Licorice Extract Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Food Grade, Feed Grade, Pharmaceutical Grade), By Application (Food & Beverages, Dietary Supplements, Pharmaceutical, Tobacco, Others), By Form (Powder, Liquid, Block, Others), By Region, By Competition, 2018-2028
Published Date: October - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Consumer Goods and Retail | Format: Report available in PDF / Excel Format
View Details Download Sample Ask for Discount Request CustomizationLicorice Extract Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Food Grade, Feed Grade, Pharmaceutical Grade), By Application (Food & Beverages, Dietary Supplements, Pharmaceutical, Tobacco, Others), By Form (Powder, Liquid, Block, Others), By Region, By Competition, 2018-2028
| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 1.91 Billion |
| CAGR (2023-2028) | 6.8% |
| Fastest Growing Segment | Feed Grade |
| Largest Market | North America |
Market Overview
Global Licorice Extract Market was valued at USD 1.91 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 6.8% through 2028. The extracts are made from the roots of these therapeutic plants. The licorice plant's roots are used to make fragrant flavoring and sweet extracts. Native to southern Europe, Western Asia, and North Africa are these plants. Glycyrrhizin is a sweet-tasting molecule that contributes significantly to the sweetness of licorice extracts. It is approximately 30–50 times sweeter than sugar. Afghanistan, India, China, Italy, Iran, Pakistan, Azerbaijan, Turkmenistan, Uzbekistan, Turkey, and Iraq are the countries where licorice is typically farmed. It is extensively utilized in the food and beverage, cosmetics, pharmaceutical, and tobacco industries. Many diseases, such as inflammation, respiratory disorders, and digestive distress, have been treated using licorice extracts and roots for thousands of years, especially in Asia. With over 300 different chemicals, including anti-inflammatory, anti-viral, and anti-microbial ones, licorice is a remarkably versatile plant. For many years, licorice was a common remedy for conditions like coughs, bronchitis, fever, indigestion, heartburn, stomach ulcers, and toothaches. This medication is now discovered to be quite helpful in treating skin infections, cancer memory loss, and hepatitis C.
Key Market Drivers
Health and Wellness Trends
As consumers worldwide become more health-conscious, there is a growing demand for natural and plant-based ingredients. Licorice extract, known for its potential health benefits, aligns perfectly with this trend. The active compound glycyrrhizin in licorice has been associated with anti-inflammatory, antioxidant, and antimicrobial properties, making it a popular choice for dietary supplements and herbal medicines. Additionally, licorice extract can support various health issues, including digestive problems, respiratory ailments, and skin conditions. This growing interest in natural remedies and functional ingredients drives the demand for licorice extract in the health and wellness sector.
The increased focus on maintaining overall well-being has spurred research and development in the licorice extract market, leading to the discovery of new applications and benefits. It has also prompted manufacturers to introduce innovative licorice-based products, such as herbal teas, supplements, and topical creams, catering to consumers seeking alternatives to synthetic drugs and chemicals. Consequently, health and wellness trends are a potent driver in the licorice extract market, offering substantial growth opportunities.
Cosmetics and Personal Care Industry
The cosmetics and personal care industry is another significant driver of the licorice extract market. Licorice extract contains compounds like glabridin, known for their skin-lightening and anti-inflammatory properties. These properties make licorice extract a popular ingredient in skincare products, particularly in the formulation of anti-aging, skin-whitening, and anti-inflammatory products.
Consumers are increasingly turning towards natural and botanical ingredients in their skincare routines. As a result, the demand for products containing licorice extract has grown significantly. Manufacturers often incorporate licorice extract in various skincare products, including creams, serums, and cleansers, to cater to this demand. The extract's ability to address skin concerns, such as hyperpigmentation and redness, has made it a staple in many skincare brands' formulations.
The skincare industry's commitment to sustainability and eco-friendliness has further boosted the popularity of licorice extract, as it is perceived as a more environmentally friendly alternative to certain synthetic chemicals. As consumers become more educated about the ingredients in their skincare products, the cosmetics and personal care sector will continue to drive the licorice extract market's growth.
Food and Beverage Applications
The food and beverage industry is one of the major drivers of the licorice extract market, primarily due to its use as a flavoring and sweetening agent. Licorice's distinct and versatile flavor is used in a wide range of products, from candies and confectionery to beverages and baked goods. The use of licorice extract in these products provides a unique taste that appeals to a broad consumer base.
Licorice extract is used as a natural sweetener, especially in products marketed as sugar-free or with reduced sugar content. As the global push for reduced sugar consumption continues, the demand for natural sweeteners like licorice extract is on the rise. It offers a way for manufacturers to maintain product sweetness without relying on artificial sweeteners or excessive sugar.
Moreover, licorice extract is often used to add a touch of sophistication to culinary creations, with its sweet and slightly spicy undertones. The growing popularity of gourmet and specialty foods has further fueled demand for licorice extract in the food industry.
