Licorice Extract Market Size, Share, Growth Report 2030

Industry Prospective:

The global licorice extract market size was worth around USD 1.8 Billion in 2021 and is predicted to grow to around USD 2.7 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 4.8% between 2022 and 2030. The report analyzes the global licorice extract market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the licorice extract market.

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Licorice Extract Market: Overview

Licorice extract is a herbal extract made from Glycyrrhiza glabra roots that have been grown naturally and in the wild. It is made by boiling the pulp of licorice roots, and it has a sweet and aromatic flavor. It is frequently found in paste, liquid, block, and powdered forms, and is utilized as a natural sweetener and flavoring in sweets, drinks, and medications. Hot flashes, acid reflux, digestive issues, menopausal symptoms, heartburn, and bacterial and viral infections can all be treated with their anti-inflammatory, anticancer, antibacterial, and antioxidant qualities. Additionally, licorice extract helps in the treatment of hepatitis C, peptic ulcers, cavities, blood sugar control, and weight loss. As a result, it has a wide range of applications in many different industries, including the pharmaceutical, cosmetics, and food & beverage industries.

Key Insights

• As per the analysis shared by our research analyst, the global licorice extract market is estimated to grow annually at a CAGR of around 4.8% over the forecast period (2022-2030).
• In terms of revenue, the global licorice extract market size was valued at around USD 1.8 billion in 2021 and is projected to reach USD 2.7 billion, by 2030.
• The main aspect driving market expansion is customers' growing preference for goods created with natural ingredients, particularly in developing nations.
• Based on the type, the pharmaceutical grade segment accounted for the largest revenue share in 2021.
• Based on the form, the powder segment accounted for the largest market share in 2021 and is expected to continue this pattern during the forecast period.
• Based on region, the Asia Pacific is expected to dominate the market during the forecast period.

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Licorice Extract Market: Growth Drivers

Growing awareness regarding the beneficial properties of licorice extract among the population to drive the market growth

Individuals' inclination to pursue sedentary lifestyles has increased as their purchasing power has increased. However, some complications can lead to serious health problems such as diabetes or difficulties with the heart or other key organs such as the liver. As a result, efforts are being made to promote the intake of healthy foods, maintain a healthy diet, and combine excellent and helpful elements in meals to make them more nutritious. This has resulted in an increase in licorice intake in various foods and beverages due to the health benefits of eating licorice extract, which is mostly due to the popularity of ancient Chinese medicine. Some of the health benefits include stress reduction due to its ability to release cortisol and produce adrenaline. It is also useful for clearing the respiratory system. It can reduce the effects and stress on the bronchial system by improving breathing capacity. Furthermore, it aids in regular stomach cleaning by effectively treating a variety of gastrointestinal issues such as food poisoning, stomach ulcers, and heartburn, among others. As a result, these factors are expected to boost the global licorice extract market growth throughout the forecast period.

Licorice Extract Market: Restraints

Cost efficiency of synthetic sweeteners to limit the market growth

Medical professionals advise patients to limit their sugar intake due to the negative health effects of obesity and diabetes, which is a positive thing for low-calorie sweeteners. Synthetic sweeteners have become more prevalent because they are more affordable, whereas the switch to natural sweeteners is still in its early stages. Thus, acting as a major restraining factor for the market growth during the forecast period.

Licorice Extract Market: Opportunities

Increasing demand from the cosmetics and personal care industry provides a lucrative opportunity

The demand for cosmetics and personal care products is increasing as people become more aware of how to enhance and improve their overall beauty. Furthermore, the demand for beauty products including active and other components to enhance the various features of the skin is increasing. Licorice is gaining popularity as a component in cosmetics and personal care products due to the numerous qualities and benefits it may give. Some of these advantages include decreasing redness caused by poor skin care and cleanliness or a lack of a skincare routine, flushing women's skin, and so on. Thus, the increasing demand for licorice extracts from the cosmetics and personal care industry is expected to provide a lucrative opportunity for the global licorice extract market growth over the forecast period.

Licorice Extract Market: Challenges

A decrease in the tobacco business poses a major challenge to the market growth

A fall in the worldwide tobacco industry is anticipated in the coming years as a result of increased health awareness and knowledge of the negative consequences of tobacco use on health. In roughly 60% of the countries, the demand for tobacco use has decreased since 2010. The WHO projects a 27 million-person drop in tobacco use from 2018 to 2025. The smoke has a sweet and nutty flavor owing to the licorice. In addition, licorice is used as a flavoring in many tobacco products, including cigars and chewing tobacco. Thus, the decrease in the tobacco business is expected to pose a major challenge to market growth over the forecast period.

Licorice Extract Market: Segmentation

The global licorice extract market is segmented based on the type, form, application and region

Based on the type, the global market is bifurcated into food grade, feed grade, and pharmaceutical grade. The pharmaceutical grade segment accounted for the largest revenue share in 2021 and is expected to dominate during the forecast period. Licorice extract of a grade suitable for pharmaceutical use is frequently found in medicines, cough syrup, creams, and cosmetics. It eases indigestion, relieves acid reflux, and soothes sore throats. In the pharmaceutical industry, licorice extract is used as a liquid and powder ingredient in tablets, lotions, ointments, syrups, and cosmetics. In creams and cosmetics, licorice extract is used to treat eczema and acne. Thus, driving the segmental growth over the forecast period.

Based on the form, the global licorice extract industry is categorized into liquid, block and powder. The powder segment accounted for the largest market share in 2021 and is expected to continue this pattern during the forecast period. Licorice extract powder is produced by spray drying licorice extract until it becomes a fine powder. The low-dust powder has a variety of applications. Powdered licorice extracts are mostly used as a component in the pharmaceutical sector to make natural pills and tablets. Additionally, it is one of the ingredients in health drink powders and herbal tea powders. Besides, the liquid segment holds a significant position over the forecast period. After the roots are entangled, the liquid from the licorice plant is extracted.

The liquid is typically extremely thick and viscous and has a viscosity similar to paste. The most prevalent form of it is a liquid extract. The industry that uses liquid extraction the most is the food and beverage sector. Candy made from licorice is a delicacy that is enjoyed immensely in many parts of Europe and America. Tea and root beer are among the beverages that can be made using them.

Recent Developments:

• In December 2019, Merisant Company and MAFCO Worldwide LLC announced a formal business combination. Merisant and MAFCO are operating subsidiaries of Flavors Holdings Inc., which is controlled by MacAndrews & Forbes Incorporated affiliates. Act II will merge with the companies of Merisant, MAFCO, and certain of their subsidiaries, subject to the terms and circumstances contained in the Purchase and Sale agreement.
• In January 2021, Mafco introduced a new line of category-specific, multi-tasking Magna-Brand products to handle today's most difficult product and flavor-formulation challenges. They have released their latest products, which are among the most cost-effective and productive for Taste Modulation due to selective compounding.

Licorice Extract Market Report Scope:

Licorice Extract Market: Regional Analysis

The Asia Pacific is expected to dominate the market during the forecast period

The Asia Pacific accounted for the largest global licorice extract market share and is expected to drive the growth of the market over the forecast period. The common cold and cough are more frequently treated at home using licorice extracts. Try taking cough medicines with licorice extracts to relieve a sore throat. Licorice was frequently used during the pandemic to make nourishing remedies that boosted immunity and fended off infections. To make tea and other local beverages, licorice extract is used in many Asia Pacific countries. Likewise, licorice extracts are widely used in Japan. The majority of the licorice that Japan consumes is imported from China, but as Chinese licorice prices have risen, the Japanese market is having trouble. These factors support the growth of the Asia Pacific licorice extract market.

Besides, Europe is expected to grow at the highest CAGR over the forecast period. The people of Europe enjoy sweets, candies, and bakery goods. Sweet candies, chocolates, gummies, and jellies are widely produced and consumed. Licorice extract is frequently used to make sweets in many European nations. In the Netherlands, Germany, and Scandinavian countries, licorice, especially salty licorice sweets, is widely enjoyed. The main reason for this high licorice consumption is that residents of these countries think that consuming salty licorice can keep them warm and control their blood pressure during the region's severe winters, in turn, driving the market growth in the region.

Licorice Extract Market: Competitive Analysis

The global licorice extract market is dominated by players like

• NOREVO
• FC Liquorice
• Iranlicorice.com
• Zagros Liquorice co.
• VPL Chemicals
• MAFCO Worldwide LLC
• RANSOM NATURALS LTD
• Aushadhi Herbal
• Aseh Co.
• Green Wave Ingredients Inc.
• Sanat Products LTD.
• Maruzen Pharmaceutical Co. Ltd.
• Alfarid Corporation Limited
• Avestia Pharma
• Nutra Green Biotechnology Co. Ltd.
• Mafco Worldwide LLC
• Mitsubishi Corporation Life Sciences Limited.
• HYUNDAI BIOLAND

The global licorice extract market is segmented as follows:

By Type

• Feed Grade
• Pharmaceutical Grade

By Form

• Liquid
• Block
• Powder

By Application

• Food & Beverages
• Tobacco Products
• Cosmetics & Personal Care
• Pharmaceuticals
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa