Global Licorice Extract Market - Forecasts from 2022 to 2027

The global licorice extract market is projected to grow at a CAGR of 5.15% to reach US$965.831 million by 2027, from US$679.426 million in 2020.

Increasing awareness among people regarding the beneficial properties of licorice extract is leading to a rise in consumption.

The trend of leading a sedentary lifestyle has increased among individuals owing to the increased spending power. However, there are risks involved that can lead to severe health problems such as diabetes or other problems related to the heart or other vital organs like the liver.

As such, efforts are being made to increase the consumption of healthy foods, take a healthy diet, and mix good and beneficial ingredients in foods to make them more nutritious. This has resulted in increasing consumption of licorice in different foods and beverages owing to the health benefits of consuming licorice extract, which mostly arises from the popularity of ancient Chinese medicine. Some of the health benefits include a reduction in stress levels owing to its property of releasing cortisol and producing adrenaline. It is also beneficial in cleaning up the respiratory system. It can ease the effects and the stress being imposed on the bronchial system by enhancing breathing capabilities.

Additionally, it is also beneficial in clearing out the stomach properly by effectively treating different gastrointestinal problems such as food poisoning, stomach ulcers, and heartburn, among others. Therefore, these factors are bolstering the market growth over the forecast period.

Product Offerings by major market players in the licorice extract market

The offering of better varieties of Licorice Extract with enhanced properties such as quality and flavor, among others, by existing and new players in different markets are estimated to lead to increased adoption and propel the market growth further over the forecast period.

Some of the examples of product offerings are as follows:

• Zagros Licorice co., one of the leading companies involved in the manufacture and distribution of different forms, offers a variety of licorice products under their product portfolio. They offer Solid licorice extract that is sold as a set of 6 blocks wrapped in polythene which is then secondary packed in the cardboard boxes to prevent any contamination of the product for a safer delivery to the customers. They offer semi-fluid licorice extract or licorice extract in a paste form, which is sold and distributed, to the consumers as per their packaging requirements. They can include anything from containers to barrels. It is also sold in two different powder forms, which include a spray-dried form or a paste and powder form of the soup root extract.
• iranlicorice.com is a company that sells different types of licorice products under its product portfolio. They sell licorice extract in the block form, also called solid licorice. It is also produced 100% naturally, is 100% in quality, and is available in any specification that the customer may require. They also sell their product as licorice extract granules, refined licorice crystal type powder; produced 100% naturally, is 100% pure, and is available at a lower price than the black licorice, with the capability of being produced with any specification. In addition, the DGL extract (deglycyrrhizinated form) is also available, which is a type of licorice extract. In this, the glycyrrhizin compound that is usually present in the conventional forms of licorice extracts is absent.

The North American region to hold a considerable share over the forecast period and the Asia Pacific region holds a noteworthy potential to grow over the forecast period

The North American region is expected to hold a considerable share over the forecast period owing to the increasing investment being made in beauty and personal care products in order to boost the development of the cosmetics industry and cater to the rising demand for better products from women in the countries such as the US.

Moreover, the Asia Pacific region holds the potential to grow into an influential market owing to the rising awareness of leading a healthy life and taking a good diet, the rising demand from middle-aged and older women for skin care products due to high temperatures, and the rising pollution in the countries such as India.

The use of licorice is rising in the cosmetics and personal care segment

The demand for cosmetics and personal care products is rising owing to the rising awareness to enhance and improve the overall beauty. Furthermore, the demand for beauty products with added active and other ingredients in order to boost the different properties of the skin is also growing. Licorice as an added ingredient in cosmetics and personal care products is gaining good traction owing to the serval properties and benefits it can provide. Some of these benefits include controlling the redness induced in the skin due to improper care and hygiene or skincare routine, flushing of the skin of women, etc.

Besides, as most women prefer skin lightening treatments due to prolonged exposure to the sun, or the occurrence of black spots and blemishes on the skin, licorice also provides relief by acting as a skin lightening agent due to presence of the active ingredient called glabridin.

Furthermore, there are market players involved in the provision of cosmetic and beauty products with added licorice root extracts in order to enhance different skin properties and alleviate certain skin conditions. For example, In September 2019, Evonik Care Solutions, a part of the nutrition and the cosmetic industry arm of the company, announced the launch of their new product called the “ROVISOME Sensitive NG.”This product is an active ingredient that will be added to their delivery system technology in order to transport calendula and licorice extracts deep inside the skin layers, and it can soothe the skin, among showing other benefits.

Key Developments

November 2021: Mafco, a leader in natural licorice extract production and individualized flavor solutions, announced the grand opening of their new research and development center in Mount Laurel, New Jersey.

January 2021: Mafco®, the market leader in licorice products, announced the launch of new category-specific Magna-Brand solution products that tackle some of the most difficult issues in product and flavor creation today. Some of their newest products are among the most economical and effective for taste modification, owing to careful compounding.

Impact of the COVID-19 pandemic

The COVID-19 pandemic resulted in the closure of major industrial and commercial processes, owing to the strict lockdown and social distancing regulations. The licorice market also suffered as a result of the disruptions in supply and production lines. However, owing to the rising demand for healthy living and increased health consciousness among customers, the market demand soon returned to normal. The introduction of new organic skincare and food products also led to the rise in market demand. Moreover, the growing e-commerce and inline shopping trends positively affected the global licorice market. Further, with the withdrawal of previously implemented lockdown procedures, the market is anticipated to grow substantially.

Segmentation:

By Form

• Block
• Powder
• Paste

By Application

• Food and Beverage
• Cosmetics and Personal Care
• Tobacco Products

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• UK
• Germany
• France
• Spain
• Italy
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Asia Pacific
• Japan
• China
• India
• South Korea
• Taiwan
• Thailand
• Indonesia