Pharmaceuticals and Traditional Medicine
The use of licorice extract in traditional medicine and pharmaceuticals is deeply rooted in history. Licorice has been used for its medicinal properties in various cultures for thousands of years. In modern times, the pharmaceutical industry has recognized the therapeutic potential of licorice, leading to a significant driver in the licorice extract market.
Glycyrrhizin, a compound found in licorice extract, is known for its anti-inflammatory and immune-boosting properties. It has applications in treating respiratory conditions like bronchitis and asthma. Licorice extract is also used in formulations for cough syrups and sore throat remedies.
Furthermore, the anti-inflammatory nature of licorice extract has made it a key ingredient in dermatological products. It can help soothe skin conditions like eczema and psoriasis, and is utilized in creams and ointments. Additionally, licorice extract's potential in managing digestive disorders has led to the development of over-the-counter supplements and prescription medications.
In traditional medicine systems like Ayurveda and Traditional Chinese Medicine (TCM), licorice has long been considered an essential herb with a wide range of applications. As interest in alternative and holistic healthcare continues to grow, licorice extract's role in pharmaceuticals and traditional medicine will remain a vital driver in the market.
Growth in Asia-Pacific Region
The Asia-Pacific region, particularly China and India, has witnessed significant growth in the licorice extract market. These countries are not only major producers of licorice but also major consumers, both domestically and internationally. Several factors contribute to the growth of the licorice extract market in this region.
First, the rich tradition of herbal medicine in both China and India has provided a natural platform for the use of licorice extract in various formulations. Ayurveda in India and Traditional Chinese Medicine have long utilized licorice as a key ingredient in herbal remedies.
Second, the increasing global demand for traditional and natural remedies has driven the expansion of the licorice extract industry in Asia-Pacific. China, as a dominant player in the licorice extract market, exports significant quantities of licorice and its derivatives to meet international demand.
Third, the pharmaceutical and herbal medicine industries in these countries are experiencing robust growth, driven by rising healthcare awareness and increased research and development efforts. This, in turn, boosts the demand for licorice extract as an essential component in many formulations.
Key Market Challenges
Sustainability and Overharvesting
One of the primary challenges facing the licorice extract market is the sustainability of licorice production. Licorice is primarily sourced from the root of the Glycyrrhiza glabra plant, which is a slow-growing perennial herb. Harvesting the root can be detrimental to the plant, as it reduces the plant's ability to regenerate. This is especially concerning given the high demand for licorice in various industries.
Overharvesting is a significant issue in regions where licorice is cultivated. The excessive collection of licorice roots can lead to soil erosion, habitat destruction, and a decrease in plant populations. This not only threatens the licorice plant but also endangers the biodiversity of ecosystems where it grows. The overharvesting of licorice has led to concerns about its long-term availability and sustainability.
Moreover, licorice plants are susceptible to various diseases, pests, and climatic changes, further impacting their sustainable cultivation. To address this challenge, there is a need for sustainable farming practices, such as crop rotation and responsible harvesting methods, which can ensure the long-term availability of licorice and protect the ecosystems it inhabits.
Regulatory Compliance
The licorice extract market faces a complex regulatory landscape that varies from region to region. Different countries have distinct regulations regarding the use of licorice extract in various industries, including food, pharmaceuticals, and cosmetics. Meeting these regulations and obtaining the necessary approvals and certifications can be a significant challenge for businesses operating in the licorice extract market.
For instance, some countries have strict limits on the level of glycyrrhizin, a natural compound found in licorice, in food and dietary supplements due to its potential to cause side effects like hypertension. Companies must navigate these regulations, ensuring their products meet the stipulated safety standards while maintaining the desired flavor and therapeutic properties.
Additionally, regulations can change over time, and companies must stay informed and adapt their processes accordingly. This requires a significant investment in research and development to continuously improve product quality and ensure compliance with evolving standards. The ever-changing regulatory landscape can be a barrier for new entrants and a challenge for existing businesses in the licorice extract market.
Counterfeit Products and Adulteration
The licorice extract market faces the challenge of counterfeit products and adulteration. Due to the high demand for licorice extract in various industries, there is a risk of dishonest practices in the supply chain. Counterfeit products may not contain genuine licorice extract or may be diluted with cheaper ingredients, which can affect product quality and safety.
Adulteration can occur at various stages, from the sourcing of licorice roots to the processing and formulation of licorice extract products. This not only harms consumers, who may unknowingly purchase low-quality or ineffective products, but also damages the reputation of businesses in the licorice extract market.
To address this challenge, companies in the licorice extract market need to implement robust quality control measures, conduct thorough ingredient testing, and ensure transparency in their supply chains. Additionally, regulatory authorities must play a role in enforcing strict standards and penalties for those found guilty of producing counterfeit or adulterated products.
