Licorice Extract Market Size, Share, Trends, and Forecast by Product Type, Form, Application, and Region, 2026-2034

The global licorice extract market size was valued at USD 2.26 billion in 2025. The analyst estimates the market to reach USD 3.36 billion by 2034, exhibiting a CAGR of 4.35% from 2026-2034. Europe currently dominates the market, holding a market share of over 32.8% in 2025. The European market’s growth can be attributed to the rising health consciousness, escalating demand for natural products, and robust use in herbal medicines.

The increasing awareness about health and wellness among people represents a key factor facilitating the market’s growth. The advantages of licorice extract for digestive health, its anti-inflammatory effects, and immune system support are widely acknowledged, leading to its incorporation in dietary supplements and health foods. Moreover, licorice extract is greatly esteemed in the pharmaceutical sector for its healing properties. It is used in the development of drugs that address issues like peptic ulcers, hepatitis, and signs of respiratory infections. Its calming properties for the throat and stomach establish it as a common ingredient in items designed to ease discomfort in these regions. In addition to this, manufacturers are consistently investigating new methods to integrate licorice extract into their offerings, resulting in advancements in the varieties of extract produced, including powders, liquids, and granules. This adaptability enables wider usage across various sectors, simplifying the integration of licorice extract into product offerings for companies.

The United States plays a crucial role in the market, driven by the escalating demand for natural and organic products. Licorice extract is preferred due to its natural source and health advantages, making it well-liked by consumers seeking healthier, cleaner options in food, medicine, and personal care items. Furthermore, licorice extract is employed in the food and beverage (F&B) sector for its distinctive sweet and earthy taste. It is utilized in a variety of products, from specialty teas and sweets to artisanal spirits and gourmet meals. Apart from this, the increasing number of online platforms offers an easy way for individuals to obtain a variety of licorice-infused products, such as health supplements and gourmet food items. This accessibility is expanding the user base and enabling smaller, specialized producers of licorice extract products to connect with a larger audience. The analyst predicts that the e-commerce sector in the United States will reach US$ 2.08 trillion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.80% between 2024 and 2032.

LICORICE EXTRACT MARKET TRENDS:

Rising Application in F&B Industry

There is presently a considerable rise in the demand for clean-label and natural ingredients in the food and beverage (F&B) sector. Consumers are continuously seeking healthier alternatives of traditional products and are keen on more natural and less processed ingredients. According to Döhler, almost 50% of confectionery buyers currently seek healthier alternatives with a minimum of 60% natural ingredients. The clean-label trend is catalyzing the demand for licorice extract since it can be utilized as a natural sweetener as well as flavoring agent in confectionery, beverages, and baked goods. Licorice extract presents a natural low-calorie alternative to synthetic sweeteners and offers flavor characteristics that resonate with health-conscious consumers. The increasing desire for more open, natural, and healthy foodstuff continues to accelerate the growth in demand for more food and beverages with licorice extract incorporated in them to satisfy consumer wants.

Growing Applications in Pharmaceuticals and Herbal Medicines

The increasing popularity of plant-based therapeutic products and natural health solutions is strengthening the growth of the licorice extract industry. An industrial survey report reveals that it is widely acknowledged that between 70% and 80% of people in Africa rely on herbal medicines for their main health care requirements. Licorice extract is highly valued for its anti-inflammatory, antimicrobial, and antioxidant effects, making it commonly used in herbal remedies, cough syrups, and digestive aids. As buyers look for natural alternatives to pharmaceutical solutions, the need for licorice extract is likewise increasing to address various health problems. Bioactive substances in licorice, like glycyrrhizin, glycyrrhizinic acid, and isoliquiritin, are recognized for their remarkable pharmacological effects, which include anti-cancer, anti-atherogenic, anti-diabetic, anti-asthmatic, and anti-inflammatory activities, as reported in a 2021 article from the Journal of Heliyon. These health benefits heighten consumers' interest in this licorice extract as a natural and plant-derived health solution, driving its demand higher in herbal remedies and overall wellness sectors.

Expanding Use in the Cosmetics Industry

The rising demand for organic and natural skincare items is a key factor driving the increased use of licorice extract in the beauty and personal care sector. Due to its skin-brightening and anti-aging benefits, licorice extract has emerged as one of the most sought-after components in skincare products. Shoppers are progressively seeking items that contain natural, effective components that enhance healthy, younger-looking skin. This is the motivating factor for incorporating licorice extract into cosmetic products. Industry reports suggest that the worldwide beauty market saw a 10% rise in retail sales to USD 446 million in 2023 compared to 2022. The expansion of the beauty products market, particularly for items featuring natural and organic components, is driving the need for licorice extract as an essential element in skincare and anti-aging products.

LICORICE EXTRACT INDUSTRY SEGMENTATION:

This report provides an analysis of the key trends in each segment of the global licorice extract market, along with forecast at the global, regional, and country levels from 2026-2034. The market has been categorized based on product type, form, and application.

Analysis by Product Type:

• Food Grade
• Feed Grade
• Pharmaceutical Grade

Pharmaceutical grade holds the biggest market share because of its essential function in medical applications, where purity and high standards of quality are crucial. This type of licorice extract is widely utilized in drug and health supplement formulations, appreciated for its powerful anti-inflammatory, antiviral, and immune-enhancing qualities. The pharmaceutical sector depends on premium licorice extract for its medicinal advantages in addressing issues like peptic ulcers, hepatitis, and respiratory illnesses. The strict regulatory standards for pharmaceutical products guarantee that only the finest quality licorice extract is utilized, reinforcing its leading position in this sector. Moreover, the rising user inclination towards natural and alternative health remedies is driving a higher demand for herbal products that include licorice. With continual research revealing additional health advantages and possible applications, the demand in the pharmaceutical industry keeps growing, maintaining the top status of pharmaceutical grade in the market.

Analysis by Form:

• Block
• Powder
• Paste
• Others

Powder presently demonstrates dominance in the market because of its practical advantages in manufacturing and consumer use. The powdered form offers superior solubility, making it ideal for a wide range of applications across food, beverages, pharmaceuticals, and cosmetics. Its fine consistency allows for easy blending and consistent distribution within formulations, ensuring uniform flavor and medicinal properties. Additionally, the powder form is favored for its long shelf life and stability, which is critical for maintaining the efficacy of active compounds like glycyrrhizin over time. Manufacturers prefer using powdered licorice extract because it simplifies the production process, enhances storage efficiency, and reduces transportation costs. Furthermore, the versatility of powdered licorice extract enables it to be used as a key ingredient in dry mixes, seasonings, and supplements, aligning well with current trends of convenient and health-oriented food products. These attributes collectively drive the preference for and dominance of powdered licorice extract in the market.

Analysis by Application:

• Food and Beverages
• Pharmaceutical
• Tobacco
• Others

The food and beverages segment holds the biggest market share due to its versatile applications in enhancing flavors and health benefits in a variety of products. Licorice extract, recognized for its unique sweetness, is commonly utilized in sweets, pastries, and specialty teas, attracting a wide range of consumers looking for natural flavor alternatives. The inherent sweetness and robust flavor profile render it a favored component in confections, minimizing the requirement for extra sugars and attracting health-aware consumers. Additionally, the rising demand for herbal and botanical components in drinks, including herbal teas and wellness beverages, is promoting the incorporation of licorice extract. Producers are also taking advantage of the anti-inflammatory and digestive health advantages of licorice by adding it to functional foods and wellness items. This alignment with the consumer shift towards healthier food options and natural ingredients is supporting the market growth.

Analysis by Region:

• North America
• Asia-Pacific
• Europe
• Latin America
• Middle East and Africa

In 2025, Europe held the biggest market share at 32.8%. Europe leads the market primarily due to its stringent regulatory framework supporting natural ingredients in consumer products. The region's deep-rooted acceptance of herbal remedies is driving the demand for licorice extract in pharmaceutical applications. Heightened consumer awareness towards health and wellness, along with a preference for organic and clean-label products, further encourages its use in food, drinks, and cosmetics. Moreover, ongoing research and innovation by European companies to expand licorice extract applications ensure sustained market dominance. In 2024, Illva Saronno completed the acquisition of ENGINE Gin, a 100% Italian organic gin with a bold flavor profile featuring juniper, lemon zest, sage, and licorice root for a balanced finish. Known for its motorsports-inspired design in tin-can packaging, ENGINE will now expand to 160 countries under Illva Saronno's portfolio.

KEY REGIONAL TAKEAWAYS:

UNITED STATES LICORICE EXTRACT MARKET ANALYSIS

In North America, the United States represented 88.90% of the overall market share. The licorice extract market in the United States is experiencing notable growth, fueled by multiple important elements, especially the rising need for plant-derived and natural components in different sectors. A report from GFI-PBFA indicates that the US retail market for plant-based food reached a value of USD 8.1 billion in 2023, reflecting a significant increase in consumer acceptance of plant-based items. This increasing trend is boosting the need for licorice extract, which is commonly utilized as a natural flavoring and sweetening component in plant-based foods and drinks. Furthermore, the US continues to be a worldwide leader in pharmaceutical research and development, with American companies performing over fifty percent of the global pharmaceutical R&D efforts, as noted by the PhRMA-Pharmaceutical Research & Manufacturers Association. The country's proficient workforce and the increasing demand for natural remedies bolster the integration of licorice extract in the food and pharmaceutical sectors.

