The global licorice extract market, valued at USD 894.3 million in 2025, is projected to reach USD 1.6 billion by 2035, growing at a compound annual growth rate (CAGR) of 6.2% during the forecast period. This growth is primarily driven by increasing consumer awareness of the health benefits associated with licorice, growing demand for natural sweeteners, and the expanding use of licorice extract in various applications, including food and beverages, pharmaceuticals, and cosmetics.
Licorice extract, derived from the root of the Glycyrrhiza glabra plant, is widely known for its naturally sweet flavor, which is used as a substitute for sugar in many food and beverage products. Additionally, licorice extract has numerous health benefits, including antioxidant, anti-inflammatory, and antimicrobial properties. These health benefits are fueling its growing use in functional foods, dietary supplements, and traditional medicine. The increasing demand for natural and plant-based products is also contributing to the growth of the licorice extract market as consumers shift away from synthetic sweeteners and additives.
Licorice extract is also used extensively in the pharmaceutical industry, where it is utilized in formulations for digestive health, respiratory issues, and sore throat treatments. The demand for licorice-based medicinal products is rising as consumers increasingly seek natural alternatives to chemical-based treatments. Additionally, the cosmetic industry is adopting licorice extract due to its skin-brightening, anti-aging, and soothing properties.
The Asia Pacific region is the largest producer and consumer of licorice extract, particularly in countries like China, India, and Turkey, where it has been used in traditional medicine for centuries. However, the market in North America and Europe is also growing rapidly, driven by the increasing popularity of natural health products and the rising adoption of plant-based sweeteners.
MAFCO recently exhibited at the IFT Chicago Suppliers’ Night held on November 7, 2024, at the Donald E. Stephens Convention Center in Rosemont, IL. The event, part of IFT FIRST (Food Improved by Research, Science, and Technology), gathered global food and beverage industry leaders to explore cutting-edge innovations. At booth #1145, MAFCO showcased its latest ingredient solutions, with a spotlight on its advanced Licorice Extract portfolio, recognized for flavor enhancement, sweetness modulation, and functional benefits. “It was an excellent opportunity to engage with industry peers and highlight how our solutions can shape the future of food,” a company spokesperson shared.
With ongoing innovations, rising health awareness, and a growing preference for natural ingredients, the licorice extract market is expected to continue its robust growth through 2035.
Key Industry Attributes
| Attribute | Detail |
|---|---|
| Market Size (2025) | USD 894.3 million |
| Market Size (2035) | USD 1.6 billion |
| CAGR (2025 to 2035) | 6.2% |
| Particular | Value CAGR |
|---|---|
| H1(2024 to 2034) | 6.2% |
| H2(2024 to 2034) | 5.8% |
| H1(2025 to 2035) | 5.9% |
| H2(2025 to 2035) | 6.1% |
The above table presents the expected CAGR for the global Licorice Extract industry over several semi-annual periods spanning from 2025 to 2035. In the first half (H1) of the decade from 2024 to 2034, the business is predicted to surge at a CAGR of 6.2%, followed by a slightly lower growth rate of 5.8% in the second half (H2) of the same decade.
Moving into the subsequent period, from H1 2025 to H2 2035, the CAGR is projected to increase slightly to 5.9% in the first half and remain relatively moderate at 6.1% in the second half. In the first half (H1) the industry witnessed an decrease of 30 BPS while in the second half (H2), the industry witnessed an increase of 30 BPS
The global licorice extract market is projected to grow from USD 894.3 million in 2025 to USD 1.6 billion by 2035, at a CAGR of 6.2%. Liquid licorice extract will dominate the market with a 44.9% share, driven by its broad utility in industrial and pharmaceutical applications. Immune support applications will account for 22.6% of the market share, as demand for natural immunity-boosting products increases.
Liquid Licorice Extract Dominates the Market with Broad Industrial and Pharmaceutical Applications
Liquid licorice extract is set to capture the largest share of the market, estimated at 44.9% in 2024, due to its extensive use across industrial and pharmaceutical applications. Its versatility makes it a preferred choice in a range of products, including candies, beverages, and functional foods. Additionally, liquid licorice extract is widely utilized in the pharmaceutical sector for its anti-inflammatory, anti-viral, and digestive properties, contributing to its dominant position in the market.
The increasing consumer preference for natural ingredients and the rising demand for functional food products are key factors propelling the growth of liquid licorice extract. It is particularly popular in products aimed at supporting digestive health and enhancing overall wellness. As industries continue to adopt clean-label and plant-based products, the demand for liquid licorice extract is expected to rise, solidifying its market leadership. With its diverse applications and growing consumer interest in natural health products, liquid licorice extract is expected to remain a dominant player in the global licorice extract market.
Immune Support Applications Drive 22.6% of Market Value with Rising Demand for Natural Solutions
Immune support applications are expected to account for 22.6% of the global licorice extract market by 2024, fueled by the increasing consumer demand for natural, immunity-boosting products. Licorice extract, particularly its active compound glycyrrhizin, is recognized for its potential to enhance immune function and combat viral infections. As more consumers turn to natural remedies to boost their immune systems, licorice extract has gained significant popularity in the nutraceuticals, dietary supplements, and functional foods sectors.
The global health and wellness trend, combined with heightened awareness of immunity, has driven the demand for natural immunity-enhancing products. As more people seek alternatives to synthetic chemicals, licorice extract’s natural benefits are increasingly being utilized in a range of products aimed at supporting immune health. The growth of the natural supplement market, particularly for immune system support, is expected to drive continued demand for licorice extract. This segment’s prominence in the market is likely to increase as consumer interest in natural health solutions continues to grow, making it a key driver of the licorice extract market’s expansion.
Rising Demand for Natural Ingredients in Medicinal Supplements
The global trend towards natural ingredients in medicinal supplements is driven by increasing consumer preference for health-conscious choices. Licorice extracts have gained prominence due to their versatile therapeutic properties.
They are known for their ability to reduce inflammation, combat microbial infections, and protect liver health. These qualities make licorice extracts valuable in treating conditions such as hyperlipidemia (elevated blood lipids) and skin hyperpigmentation caused by inflammation.
The demand for licorice extracts in medicinal supplements is bolstered by their efficacy and safety profile compared to synthetic alternatives. Consumers are increasingly opting for natural remedies that offer holistic health benefits.
This shift is not only influencing consumer choices but also shaping the sales dynamics for botanical extracts like licorice. As research continues to validate their therapeutic uses, licorice extracts are expected to play a significant role in the future of natural healthcare solutions.
Surge in Herbal Medicine: Boosting the Licorice Extract Industry
The resurgence of interest in herbal medicine, particularly Chinese herbal remedies, is propelling the licorice extract sales forward. Traditional Chinese medicine (TCM) has gained recognition for its holistic approach to health, which includes the use of herbs like licorice root.
In regions such as the USA and Europe, there is a growing acceptance and demand for TCM practices, driving the adoption of licorice extracts in pharmaceutical and dietary supplement formulations.
Licorice extract's popularity in herbal medicine stems from its diverse therapeutic benefits, ranging from respiratory and digestive health support to its use in skincare and dermatology. As more consumers seek natural alternatives with proven efficacy, the demand for licorice extracts is expanding beyond traditional sales.
This trend presents lucrative opportunities for manufacturers and suppliers involved in the herbal medicine supply chain, positioning licorice extract as a key ingredient in modern healthcare solutions.
Consumer Awareness and the Rise of Immune Health Supplements
The increasing consumer awareness of immune health has spurred significant industry growth for licorice extracts. Particularly among younger demographics, there is a heightened focus on maintaining overall well-being and enhancing immune function. Licorice extracts are valued for their ability to support immune health through their anti-inflammatory and antioxidant properties.
In response to rising health, concerns such as allergies, asthma, and autoimmune diseases, consumers are turning to natural supplements that offer immune-boosting benefits. Licorice extracts, known for their bioactive compounds like glycyrrhizin, glycyrrhetinic acid, and flavonoids, are recognized for their potential in supporting immune responses and promoting resilience against infections.
The preference for plant-based, gluten-free, and sugar-free products aligns with current health trends, driving the demand for licorice extracts in immune health supplements. Manufacturers are responding by developing innovative formulations that harness the therapeutic potential of licorice extracts, thereby expanding their industry presence in the nutritional supplement industry.
Investments in Technological Advancements and Research
The dietary supplement industry is witnessing substantial investments in research and development to meet the growing demand for health-promoting products. Advances in production technologies are enabling manufacturers to enhance the efficacy, safety, and bioavailability of dietary supplements, including those containing licorice extracts.
Technological innovations are crucial in addressing consumer preferences for functional beverages and supplements that offer targeted health benefits. Research into the biological mechanisms of licorice extracts, particularly their effects on immune modulation and metabolic health, is driving product innovation. This scientific progress is essential for developing evidence-based formulations that meet regulatory standards and consumer expectations.
Furthermore, the emergence of antibiotic-resistant pathogens underscores the need for alternative health solutions. Licorice extracts are being explored for their potential to support microbiota diversity and enhance immune defense mechanisms against infectious diseases.
As the dietary supplement sales evolves, investments in technology and research will continue to shape the future landscape, promoting sustainable growth and innovation in health-promoting products.
Licorice Extract's Role in Skincare Benefits and Demand
Licorice extract's applications extend beyond internal health supplements to skincare formulations, where it is valued for its dermatological benefits. In skincare, licorice extract is prized for its ability to inhibit tyrosinase, an enzyme involved in melanin production. By reducing melanin synthesis, licorice extract helps fade dark spots and hyperpigmentation, promoting a more even skin tone.
Additionally, licorice extract exhibits potent antioxidant and anti-inflammatory properties, which contribute to its effectiveness in calming skin irritation and redness. These attributes make it a versatile ingredient in skincare products targeted at sensitive skin, acne-prone skin, and those seeking anti-aging benefits.
The demand for natural and plant-based skincare solutions has driven the popularity of licorice extract in the beauty industry. Consumers are increasingly drawn to products that offer holistic benefits while minimizing exposure to synthetic chemicals. As skincare trends continue to prioritize natural ingredients with proven efficacy, licorice extract remains a key player in meeting these evolving consumer preferences.
Innovation Hubs and Test Markets Opportunities for Manufacturers
Innovation hubs and test markets serve as critical platforms for accelerating product development and market entry strategies in the nutrition industry. These hubs facilitate collaboration among stakeholders from diverse sectors, fostering synergies in research, development, and commercialization efforts.
By leveraging innovation hubs, manufacturers gain access to advanced technologies and expertise, enabling them to enhance product formulations and production processes. This collaborative approach accelerates innovation cycles and improves the competitiveness of nutrition products, including those incorporating licorice extracts.
Tests play a pivotal role in validating consumer preferences and optimizing marketing strategies. Manufacturers can gauge product performance, adjust packaging designs, refine pricing strategies, and tailor distribution channels based on real-time feedback. This iterative process allows for rapid adaptations and improvements, ensuring products meet consumer expectations and regulatory requirements.
The integration of innovation hubs and test indutries enables manufacturers to navigate complex industry dynamics effectively. By embracing technological advancements and industry insights, companies can capitalize on emerging trends and seize opportunities for growth in the competitive nutrition product landscape.
The licorice extract industry demonstrates a moderate to high level of player concentration, characterized by a mix of dominant leaders and smaller, regional firms shaping the landscape.
Key players such as Naturex SA, Frutarom Industries Ltd. (a subsidiary of International Flavors & Fragrances Inc.), and Shaanxi Fujie Pharmaceutical Co., Ltd. command significant company shares owing to their extensive product portfolios, robust distribution networks, and substantial investments in research and development.
These industry giants leverage economies of scale, established brand equity, and rigorous quality control protocols to maintain their competitive edge. In parallel, numerous smaller and regional companies compete by specializing in niche segments or specific geographic. They differentiate themselves through unique product formulations, emphasizing organic ingredients, sustainable practices, and localized insights.
Industry competition is driven by continuous innovation, adherence to stringent quality standards, and meeting regulatory requirements, reflecting a growing consumer preference for natural health products. This dynamic environment, shaped by the interplay between major and minor players, fosters overall growth and spurs innovation across the licorice extract sector.
According to an analysis by FMI (Future Market Insights), tier 1 companies hold approximately 25% to 30% of the industry share, with tier 2 players accounting for 35% to 40%. The remaining industry share is captured by tier 3 players, underscoring the diversity and competitiveness within the licorice extract industry.
The industry's value chain begins with sourcing raw licorice from regions known for optimal growing conditions, such as China, Spain, and the Middle East. These regions are renowned for producing high-quality licorice due to favorable climatic and soil conditions. Raw licorice undergoes processing and extraction by various companies, resulting in diverse product forms such as powders, extracts, capsules, and liquids.
These extracted licorice products are then distributed through multiple channels, including pharmaceuticals, dietary supplements, cosmetics, and the food and beverage industries, to reach end consumers globally. This comprehensive value chain ensures that licorice extract products meet diverse demands while adhering to quality and regulatory standards across different applications.
The following table shows the estimated growth rates of the top five geographies. Australia and India are set to exhibit high licorice extract consumption, recording CAGRs of 8.4% and 11.5%, respectively, through 2035.
| Countries | CAGR 2025 to 2035 |
|---|---|
| United States | 6.7% |
| Germany | 5.6% |
| China | 7.8% |
| Australia | 8.4% |
| India | 11.5% |
The licorice extract category in the United States is projected to grow at a CAGR of 6.7% from 2025 to 2035. This growth is driven by increasing consumer awareness and adoption of natural health supplements. As consumers seek alternatives to synthetic products, licorice extract's medicinal properties, including anti-inflammatory and digestive benefits, are gaining traction.
The category is supported by robust research and development activities aimed at expanding product applications in dietary supplements, skincare, and pharmaceuticals. Additionally, stringent regulatory standards ensure product quality and safety, further boosting consumer confidence in licorice extract-based products.
In Germany, the licorice extract category is expected to grow at a CAGR of 5.6% during the forecast period. The country's industry growth is driven by increasing demand for functional foods and beverages enriched with natural ingredients. Licorice extract, known for its antioxidant and anti-inflammatory properties, is increasingly incorporated into functional food products aimed at promoting digestive health and immune support.
Moreover, pharmaceutical applications of licorice extract in treating respiratory ailments and skin conditions contribute to market expansion. The emphasis on organic and sustainable sourcing practices further aligns with consumer preferences for clean-label products in Germany's health-conscious market.
China leads the licorice extract market with a robust CAGR of 7.8% from 2025 to 2035. Traditional Chinese medicine (TCM) values licorice root for its therapeutic benefits in treating various ailments, including digestive disorders and respiratory illnesses. The country's rich herbal medicine heritage drives extensive cultivation and processing of licorice, supporting a diverse range of product formulations.
Rising disposable incomes and health awareness among Chinese consumers propel demand for licorice extract in dietary supplements and herbal remedies. Government initiatives to promote TCM globally further bolster China's role as a key producer and exporter of licorice extract.
Australia's licorice extract market is anticipated to grow at a rapid CAGR of 8.4% during the forecast period. The country's market expansion is fuelled by increasing consumer preference for natural health solutions and botanical ingredients.
Licorice extract's anti-inflammatory and antioxidant properties make it popular in skincare and dietary supplement formulations catering to Australia's health-conscious population. The Industry benefits from stringent regulatory frameworks ensuring product safety and efficacy, which support the growing adoption of licorice extract across diverse applications, including cosmetics and functional foods.
India exhibits the highest CAGR of 11.5% in the licorice extract Industry from 2025 to 2035, driven by expanding applications in Ayurvedic medicines and nutraceuticals. Licorice extract, known locally as "Yashtimadhu," holds significant cultural and medicinal value in traditional Indian medicine.
Increasing healthcare expenditures, coupled with growing consumer awareness of natural remedies, propel demand for licorice extract in treating digestive ailments, skin disorders, and respiratory conditions. The country's thriving pharmaceutical and herbal medicine sectors further contribute to Industry growth, supported by government initiatives promoting traditional medicine research and development.
In response to escalating demand from dietary supplements and pharmaceutical industries, licorice extract processors are aggressively expanding their production capacities and upgrading capabilities through advanced technologies. This strategic initiative aims to effectively meet the growing demand driven by increasing consumer awareness of health benefits associated with licorice extract.
In North America, there is a significant demand surge for licorice extract due to rising consumer interest in digestive health support supplements. This trend is underscored by the staggering prevalence of gastrointestinal (GI), liver, and pancreatic diseases, affecting a substantial portion of the population. Recent surveys indicate that a notable 61% of Americans report experiencing GI symptoms, highlighting the pressing need for effective solutions in the region.
As licorice extract continues to gain recognition for its therapeutic properties in addressing digestive ailments and promoting overall gastrointestinal health, manufacturers are focusing on scaling up production capabilities to capitalize on sales opportunities. This includes leveraging technological advancements to ensure efficient extraction processes and maintain product quality standards.
The competitive landscape in the licorice extract category is characterized by intense efforts among processors to enhance supply chain efficiencies, expand geographical reach, and innovate product formulations. These strategic endeavours are aimed at maintaining competitiveness and meeting the diverse needs of consumers seeking natural remedies and supplements for digestive health and beyond.
| Report Attributes | Details |
|---|---|
| Market Size (2025) | USD 894.3 million |
| Projected Market Size (2035) | USD 1.6 billion |
| CAGR (2025 to 2035) | 6.2% |
| Base Year for Estimation | 2024 |
| Historical Period | 2020 to 2024 |
| Projections Period | 2025 to 2035 |
| Quantitative Units | USD billion for value |
| Applications Analyzed | Boost Energy, Brain Health, Colon Health, Digestive Health, Immune Support, Liver Support, Skin Health |
| Form Types Analyzed | Chewable Tablets, Capsules, Gelatin, HPMC, Gummies/Chews, Powder, Liquid |
| Regions Covered | North America, Latin America, Europe, East Asia, South Asia, Oceania, Middle East & Africa |
| Countries Covered | United States, Canada, Brazil, Mexico, Germany, France, United Kingdom, China, India, Japan, Australia, UAE, South Africa |
| Key Players Influencing the Market | Shaanxi Jiahe Phytochemicals, Zhejiang Kangling, Hebei Jingu, Hunan Huakang, Norevo GmbH, Aushadhi Herba, MAFCO Worldwide LLC, F&C Licorice, VPL Chemicals, Zagros Licorice, Ransom Naturals, Sepidan Osareh |
| Additional Attributes | Dollar sales growth by application (energy, digestive health), regional demand trends, competitive landscape, pricing strategies, distribution channels, consumer preferences, formulation innovations |
As per application, the industry has been categorized into Boost Energy, Brain Health, Colon Health, Digestive Health, Immune Support, Liver Support and Skin Health
The segment is further categorized into Chewable Tablets, Capsules, Gelatin, HPMC, Gummies/Chews, Powder and Liquid
Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania and Middle East & Africa
The Licorice Extract sales is estimated to reach sales nearly USD 894.3 million by 2025.
Licorice Extract industry revenue is expected to increase at a CAGR of around 6.2% during the period 2025 to 2035.
Licorice Extract sales increased a CAGR of around 5.3% over the past half-decade.
The global Licorice Extract industry value will be around USD 1.6 billion in 2035.
Sichuan Union Herb, Shaanxi Jiahe Phytochemicals, Zhejiang Kangling, Hebei Jingu, Hunan Huakang, and others are expected to be the top players driving the industry growth.
Innovative applications, research formulations, and medicinal properties are the factors driving growth of Licorice Extract growth.
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Licorice Extract Market
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