Licorice Extract Market 2024-2034: Trends & Growth Insights
The global Licorice Extract Market is forecasted to witness significant growth, with its market valuation set to rise from USD 895.3 million in 2024 to an impressive USD 1,626.4 million by 2034, reflecting a solid CAGR of 7.2%. This steady growth is driven by the rising demand for natural ingredients in the pharmaceutical, nutraceutical, cosmetic, and food & beverage industries.
Licorice extract, obtained from the roots of the Glycyrrhiza glabra plant, has long been valued for its anti-inflammatory, antimicrobial, and antioxidant properties. Its diverse range of applications, from natural sweeteners to immune health supplements, has positioned it as a key ingredient in functional foods, herbal medicines, and skin care products.
Market Trends & Key Developments in Licorice Extract Market
1. Growing Demand for Herbal Remedies & Natural Supplements
The increasing shift towards natural, plant-based remedies is a key growth driver for the licorice extract market. Licorice extract, known for its ability to support immune health, digestive health, and skin wellness, has become a popular ingredient in dietary supplements, health drinks, and nutraceuticals. Rising awareness of preventive healthcare and holistic wellness has fueled the demand for herbal remedies, particularly in Asia-Pacific, Europe, and North America.
2. Surge in Use of Licorice Extract in Cosmetics & Skincare
Licorice extract’s antioxidant and anti-inflammatory properties have made it a popular component in the cosmetics and skincare industry. It is widely used in products that target hyperpigmentation, anti-aging, and sensitive skin issues. The ingredient’s ability to inhibit tyrosinase (an enzyme responsible for melanin production) has boosted its usage in brightening creams and spot treatment products.
3. Rise of Functional Foods & Beverages
The global trend of incorporating functional foods and beverages into daily diets is driving demand for licorice extract as a natural sweetener and health-boosting ingredient. Licorice is increasingly used in products like herbal teas, functional beverages, and fortified snacks. Its use as a natural sweetener in sugar-free and low-calorie products aligns with clean-label and healthy eating trends.
4. Technological Advancements in Licorice Extraction
Technological innovations in extraction methods and processing techniques are allowing manufacturers to create high-purity licorice extracts with enhanced bioavailability. Advances in supercritical CO2 extraction and solvent-free production processes are improving product quality, reducing waste, and ensuring the sustainability of production processes.
5. Regulatory Standards Driving Product Quality
The demand for quality and traceability has led to stricter regulatory compliance and quality control for licorice extract production. Countries like Germany, the U.S., and Japan have set higher standards for food and health products, encouraging companies to invest in sustainable sourcing, organic certifications, and compliance with international regulations.
Market Segmentation & Insights in Licorice Extract Market
| Segment | Category | Insights |
| By Form | Liquid, Powder, Paste | Liquid form dominates due to its versatility and ease of formulation for dietary supplements, beverages, and topical products. |
| By Application | Pharmaceutical, Nutraceutical, Cosmetic, Food & Beverage | Pharmaceutical and nutraceutical segments hold a combined share of over 60%, with cosmetics and skincare seeing rapid growth. |
| By End-User | Food Processors, Cosmetic Manufacturers, Nutraceutical Companies | Nutraceutical companies are the largest consumers, driven by the popularity of herbal supplements and immune-boosting products. |
| By Region | North America, Europe, Asia-Pacific, Latin America, Middle East & Africa | Asia-Pacific and North America dominate the market, driven by the increased use of herbal medicine and health-focused supplements. |
Regional Insights for Licorice Extract Market
1. North America
- Market Value (2034): USD 545.2 million
- Market Share (2024): 32.1%
- Growth Drivers: Rising demand for natural health supplements and the growing use of licorice in skincare and cosmetics.
- Regional Trends: The United States accounts for a major share, driven by health-conscious consumers and increasing product awareness.
2. Asia-Pacific
- Market Value (2034): USD 612.4 million
- Growth Drivers: Growing reliance on Traditional Chinese Medicine (TCM) and Ayurvedic medicine is driving demand for licorice extract in China, Japan, and India.
- Regional Trend: The preference for natural health products and the increased use of herbal extracts in cosmetics and wellness supplements are supporting growth.
3. Europe
- Market Value (2034): USD 395.2 million
- Growth Drivers: The demand for clean-label products, natural sweeteners, and herbal wellness supplements is on the rise.
- Regional Trends: Key markets like Germany, the UK, and France are driving demand for functional foods, nutraceuticals, and organic skincare products.
Growth Drivers for Licorice Extract Market
- Natural Ingredients for Health & Wellness: Consumers prefer natural remedies and plant-based supplements for immunity, skin care, and digestive health.
- Rising Skincare & Cosmetics Market: Increased demand for brightening and anti-aging products is boosting the use of licorice extract in cosmetics and skincare formulations.
- Nutritional Supplement Boom: Licorice extract is being incorporated into immune-boosting nutraceuticals and herbal supplements.
- Herbal Medicine Trends: Rising acceptance of herbal medicine and TCM has prompted the use of licorice extract in health remedies.
Restraints & Challenges in Licorice Extract Market
- Supply Chain Disruptions: Supply fluctuations for raw licorice root due to climate conditions impact the availability and cost of licorice extract.
- Health Risks of Overconsumption: Excessive consumption of glycyrrhizin, a key licorice compound, can cause high blood pressure and low potassium levels, requiring moderation in use.
- Regulatory Restrictions: Regulatory requirements for natural health products may impose stringent quality controls on licorice extract production.
Competitive Landscape
The licorice extract market is moderately concentrated, with key players focusing on R&D, sustainable sourcing, and expanding production capacity to meet growing demand.
Key Players in Licorice Extract Market
- Naturex SA
- Frutarom Industries Ltd. (IFF Subsidiary)
- Shaanxi Fujie Pharmaceutical Co. Ltd.
- Aushadhi Herba
- Sichuan Union Herb
- MAFCO Worldwide LLC
- Sepidan Osareh Co.
- Norevo GmbH
Market Forecast for Licorice Extract Market
| Metric | 2024 | 2034 | CAGR (2024-2034) |
| Market Size (USD Million) | 895.3 | 1,626.4 | 7.2% |
| Top Regions | North America, Asia-Pacific, Europe | ||
| Growth Drivers | Clean-label trends, rise in herbal remedies, and use in cosmetics |
Frequently Asked Questions (FAQs) for Licorice Extract Market
1. What is the current size of the global licorice extract market?
The global licorice extract market is valued at USD 895.3 million in 2024.
2. What is driving the growth of the market?
The market is driven by the demand for natural health supplements, cosmetics, and functional foods.
3. What is the expected CAGR for the market?
The market is expected to grow at a CAGR of 7.2% from 2024 to 2034.
4. Which regions dominate the market?
North America, Asia-Pacific, and Europe hold the largest share of the market.
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