Licorice Extract Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Licorice Extract Market is projected to expand from a valuation of USD 2.63 Billion in 2025 to reach USD 3.98 Billion by 2031, progressing at a CAGR of 7.15%. Derived from the roots of the Glycyrrhiza glabra plant, licorice extract is prized for glycyrrhizin, an active compound that delivers powerful sweetening and therapeutic benefits. The industry's growth is largely fueled by the rising preference for plant-based ingredients within the pharmaceutical and nutraceutical fields, specifically for products aimed at respiratory and digestive wellness. Furthermore, the food and beverage sector is increasingly adopting this extract as a natural flavoring and sweetener to accommodate the consumer transition away from artificial additives, while the cosmetics industry utilizes its skin-brightening and anti-inflammatory attributes in personal care formulations.

Underscoring this trend, the American Botanical Council reported that retail sales of herbal dietary supplements in the United States hit a record high of USD 13.23 billion in 2024, indicating a persistent increase in demand for the botanical ingredients that support the licorice sector. Despite this positive momentum, the market faces a notable obstacle regarding the health risks linked to the overconsumption of glycyrrhizin, which can cause hypertension. Consequently, strict regulatory restrictions regarding its dosage in medicinal and food products have been established, acting as a constraint on broader market development.

Market Drivers

The rising utilization of licorice extract as a natural sweetener and sugar alternative is fundamentally transforming the market as manufacturers adjust formulations to meet health-oriented consumer demands. Facing pressure to lower calorie counts without sacrificing flavor, the food and beverage industry has identified licorice extract as a potent, plant-based solution capable of masking the bitter aftertaste often found in stevia and monk fruit blends. This shift is reinforced by changing dietary behaviors; according to the International Food Information Council’s '2024 Food & Health Survey' from June 2024, 66% of Americans are actively attempting to reduce their sugar intake, a statistic that highlights the critical industrial need for natural substitutes. As a result, licorice derivatives are increasingly applied in bakery items, confectionery, and beverages, helping brands attain clean-label status while meeting sugar reduction goals.

Concurrently, the escalating demand for functional foods and dietary supplements serves as a major growth engine, spurred by a worldwide emphasis on preventative health and botanical solutions. In these sectors, licorice is valued for its adaptogenic qualities and traditional effectiveness in promoting respiratory and digestive health. This strong interest is reflected in the wider supplement market; the Council for Responsible Nutrition’s '2024 Consumer Survey', released in October 2024, notes that botanical supplement usage has expanded, with herbs like ashwagandha experiencing a four-fold rise in use since 2020, suggesting a supportive landscape for established ingredients like licorice. Reflecting the tight supply dynamics across health and food industries, Tridge reported that global import and export prices for licorice root extract rose to between USD 6.11 and USD 54.33 per kilogram in 2024.

Market Challenges

A significant impediment to the Global Licorice Extract Market is the established health risk associated with glycyrrhizin, the principal active component found in licorice roots. Clinical evidence links excessive consumption of this compound to negative cardiovascular outcomes, particularly hypokalemia and hypertension, leading food safety agencies globally to enforce strict limits on dosage. These regulatory boundaries restrict the quantity of extract that can be used in nutraceutical and pharmaceutical products, compelling manufacturers to either decrease product potency or search for substitute ingredients, which ultimately hampers innovation and restricts volume growth in essential application areas.

The effect of these restrictions is apparent in recent trade data from key production centers, indicating a slowdown in demand. According to the China Chamber of Commerce for Import & Export of Medicines & Health Products, the value of licorice extract exports from China totaled approximately USD 22 million in 2024. This figure underscores a stagnation in global trade momentum as international buyers adopt a more cautious approach regarding ingredient safety and adherence to tightening consumption regulations. Consequently, the industry faces difficulty in fully exploiting the growing interest in plant-based treatments, as fundamental safety concerns related to glycyrrhizin accumulation continue to impede broader market progression.

Market Trends

The incorporation of licorice root derivatives, specifically licochalcone A and glabridin, into high-performance cosmeceuticals is fueling substantial market demand as the beauty industry shifts toward safe, plant-based substitutes for synthetic tyrosinase inhibitors like hydroquinone. Cosmetic brands are increasingly developing dermocosmetic lines that utilize the skin-brightening and anti-inflammatory benefits of licorice to address sensitive skin and hyperpigmentation without the side effects associated with chemical alternatives. The success of this clinical skincare trend is reflected in the financial results of leading companies; Beiersdorf’s 'Annual Report 2024', published in February 2025, revealed that their Derma business unit, which employs licorice derivatives, posted an organic sales increase of 10.6%, driven by the worldwide appetite for effective therapeutic skincare.

At the same time, the rise of certified organic and clean-label sourcing has become a pivotal factor in the supply chain, pushing manufacturers to transition from traditional wild-harvesting to fully traceable, third-party certified extraction methods. With increasing regulatory oversight on botanical purity and growing consumer demand for transparency, suppliers are adopting organic standards to win contracts with premium supplement and food brands seeking rigorous "clean label" designations. This market-wide move toward sustainable verification is evidenced by broader industry trends; the Soil Association Certification’s 'Organic Market Report 2025', released in February 2025, noted that the certified organic market grew by 7.3% in 2024, indicating a strong commercial preference for certified ingredients that is reshaping licorice procurement strategies.

Key Players Profiled in the Licorice Extract Market

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

Report Scope

In this report, the Global Licorice Extract Market has been segmented into the following categories:

Licorice Extract Market, by Type:

• Food Grade
• Feed Grade
• Pharmaceutical Grade

Licorice Extract Market, by Application:

• Food & Beverages
• Dietary Supplements
• Pharmaceutical
• Tobacco
• Others

Licorice Extract Market, by Form:

• Powder
• Liquid
• Block
• Others

Licorice Extract Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Licorice Extract Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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