Market Size
The global Liquorice extract market was valued at USD 512 million in 2023. With increasing demand for natural and herbal ingredients, the market is projected to expand significantly, reaching USD 894.84 million by 2032. This reflects a Compound Annual Growth Rate (CAGR) of 6.40% over the forecast period.
The market’s robust growth can be attributed to the rising adoption of liquorice extract in functional foods, over-the-counter (OTC) medicines, and organic cosmetics. Moreover, the heightened awareness regarding the adverse effects of synthetic chemicals has bolstered the shift toward botanical ingredients, further propelling market growth.
In terms of volume, the market has shown steady increases year-over-year. For example, in 2021, 27,000 metric tons of liquorice extract were traded globally. With rising consumer interest in preventive healthcare and wellness products, this figure is anticipated to rise significantly through 2032.
Liquorice extract is a concentrated derivative obtained from the roots of the Glycyrrhiza glabra plant, widely known for its distinctive sweet flavor and therapeutic benefits. Historically rooted in traditional oriental medicine, liquorice extract has been used for centuries to treat various ailments such as digestive issues, respiratory conditions, and inflammatory disorders. The extract is rich in glycyrrhizin, a compound known for its anti-inflammatory, antioxidant, and antimicrobial properties.
Today, liquorice extract is extensively used across several industries, including food and beverages, pharmaceuticals, cosmetics, and tobacco. In the food industry, it serves as a flavoring agent, particularly in confectionery and beverages. In pharmaceuticals, it is incorporated into formulations aimed at treating sore throat, stomach ulcers, and liver disorders. Cosmetic applications include skin brightening and anti-aging products, owing to its soothing and healing properties. Its use in tobacco products primarily relates to flavor enhancement.
The liquorice extract market comprises various product forms such as powder, liquid, and block extracts, catering to diverse industrial needs. The demand is further driven by the global shift towards natural and plant-based ingredients in consumer goods.
Market Dynamics (Drivers, Restraints, Opportunities, and Challenges)
Market Drivers
- Growing Demand for Natural Products: The consumer shift towards clean-label and herbal-based products across food, pharmaceuticals, and cosmetics is a major driver of market growth.
- Expansion of the Nutraceutical Industry: With increasing focus on preventive healthcare, nutraceuticals incorporating liquorice extract are gaining popularity.
- Ayurvedic and Traditional Medicine Revival: Increased global interest in traditional healing systems like Ayurveda and Traditional Chinese Medicine has rekindled demand for liquorice.
- Regulatory Approvals and Research: Favorable regulatory frameworks and scientific validation of liquorice’s health benefits support its adoption.
Market Restraints
- Side Effects of Excessive Consumption: High doses of glycyrrhizin can lead to health issues such as hypertension and hypokalemia, limiting its use.
- Price Fluctuations of Raw Material: The cost and availability of liquorice roots are affected by climatic and geopolitical conditions, impacting pricing stability.
- Stringent Quality Standards: The pharmaceutical and food sectors demand strict compliance, which can act as a barrier for new entrants.
Market Opportunities
- Emerging Cosmetic Applications: Increased use in skin care products for anti-inflammatory and skin-brightening effects.
- Functional Beverage Market Growth: Rising demand for herbal teas and functional drinks containing liquorice.
- Sustainable Sourcing and Farming Practices: Eco-conscious consumers are favoring ethically sourced ingredients, creating room for differentiation.
Market Challenges
- Supply Chain Disruptions: Ongoing global logistics issues can hinder raw material sourcing and product distribution.
- Lack of Consumer Awareness in Some Regions: Despite its benefits, liquorice extract remains underutilized in several markets due to limited awareness.
- Competition from Synthetic Substitutes: Alternative flavoring and pharmaceutical agents can sometimes replace liquorice extract, especially in cost-sensitive applications.
Regional Analysis
Liquorice Extract Market: Regional Insights and Growth Patterns
Asia-Pacific: The Asia-Pacific region dominates the global liquorice extract market. Countries such as China, India, and Japan are major producers and consumers. China's deep-rooted herbal medicine culture and expanding pharmaceutical industry are key growth drivers. India’s booming Ayurvedic market also significantly contributes to demand.
Europe: Europe is the second-largest market. Germany, the UK, and France lead in demand due to strong preferences for natural and organic products. The use of liquorice in traditional European confectionery also boosts its consumption.
North America: The North American market is witnessing significant growth, particularly in the United States, driven by the expanding health and wellness industry. The rise of organic personal care products and natural remedies has further fueled demand.
Middle East & Africa: Although smaller in market size, this region holds potential due to its historical use of liquorice in traditional medicines and increasing awareness of its benefits.
Latin America: Brazil and Mexico show gradual growth, driven by the evolving food and beverage industry and the rising popularity of natural ingredients.
Competitor Analysis (in brief)
Key Players and Competitive Landscape
The liquorice extract market is moderately consolidated, with several key players focusing on strategic partnerships, product innovation, and geographic expansion. Leading companies are:
- Norevo GmbH – Based in Germany, specializes in natural raw materials for food and pharmaceutical industries.
- F&C Licorice Ltd. – A major supplier of raw and refined liquorice products worldwide.
- ASEH – An Iranian leader in the production of liquorice blocks and powders.
- Magnasweet – A U.S.-based firm producing sweetness enhancers and flavor masking agents.
- Zagros Licorice Co. – A prominent exporter in the Middle East.
These companies compete on quality, pricing, and product customization. Sustainable sourcing and supply chain resilience are becoming increasingly critical competitive factors.
Global Liquorice Extract: Market Segmentation Analysis
This report provides a deep insight into the global Liquorice Extract, covering all its essential aspects. This ranges from a macro overview of the market to micro details of the market size, competitive landscape, development trend, niche market, key market drivers and challenges, SWOT analysis, value chain analysis, etc.
The analysis helps the reader to shape the competition within the industries and strategies for the competitive environment to enhance the potential profit. Furthermore, it provides a simple framework for evaluating and assessing the position of the business organization. The report structure also focuses on the competitive landscape of the Global Liquorice Extract. This report introduces in detail the market share, market performance, product situation, operation situation, etc., of the main players, which helps the readers in the industry to identify the main competitors and deeply understand the competition pattern of the market.
In a word, this report is a must-read for industry players, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the Liquorice Extract in any manner.
Market Segmentation (by Application)
- Pharmaceutical Industry
- Food Industry
- Cosmetic Industry
- Feed Industry
- Others
Market Segmentation (by Type)
- Pharmaceutical Grade
- Food Grade
- Feed Grade
Key Company
- Norevo
- Scagro A/S
- SK Bioland
- Ruitenberg
- Mafco
- Glycyrrhiza Glabra
- Licorice Kazakhstan
- Cokey Co
- Licorice Extract LLC
- Herbochem
- Handa Fine Chemicals
- Daepyung
- Alfarid Corporation Limited
- ASEH
- Zagros Licorice Co
- Sepidan Osareh Co
- F&C Licorice
- Shanxi Huike Plant Development Co
- Xuancheng Baicao Pharmaceutical Co
- Shanxi Tianzhirun
- Beijing Gingko Group
Geographic Segmentation
• North America (USA, Canada, Mexico)
• Europe (Germany, UK, France, Russia, Italy, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Southeast Asia, Rest of Asia-Pacific)
• South America (Brazil, Argentina, Columbia, Rest of South America)
• The Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, South Africa, Rest of MEA)
FAQ
1.What is the current market size of Liquorice Extract?
- The global Liquorice extract market was valued at USD 512 million in 2023 and is projected to reach USD 894.84 million by 2032, growing at a CAGR of 6.40%.
2.Which are the key companies operating in the Liquorice Extract market?
- Major players include Norevo GmbH, F&C Licorice Ltd., ASEH, Magnasweet, and Zagros Licorice Co.
3.What are the key growth drivers in the Liquorice Extract market?
- Key growth drivers include rising demand for natural ingredients, expansion of the nutraceutical sector, and growing cosmetic applications.
4.Which regions dominate the Liquorice Extract market?
- Asia-Pacific dominates the market, followed by Europe and North America.
5.What are the emerging trends in the Liquorice Extract market?
- Trends include increased use in skin care, growing popularity of functional beverages, and a shift toward sustainable and ethical sourcing practices.