Reports
The Global Licorice Extracts Market was valued at USD 3402.24 Million in 2024 and is anticipated to reach a value of USD 5588.54 Million by 2032 expanding at a CAGR of 6.4% between 2025 and 2032.
China plays a pivotal role in the global Licorice Extracts Market, supported by its large-scale cultivation zones in Gansu and Xinjiang, significant investments in extraction technologies, widespread pharmaceutical and confectionery usage, and integration of automated manufacturing processes in licorice processing plants.
The Licorice Extracts Market has witnessed notable transformation across food & beverage, pharmaceuticals, cosmetics, and nutraceutical industries. Pharmaceutical applications dominate due to glycyrrhizin’s potent anti-inflammatory and antiviral properties. Rapid adoption of advanced extraction technologies, including membrane separation and ultrasonic-assisted processes, has significantly enhanced purity levels and extraction yields. Increasing consumer demand for clean-label and organic products is driving regulatory compliance and certification-focused production, particularly in North America and Europe. Environmental concerns have led to a shift toward eco-friendly solvent systems and sustainable harvesting techniques. Regionally, Asia-Pacific leads in consumption owing to traditional medicine usage, while demand in Europe continues to rise due to natural flavoring trends in beverages and herbal remedies. Additionally, emerging demand from sports nutrition and personal care sectors is expanding the growth avenues, enhancing the long-term outlook of the global Licorice Extracts Market.
Artificial Intelligence is increasingly revolutionizing the operational efficiency and strategic dynamics of the Licorice Extracts Market. AI-powered predictive analytics tools are enabling manufacturers to streamline root harvesting schedules based on soil health, weather patterns, and crop maturity, minimizing waste and boosting extraction yields. Advanced AI-driven vision systems are employed for quality grading of licorice roots, ensuring consistent raw material input for premium extract output. AI-integrated automation in extraction facilities has also led to a 25% increase in processing speed and up to 30% reduction in solvent usage by optimizing temperature and pressure settings in real time.
In the global Licorice Extracts Market, natural language processing (NLP) and machine learning algorithms are being used to analyze consumer feedback from e-commerce platforms and social media. These insights are helping companies tailor new product developments and formulations with precision, particularly in functional beverages and herbal cosmetics. AI also plays a vital role in regulatory compliance, enabling real-time tracking and documentation of chemical compositions and allergens for export documentation. Furthermore, AI-driven supply chain mapping tools have enhanced sourcing transparency, helping large-scale manufacturers trace licorice origins and ensure sustainable procurement. This digital transformation is redefining competitiveness and operational resilience across the value chain of the Licorice Extracts Market.
“In 2024, a leading European nutraceutical firm implemented an AI-enhanced extraction protocol that optimized licorice root concentration levels by 22%, reduced processing time by 18%, and improved energy efficiency by 31% through real-time process adjustments and predictive yield analytics.”
The Licorice Extracts Market is influenced by a combination of shifting consumer preferences, regulatory frameworks, and advancements in extraction and processing technologies. Increased health awareness and the growing demand for plant-based ingredients have elevated the role of licorice extracts in pharmaceuticals, cosmetics, and nutraceuticals. The market is further shaped by innovations in solvent-free and low-temperature extraction methods that preserve bioactive compounds. Industry players are also focusing on traceability, organic certification, and clean-label product formulations. Additionally, geopolitical shifts and fluctuations in licorice root availability across major producing countries like China, Iran, and Turkmenistan continue to impact supply chain dynamics and pricing volatility.
Rising adoption of licorice derivatives in therapeutic formulations is a key driver for the Licorice Extracts Market. Licorice contains glycyrrhizin, which exhibits anti-inflammatory, antiviral, and hepatoprotective properties. It is widely incorporated in treatments for peptic ulcers, hepatitis, sore throats, and cough suppressants. According to 2024 industry data, over 65% of pharmaceutical formulations containing licorice were developed for respiratory and gastrointestinal indications. With the increased prevalence of chronic lifestyle disorders and respiratory infections, the pharmaceutical sector is intensifying research into botanically derived ingredients like licorice. Additionally, regional pharmacopoeias in Asia and the Middle East have expanded their licorice-based drug approvals, enhancing market penetration and global demand.
