Licorice Extract Market Size US$ 521.8 Mn to US$ 805.6 Mn Driven by Food and Pharma Demand

The global licorice extract market is positioned for steady and sustained expansion over the coming decade, underpinned by rising demand across a wide range of end-use industries. According to recent industry assessments, the market size is estimated to grow from approximately US$ 521.8 million in 2026 to nearly US$ 805.6 million by 2033. This growth trajectory reflects a projected compound annual growth rate (CAGR) of 6.4% during the forecast period from 2026 to 2033, highlighting the increasing commercial relevance of licorice extract in both traditional and emerging applications.

Licorice extract, derived primarily from the roots of Glycyrrhiza glabra and related species, has long been valued for its natural sweetness, flavor-enhancing properties, and therapeutic benefits. In the modern industrial landscape, its usage has expanded beyond confectionery and herbal medicine to encompass pharmaceuticals, nutraceuticals, cosmetics, tobacco products, and functional foods. The rising consumer preference for natural ingredients, coupled with heightened awareness of the health benefits associated with plant-based extracts, continues to be a key driver supporting market growth.

Another important factor accelerating market expansion is the increasing utilization of licorice extract in pharmaceutical formulations, particularly in products targeting respiratory, gastrointestinal, and inflammatory conditions. Its natural anti-inflammatory, antiviral, and antioxidant properties make it an attractive ingredient in cough syrups, lozenges, and herbal supplements. Additionally, the cosmetics and personal care industry is leveraging licorice extract for its skin-brightening, anti-aging, and soothing characteristics, further broadening the market's demand base.

From a supply-side perspective, advancements in extraction technologies and improved agricultural practices are enabling manufacturers to enhance yield consistency, purity levels, and functional performance of licorice extracts. These developments are supporting the commercialization of high-quality extracts tailored for specific industrial applications, thereby reinforcing the overall growth outlook of the market.

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Segmentation Analysis

By Type

Based on type, the global licorice extract market is commonly segmented into liquid licorice extract, powder licorice extract, and block or paste licorice extract. Among these, powder licorice extract currently accounts for a significant share of the market, owing to its ease of handling, extended shelf life, and compatibility with a wide range of formulations. Powdered extracts are widely used in health supplements, pharmaceuticals, and functional food products, where precise dosing and stability are critical requirements.

Liquid licorice extract, however, is expected to witness faster growth over the forecast period, particularly in beverage manufacturing, confectionery, and flavoring applications. Its superior solubility and flavor dispersion characteristics make it a preferred choice for liquid-based formulations. Block or paste licorice extract continues to maintain relevance in traditional confectionery and tobacco industries, especially in regions with established consumption patterns, although its growth rate is comparatively moderate.

By Vehicle/Product/Service Type

In terms of product application, the licorice extract market is segmented into food and beverages, pharmaceuticals, cosmetics and personal care, tobacco, and others including animal feed and nutraceuticals. The food and beverage segment currently dominates the market, driven by strong demand from confectionery manufacturers, beverage producers, and flavor houses seeking natural sweetening and flavor-enhancing agents. Licorice extract's ability to mask bitterness and enhance sweetness without adding sugar makes it particularly attractive in reduced-sugar and functional food formulations.

The pharmaceutical segment is projected to register robust growth during the forecast period, supported by increasing investments in herbal and plant-based medicines. Licorice extract is widely used in traditional and modern medicinal systems for its therapeutic efficacy, and ongoing research into its bioactive compounds is expected to unlock new pharmaceutical applications. Meanwhile, the cosmetics and personal care segment is gaining traction as brands increasingly incorporate licorice extract into skincare products aimed at addressing hyperpigmentation, sensitivity, and aging concerns.

By Propulsion/Technology/Channel

From a technology and channel perspective, the market can be analyzed based on extraction methods, including solvent extraction, water-based extraction, and advanced techniques such as supercritical fluid extraction. Conventional solvent and water-based extraction methods continue to dominate due to their cost-effectiveness and widespread adoption. However, advanced extraction technologies are gradually gaining momentum, particularly among premium product manufacturers, as they offer higher purity, improved bioactive retention, and reduced environmental impact.

Distribution channels for licorice extract include direct sales to industrial clients, distributors, and increasingly, digital and e-commerce platforms catering to small-scale manufacturers and formulators. The gradual shift toward digital procurement channels is improving market accessibility and transparency, especially in emerging economies.

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Regional Insights

From a regional standpoint, Asia Pacific continues to represent the leading market for licorice extract, supported by abundant raw material availability, a strong tradition of herbal medicine, and expanding food and pharmaceutical manufacturing sectors. Countries such as China, India, and Japan play a pivotal role in both production and consumption, benefiting from established agricultural supply chains and growing domestic demand for natural ingredients.

Europe holds a substantial share of the global market, driven by high consumption of licorice-flavored confectionery and increasing regulatory support for natural additives in food and cosmetics. The region's well-developed pharmaceutical and personal care industries further contribute to steady demand for licorice extract. North America also represents a significant market, particularly in the United States, where growing interest in herbal supplements, functional foods, and clean-label products is fueling adoption.

The fastest-growing region over the forecast period is expected to be Latin America and parts of the Middle East and Africa, where rising disposable incomes, expanding food processing industries, and increasing awareness of herbal and natural products are creating new growth opportunities. Additionally, the Middle East has a long-standing cultural affinity for licorice-based beverages, which continues to support regional demand.

Unique Features and Innovations in the Market

One of the defining characteristics of the modern licorice extract market is the increasing emphasis on product standardization, traceability, and functional customization. Manufacturers are investing in advanced processing technologies to deliver extracts with consistent glycyrrhizin content and enhanced bioactive profiles, tailored to specific industrial requirements.

Digital technologies such as artificial intelligence and data analytics are being increasingly applied across the value chain, particularly in agricultural management, quality control, and demand forecasting. AI-driven analytics enable producers to optimize harvesting cycles, predict yield variations, and ensure consistent raw material quality. Similarly, Internet of Things (IoT)-enabled monitoring systems are being deployed in processing facilities to track temperature, humidity, and extraction parameters in real time, improving efficiency and reducing waste.

While technologies such as 5G are not directly integrated into the product itself, enhanced connectivity is supporting smarter manufacturing ecosystems and faster data exchange across global supply chains. These innovations collectively contribute to improved operational efficiency, sustainability, and responsiveness to market demand.

Market Highlights

The adoption of licorice extract across industries is being driven by several key factors, including growing consumer preference for natural and plant-based ingredients, increasing regulatory scrutiny on synthetic additives, and the need for multifunctional ingredients that deliver both sensory and health benefits. Businesses are increasingly turning to licorice extract as a natural solution that aligns with clean-label trends and wellness-focused product positioning.

Regulatory frameworks in major markets are also playing a critical role in shaping adoption patterns. Favorable regulations supporting the use of natural extracts in food, pharmaceuticals, and cosmetics are encouraging manufacturers to reformulate products using licorice extract. At the same time, compliance with safety standards related to glycyrrhizin content is driving innovation in low-glycyrrhizin and deglycyrrhizinated licorice extracts, particularly for pharmaceutical and health supplement applications.

Cost optimization and sustainability considerations are further reinforcing market growth. Improved agricultural practices, better supply chain integration, and advances in extraction efficiency are helping to reduce production costs while minimizing environmental impact. As sustainability becomes a core strategic priority for global brands, responsibly sourced and processed licorice extract is gaining competitive advantage.

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Key Players and Competitive Landscape

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

Major players such as Norevo GmbH, Mafco Worldwide LLC, Alfarid Corporation, Zagros Licorice Co., and F&C Licorice Ltd. are actively investing in advanced extraction technologies and quality assurance systems to meet evolving customer requirements. These companies leverage long-term sourcing relationships and vertically integrated operations to ensure consistent supply and product traceability.

Several players are also expanding their geographic footprint through regional production facilities and distribution partnerships, particularly in high-growth markets across Asia Pacific, Latin America, and the Middle East. Product innovation remains a key competitive strategy, with companies developing customized extracts for specific applications in pharmaceuticals, cosmetics, and functional foods.

Smaller and mid-sized manufacturers are differentiating themselves by focusing on organic and sustainably sourced licorice extracts, catering to niche markets and premium product segments. Collaboration with research institutions and end-use industries is further enabling these players to enhance product functionality and compliance with stringent regulatory standards.

Looking ahead, the competitive landscape is expected to evolve in response to emerging opportunities in nutraceuticals, clean-label foods, and personalized wellness products. Continuous advancements in extraction technology, coupled with digital transformation across supply chains, are likely to reshape industry dynamics and create new avenues for growth. Regulatory developments and increased emphasis on sustainability will continue to influence strategic decision-making, encouraging innovation and responsible sourcing practices across the licorice extract market.

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