The Australia Licorice Root market is estimated to be worth USD 57.5 million by 2025 and is projected to reach a value of USD 91.0 million by 2035, growing at a CAGR of 4.7% over the assessment period 2025 to 2035.
| Attributes | Values |
|---|---|
| Estimated Australia Industry Size (2025) | USD 57.5 million |
| Projected Australia Value (2035) | USD 91.0 million |
| Value-based CAGR (2025 to 2035) | 4.7% |
The Australian licorice root market is mainly interested in the production, processing, and distribution of licorice root and its products. Licorice root, derived from the Glycyrrhiza plant, is used because of its natural sweetness and medicinal properties.
Australia mainly uses the root for herbal teas, dietary supplements, natural remedies, and the confectionery industry. The market includes local players who focus on organic and sustainably sourced licorice products, as well as imports from global suppliers.
The versatility of licorice root in both traditional and modern applications gives it significant importance. Its natural glycyrrhizin content is 50 times sweeter than sugar, which makes it a great flavoring agent for food and pharmaceutical products to mask bitterness. In addition, its anti-inflammatory, antiviral, and antioxidant properties create a demand in the health and wellness industry, where consumers are seeking more natural remedies.
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The table below offers a detailed comparative assessment of the changes in the compound annual growth rate (CAGR) over six months for the base year (2024) and the current year (2025) specifically for the Australian Licorice Root market.
This semi-annual analysis highlights crucial shifts in market dynamics and outlines revenue realization patterns, providing stakeholders with a more precise understanding of the growth trajectory within the year. The first half of the year, H1, covers January to June, while the second half, H2, spans July to December.
H1 signifies the period from January to June, and H2 Signifies the period from July to December.
For the Australian market, the Licorice Root sector is predicted to grow at a CAGR of 4.6% during the first half of 2025, increasing to 5.0% in the second half of the same year. In 2024, the growth rate is anticipated to slightly decrease to 4.2% in H1 but is expected to rise to 4.4% in H2.
This pattern reveals a decrease of 20 basis points from the first half of 2024 to the first half of 2025, followed by an increase of 35 basis points in the second half of 2025 compared to the second half of 2024.
These figures highlight the dynamic and rapidly evolving landscape of the Australian licorice root market, influenced by factors such as shifting consumer preferences, regulatory changes, and ongoing innovations in product applications. This semi-annual analysis is essential for businesses looking to develop strategies that leverage the market's growth potential while navigating its complexities and challenges.
| Date | Development/M&A Activity & Details |
|---|---|
| 2023 | Pure Bulk Foods has expanded its product portfolio by introducing licorice root-infused functional drinks. These products frequently blend licorice with additional functional ingredients like turmeric, collagen, or probiotics to produce drinks that improve digestive health, detoxification, and skin vibrancy. |
| 2022 | Austral Herbs created mixes that included licorice root with other health-promoting herbs including ginger, peppermint, and chamomile. These teas are aimed for people searching for digestive relief, immunological support, and stress reduction. |
Herbal Synergies: The Rise of Licorice Root in Functional Blends
The increasing incorporation of licorice root into functional food and beverage blends in Australia can be attributed to consumer interest in targeted health benefits, such as improved digestion, respiratory health, and immunity.
The ingredient is emerging as a key ingredient in herbal teas, tonics, and supplements, and local brands are finding new ways to innovate by blending it with native ingredients like Kakadu plum and lemon myrtle for uniquely local blends with added health benefits. This trend is important for the market because it not only increases the value proposition of licorice root but also opens opportunities for Australian players to differentiate themselves on a global scale.
Gastrointestinal Health Revolution: Licorice Root in Digestive Wellness
This trend is reshaping the Australian licorice root market since manufacturers are coming up with extremely specialized products meant to address a niche need for consumers. The ability of licorice root to attract individuals who deal with specific health issues positions it as a 'must-have' ingredient in lines of therapeutic products.
Companies that ride on this trend will not only see increased demand for their products but also trust by consumers in natural and effective gut health solutions.
Licensing agreements with pharmacies and partnerships with wellness clinics will add to the growth of the market. Licorice root, which has a soothing and anti-inflammatory property, is now one of the ingredients in digestive wellness products such as chewable tablets, gut powders, and liquid tonics.
% share of Individual categories by End Use and Product Form in 2025
The Extract Form: Unlocking Licorice’s Full Potential in Australia
Extract form is the leading segment in the Australian licorice root market, attributed to its unrivaled flexibility, strength, and applicability across various sectors. Concentrated extracts in the form of liquid, powder, or paste is easily accessible for concentrated dosing of active compounds such as glycyrrhizin and flavonoids which are effective in all areas of food, beverages, pharmaceuticals, and cosmetics.
This high potency enables the manufacturer to produce desired results using smaller quantities, which lowers production costs without sacrificing quality-an essential requirement in Australia's cost-sensitive manufacturing landscape.
Flavor Meets Function: The Food & Beverage Industry’s Love Affair with Licorice in Australia
The food and beverage industry leads the way in the market of licorice root because of its integration with flavor enhancement as well as functional benefits. The root contains natural sweetness that is almost 50 times sweeter than sugar. It can, therefore be highly utilized for flavor masking and enhancement applications especially in the fields of confectionery and beverages, as well as functional foods.
Australian consumers' have been interested in having some distinct flavors, and the earthy sweet flavor of licorice root along with a hint of bitterness required a depth in flavor profiles that suited the traditional and innovative lines of the products.
Note: The above chart is indicative in nature
Tier 1 players in the Australian licorice root market include those well-established firms with strong distribution networks and well-known brands like Austral Herbs, New Directions Australia, and Border Just Foods. This is because of the diverse product range that they have and consistent supply chain which enables them to service diverse industries like food & beverage, nutraceuticals, and personal care.
Companies in the Tier 2 category have developed a marked presence in the niche markets, which comprise mid-sized companies such as The Art of Tea, Pure Bulk Foods, and Teavision. Their competition is based on the unicity of their offerings, including, but not limited to organic licorice root teas, powdered licorice for functional beverages, and bulk ingredient supply for herbal medicine manufacturers.
Tier 3 refers to small, local businesses or boutique operations. These companies offer to a very niche market, such as herbalists, small food manufacturers, and local farmers' markets. The main products for such firms include dried licorice root, powders, and extracts in minimal quantity, really appealing the consumer seeking authentic and artisan products.
By 2025, the Australian Licorice Root market is expected to grow at a CAGR of 4.7%
By 2035, the sales value of the Australian Licorice Root industry is expected to reach USD 91.0 million.
Key factors propelling the Australia Licorice Root market include the increased adoption in herbal and traditional medicine, focus on digestive and respiratory health, advancements in extraction and processing technologies, and increasing popularity of functional foods and beverages.
Prominent players in Australia Licorice Root manufacturing include Austral Herbs, New Directions Australia, Border Just Foods, Pure Bulk Foods, Mudbrick Herb Cottage, The Art of Tea, Perth Health, Teavision, Starwest Botanicals, and Gaia Herbs, among others. These companies are noted for their innovation, extensive product portfolios, and strategic market positioning.
The industry includes various end use industries of Licorice Root such as food and beverage industry, tobacco industry, pharmaceutical industry, cosmetic industry, and dietary supplements.
Available in different product forms like roots, extract, block, powder, paste, and others.
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Australia Licorice Root Market
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