Report Description

Forecast Period

2024-2028

Market Size (2022)

USD 1.91 Billion

CAGR (2023-2028)

6.8%

Fastest Growing Segment

Feed Grade

Largest Market

North America

 

Market Overview

Global Licorice Extract Market was valued at USD 1.91 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 6.8% through 2028. The extracts are made from the roots of these therapeutic plants. The licorice plant's roots are used to make fragrant flavoring and sweet extracts. Native to southern Europe, Western Asia, and North Africa are these plants. Glycyrrhizin is a sweet-tasting molecule that contributes significantly to the sweetness of licorice extracts. It is approximately 30–50 times sweeter than sugar. Afghanistan, India, China, Italy, Iran, Pakistan, Azerbaijan, Turkmenistan, Uzbekistan, Turkey, and Iraq are the countries where licorice is typically farmed. It is extensively utilized in the food and beverage, cosmetics, pharmaceutical, and tobacco industries. Many diseases, such as inflammation, respiratory disorders, and digestive distress, have been treated using licorice extracts and roots for thousands of years, especially in Asia.  With over 300 different chemicals, including anti-inflammatory, anti-viral, and anti-microbial ones, licorice is a remarkably versatile plant. For many years, licorice was a common remedy for conditions like coughs, bronchitis, fever, indigestion, heartburn, stomach ulcers, and toothaches. This medication is now discovered to be quite helpful in treating skin infections, cancer memory loss, and hepatitis C. A variety of foods and drinks contain licorice extract as a flavoring ingredient. To increase the sweetness of some foods, it is also used as a sweetener. However, it is not the only natural sweetener or food ingredient on the market. It is more usual and well-known to utilize stevia, a natural sweetener. Another plant that grows naturally and is frequently used in place of licorice is anise, which tastes quite similar to licorice. Alternatives to licorice extract include other naturally occurring herbs like fennel, basil, chervil, tarragon, and tea tree. The use of licorice extract as a natural flavoring and sweetener is hampered by these substitutes, which also operate as a barrier to the industry's expansion.

Key Market Drivers

Health and Wellness Trends

As consumers worldwide become more health-conscious, there is a growing demand for natural and plant-based ingredients. Licorice extract, known for its potential health benefits, aligns perfectly with this trend. The active compound glycyrrhizin in licorice has been associated with anti-inflammatory, antioxidant, and antimicrobial properties, making it a popular choice for dietary supplements and herbal medicines. Additionally, licorice extract can support various health issues, including digestive problems, respiratory ailments, and skin conditions. This growing interest in natural remedies and functional ingredients drives the demand for licorice extract in the health and wellness sector.

The increased focus on maintaining overall well-being has spurred research and development in the licorice extract market, leading to the discovery of new applications and benefits. It has also prompted manufacturers to introduce innovative licorice-based products, such as herbal teas, supplements, and topical creams, catering to consumers seeking alternatives to synthetic drugs and chemicals. Consequently, health and wellness trends are a potent driver in the licorice extract market, offering substantial growth opportunities.

Cosmetics and Personal Care Industry

The cosmetics and personal care industry is another significant driver of the licorice extract market. Licorice extract contains compounds like glabridin, known for their skin-lightening and anti-inflammatory properties. These properties make licorice extract a popular ingredient in skincare products, particularly in the formulation of anti-aging, skin-whitening, and anti-inflammatory products.

Consumers are increasingly turning towards natural and botanical ingredients in their skincare routines. As a result, the demand for products containing licorice extract has grown significantly. Manufacturers often incorporate licorice extract in various skincare products, including creams, serums, and cleansers, to cater to this demand. The extract's ability to address skin concerns, such as hyperpigmentation and redness, has made it a staple in many skincare brands' formulations.

The skincare industry's commitment to sustainability and eco-friendliness has further boosted the popularity of licorice extract, as it is perceived as a more environmentally friendly alternative to certain synthetic chemicals. As consumers become more educated about the ingredients in their skincare products, the cosmetics and personal care sector will continue to drive the licorice extract market's growth.

Food and Beverage Applications

The food and beverage industry is one of the major drivers of the licorice extract market, primarily due to its use as a flavoring and sweetening agent. Licorice's distinct and versatile flavor is used in a wide range of products, from candies and confectionery to beverages and baked goods. The use of licorice extract in these products provides a unique taste that appeals to a broad consumer base.

Licorice extract is used as a natural sweetener, especially in products marketed as sugar-free or with reduced sugar content. As the global push for reduced sugar consumption continues, the demand for natural sweeteners like licorice extract is on the rise. It offers a way for manufacturers to maintain product sweetness without relying on artificial sweeteners or excessive sugar.

Moreover, licorice extract is often used to add a touch of sophistication to culinary creations, with its sweet and slightly spicy undertones. The growing popularity of gourmet and specialty foods has further fueled demand for licorice extract in the food industry.

Pharmaceuticals and Traditional Medicine

The use of licorice extract in traditional medicine and pharmaceuticals is deeply rooted in history. Licorice has been used for its medicinal properties in various cultures for thousands of years. In modern times, the pharmaceutical industry has recognized the therapeutic potential of licorice, leading to a significant driver in the licorice extract market.

Glycyrrhizin, a compound found in licorice extract, is known for its anti-inflammatory and immune-boosting properties. It has applications in treating respiratory conditions like bronchitis and asthma. Licorice extract is also used in formulations for cough syrups and sore throat remedies.

Furthermore, the anti-inflammatory nature of licorice extract has made it a key ingredient in dermatological products. It can help soothe skin conditions like eczema and psoriasis, and is utilized in creams and ointments. Additionally, licorice extract's potential in managing digestive disorders has led to the development of over-the-counter supplements and prescription medications.

In traditional medicine systems like Ayurveda and Traditional Chinese Medicine (TCM), licorice has long been considered an essential herb with a wide range of applications. As interest in alternative and holistic healthcare continues to grow, licorice extract's role in pharmaceuticals and traditional medicine will remain a vital driver in the market.

Growth in Asia-Pacific Region

The Asia-Pacific region, particularly China and India, has witnessed significant growth in the licorice extract market. These countries are not only major producers of licorice but also major consumers, both domestically and internationally. Several factors contribute to the growth of the licorice extract market in this region.

First, the rich tradition of herbal medicine in both China and India has provided a natural platform for the use of licorice extract in various formulations. Ayurveda in India and Traditional Chinese Medicine have long utilized licorice as a key ingredient in herbal remedies.

Second, the increasing global demand for traditional and natural remedies has driven the expansion of the licorice extract industry in Asia-Pacific. China, as a dominant player in the licorice extract market, exports significant quantities of licorice and its derivatives to meet international demand.

Third, the pharmaceutical and herbal medicine industries in these countries are experiencing robust growth, driven by rising healthcare awareness and increased research and development efforts. This, in turn, boosts the demand for licorice extract as an essential component in many formulations.