EUROPE LICORICE EXTRACT MARKET ANALYSIS

The European market is growing with the increasing requirement for natural ingredients in the food, cosmetics, and pharmaceutical industries. Europe's pharmaceutical sector is one of the main drivers of this growth, as the research-based industry invested around Euro 41.50 billion (USD 42.73 billion) in R&D in 2021, according to EFPIA. This massive investment clearly indicates Europe's efforts toward developing research and innovative solutions, including plant-based ingredients like licorice extract, which is being sought more frequently due to its medicinal properties. The European consumers' increased concern over health and preference for natural remedies and organic products increase the demand for licorice extract in herbal medicines, skincare, and wellness products. The increasing consumption of clean-label and natural food and beverage items further supports the demand for the licorice extract as a natural sweetener and flavoring agent. All the above factors support the growth in the European region for the market of licorice extract.

Asia-Pacific LICORICE EXTRACT MARKET ANALYSIS

The expansion of the Asia-Pacific licorice extract market is further aided by India's rising emphasis on organic farming, which is directly beneficial for the production of licorice, a vital ingredient in several industries. According to an industry report, incentives for organic food producers are provided by the Indian government under the NHM, wherein INR 10,000 (USD 117) per hectare is offered for a maximum area of four hectares per beneficiary. Furthermore, with a grant amount of INR 5.00 lakh (approximately USD 5,830) for groups of farmers handling an area up to 50 hectares, the above government policies provide support to the organic farming certifications. Thus, these sustainable agriculture efforts improve the quantity of high-quality licorice made available. Demand for natural ingredients and organic formulations is on a rise, both in the realm of food as well as medicines and cosmetics in India, supporting organic cultivation of licorice. This increasing organic licorice availability further accelerates the market in the Asia-Pacific, led by consumer preferences for natural and health-conscious products.

LATIN AMERICA LICORICE EXTRACT MARKET ANALYSIS

The growth in the licorice extract market in Latin America is being triggered by the developing pharmaceutical industry in this region. In fact, a number of pharmaceutical products are manufactured and consumed within countries such as Mexico, Uruguay, Brazil, and Argentina; therefore, a growing demand is being witnessed for natural ingredients, such as licorice extract, which contain medicinal properties. A World Bank report showed that in 2022, Mexico and Uruguay met 46% and 42% of their domestic pharmaceutical demand, while Brazil and Argentina satisfied around 35% of their needs. The pharmaceutical sector continues to grow, and with this growth, the demand for natural and effective ingredients, like licorice extract, increases, especially in medicines targeting digestive, respiratory, and skin health. The increasing dependence on locally produced medicines, along with a shift towards natural remedies, is expected to drive the demand for licorice extract in Latin America, supporting the market's growth.

MIDDLE EAST AND AFRICA LICORICE EXTRACT MARKET ANALYSIS

The rapid growth of the organic sector is driving the growth of the licorice extract market in the Middle East. Over the last five years, there has been a significant increase in shelf space for organic food and beverages, reflecting the increasing consumer demand for natural and healthier alternatives. In Gulf Cooperation Council (GCC) countries that import 70%-90% of the food, growing interest in organic products is taking place within the larger context of diversifying the region's food chains, as per reports. Saudi Arabia, one of the largest markets in the area, is particularly heavily investing across the organic production chain, from rural production sites to retail shelves, seeing organic as a fundamental pillar for its future. According to Biofach Saudi Arabia, these investments will further improve local organic production and drive the demand for natural ingredients such as licorice extract.

COMPETITIVE LANDSCAPE:

Major participants in the market are utilizing cutting-edge extraction technologies to enhance the quality and efficiency of their products, ensuring compliance with the regulatory standards of various countries. Furthermore, strategic alliances and collaborations are being sought to improve distribution networks and access new regional markets. Focus is also being directed towards sustainable and ethical sourcing methods to satisfy consumer demand for natural and environmentally friendly items. Market leaders are concentrating on broadening their product offerings to encompass creative and varied uses across multiple sectors. They are allocating funds towards research and development to investigate new health advantages and uses of licorice extract, especially in pharmaceuticals and cosmetics. For example, Proactiv® introduced its Post Blemish 10% Vitamin C Serum™ in 2024, aimed at brightening and evening out skin that is prone to acne. It includes components such as vitamin C, licorice root extract, and hyaluronic acid to address post-inflammatory hyperpigmentation. The serum is created by dermatologists, free of fragrance, and does not clog pores.

The report provides a comprehensive analysis of the competitive landscape in the licorice extract market with detailed profiles of all major companies, including:

• 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.