A significant restraint impacting the Licorice Extracts Market is the potential health risks associated with overconsumption of glycyrrhizin. Prolonged intake or high dosages have been linked to hypertension, hypokalemia, and cardiovascular complications. Regulatory agencies such as the European Food Safety Authority (EFSA) have recommended strict intake limits for glycyrrhizin in food and supplements, prompting manufacturers to reformulate products or limit dosage levels. These safety concerns have resulted in increased scrutiny during product approvals and import inspections. Additionally, demand from health-conscious consumers is shifting toward deglycyrrhizinated licorice (DGL) products, which require extra processing steps and incur higher production costs, thereby limiting market scalability.
One of the promising opportunities in the Licorice Extracts Market is its growing use as a natural sweetener in clean-label and sugar-reduced food applications. Licorice root extract is approximately 30 to 50 times sweeter than sucrose, making it an effective substitute in sugar-free confectionery, beverages, and functional foods. As global health trends shift toward low-calorie diets, manufacturers are exploring licorice-based formulations that meet both taste and wellness goals. In 2024, natural ingredient developers in Europe and North America expanded their use of licorice extract in organic beverages and plant-based dairy alternatives, addressing the rising demand for botanical sweeteners with antioxidant properties and reduced glycemic impact.
The Licorice Extracts Market faces a critical challenge due to unsustainable harvesting practices and biodiversity loss in native licorice-growing regions. Overharvesting of Glycyrrhiza glabra and Glycyrrhiza uralensis has led to ecological degradation in key producing areas, particularly in Central Asia and parts of China. Regulatory bodies are increasingly enforcing traceability and sustainability certifications, such as FairWild and organic standards, to ensure responsible sourcing. However, establishing such certification protocols and transitioning to sustainable farming practices require considerable time, investment, and farmer training. These constraints not only increase sourcing costs but also limit supply chain flexibility, hindering the expansion potential of the global Licorice Extracts Market.
• Surge in Demand for Deglycyrrhizinated Licorice (DGL) Products: There has been a sharp rise in consumer preference for DGL-based supplements and functional foods, particularly in the North American and European nutraceutical sectors. In 2024, over 38% of new licorice-based formulations in the dietary supplement space were labeled DGL, reflecting growing safety-consciousness among consumers. DGL is preferred for its reduced glycyrrhizin content, which mitigates adverse effects like elevated blood pressure, making it a favorable alternative for long-term use.
• Expansion of Licorice-Based Natural Flavors in Beverages: The beverage industry has increasingly adopted licorice extracts as a natural flavoring agent, especially in botanical sodas, herbal teas, and alcohol-free aperitifs. Premium beverage launches in Western Europe incorporating licorice extract grew by 27% in 2024, driven by clean-label trends and demand for complex herbal profiles. The use of spray-dried licorice powder is expanding due to its solubility and consistent flavor delivery in cold-pressed drinks.
• Growth in Sustainable and Organic Licorice Sourcing: Ethical sourcing and organic certification have gained traction, particularly in export-driven markets. By mid-2024, over 45% of European licorice extract imports were certified organic or ethically harvested. Producers in Central Asia and China are scaling up initiatives to align with FairWild standards, as global brands increasingly require traceable, eco-compliant ingredients for food and cosmetic formulations.
• Technological Advancements in Extraction Efficiency: Innovations such as supercritical CO₂ extraction and microwave-assisted processes are improving licorice extract yield, purity, and energy efficiency. These technologies enable up to 30% faster processing and better retention of glycyrrhizin and flavonoids. Adoption of such methods has grown significantly among top-tier manufacturers in East Asia, reducing solvent residues and enhancing scalability for pharmaceutical-grade production.
The Licorice Extracts Market is segmented across product types, applications, and end-user categories, each playing a distinct role in shaping market dynamics. By type, powdered, liquid, block, and DGL variants offer flexibility for specific industry uses. Among applications, pharmaceuticals and nutraceuticals hold the largest share due to medicinal properties, followed closely by cosmetics and food & beverage. End-user segmentation reveals dominance from pharmaceutical companies, while the food industry and cosmetics brands also represent significant consumption volumes. Demand trends are notably shifting towards clean-label, organic, and therapeutic-grade licorice products. Regional preferences further influence segmentation, with Asia-Pacific dominating traditional medicinal applications, while North America and Europe drive innovation in health supplements and premium food products. Manufacturers are increasingly tailoring their licorice extract portfolios to align with functional requirements and evolving industry standards.
