Licorice Extract Market Size, Share, Industry, Forecast and Outlook (2024-2031)

Licorice Extract Market Overview

Global Licorice Extract Market reached US$ 1.98 billion in 2022 and is expected to reach US$ 3.18 billion by 2030, growing with a CAGR of 6.1% during the forecast period 2023-2030.

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. In May 2023, 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.

Licorice Extract Market Scope and Summary

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. In August 2022, 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 in 2021, 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.

In October 2022, The European Commission (EC) revised its regulation on maximum levels (MLs). Specifically, the regulation establishes MLs for dried fruit other than dried vine fruit, some licorice products, dried herbs, etc. This states that the recommended dosage of licorice extract for use in food, especially beverages and sweets, is 80.0 g/kg.

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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.

In August 2023, Researchers from Hong Kong Baptist University (HKBU) discovered that isoliquiritigenin (ISL), a flavonoid derived from the Chinese herbal remedy licorice, can halt the spread of pancreatic cancer. Additionally, it might improve the effectiveness of standard chemotherapy medications used to treat pancreatic cancer.

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 2021, 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.

The pharmaceutical industry in North America is growing. IQVIA (MIDAS May 2022) reports that the US market accounted for 64.4% of sales of new medications introduced between 2016 and 21 compared to the European market's 16.8% share (top five markets). Due to the medicinal properties of licorice extract, it has a great demand in the pharmaceutical industry and contributes significantly to the market share.

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

COVID-19 Impact on Licorice Extract Market 

COVID Impact

The pharmaceutical industry, including the production of medications and supplements, experienced heightened demand during the pandemic. Licorice extract is used in various pharmaceutical formulations, especially for its potential respiratory and immune-related benefits, which may have boosted its demand in this sector. Licorice has been shown to affect HMGB1 levels, and because glycyrrhizin binds to the protein and stops it from being phosphorylated, the alkaloid may slow or stop the course of COVID-19.

However, the licorice extract market faced challenges related to supply chain disruptions. Lockdowns, restrictions on movement, and reduced workforce availability in various parts of the world affected the production and distribution of licorice extract. This resulted in delays and difficulties in sourcing raw materials and shipping finished products.

Russia- Ukraine War Impact

The conflict in the Russia-Ukraine region has disrupted licorice root cultivation, harvesting, and supply, raising concerns about potential shortages in the licorice extract market. These supply disruptions have triggered significant price volatility for licorice roots, causing fluctuations in the pricing of licorice extract worldwide.

The increased uncertainty and ongoing supply constraints have created an unpredictable market environment. As a result, licorice extract manufacturers and consumers have had to navigate through these challenges, making strategic adjustments to cope with the changing market dynamics. The conflict's impact on the licorice extract industry underscores the vulnerability of global supply chains to geopolitical instability.

Key Developments

• In July 2023, Farmistry, a multi-active skincare brand introduced ‘Spotlight Fading +Brightening Serum’. This is made up of 7 active components, including licorice extract, mulberry extract, kojic acid, vitamin C, peptide, and niacinamide, which prevent the production of too much melanin and lighten dark spots and skin tone.
• In March 2023, AMBI Skincare, a skincare company, declared the release of the new dark spot fade collection for the brand. The lineup includes the Even & Clear Fade Cream, Even & Clear Fade Serum Retinol, and the Advanced Even & Clear Fade Cream. Advanced Even & Clear Fade Cream is made with 5% niacinamide, licorice root extract, and PHA, combined to help fade the most stubborn dark spots.
• In November 2022, Netsurf Network introduced Six distinct varieties of Ayurveda and herbal Green Tea under the Naturamore brand. These variants are present in 6 variants Ginger and cumin (Digestive & Detox), Tulsi & Licorice (Helps in Lung Detox), Alpinia & CO-Q10 (Rejuvenates & Energises) and others.

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 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies