Licorice Extract Market to Reach US$ 805.6 Mn by 2033 Driven by Pharma and Food Demand

The global licorice extract market is poised for steady expansion over the coming decade, driven by rising demand across food and beverage, pharmaceuticals, cosmetics, and nutraceutical industries. In 2026, the global market size for licorice extract is estimated at approximately US$ 521.8 million. With increasing applications and favorable consumption trends, the market is projected to reach US$ 805.6 million by 2033. This growth trajectory reflects a compound annual growth rate (CAGR) of 6.4% during the forecast period from 2026 to 2033, underscoring the market's resilience and long-term potential.

Licorice extract, derived from the roots of the Glycyrrhiza plant, is valued for its natural sweetness, functional properties, and bioactive compounds. Its widespread use as a flavoring agent, natural sweetener, and therapeutic ingredient continues to underpin market demand. The expanding consumer preference for plant-based and clean-label ingredients has significantly elevated the profile of licorice extract in both developed and emerging markets.

Market growth is further supported by rising awareness of the health benefits associated with licorice extract, including anti-inflammatory, antimicrobial, and antioxidant properties. In the pharmaceutical sector, licorice extract is increasingly incorporated into formulations targeting digestive disorders, respiratory conditions, and immune support. Similarly, the cosmetics and personal care industry is leveraging licorice extract for skin-brightening, anti-aging, and soothing applications, further broadening its commercial footprint.

In addition to functional benefits, the shift toward natural and herbal ingredients in traditional and modern medicine systems has reinforced market expansion. Regulatory approvals for licorice extract as a safe ingredient in food and pharmaceutical formulations across multiple regions have also played a crucial role in accelerating adoption.

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Segmentation Analysis

By Type

The licorice extract market is segmented by type into powder, liquid, block, and paste forms, each catering to specific industrial requirements. Among these, powdered licorice extract currently holds a dominant share of the global market. Its long shelf life, ease of storage, and compatibility with a wide range of formulations make it the preferred choice for food, beverage, and pharmaceutical manufacturers. Powdered extracts are widely used in confectionery, baked goods, herbal supplements, and medicinal products due to their consistent quality and precise dosage control.

Liquid licorice extract represents a rapidly growing segment, particularly in the beverage and flavoring industries. Its superior solubility and ability to blend seamlessly into syrups, soft drinks, and functional beverages have driven its adoption. Liquid extracts are also gaining traction in cosmetic formulations, where uniform dispersion and ease of processing are critical.

Block and paste forms, while accounting for a comparatively smaller market share, continue to find application in traditional medicine and specialized food processing practices. These forms are often favored in regions where artisanal and heritage-based production methods remain prevalent, contributing to steady niche demand.

By Vehicle/Product/Service Type

Based on application, the licorice extract market is segmented into food and beverages, pharmaceuticals, cosmetics and personal care, tobacco, and nutraceuticals. The food and beverage segment accounts for the largest share of global demand, driven by the extensive use of licorice extract as a natural sweetener and flavor enhancer. Its ability to mask bitterness and enhance taste profiles has made it a valuable ingredient in confectionery, chewing gum, dairy products, and herbal teas.

The pharmaceutical segment is experiencing robust growth, supported by increasing research into the therapeutic potential of licorice-derived compounds. Licorice extract is commonly used in cough syrups, throat lozenges, digestive aids, and traditional herbal medicines. Growing consumer inclination toward preventive healthcare and natural remedies has further strengthened this segment.

Cosmetics and personal care represent a high-growth application area, as manufacturers increasingly incorporate licorice extract into skincare products for its anti-inflammatory and skin-lightening properties. The nutraceutical segment is also gaining momentum, supported by rising demand for dietary supplements that promote immune health and overall wellness.

By Technology/Channel

From a processing and distribution perspective, advancements in extraction technologies have significantly enhanced product quality and consistency. Modern extraction methods, including solvent extraction, supercritical fluid extraction, and membrane filtration, are increasingly adopted to preserve the bioactive compounds of licorice while minimizing impurities. These technological advancements have improved yield efficiency and enabled manufacturers to meet stringent quality standards.

Distribution channels are evolving in response to digital transformation across the supply chain. Direct sales to industrial customers remain dominant; however, the expansion of online B2B platforms and global trade networks has improved market accessibility, particularly for small and medium-sized enterprises seeking specialized licorice extract variants.

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Regional Insights

Regionally, Asia Pacific leads the global licorice extract market, accounting for the largest share in terms of both production and consumption. Countries such as China, India, and Iran are major producers of licorice root, benefiting from favorable climatic conditions, established cultivation practices, and abundant raw material availability. The long-standing use of licorice in traditional Chinese medicine and Ayurveda continues to drive strong domestic demand, while export-oriented production supports global supply chains.

Europe represents another significant market, supported by the widespread use of licorice extract in confectionery, pharmaceuticals, and herbal supplements. Countries such as Germany, Italy, and the United Kingdom exhibit strong demand, driven by consumer preference for natural ingredients and well-established regulatory frameworks supporting herbal products.

North America is characterized by steady growth, particularly in the nutraceutical and cosmetics sectors. Increasing consumer awareness of natural and plant-based ingredients, coupled with rising demand for functional foods and clean-label products, has strengthened market penetration in the United States and Canada.

The Middle East and Africa region plays a strategic role as both a producer and consumer market. Iran, in particular, is a major exporter of licorice extract, supplying raw materials and processed products to global markets. Traditional consumption patterns and growing pharmaceutical applications support regional demand.

Latin America is emerging as the fastest-growing region during the forecast period. Expanding food and beverage industries, rising health consciousness, and increasing investments in natural ingredient sourcing are driving market growth. Favorable trade agreements and improving agricultural practices are further enhancing the region's growth prospects.

Unique Features and Innovations in the Market

Modern licorice extract solutions are increasingly differentiated by purity, standardization, and functional customization. Manufacturers are focusing on developing extracts with controlled glycyrrhizin content to meet regulatory requirements and cater to specific application needs. Deglycyrrhizinated licorice (DGL) extracts, in particular, are gaining popularity in pharmaceutical and nutraceutical applications due to their reduced risk of side effects.

Technological innovations are reshaping the market, with advanced extraction and processing techniques enabling higher bioactive retention and improved flavor profiles. Digital technologies, including AI-driven quality control systems, are being integrated into production facilities to monitor consistency, detect contaminants, and optimize processing parameters. These advancements enhance operational efficiency and ensure compliance with international quality standards.

IoT-enabled supply chain management solutions are also gaining adoption, allowing manufacturers to track raw material sourcing, storage conditions, and logistics in real time. This improves transparency, reduces wastage, and supports sustainability initiatives across the value chain.

Market Highlights

One of the key drivers behind the widespread adoption of licorice extract is its versatility across multiple industries. Businesses are increasingly leveraging licorice extract to respond to consumer demand for natural, functional, and sustainable ingredients. The ability of licorice extract to serve both flavoring and health-related functions makes it a cost-effective and value-added solution for manufacturers.

Regulatory support for herbal and plant-based ingredients has further strengthened market adoption. In many regions, licorice extract is recognized as a safe and approved ingredient, provided it meets specified quality and dosage standards. This regulatory clarity has encouraged investment in product development and market expansion.

Sustainability considerations are also shaping market dynamics. Manufacturers are increasingly investing in sustainable sourcing practices, traceability systems, and eco-friendly processing technologies to reduce environmental impact and align with global sustainability goals. These initiatives not only enhance brand reputation but also ensure long-term supply security.

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Key Players and Competitive Landscape

The global licorice extract market is moderately consolidated, with a mix of established multinational players and regional manufacturers competing on quality, innovation, and supply reliability. Leading companies are focusing on capacity expansion, product differentiation, and strategic partnerships to strengthen their market position.

Key players include multinational ingredient suppliers that leverage extensive R&D capabilities to develop high-purity and application-specific licorice extracts. These companies are investing in advanced extraction technologies and expanding their global distribution networks to serve diverse end-use industries.

Several regional players, particularly in Asia Pacific and the Middle East, benefit from direct access to raw materials and cost-effective production. These companies are increasingly upgrading their processing facilities and obtaining international certifications to enhance export competitiveness.

Strategic initiatives such as mergers and acquisitions, joint ventures, and long-term supply agreements are shaping the competitive landscape. Companies are also expanding their presence in high-growth regions through localized production and partnerships with regional distributors.

Looking ahead, future opportunities in the licorice extract market are expected to emerge from continued innovation in functional and specialty extracts, expansion into emerging markets, and growing demand from the nutraceutical and cosmetics sectors. Evolving regulatory frameworks and advancements in processing technologies will play a critical role in shaping industry dynamics, enabling manufacturers to deliver safer, more effective, and sustainable products.

As consumer preferences continue to shift toward natural and health-oriented solutions, the global licorice extract market is well-positioned to achieve sustained growth through 2033, supported by strong fundamentals, technological progress, and expanding application horizons.

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