers gravitate towards clean-label products, the demand for licorice powder is expected to rise, particularly in North America and Europe, where health consciousness is prominent.

Extract:

Licorice root extract is concentrated and provides the beneficial compounds found in the root in a potent form. This product type is particularly favored in pharmaceutical applications due to its high efficacy. The extract is often utilized in formulations aimed at digestive health, respiratory relief, and skin care products. The pharmaceutical industry's increasing focus on herbal medicine is driving the demand for licorice extract, as it offers a natural alternative to conventional drugs. Furthermore, as consumers seek products with fewer side effects, the preference for herbal extracts like licorice is expected to expand its presence in both local and international markets.

Tea:

Licorice root tea is another prominent product type that appeals particularly to health-conscious consumers. It has gained popularity as a soothing beverage with potential health benefits, such as alleviating digestive issues and soothing sore throats. The growing trend of herbal teas and natural beverages is bolstering the demand for licorice tea among consumers looking for caffeine-free alternatives. Additionally, the rise of wellness culture has led to an increased interest in functional beverages, further supporting the market for licorice tea. With its sweet flavor profile and potential health benefits, licorice tea is well-positioned to capture a significant market share in the beverage segment.

Capsules:

Licorice root capsules are a convenient way for consumers to incorporate the health benefits of licorice into their daily routines without the need for preparation. This product type is particularly appealing to those who prefer dietary supplements over traditional herbal remedies. The capsules are often marketed for their potential to support digestive health, hormonal balance, and respiratory function. The increasing trend towards preventive healthcare is driving the demand for dietary supplements, including licorice capsules. Moreover, as people become more aware of the importance of maintaining a healthy lifestyle, the market for licorice root capsules is expected to see substantial growth in the coming years.

Liquid:

Liquid forms of licorice root, such as tinctures and syrups, provide an alternative for consumers who prefer a more potent and fast-acting method of consumption. These products are particularly popular in herbal medicine, where they are used for their therapeutic properties. Liquids allow for easier absorption of active compounds in the body, contributing to their appealing nature in various applications. The versatility of liquid licorice products makes them suitable for use in a range of formulations, including herbal teas, syrups, and even as flavoring agents in food and beverages. As the trend towards holistic health continues to grow, the market for liquid licorice root products is poised for significant expansion.

By Application

Herbal Medicine:

The application of licorice root in herbal medicine is one of its most traditional and well-established uses. Known for its anti-inflammatory and soothing properties, licorice root is often employed to treat a variety of ailments, including gastrointestinal disorders, respiratory issues, and skin conditions. The growing acceptance of natural remedies has led to an increase in herbal medicine consumption, thereby boosting the demand for licorice root in this segment. With the rising awareness of the side effects associated with synthetic medications, more consumers are turning to herbal options, which is expected to drive the licorice root herbal medicine market significantly in the coming years.

Food & Beverages:

Licorice root is widely used in the food and beverage industry, primarily due to its sweet flavor profile and potential health benefits. It is commonly found in candies, soft drinks, and as a flavoring agent in culinary dishes. The rising trend of incorporating natural ingredients into food products has increased the demand for licorice root in this sector. Additionally, as consumers become more health-conscious and seek out products with functional benefits, the use of licorice root as a flavor enhancer and natural sweetener is expected to expand, particularly in health foods and organic products.

Pharmaceuticals:

Licorice root plays a crucial role in the pharmaceutical industry, where it is incorporated into various formulations aimed at addressing specific health concerns. Its active compounds, such as glycyrrhizin, have been shown to exhibit anti-inflammatory and antiviral properties, making it a valuable ingredient in medications for respiratory issues and gastrointestinal problems. The increasing focus on herbal therapies and natural ingredients in pharmaceuticals is driving the demand for licorice root-based products. As regulations around herbal products continue to evolve, the pharmaceutical sector is expected to further explore licorice root's potential benefits in new drug formulations.

Cosmetics:

In the cosmetics industry, licorice root is valued for its skin-brightening and anti-inflammatory properties. It is often included in skincare products targeting pigmentation, redness, and irritation. The growing trend toward natural and organic ingredients in cosmetics is propelling the demand for licorice root, as consumers become more aware of the importance of ingredient transparency and safety. Additionally, the increasing popularity of clean beauty brands is likely to support the incorporation of licorice root in various formulations, resulting in a significant impact on the cosmetics sector of the licorice root market.

Tobacco Industry:

Licorice root is also used in the tobacco industry, where it serves as a flavor enhancer and sweetener in various tobacco products. Its natural sweetness helps to mask the harshness of tobacco, making it more palatable for consumers. The demand for flavored tobacco products has been on the rise, and licorice root is often included in formulations aimed at achieving specific flavor profiles. As regulations around tobacco products continue to shift and consumer preferences evolve, the use of licorice root in the tobacco industry is expected to remain steady, contributing to the overall demand for this market segment.

By Distribution Channel

Online Stores:

The online distribution channel for licorice root products has witnessed significant growth, driven by the convenience and accessibility of e-commerce. Consumers increasingly prefer purchasing health and wellness products online due to the vast selection and competitive pricing. Online retailers also offer detailed product descriptions and user reviews, helping consumers make informed decisions. The global shift toward digital shopping has been further accelerated by the COVID-19 pandemic, leading to a surge in online sales of licorice root products. As more consumers turn to online platforms for their shopping needs, this channel is expected to capture a growing share of the market, providing opportunities for brands to reach a wider audience.

Supermarkets/Hypermarkets:

Supermarkets and hypermarkets are key distribution channels for licorice root products, as they offer consumers the convenience of one-stop shopping. These large retail outlets provide a wide variety of licorice products, including powders, extracts, teas, and capsules, catering to the diverse needs of consumers. The organized retail sector has been witnessing steady growth, particularly in urban areas where consumers seek convenient access to health and wellness products. The presence of branded products and promotional activities in supermarkets also help drive sales, making this distribution channel vital for the licorice root market.

Health Stores:

Health stores specialize in natural and organic products, making them a crucial distribution channel for licorice root. These stores cater to health-conscious consumers who prioritize the quality and sourcing of their products. The knowledgeable staff often provide guidance on the health benefits of licorice root, enhancing the consumer experience and encouraging sales. As the demand for herbal and natural products continues to rise, health stores are likely to expand their offerings, including a wider range of licorice root products. This growth provides an opportunity for brands to establish a presence in the health-focused retail sector.

Specialty Stores:

Specialty stores that focus on herbal remedies and natural health products play a significant role in the distribution of licorice root. These stores cater to a niche market of consumers who are dedicated to holistic health and wellness. The specialized knowledge of staff and the tailored product offerings make specialty stores an appealing option for consumers seeking specific health benefits associated with licorice root. As the trend towards natural remedies continues to gain traction, specialty stores are poised to capture a larger share of the market, promoting the diverse applications of licorice root.

Direct Sales:

Direct sales channels, including consultations and home-based sales, are gaining traction in the licorice root market, particularly among consumers interested in personalized health solutions. This distribution method allows companies to build strong relationships with their customers and provide tailored recommendations based on individual health needs. Direct sales are often used for premium licorice root products, where the personal touch enhances consumer trust and loyalty. As consumers increasingly seek personalized health products, the direct sales model is expected to grow, offering unique opportunities for brands to engage with their target audience.

By Ingredient Type

Glycyrrhizin:

Glycyrrhizin is one of the primary active compounds found in licorice root, known for its sweetening properties and potential health benefits. It has been widely studied for its anti-inflammatory and antiviral effects, making it a valuable ingredient in pharmaceuticals and herbal formulations. The increasing demand for natural sweeteners and functional ingredients in food and beverages is propelling the market for glycyrrhizin, as it serves as a natural alternative to artificial sweeteners. Moreover, as consumers become more health-conscious and seek products with therapeutic effects, glycyrrhizin is expected to gain traction across various industries.

Flavonoids:

Flavonoids present in licorice root contribute to its antioxidant properties, playing a crucial role in promoting overall health and well-being. These compounds have been studied for their potential to combat oxidative stress and inflammation, making them highly sought after in dietary supplements and functional foods. The rising awareness of the health benefits of flavonoids is driving their demand, particularly among consumers looking for natural ways to enhance their wellness. As the trend towards plant-based and natural ingredients continues to grow, the market for licorice root flavonoids is expected to flourish.

Coumarins:

Coumarins are naturally occurring compounds in licorice root known for their aromatic properties and potential therapeutic benefits. They have been used in traditional medicine for their anti-inflammatory and antibacterial effects. The growing trend toward herbal and natural remedies is likely to boost the demand for coumarins in various applications, including herbal medicines and cosmetics. As consumers seek products with natural ingredients that offer additional health benefits, coumarins derived from licorice root are well-positioned to capture an increasing market share.

Stilbenoids:

Stilbenoids, though less prevalent than other compounds in licorice root, contribute to its potential health benefits and functionality. These compounds are known for their antioxidant properties and are often researched for their effects on cardiovascular health and anti-aging. The growing interest in natural compounds with health-promoting effects is likely to drive demand for stilbenoids in dietary supplements and functional foods. As consumers increasingly prioritize ingredient transparency and efficacy, stilbenoids present an opportunity for innovation within the licorice root market.

Triterpenoids:

Triterpenoids are another group of bioactive compounds found in licorice root that are gaining attention for their therapeutic potential. They possess anti-inflammatory and hepatoprotective properties, making them valuable in traditional medicine practices. The rise of functional foods and herbal supplements has fueled interest in triterpenoids as consumers seek natural alternatives to conventional treatments. As research continues to uncover the benefits of these compounds, the market for triterpenoids derived from licorice root is expected to experience significant growth.

By Region

The North American region is witnessing a growing interest in licorice root products, fueled by increasing consumer awareness of the health benefits associated with herbal remedies. The market size in this region is expected to reach USD 1.8 billion by 2035, with a CAGR of 4.5% during the forecast period. The demand for licorice root in food and dietary supplements is particularly strong, as consumers seek natural alternatives to synthetic ingredients. Additionally, the presence of a well-established health and wellness market provides ample opportunities for growth within North America, solidifying its position in the global licorice root market.

In Europe, the licorice root market is also on the rise, with an increasing inclination toward natural and organic products among consumers. The growing trend of herbal medicine and the incorporation of licorice root in food and cosmetics are driving market growth. The European market for licorice root is projected to reach approximately USD 2.5 billion by 2035. The region's stringent regulations on food and cosmetic safety also favor the use of natural ingredients, further boosting the demand for licorice root products. As health-conscious consumers continue to seek out licorice root for its potential benefits, Europe is likely to maintain a significant share of the market.

Opportunities

The licorice root market presents numerous opportunities, particularly as consumer preferences shift towards natural and organic products. The increasing focus on health and wellness is driving demand for herbal remedies and dietary supplements that contain licorice root, highlighting an opportunity for brands to innovate and expand their product offerings. Companies can explore new formulations that cater to specific health concerns, leveraging licorice root's versatile properties to address consumer needs in various sectors, including food, beverages, and cosmetics. Furthermore, as e-commerce continues to grow, there is significant potential for brands to reach a wider audience through online platforms, facilitating the introduction of licorice root products to new markets.

Additionally, the global trend towards sustainability and clean labeling presents opportunities for the licorice root market. Consumers are increasingly concerned about the sourcing and environmental impact of their purchases, prompting brands to highlight the natural origins and ethical practices surrounding licorice root cultivation. By emphasizing sustainable sourcing, companies can differentiate themselves in a competitive market and attract environmentally conscious consumers. Collaboration with health professionals and participation in wellness events can further enhance brand visibility and foster consumer trust, ultimately contributing to the growth of the licorice root market.

Threats

Despite the promising growth prospects for the licorice root market, several threats could pose challenges. One significant concern is the potential for regulatory changes that could impact the use of licorice root in food, beverages, and dietary supplements. As governments worldwide implement stricter regulations on herbal products, companies may face challenges in compliance, leading to increased costs and potential market entry barriers. Furthermore, there is a risk of overharvesting and environmental degradation due to the rising demand for licorice root, which could threaten the sustainability of its cultivation. Companies must be vigilant in monitoring regulatory developments and ensuring sustainable sourcing practices to mitigate these risks.

Another consideration for the licorice root market is the competition from alternative herbal ingredients that are gaining popularity among consumers. As the market for natural products expands, other herbal remedies may capture consumer interest and market share, posing a threat to the growth of licorice root products. Brands must continuously innovate and differentiate their offerings to remain competitive in the evolving market landscape. Additionally, consumer preferences are subject to change, and companies need to be agile in adapting to shifting trends to avoid potential declines in demand.

Competitor Outlook

• NatureÔÇÖs Way
• Herb Pharm
• Starwest Botanicals
• NOW Foods
• Gaia Herbs
• SWISS HERBAL
• Organic India
• Herbco
• Puritan's Pride
• Mountain Rose Herbs
• Traditional Medicinals
• Alvita Teas
• Himalaya Herbal Healthcare
• Solaray
• NutraBlast

The competitive landscape of the licorice root market is characterized by a diverse range of companies, from established brands to emerging players. Key market participants are actively engaging in product innovation, expanding their portfolios to include various licorice root forms and applications. This competitive environment encourages brands to differentiate themselves through unique formulations, quality sourcing, and transparent labeling practices. Moreover, as consumers increasingly seek products with proven health benefits, companies that prioritize research and development will be better positioned to capitalize on market opportunities. Collaborations and partnerships with health experts and research institutions are also becoming more common, allowing companies to enhance their credibility and strengthen their market presence.

NatureÔÇÖs Way is a prominent player in the licorice root market, known for its commitment to high-quality herbal products. The company offers a range of licorice-based supplements and teas, emphasizing natural sourcing and sustainability. NatureÔÇÖs Way has also invested in educational resources, helping consumers understand the benefits of licorice root and other herbal ingredients. Similarly, NOW Foods is recognized for its extensive portfolio of dietary supplements, including licorice root extract and powder. With a focus on quality and affordability, NOW Foods appeals to health-conscious consumers seeking effective herbal solutions.

Gaia Herbs is another key competitor that stands out in the licorice root market due to its dedication to transparency and sustainability. The company promotes its herbal products as part of a holistic approach to health, highlighting the importance of quality sourcing and ethical practices. Herbal Pharm also plays a significant role in the market, providing a range of licorice root tinctures and extracts aimed at promoting digestive health and overall well-being. By focusing on consumer education and product efficacy, these companies are effectively capturing the attention of health-conscious consumers and establishing themselves as trusted sources in the herbal products market.