Powdered licorice extract continues to lead the market due to its high stability, ease of integration into various formulations, and extended shelf life. It is widely used across pharmaceuticals, beverages, and personal care products. Liquid licorice extract remains popular for its superior solubility and is preferred in food flavoring and syrup formulations. The fastest-growing segment, however, is deglycyrrhizinated licorice (DGL), which has gained popularity due to its safety profile and regulatory acceptance in functional health supplements. In 2024, DGL formulations saw a 31% year-over-year increase in product launches across global nutraceutical brands. Block form extracts retain relevance in traditional medicine and herbal tea blends, particularly in the Asia-Pacific region, though their adoption is comparatively niche. Each type continues to serve specific industry requirements, contributing to a diversified and resilient global licorice extracts portfolio.
Pharmaceutical applications dominate the Licorice Extracts Market, accounting for the largest share, largely due to the extract’s proven efficacy in treating gastrointestinal disorders, respiratory conditions, and as an anti-inflammatory component. In 2024, more than 60% of the licorice extract demand came from the pharma segment alone. The fastest-growing application is in nutraceuticals, as health-conscious consumers increasingly turn to herbal supplements and immunity-boosting products. Licorice’s adaptogenic and antioxidant properties make it a key component in digestive and detox formulas. Food & beverage applications are also growing steadily, driven by natural sweetener trends and the expansion of functional beverages. The cosmetics and personal care industry uses licorice extract for its skin-brightening and anti-aging properties, especially in Asian beauty markets. The extract’s multifunctionality across applications continues to drive innovation and diversification in product development pipelines.
Pharmaceutical companies represent the largest end-user segment in the Licorice Extracts Market, owing to the extensive use of licorice in prescription and over-the-counter medicines, especially for digestive and respiratory treatments. The widespread adoption of licorice-based actives in cough syrups, tablets, and topical ointments highlights its critical role in modern and traditional pharmacology. The fastest-growing end-user segment is nutraceutical manufacturers, as they respond to consumer demand for plant-based, preventive health solutions. The use of licorice in gut health supplements, adaptogen formulas, and herbal teas is fueling this expansion. Food and beverage producers continue to integrate licorice for natural flavoring and sugar reduction, particularly in gourmet and organic products. Meanwhile, cosmetics brands are utilizing high-purity licorice extracts in skincare products aimed at hyperpigmentation and inflammation, especially in the premium beauty category. These varied end-users underline the cross-functional appeal and versatility of licorice extracts across sectors.
Asia-Pacific accounted for the largest market share at 41.3% in 2024; however, North America is expected to register the fastest growth, expanding at a CAGR of 7.1% between 2025 and 2032.
Asia-Pacific’s leading position is driven by extensive cultivation in China and India, supported by their vast agricultural infrastructure and high consumption in traditional medicine and food sectors. Japan also contributes to steady demand through its cosmetics and pharmaceutical industries. Meanwhile, North America is witnessing accelerated growth due to increasing consumer preference for clean-label and plant-based health products, expanding nutraceutical manufacturing capacity, and supportive regulatory frameworks encouraging botanical ingredient use in food, pharma, and cosmetics. Europe holds a notable share as well, driven by clean-label trends, sustainable sourcing, and technological innovation in food and beverage applications. South America and Middle East & Africa are gradually gaining momentum as export-oriented processing hubs and alternative sourcing bases, respectively. With a rising global shift toward natural ingredients and regulatory alignment for herbal actives, regional dynamics in the Licorice Extracts Market continue to evolve.
Rising Functional Ingredient Integration Across Wellness Sectors
North America held a market share of 23.6% in 2024, driven by strong demand from the nutraceutical, pharmaceutical, and personal care sectors. The expansion of functional beverages and herbal supplements has significantly influenced product innovation. U.S.-based firms are integrating deglycyrrhizinated licorice in digestive health products and clean-label oral therapeutics. Notable regulatory easing by the U.S. FDA on botanical labeling, combined with growing consumer demand for non-synthetic actives, has encouraged a rise in licorice extract usage. AI-enabled formulation tools are being adopted to optimize glycyrrhizin concentration in product development. Additionally, vertically integrated supply chains and domestic sourcing practices are enhancing efficiency across the region's licorice extract operations.
Clean-Label Movement and Sustainable Sourcing Driving Innovation
Europe accounted for 18.4% of the global Licorice Extracts Market in 2024, with Germany, France, and the UK emerging as major consumption hubs. The region’s focus on organic food ingredients and herbal cosmetics aligns with increasing usage of licorice-based actives. Regulatory bodies like EFSA and REACH continue to influence licorice extract usage limits, ensuring safety and transparency. Sustainability initiatives such as FairWild certification are gaining momentum, especially among European importers. The adoption of green extraction technologies, including solvent-free and membrane-based techniques, is becoming widespread in the processing of licorice for health and personal care products. Cross-border collaborations for licorice traceability and eco-labeling further enhance market integrity.
Regional Production Dominance and Traditional Usage Fueling Demand
With a volume share of 41.3%, this region remains the world’s primary licorice extract supplier and consumer. China leads production, while India, Japan, and South Korea continue to boost demand through pharmaceutical, food, and beauty sectors. Infrastructure modernization in China’s processing zones and India's botanical extraction hubs has streamlined scalability. Japan’s high standards in functional cosmetics are further elevating the market’s sophistication. Moreover, R&D centers in Seoul and Shanghai are investing in biotech-aided purification of glycyrrhizin. Technology clusters in this region are fostering smart extraction systems that use AI and IoT to improve operational control, boost quality assurance, and enhance international compliance.
Emerging Processing Capabilities and Regional Trade Momentum
South America, led by Brazil and Argentina, accounted for 6.8% of the Licorice Extracts Market in 2024. Brazil is witnessing increasing demand for licorice derivatives in organic beverages and herbal wellness products. Regional processing units are evolving with better drying, filtration, and extraction capabilities, catering to both domestic consumption and export. Trade partnerships with European and Asian importers have incentivized licorice cultivation trials and contract farming initiatives in Argentina and Paraguay. Local governments are offering agricultural subsidies and energy rebates to processing firms, enhancing competitiveness. Despite its smaller share, South America’s growing infrastructure and trade liberalization are laying the foundation for future expansion.
Natural Ingredient Demand and Industrial Policy Reform Bolstering Growth
The Middle East & Africa region captured a 4.2% share of the Licorice Extracts Market in 2024. UAE and South Africa are driving regional demand due to rising applications in personal care and traditional medicine formulations. Government-backed industrial diversification programs in the Gulf Cooperation Council (GCC) are supporting natural product manufacturing, including licorice-based cosmeceuticals. South Africa's pharma sector is adopting AI-integrated production systems for standardizing herbal extracts. Regulatory cooperation with the European Union on botanical ingredient approvals has enhanced licensing procedures. Technology transfer agreements and joint ventures with Asian players are accelerating modernization of processing capabilities across the region.
China – 32.7% market share
High production capacity supported by vast licorice root cultivation zones and integrated extraction facilities.
United States – 17.2% market share
Strong end-user demand from pharmaceuticals and nutraceuticals, with rapid innovation in clean-label formulations.
The Licorice Extracts Market features a moderately fragmented competitive environment with over 90 active manufacturers and suppliers globally. Market participants range from vertically integrated raw material processors to specialty ingredient manufacturers catering to pharmaceutical, nutraceutical, cosmetic, and food sectors. Companies are actively pursuing strategic partnerships with regional growers and investing in sustainable sourcing programs to secure long-term supply chains, particularly in Asia and Central Asia.
Innovation remains a key differentiator, with leading players integrating AI-powered extraction systems and adopting green technologies such as supercritical CO₂ and solvent-free processing. In 2024, over 25 companies introduced new licorice-based formulations targeting the functional foods and clean-label cosmetics segments. Mergers and acquisitions have also increased, as global ingredient firms seek to expand their botanical portfolios and geographic presence.
Licorice extract suppliers are also focusing on obtaining certifications such as organic, halal, kosher, and FairWild to improve export competitiveness. Competitive intensity is high in Europe and North America, where regulatory compliance, traceability, and sustainable packaging are major purchasing criteria. As demand continues to rise across emerging applications, manufacturers are scaling production capacity and enhancing R&D investments to maintain differentiation and secure market share.
MAFCO Worldwide LLC
F&C Licorice Ltd.
Norevo GmbH
Zagros Licorice Co.
Naturex SA
Sepidan Osareh Co.
AOS Products Pvt. Ltd.
Maruzen Pharmaceuticals Co., Ltd.
ASEH Licorice MFG Co.
VPL Chemicals Ltd.
The Licorice Extracts Market is experiencing a significant technological evolution, driven by the integration of clean extraction systems, process automation, and AI-based quality control mechanisms. One of the most impactful advances is the adoption of supercritical CO₂ extraction technology, which allows the efficient isolation of bioactive compounds such as glycyrrhizin and flavonoids without residual solvents. This method enhances product purity while maintaining ecological compliance, especially valuable for pharmaceutical and cosmetic-grade licorice extracts. Microwave-assisted and ultrasonic extraction techniques are gaining traction for their ability to reduce processing time by up to 35% and improve extract yield by over 20% compared to traditional solvent-based methods. These technologies also support temperature-sensitive compound preservation, making them ideal for producing high-performance licorice derivatives.
AI and IoT are also transforming factory operations, with real-time monitoring of temperature, solvent ratio, and root quality parameters to optimize batch consistency. Automated weighing and dosing systems further reduce human error and improve GMP compliance across nutraceutical and food-grade manufacturing facilities. In addition, high-performance liquid chromatography (HPLC) and near-infrared spectroscopy (NIRS) are being widely used for rapid compound profiling and batch authentication. The integration of sustainable technologies, digital process analytics, and AI-powered optimization tools is redefining licorice extract production standards, offering better scalability, traceability, and regulatory alignment.
• In April 2024, Naturex expanded its licorice extraction facility in Avignon, France, integrating membrane filtration systems that boosted throughput by 28% while reducing water consumption per batch by 17%.
• In October 2023, China’s leading nutraceutical company launched an AI-assisted glycyrrhizin standardization platform to ensure uniform concentration across DGL supplement lines, improving accuracy by 21%.
• In January 2024, Zagros Licorice Co. introduced a solvent-free extract range designed for premium cosmetic applications, utilizing microwave drying techniques that reduced energy consumption by 33%.
• In July 2023, a Middle Eastern consortium began cultivating licorice root under desert farming techniques in the UAE using hydroponic systems, enabling year-round yield and reducing pesticide use by 42%.
The Licorice Extracts Market Report provides a comprehensive assessment of the global industry landscape, covering key segments by type, application, and end-user. The report evaluates powdered, liquid, block, and deglycyrrhizinated licorice forms, each tailored to diverse product formulations in pharmaceuticals, functional foods, personal care, and beverages. It also explores their integration across leading and emerging applications, including herbal supplements, clean-label cosmetics, plant-based oral care, and natural sweeteners.
Geographically, the analysis spans North America, Europe, Asia-Pacific, South America, and the Middle East & Africa, offering region-specific insights into supply chains, regulatory trends, manufacturing infrastructure, and import-export flows. The report investigates how technological advancements—such as supercritical extraction, AI-assisted production, and green chemistry practices—are enabling cost efficiency, batch standardization, and compliance with evolving consumer and regulatory expectations.
Furthermore, the scope includes analysis of market enablers such as traceability systems, ethical sourcing frameworks, and emerging demand from niche industries like sports nutrition and ayurvedic medicine. The report also identifies key country-level leaders and assesses their competitive strategies in raw material procurement, certification standards, and sustainability initiatives. Designed for industry leaders and stakeholders, the report serves as a strategic tool for investment planning, product development, and global market positioning.
| Report Attribute/Metric | Report Details |
|---|---|
|
Market Revenue in 2024 |
USD 3402.24 Million |
|
Market Revenue in 2032 |
USD 5588.54 Million |
|
CAGR (2025 - 2032) |
6.4% |
|
Base Year |
2024 |
|
Forecast Period |
2025 - 2032 |
|
Historic Period |
2020 - 2024 |
|
Segments Covered |
By Types
By Application
By End-User
|
|
Key Report Deliverable |
Revenue Forecast, Growth Trends, Market Dynamics, Segmental Overview, Regional and Country-wise Analysis, Competition Landscape |
|
Region Covered |
North America, Europe, Asia-Pacific, South America, Middle East, Africa |
|
Key Players Analyzed |
MAFCO Worldwide LLC, F&C Licorice Ltd., Norevo GmbH, Zagros Licorice Co., Naturex SA, Sepidan Osareh Co., AOS Products Pvt. Ltd., Maruzen Pharmaceuticals Co., Ltd., ASEH Licorice MFG Co., VPL Chemicals Ltd. |
|
Customization & Pricing |
Available on Request (10% Customization is Free) |
