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, 2021-2031F

Market Overview

The Global Licorice Extract Market will grow from USD 2.63 Billion in 2025 to USD 3.98 Billion by 2031 at a 7.15% CAGR. Licorice extract is a natural derivative obtained from the roots of the Glycyrrhiza glabra plant, valued for its active compound, glycyrrhizin, which offers potent sweetening and medicinal properties. The market is primarily driven by the escalating demand for plant-based ingredients in the pharmaceutical and nutraceutical sectors, particularly for formulations targeting digestive and respiratory health. Additionally, the food and beverage industry increasingly utilizes this extract as a natural sweetener and flavoring agent to meet the consumer shift away from synthetic additives, while the cosmetics sector leverages its anti-inflammatory and skin-brightening qualities for personal care products.

According to the American Botanical Council, in 2024, retail sales of herbal dietary supplements in the United States reached a record USD 13.23 billion, reflecting a sustained surge in consumer demand for botanical ingredients that underpin the licorice market. However, a significant challenge impeding broader market expansion is the health risk associated with excessive consumption of glycyrrhizin, which can lead to hypertension and has prompted strict regulatory limits on its dosage in food and medicinal products.

Key Market Drivers

The Growing Adoption as a Natural Sweetener and Sugar Substitute is significantly reshaping the global licorice extract market as manufacturers reformulate products to address health-conscious consumer preferences. With the food and beverage industry under pressure to reduce caloric content without compromising taste, licorice extract has emerged as a high-intensity, plant-based sweetening solution that masks off-notes in stevia and monk fruit blends. This trend is strongly supported by shifting dietary habits; according to the International Food Information Council, June 2024, in the '2024 Food & Health Survey', 66% of Americans reported actively trying to limit their sugar consumption, a metric that underscores the urgent industrial demand for natural alternatives. Consequently, licorice derivatives are increasingly finding applications in beverages, confectionery, and bakery products, serving as a critical tool for brands aiming to achieve clean-label certification while adhering to sugar reduction targets.

Simultaneously, the Surging Popularity of Functional Foods and Dietary Supplements acts as a primary catalyst for market expansion, driven by a global focus on preventative healthcare and botanical interventions. Licorice is extensively utilized in these sectors for its adaptogenic properties and its traditional efficacy in supporting digestive and respiratory systems. This robust demand is evident in the broader supplement landscape; according to the Council for Responsible Nutrition, October 2024, in the '2024 Consumer Survey', usage of botanical supplements has widened, with specific herbal ingredients like ashwagandha seeing a four-fold increase in usage since 2020, signaling a favorable environment for established botanicals like licorice. Reflecting this tightened supply-demand dynamic across both food and health sectors, according to Tridge, in 2024, the global export and import prices of licorice root extract increased to a range between USD 6.11 and USD 54.33 per kilogram.

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Key Market Challenges

The Global Licorice Extract Market faces a substantial hurdle due to the well-documented health risks associated with glycyrrhizin, the primary active compound in licorice roots. Excessive intake of this compound is clinically linked to adverse cardiovascular effects, specifically hypertension and hypokalemia, which has necessitated the implementation of stringent dosage caps by food safety authorities worldwide. These regulatory constraints directly limit the volume of extract that can be incorporated into pharmaceutical and nutraceutical formulations, thereby forcing manufacturers to either reduce product potency or seek alternative ingredients, ultimately stifling innovation and volume growth in key application sectors.

The impact of these limitations is evident in recent trade figures from major production hubs which suggest a cooling of demand. According to the China Chamber of Commerce for Import & Export of Medicines & Health Products, in 2024, the export value of licorice extract from China amounted to approximately USD 22 million. This performance highlights a stagnation in international trade momentum as global buyers exercise increased caution regarding ingredient safety profiles and compliance with tightening consumption limits. Consequently, the market struggles to fully capitalize on the rising interest in plant-based remedies, as the core safety concerns regarding glycyrrhizin accumulation remain a critical barrier to broader market expansion.

Key Market Trends

The Integration into High-Performance Cosmeceuticals is driving significant demand for licorice root derivatives, particularly glabridin and licochalcone A, as the industry pivots toward safe, plant-based alternatives to synthetic tyrosinase inhibitors like hydroquinone. Brands are increasingly formulating dermocosmetic products that leverage licorice’s potent anti-inflammatory and skin-brightening properties to treat hyperpigmentation and sensitive skin conditions without the adverse effects of chemical agents. This surge in clinical skincare applications is evidenced by the financial performance of major players heavily invested in licorice-based formulations; according to Beiersdorf, February 2025, in the 'Annual Report 2024', their Derma business unit, which utilizes licorice derivatives in key product lines, achieved an organic sales growth of 10.6% driven by global demand for effective therapeutic skincare.

Simultaneously, the Proliferation of Certified Organic and Clean-Label Sourcing has emerged as a critical supply chain determinant, forcing manufacturers to move beyond conventional wild-harvesting toward fully traceable, third-party certified extraction processes. As regulatory scrutiny on botanical purity tightens and consumer insistence on transparency grows, licorice suppliers are compelled to adopt organic standards to secure contracts with premium food and supplement brands aiming for strict "clean label" claims. This widespread market shift toward sustainable verification is highlighted by broader sector performance; according to the Soil Association Certification, February 2025, in the 'Organic Market Report 2025', the certified organic market recorded a growth of 7.3% in 2024, signaling a robust commercial preference for certified ingredients that is directly reshaping licorice procurement strategies.

Segmental Insights

The Feed Grade segment represents the fastest-growing category within the Global Licorice Extract Market due to the rising adoption of natural additives in livestock nutrition. This expansion is largely driven by strict regulations from entities like the European Commission concerning the restriction of antibiotic growth promoters. Producers are increasingly incorporating licorice extract to enhance feed palatability and support animal digestive health as a safe, plant-based alternative. Consequently, the shift toward organic livestock practices continues to accelerate the demand for this ingredient in animal husbandry applications.

Regional Insights

North America holds a leading position in the global licorice extract market, driven by substantial demand across the pharmaceutical and food sectors. The region benefits from a favorable regulatory environment, notably the classification of licorice derivatives as Generally Recognized As Safe by the United States Food and Drug Administration. This regulatory validation encourages widespread utilization in confectionery, medicinal formulations, and functional foods. Furthermore, the rising consumer preference for organic ingredients in the cosmetic industry supports the extensive application of these extracts, thereby reinforcing the market dominance of the region.

Recent Developments

• In June 2025, Amway India introduced a new dietary supplement called Nutrilite Triple Protect to strengthen its immunity portfolio. The product was formulated with three key botanical ingredients: acerola cherry, turmeric, and licorice extract. The company highlighted that the licorice extract used in the formulation provides significant antiviral and anti-inflammatory benefits, contributing to improved respiratory and gut health. This launch was part of the company's broader strategy to offer science-backed, plant-based solutions to meet the rising consumer demand for holistic wellness and immunity-boosting products in the Indian market.
• In October 2024, Active Concepts launched a new skincare ingredient named AC ExoCalm, which is derived from upcycled licorice root waste. The product utilizes licorice pomace, a byproduct of the extraction process that is rich in glycyrrhetinic acid, a compound known for its anti-inflammatory and antioxidant properties. The ingredient features a bioauthentic exosomal delivery system designed to encapsulate the active compounds, thereby enhancing their stability and bioavailability on the skin. This innovation was introduced to soothe irritated skin and reduce redness, addressing the growing consumer demand for sustainable and effective anti-inflammatory skincare solutions.
• In April 2024, BGG, a leading supplier of branded ingredients, announced the establishment of a new global headquarters in Basel, Switzerland, operating under the name BGG World. This strategic restructuring was implemented to support international expansion and align the company's operations more closely with customer strategies in global markets. As part of this development, the company revealed plans to diversify into the food ingredients sector, leveraging its existing portfolio which includes licorice extract and stevia solutions. The expansion aimed to double customer-facing resources in the United States and Europe while maintaining production and research operations in China.
• In April 2024, Clariant collaborated with PT Martina Berto Tbk to relaunch a specific range of natural cosmetic ingredients at the in-cosmetics Global event in Paris. The partnership showcased the "Plantasens Berto" line, which features high-quality extracts sourced from Indonesia, including licorice extract, papaya, and mangosteen. These ingredients were marketed as being preservative-free and certified by COSMOS and Halal standards to meet global regulatory requirements. The collaboration highlighted the commitment of both companies to sustainable sourcing practices and the promotion of Indonesian biodiversity within the global personal care market.

Key Market Players

• Alfarid Corporation Limited
• AOS Products Pvt. Ltd.
• Avestia Pharma
• C.E. Roeper GmbH
• F&C Licorice Ltd.
• Hyundai Bioland
• Mafco Worldwide LLC
• Maruzen Pharmaceuticals Co. Ltd.
• Norevo GmbH
• Shaanxi FUJIE 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:

• Food Grade
• Feed Grade
• Pharmaceutical Grade

• Licorice Extract Market, By Application:

• Food & Beverages
• Dietary Supplements
• Pharmaceutical
• Tobacco
• Others

• Licorice Extract Market, By Form:

• Powder
• Liquid
• Block
• Others

• Licorice Extract Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE