Licorice Extract Market Overview
Global Licorice Extract Market reached US$ 2.36 billion in 2025 and is expected to reach US$ 3.80 billion by 2033, growing with a CAGR of 6.1% during the forecast period 2026-2033.
Licorice extract is recognized for its perceived health benefits, particularly its soothing properties for respiratory and digestive health. This recognition has prompted its incorporation into various products, including supplements, herbal remedies, and functional foods and beverages. Health-conscious consumers are seeking such products and driving the licorice extracts market growth.
Licorice extract is a preferable ingredient in the cosmetics and skincare industry. It is considered for its skin-soothing, anti-inflammatory, and brightening effects., DPKA Universal Consumer Ventures Private Limited, a skincare company, expanded its product line by launching the sunscreen gel Licorice Beam. The product is made up of licorice and ceramide and protects from UVA and UVB rays.
Pharmaceutical-grade has a significant share of the licorice extract market due to its health benefits and therapeutic attributes. North America, has a significant presence in the licorice extract market. According to Cross River Therapy, a provider of ABA therapy services for children, in 2021, the pharmaceutical industry in the United States generated $550 billion. This growing pharmaceutical industry acts as a key driver for the licorice market growth in that region.
Key Takeaways
- Asia-Pacific accounted for approximately 41.8% of the global Licorice Extract Market share in 2025 and remains the dominant regional market. Growth is supported by the extensive cultivation of licorice roots in China, India, and Central Asian countries, rising demand from traditional medicine systems, and increasing use of natural ingredients in food, beverages, and nutraceuticals.
- North America held around 24.6% market share in 2025, driven by growing consumer preference for plant-based ingredients, clean-label products, herbal supplements, and natural sweeteners. Expanding applications in pharmaceutical formulations and functional foods continue to support regional demand.
- Europe represented nearly 22.3% of market share in 2025, supported by strong demand for botanical extracts, stringent regulations favoring natural ingredients, and increasing adoption of herbal health products. Manufacturers are investing in sustainable sourcing and traceability to meet consumer and regulatory expectations.
- Pharmaceutical and nutraceutical applications are becoming the primary growth engine for the market. Licorice extract is increasingly incorporated into formulations targeting digestive health, respiratory support, immune health, and anti-inflammatory applications due to the presence of bioactive compounds such as glycyrrhizin and flavonoids.
- The clean-label movement is accelerating product innovation. Food and beverage manufacturers are replacing synthetic additives and artificial sweeteners with plant-derived alternatives, creating new opportunities for licorice extract in confectionery, beverages, dietary supplements, and functional foods.
- Natural sweetener demand is reshaping industry dynamics. As consumers seek reduced-sugar and naturally flavored products, licorice extract is gaining popularity as a flavor enhancer and sweetening ingredient, particularly in premium and health-focused product categories.
- Supply chain stability remains a critical challenge. Dependence on agricultural production, climatic variations, and sustainable harvesting practices can affect raw material availability and pricing. Producers are increasingly investing in controlled cultivation and long-term sourcing agreements to mitigate supply risks.
- Organic and sustainably sourced licorice extracts are emerging as premium market segments. Consumers are placing greater emphasis on transparency, ethical sourcing, and environmentally responsible production practices, encouraging manufacturers to pursue organic certifications and sustainable supply chains.
Licorice Extract Market Scope
| Metrics | Details |
| CAGR | 6.1% |
| Size Available for Years | 2025-2032 |
| Forecast Period | 2026-2033 |
| Data Availability | Value (US$) |
| Segments Covered | Product, Form, Grade, Distribution Channel, Application and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Licorice Extract Market Dynamics and Trends
Increasing Demand for Natural Ingredients
The increasing awareness of health and ingredient quality in food, drinks, and personal care items has created a rising need for natural, plant-based components like licorice extract. These ingredients are favored because they are perceived as a healthier option compared to artificial additives and sweeteners.
The awareness of natural and botanical ingredients is in the skincare industry increasing. Licorice extract's potential skin-brightening and anti-inflammatory properties make it a demanding ingredient in skincare products. Kulfi Beauty, a beauty brand, made its debut at Sephora and introduced a new concealer, Main Match. The product contains elements with South Asian influences, such as hydrating and anti-inflammatory saffron flower extract, antioxidant-rich alma fruit extract, calming licorice root extract, and rosehip extract.
Growing Awareness Regarding Licorice Extract for Health Benefits
Licorice root has a long history of traditional use in treating various health conditions, spanning lung, liver, circulatory, and kidney ailments. In contemporary times, it is frequently marketed as a dietary supplement with potential applications in addressing digestive issues, alleviating menopausal symptoms, relieving coughs, and combating bacterial and viral infections. Its diverse therapeutic uses and historical significance continue to make licorice root a popular choice in natural health remedies and dietary supplementation.
According to an article published in the Journal of Heliyon, the bioactive compounds present in licorice, like glycyrrhizin, glycyrrhizin acid, and isoliquirtin, among others, have pharmacological benefits that encompass anti-cancer, anti-atherogenic, anti-diabetic, anti-asthmatic, anti-inflammatory, and others. Hence, the awareness about the health benefits of licorice grows, and the market also expands.
Regulatory Constraints
Regulatory authorities globally impose limits on glycyrrhizin content in food, supplements, and herbal products due to potential health risks like high blood pressure and potassium depletion. The U.S. FDA and EFSA have rigorous safety and quality standards for food ingredients, including licorice extract, ensuring product safety and compliance with these standards.
Licorice Extract Market Segment Analysis
The global licorice extract market is segmented based on product, form, grade, distribution channel, application and region.
The Medicinal Properties of Licorice Extract
Licorice extract, with a rich tradition in traditional medicine, holds great esteem for its potential health advantages. It contains glycyrrhizin, which is well regarded for its anti-inflammatory, antiviral, and immunomodulatory properties. This makes pharmaceutical-grade licorice extract a preferable ingredient in diverse pharmaceutical formulations.
Why Licorice Extract Market Matters by 2033
The global licorice extract industry is experiencing significant growth as consumers increasingly seek natural, plant-based ingredients across food, beverages, pharmaceuticals, nutraceuticals, and personal care products.
Licorice extract is gaining strategic importance due to its multifunctional properties, including natural sweetness, flavor enhancement, anti-inflammatory benefits, and growing use in herbal formulations and functional products.
Several macroeconomic and industry-specific factors are driving market growth:
- Growing demand for herbal medicines and traditional wellness products
- Expansion of the nutraceutical and dietary supplements industry
- Increasing use of natural flavoring agents in food and beverages
- Growing popularity of functional foods and immunity-support products
- Increased awareness of plant-based health solutions
- Expansion of pharmaceutical applications utilizing licorice-derived compounds
- Growing investments in natural ingredient sourcing and processing technologies
- Regulatory support for botanical and herbal product development
Analyst View
DataM Intelligence Analyst Perspective
The licorice extract market is transitioning from a traditional herbal ingredient segment into a diversified, high-value natural ingredients ecosystem serving multiple industries worldwide.
The long-term success of the licorice extract market will depend on:
- Sustainable licorice root cultivation and sourcing
- Supply chain stability and raw material availability
- Product quality standardization
- Scientific validation of health benefits
- Regulatory compliance across global markets
- Innovation in extraction and processing technologies
- Expansion of functional food and nutraceutical applications
- Strategic partnerships between ingredient suppliers and manufacturers
- Growing consumer awareness of botanical wellness products
The United States continues to lead demand for clean-label foods, dietary supplements, and natural health products, while Europe remains a key market driven by strong consumer preference for herbal ingredients and natural formulations. China maintains a dominant position in licorice cultivation and traditional medicinal applications. Japan and South Korea are expanding usage in functional foods, cosmetics, and wellness products. India is emerging as a high-growth market supported by the increasing popularity of Ayurveda, herbal supplements, and plant-based healthcare solutions.
Licorice Extract Market Geographical Penetration
North America’s Growing Pharmaceutical Industry
North American consumers are increasingly health-conscious and seek natural remedies and supplements. In the United States, the International Food Information Council (IFIC) conducted a survey and the results showed that 48% of respondents said they preferred to buy products with all-natural flavors. Because of licorice's health advantages, it is a preferred option in the region.
Licorice Extract Market Companies
The major global players include Norevo, Mafco Worldwide LLC, Sepidan Osareh Jonoob Co., Zagros Licorice Co., Shaanxi Fujie Pharmaceutical Co., Ltd., BGG WORLD, VPL Chemicals, Avestia Pharma, C.E. Roeper GmbH, Botanic Healthcare.
Key Developments
- • In April 2026, Rohto Pharmaceutical Co., Ltd. and its group company MG Pharma Inc. announced that their proprietary Licorice Extract Powder (Lyconin®) became Japan’s first approved functional food ingredient containing licorice-derived Gliasperin B for body fat management applications.
- • In January 2026, Norevo GmbH expanded its confectionery ingredient portfolio by highlighting multiple licorice extract formats, including granules, powders, pastes, and blocks, to support food and confectionery manufacturers.
- • In January 2026, Natural Remedies Pvt. Ltd. announced a new human clinical study for its patented GutGard® deglycyrrhizinated licorice extract, aimed at strengthening scientific evidence for digestive health and metabolic wellness applications.
- • In October 2025, Natural Remedies Pvt. Ltd. reported positive clinical findings for GutGard®, demonstrating improved symptom relief in gastroesophageal reflux management and reinforcing its position in the nutraceutical and functional food sectors.
- • In August 2025, the European Medicines Agency (EMA) published draft revisions for Liquiritiae radix (licorice root) monographs, supporting future standardization and regulatory alignment across licorice-derived ingredient markets.
- • In April 2025, Swisseutic AG entered a strategic distribution partnership with Qinghai Lake Pharmaceutical Co., Ltd. (QHL) to expand the availability of licorice-derived active ingredients, including Glabridin, Licochalcone A, and Glycyrrhizinate derivatives across the European market.
Licorice Extract Market Investment & Funding Analysis
Global investments in natural ingredients, botanical extracts, and plant-based health products continue to increase significantly.
Major funding areas include:
- Botanical extraction technologies
- Functional food and beverage ingredients
- Natural sweetener development
- Nutraceutical and dietary supplement innovation
- Pharmaceutical-grade herbal ingredients
- Sustainable cultivation and sourcing initiatives
Strategic Recommendations
For Licorice Extract Manufacturers
- Invest in advanced extraction and purification technologies
- Expand sustainable sourcing networks
- Develop high-purity extracts for pharmaceutical applications
- Strengthen partnerships with food and nutraceutical companies
For Investors
- Focus on high-growth botanical ingredient segments
- Monitor regulatory developments for herbal products
- Evaluate companies with strong supply chain integration
- Assess opportunities in functional food and supplement markets
For Governments
- Encourage sustainable medicinal plant cultivation
- Support research on herbal and botanical ingredients
- Strengthen quality and safety regulations
- Promote agricultural innovation and value-added processing
Why Buy This Licorice Extract Market Report?
This report helps organizations:
- Understand future botanical ingredient trends
- Identify high-growth market opportunities
- Benchmark competitors effectively
- Analyze regulatory developments
- Optimize market expansion strategies
- Evaluate emerging application areas
- Assess regional growth potential
- Track innovation across food, pharmaceutical, and nutraceutical sectors
What's Included in the Licorice Extract Market Report?
The report provides:
- Market size & forecast analysis
- Regional growth outlook
- Competitive intelligence
- Product and application benchmarking
- Pricing analysis
- Regulatory assessment
- Supply chain insights
- Market share analysis
- Investment landscape analysis
- Strategic recommendations
- Emerging trends analysis
- Company profiling
Who Should Buy This Report?
This Licorice Extract Market report is ideal for:
- Botanical extract manufacturers
- Food & beverage companies
- Nutraceutical manufacturers
- Pharmaceutical companies
- Dietary supplement brands
- Ingredient suppliers and distributors
- Agricultural producers
- Venture capital firms
- Institutional investors
- Market intelligence teams
- Research organizations
- Government agencies
Key Benefits for Stakeholders
Gain actionable market intelligence:
- Understand evolving consumer demand for natural ingredients
- Analyze global market expansion strategies
- Evaluate innovation in botanical extraction technologies
- Identify strategic growth opportunities
- Benchmark leading market participants
- Improve investment decision-making
- Assess emerging application trends
- Monitor competitive developments across key regions
Why Purchase the Report?
- To visualize the global licorice extract market segmentation based on product, form, grade, distribution channel, application and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of licorice extract market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global licorice extract market report would provide approximately 77 tables, 81 figures and 178 Pages.
Target Audience
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
