Licorice Extract Market Size - By Grade (Pharmaceutical, Food, Feed), By Form (Liquid, Powder, Block, Others), By Application (Food & beverages, Pharmaceutical, Tobacco, Others), Growth Prospects, Regional Outlook & Forecast, 2024 – 2032
Report ID: GMI8220
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Published Date: February 2024
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Report Format: PDF
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Base Year: 2023
Companies covered: 12
Tables & Figures: 230
Countries covered: 23
Pages: 200
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Licorice Extract Market
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Licorice Extract Market Size
Licorice Extract Market size was valued at USD 2.23 billion in 2023 and is anticipated to register a CAGR of over 4.5% between 2024 and 2032, owing to the increasing consumer awareness about the health benefits associated with licorice consumption and the expanding application of licorice in the pharmaceutical, food and beverage, and cosmetic industries.
The market growth is propelled by various factors such as the rising demand for natural and herbal ingredients in consumer products. Licorice extract, with its natural sweetening properties and various health benefits, is increasingly being used as a substitute for artificial sweeteners and flavoring agents, thereby driving its market growth. The expansion of the food and beverage industry, coupled with the growing consumer preference for natural and organic products, has boosted the demand for licorice-based food and beverage products.
Despite the promising growth prospects, the licorice extract market also faces several challenges and pitfalls. One of the major challenges is the fluctuation in licorice supply and pricing. Licorice extract is primarily sourced from the roots of the Glycyrrhiza plant, which is cultivated in specific regions globally. Factors such as weather conditions, diseases, and geopolitical tensions can significantly impact licorice production, leading to supply shortages and price volatility.
Additionally, overharvesting and unsustainable agricultural practices pose environmental concerns and could potentially disrupt the supply chain of licorice products. However, the expansion of the food and beverage industry, coupled with the increasing consumer preference for natural and organic products, is expected to drive the demand for licorice in this sector.
Licorice Extract Market Trends
The expanding application of licorice in the pharmaceutical industry is driving market demand. Licorice extract is well-known for its medicinal properties, including anti-inflammatory, antimicrobial, and antioxidant effects. It is widely used in traditional medicine for the treatment of various ailments, such as cough, sore throat, and digestive disorders. The increasing acceptance of licorice-based medicines, coupled with the rising prevalence of health-conscious consumers, has contributed to the growth of the licorice market in the pharmaceutical sector.
Licorice Extract Market Analysis
Based on grade, the pharmaceutical grade segment held over USD 901.1 million revenue in 2023. There is an increasing preference among consumers for natural remedies and herbal medicines due to their perceived safety and efficacy. Licorice Extract, with its long history of use in traditional medicine and well-documented medicinal properties, is gaining traction as a natural alternative for various health conditions. As a result, there is a rising demand for pharmaceutical-grade licorice extracts and formulations in the market.
Based on form, the liquid form segment accounted for 42% of the licorice extract market share in 2023. Liquid licorice extracts and syrups offer convenience and versatility in formulation and usage. They can be easily incorporated into various food and beverage products, pharmaceutical formulations, and cosmetic formulations. The liquid form allows for precise dosing and easy blending, making it a preferred choice for manufacturers seeking to incorporate licorice into their products.
Based on application, the licorice extract market size from food and beverages application segment dominated around USD 945 million in 2023. Licorice extract is widely used as a flavoring agent in candies, confectionery, chewing gums, and beverages due to its distinct sweet and aromatic taste. Additionally, the rising popularity of licorice-flavored alcoholic beverages such as liqueurs and spirits has further propelled the growth of the licorice market.
In addition to its use in the food and pharmaceutical industries, licorice is increasingly finding applications in the cosmetic industry, particularly in skincare products. Licorice extract is known for its skin-brightening and anti-inflammatory properties, making it a popular ingredient in various skincare products such as creams, lotions, and serums. The growing demand for natural and organic skincare products, coupled with the increasing consumer awareness about the benefits of Licorice extract for skin health, is expected to drive the growth of the licorice market in the cosmetic industry in the coming years.
Asia Pacific licorice extract market size reached USD 500 million in 2023. China is a leading producer of Licorice extract and licorice-based pharmaceuticals. The country's pharmaceutical and herbal industries are experiencing rapid growth, driven by factors such as increasing healthcare expenditures, a growing aging population, and rising demand for natural and herbal remedies. Licorice extract is a key ingredient in many pharmaceutical formulations, including syrups, tablets, and herbal teas, further driving market demand.
Consumers in North America and Europe are increasingly seeking natural and functional ingredients in their food, beverages, and personal care products. Licorice extract, with its natural sweetness and various health benefits, including its anti-inflammatory and antioxidant properties, is gaining popularity as a desirable ingredient. As a result, there is growing demand for licorice-based products in these regions across various industries, including food and beverage, pharmaceuticals, and cosmetics.
Licorice Extract Market Share
The licorice extract industry is highly fragmented owing to the presence of several market players. Major companies operating in the market are Alfard Corporation Ltd., AOS products Pvt. Ltd. Hyundai Bioland and MAfco Worlwide LLC are accounting for over 40% of the market share in the year 2023. The major market players are focusing on mergers & acquisitions, facility expansion, and strategic partnerships to expand their product offerings, customer reach, and enhance market presence. Companies are also focusing on acquisition strategy.
Competition ranges from premium pricing by established players with strong brands to cost-effective offerings by regional and emerging players. An acquisition strategy enables a company to enter new markets and product lines instantaneously with a recognized brand having a good reputation and an existing client base. An acquisition can overcome market entry barriers that were previously challenging.
Licorice Extract Market Industry
Major companies operating in the licorice extract industry include:
Licorice Extract Industry News
The licorice extract market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue and volume (USD Million) (Tons) from 2018 to 2032, for the following segments:
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Market, By Grade
Market, By Form
Market, By Application
The above information has been provided for the following regions and countries: