Licorice Extract Market Outlook: Herbal Ingredient Demand and Growth Opportunities

According to IMARC Group's latest market research, The global licorice extract market size was valued at USD 2,267.6 Million in 2025. Looking forward, IMARC Group estimates the market to reach USD 3,365.8 Million by 2034, exhibiting a CAGR of 4.35% from 2026-2034.

How AI is Reshaping the Future of Licorice Extract Market

• Real-Time Quality Detection Through Advanced Spectral Analysis Machine learning algorithms now extract drug component information from spectral data, enabling fast, non-contact quality assessment. This automated approach identifies glycyrrhizin content and purity levels with precision, reducing manual testing time while ensuring pharmaceutical-grade consistency across batches.
• Optimizing Extraction Efficiency and Yield Recovery AI-powered systems analyze process parameters like temperature, solvent concentration, and extraction duration to maximize active compound recovery. Manufacturers using predictive analytics report improved solvent extraction scalability, with systems achieving consistent glycyrrhizin recovery rates that previously required extensive trial-and-error optimization.
• Supply Chain Transparency and Raw Material Sourcing Blockchain-integrated AI tracks licorice root sourcing from cultivation through extraction, documenting origin, harvest conditions, and processing protocols. This end-to-end traceability builds buyer confidence in standardized botanical ingredients, supporting regulatory compliance and enabling suppliers to command premium pricing for verified quality.

Explore Updated 2026 Market Trends & Analysis

Industry Overview

Europe dominates the licorice extract market with a 32.8% share in 2025, driven by stringent regulatory frameworks supporting natural ingredients and consumer preference for organic, clean-label products. The region's established herbal remedy tradition, coupled with robust pharmaceutical R&D investment of approximately USD 42.7 billion annually, creates consistent demand for premium-quality pharmaceutical-grade licorice extract. Heightened health consciousness among European consumers and ongoing innovation by established manufacturers reinforce the region's market leadership. The United States follows closely, capturing 88.90% of North America's market share, fueled by rising consumer adoption of plant-based ingredients valued for their antioxidant and anti-inflammatory properties.

Market Trends & Drivers

Clean-Label Formulations Drive Food & Beverage Adoption The food and beverages segment holds the largest application share as manufacturers replace synthetic sweeteners with licorice extract's natural alternative. Confectionery brands, specialty beverage makers, and functional food companies are incorporating this ingredient to appeal to health-conscious consumers seeking cleaner ingredient lists. Industry data shows nearly 50% of confectionery buyers actively pursue healthier products with minimal natural ingredients, creating sustained demand for licorice as a flavor enhancer and natural sweetening agent across candies, teas, baked goods, and wellness beverages.

Pharmaceutical and Herbal Medicine Integration Accelerates Plant-based therapeutic solutions are gaining traction globally, with licorice extract recognized for anti-inflammatory, antimicrobial, and antioxidant properties. Pharmaceutical companies formulate licorice-based products targeting digestive wellness, respiratory support, and immune enhancement, while herbal practitioners integrate it into traditional remedies. Research documenting bioactive compounds like glycyrrhizin and isoliquiritin has validated medicinal applications in treating gastrointestinal issues, cough management, and skin conditions, driving adoption across pharmaceutical manufacturing and nutraceutical supplement development.

Cosmetics Market Expansion Unlocks Skincare Innovation The global cosmetics industry experienced a 10% sales increase to USD 446 million in 2023, with natural skincare components capturing growing shelf space. Licorice extract's brightening and anti-aging benefits have made it a sought-after ingredient in premium skincare lines, sun protection formulas, and haircare products. Consumers increasingly demand formulations combining glabridin-rich extracts with other botanical actives, encouraging cosmetics manufacturers to source standardized licorice derivatives that deliver consistent results while supporting marketing claims for natural, clean-beauty positioning.

Market Segmentation

By Product Type:

• Food Grade
• Feed Grade
• Pharmaceutical Grade (largest segment)

Pharmaceutical grade represents the dominant category, commanding premium pricing due to stringent purity requirements and regulatory compliance demands in drug formulations. Its essential role in treating gastrointestinal ailments, respiratory conditions, and immune-support supplements ensures consistent buyer demand from pharmaceutical manufacturers and dietary supplement producers prioritizing efficacy and quality assurance.

By Form:

• Block
• Powder (leading segment)
• Paste
• Others

Powder form dominates due to superior solubility, easier blending into formulations, extended shelf stability, and reduced transportation costs. Its versatility enables seamless integration into dry mixes, capsule-filling operations, and beverage applications, making it the preferred choice for manufacturers across food, pharmaceutical, and nutraceutical sectors.

By Application:

• Food and Beverages (largest segment)
• Pharmaceutical
• Tobacco
• Others

The food and beverages segment leads due to widespread incorporation in confectionery, specialty teas, functional drinks, and gourmet food products. Licorice extract's inherent sweetness and complex flavor profile, combined with recognized digestive and anti-inflammatory benefits, position it as a multi-functional ingredient addressing both taste and wellness attributes that resonate with modern consumers.

By Region:

• Europe (32.8% market share) – leading region
• North America
• Asia Pacific
• Latin America
• Middle East and Africa

Leading Companies in the Global Licorice Extract Market

• Alfarid Corporation Limited
• AOS Products Pvt. Ltd.
• Avestia Pharma
• C.E. Roeper GmbH
• F&C Licorice Ltd.
• Herbochem
• Hyundai Bioland
• Mafco Worldwide LLC
• Maruzen Pharmaceuticals Co. Ltd.
• Norevo GmbH
• Shaanxi FUJIE Pharmaceutical Co. Ltd.
• VPL Chemicals Pvt Ltd.

Recent News and Developments

• December 2024: BGM Group and Jointown finalized a strategic partnership focused on licorice fluid extract and Gandixin distribution, expanding market accessibility across key regions.
• September 2024: Uncover, a Pan-African skincare brand, introduced the "I Am Enough" licorice root dark spot serum targeting hyperpigmentation in women of color. After two years of research, the serum demonstrated visible results in 96% of clinical trial participants within four weeks, showcasing licorice's proven efficacy in modern cosmetic formulations.
• September 2024: Estée Lauder launched its Japan-produced Aqua Charge skincare line in partnership with Yushin Shuzo (a sake brewery), featuring licorice-derived dipotassium glycyrrhizinate alongside proprietary hydration technology for enhanced moisture retention and anti-aging benefits.
• April 2025: Lakrids by Bülow celebrated International Liquorice Day with a world record attempt for the largest global liquorice tasting session, demonstrating sustained consumer interest and brand innovation in the licorice confectionery segment.

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