Liquorice Shellac - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The liquorice shellac market was valued at USD 1.07 billion in 2025 and is projected to grow from USD 1.11 billion in 2026 to USD 1.36 billion by 2031, registering a CAGR of 4.15% during the forecast period (2026-2031). This report is segmented by Form (Dry and Liquid), Grade (Food Grade, Industrial Grade, and More), Application (Food and Beverages, Pharmaceuticals, and More), and Geography (North America, Europe, Asia-Pacific, South America, and the Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

Global Liquorice Shellac Market Trends and Insights

Growing Confectionery and Premium Food Consumption

Growing confectionery consumption and the rising preference for premium food products support demand for food-grade shellac in the United States. According to the National Confectioners Association’s State of Treating 2026, 99.8% of United States households purchased confectionery at least once in 2025, highlighting the category’s broad consumer penetration. This widespread consumption increases the use of shellac as a glazing and protective coating for chocolate confectionery, chewing gum, sugar-coated candies, lozenges, and coated nuts. Moreover, consumer demand for premium, visually appealing confectionery products drives the adoption of shellac, as it provides a smooth, glossy finish while improving surface protection, thereby creating a favorable demand outlook for the liquorice shellac market.

Rising Demand for Natural and Clean-Label Food Ingredients

Consumer perceptions of healthy food increasingly depend on the use of simple, recognizable, and naturally derived ingredients, which supports demand for natural food ingredients and coatings. According to the International Food Information Council Food & Health Survey 2025, 25% of Americans consider food healthier when it contains limited or no artificial ingredients or preservatives, while 24% associate healthfulness with foods labeled as natural. These preferences strengthen the appeal of bio-sourced shellac as a glazing and protective coating, particularly in confectionery, fruits, vegetables, and nuts, where it enhances surface appearance, provides a glossy finish, and helps protect products during handling and distribution. However, because shellac is derived from insects, its use may face limitations in vegan and plant-based product categories, where consumers increasingly seek animal-free and plant-based ingredient alternatives.

Availability and Price Volatility of Raw Materials

The liquorice shellac market faces significant supply-side and pricing risks due to its dependence on raw lac, which is primarily sourced from major producing countries, including India, Thailand, and China. Raw lac production relies on the Kerria lacca insect and suitable host trees, making the availability of this key input susceptible to changes in weather patterns, crop cycles, pest activity, and broader environmental conditions. Such factors can disrupt harvesting volumes and create volatility in raw-material supply. In India, open-market lac prices ranged from INR 700 to INR 800 per kg during 2024-2025, placing additional cost pressure on shellac processors and manufacturers. Fluctuations in raw-lac prices can increase production costs, complicate procurement planning, and reduce profit margins, particularly for companies that rely heavily on sourcing from a limited number of regional suppliers.

Other drivers and restraints analyzed in the detailed report include:

• Growth of Pharmaceutical Production and Tablet Coating Applications
• Adoption of Bio-Based Coating Alternatives
• Concerns Regarding Animal Origin

Segment Analysis

Dry shellac dominated the liquorice shellac market, accounting for 63.57% of the market share in 2025, owing to its extensive use in food glazing, pharmaceutical coatings, and industrial applications. Its stability, ease of storage, and efficient transportation make it a preferred format for manufacturers across end-use industries. Dry shellac also offers formulation flexibility, enabling its use in a range of coating and protective applications. These advantages continue to support its strong adoption among food, pharmaceutical, and industrial product manufacturers.

Liquid shellac is projected to expand at a CAGR of 5.21% through 2031, driven by rising demand for ready-to-use coating solutions and convenient application across food, pharmaceutical, cosmetic, and wood-finishing applications. Food-grade shellac holds a significant market share due to its use as a glazing and protective coating for confectionery, bakery products, fruits, vegetables, and nuts. Pharmaceutical-grade shellac is expected to benefit from increasing pharmaceutical production and demand for effective tablet and capsule coating materials, while industrial-grade shellac remains important for applications requiring protective and film-forming properties. Growing preference for naturally derived coating materials is expected to support demand across all three grades.

Complete Report Scope:

• By Form
  • Dry
  • Liquid
• By Grade
  • Food Grade
  • Pharmaceutical Grade
  • Industrial Grade
• By Application
  • Food and Beverages
    • Confectionery Coatings
    • Bakery Coatings
    • Fruit and Vegetable Coatings
    • Nuts and Seeds Coatings
    • Others
  • Pharmaceuticals
    • Tablet coating
    • Capsule coating
    • Others
  • Cosmetics and Personal Care
  • Wood Finishes and Coatings
  • Others
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
    • Rest of North America
  • Europe
    • Germany
    • United Kingdom
    • Italy
    • France
    • Spain
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • Australia
    • Rest of Asia-Pacific
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Middle East and Africa
    • South Africa
    • Saudi Arabia
    • Rest of Middle East and Africa

Geography Analysis

Asia-Pacific accounted for 38.25% of the Global Liquorice Shellac Market in 2025 and is projected to register the fastest CAGR of 5.3% through 2031. The region remains a major source of raw lac and refined shellac, supported by significant production and processing activities in India, Thailand, and China. Strong availability of raw materials and established processing infrastructure continue to strengthen the region’s position in the global market. Expanding food processing and pharmaceutical manufacturing activities further support regional demand for liquorice shellac.

India, Thailand, and China play critical roles in the regional supply chain through raw lac cultivation, shellac refining, and exports to international markets. The region’s established refining capabilities enable manufacturers to supply food- and pharmaceutical-grade shellac for a range of end-use applications. Growing demand for confectionery coatings, bakery products, tablets, and capsules is also contributing to higher consumption. Rising investments in food processing and pharmaceutical production are expected to sustain market growth across Asia-Pacific.

North America and Europe remain important demand centers for food- and pharmaceutical-grade liquorice shellac, driven by established food processing and pharmaceutical industries. Demand in these regions is supported by the use of shellac in confectionery coatings, bakery products, tablets, and capsules, as well as specialty applications. South America, the Middle East, and Africa represent smaller but developing markets, with growth supported by food processing, pharmaceuticals, cosmetics, and specialty coatings. However, lower production capacity and developing specialty-ingredient distribution networks continue to limit market penetration relative to Asia-Pacific, North America, and Europe.

List of Companies Covered in this Report:

• D. Manoharlal (Shellac) Pvt. Ltd.
• Aadhya International
• Vishnu Shellac Factory
• Mahabir Shellac Factory
• Gupta Brothers (Shellac)
• Prakash Shellacs Factory
• Hind Suter Shellac
• Stroever GmbH & Co. KG (SSB Stroever)
• Chuxiong DES Shellac Co., Ltd.
• Kunming Forest Products Chemical Co., Ltd.
• Gifu Shellac Manufacturing Co., Ltd.
• Tajna Shellac Pvt. Ltd.
• Jagdamba Lac Factory
• Shri Gopal Shellac Industries
• The Japan Shellac Industries, Ltd.
• Tolaram Overseas Corporation
• Tawheed Usmani Production Co. Ltd.
• Creasia Group
• Excom Europe Ltd.
• Ferrotex Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support