Key Market Trends
Natural and Clean Label Products
One of the most significant trends in the licorice extract market is the increasing demand for natural and clean label products. Consumers are becoming more health-conscious and are paying closer attention to the ingredients in the products they consume. As a result, there is a growing preference for natural and plant-based ingredients, and licorice extract fits this trend perfectly.
Licorice extract, with its origin in a natural plant source, aligns well with clean label and natural product expectations. It is free from synthetic chemicals and is often perceived as a healthier alternative to artificial flavors and sweeteners. This trend is particularly evident in the food and beverage industry, where manufacturers are reformulating their products to include natural ingredients like licorice extract.
Clean label products also extend to the cosmetics and personal care sector, where consumers are looking for skincare and beauty products with minimal additives. Licorice extract, known for its skin-soothing and brightening properties, is becoming a staple ingredient in many natural and organic skincare formulations. This trend represents a significant growth opportunity for the licorice extract market, with consumers increasingly seeking products that offer both health benefits and a natural, clean label.
Functional and Herbal Supplements
The use of licorice extract in functional and herbal supplements is a prominent trend in the health and wellness sector. Consumers are turning to dietary supplements for various health and wellness purposes, and licorice extract has found a place in this market due to its potential health benefits.
Licorice extract contains glycyrrhizin, a compound known for its anti-inflammatory, antioxidant, and antimicrobial properties. This has led to its use in supplements targeting a range of health concerns, including digestive problems, respiratory ailments, and immune system support. In particular, licorice supplements are popular for addressing conditions like acid reflux, gastritis, and irritable bowel syndrome (IBS).
Incorporating licorice extract into supplements has allowed manufacturers to tap into the growing demand for natural remedies and alternative healthcare solutions. Consumers are increasingly turning to herbal supplements with the belief that they offer gentler, holistic approaches to health. This trend is expected to drive growth in the licorice extract market as more research and product development focus on the functional benefits of this plant-based extract.
Segmental Insights
Type Insights
Based on product type, the global licorice extract market is segmented into food grade, feed grade, and pharmaceutical grade. The pharmaceutical grade segment leads in terms of licorice extract market share; however, the feed grade segment is poised to grow with highest CAGR, owing to adoption of licorice extracts in feed to improve immunity and health of livestock.
Application Insights
Based on application, the global licorice extract market is studied across food & beverages, pharmaceutical, tobacco, and others. The pharmaceutical segment is the largest application segment for licorice extract, accounting for a significant share of the global market in 2022. Licorice extract is used in a variety of pharmaceutical products, including over-the-counter medications for coughs and sore throats, as well as prescription drugs for conditions such as hepatitis and stomach ulcers.
Regional Insights
- NorthAmerica emerged as the dominant player in the market in 2022, holding thelargest market share. Sales of licorice extracts areincreasing in the region due to the growing number of health-consciousconsumers as well as the growing preference for organic products, particularlyamong millennials. Additionally, since licorice extract may be used as anatural sweetener, the market is predicted to expand due to the risingprevalence of numerous chronic disorders like diabetes and obesity. It is alsoanticipated that possibilities for regional manufacturers will arise from theincreased spending in research and development operations. The use ofplant-based components in various functional foods has increased in the USmarket. As consumersretransform their food habits, moving away from junk food toward healthieralternatives, food and beverage manufacturers, as well as food service patronshave started introducing healthier food and beverage products made withbotanical ingredients to enhance appeal among consumers. For instance,according to International Food Information Council (IFIC), 48 percent ofparticipants in a survey conducted in the United States, in 2021, states thatthey prefer to buy products with all-natural flavors.
Recent Developments
- In2022 - Givaudan, Bühler, and Cargill collaborated with the FoodTech HUB Latamand ITAL, Food Technology Institute, to build a food innovation center in thecity of Campinas, recognized as Brazil's tech powerhouse. The partnership wouldhelp to develop sustainable, future food and beverage products for all threecompanies.
- In2021 - Givaudan expanded Nordic Experience Centre in Malmö, Sweden. Accordingto the company, the new facility would create more opportunities forco-creation with Nordic customers, helping accelerate innovation and enhancingGivaudan’s ability to tailor food and beverages according to local trends andpreferences.
Key Market Players
- AlfaridCorporation Limited
- AOSProducts Pvt. Ltd.
- AvestiaPharma
- C.E.Roeper GmbH
- F&CLicorice Ltd.
- HyundaiBioland
- MafcoWorldwide LLC
- MaruzenPharmaceuticals Co. Ltd.
- NorevoGmbH
- ShaanxiFUJIE Pharmaceutical Co. Ltd.
Report Scope
In this report, the Global Licorice Extract Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below
- Licorice Extract Market, By Type
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- Licorice Extract Market, By Application
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- Licorice Extract Market, By Form
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- Licorice Extract Market, By Region
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