The Licorice Extract market, valued at USD 894.3 million in 2024, is projected to grow at a CAGR of 6.2% during the forecast period, reaching USD 1,625.4 million by 2034.
Licorice extract, derived from licorice root through a heating process that removes water, is widely used as a natural remedy. It is promoted for various health issues including digestive problems, menopausal symptoms, cough, and infections. Additionally, licorice gargles or lozenges are employed to alleviate post-surgical sore throat.
Despite its popularity, licorice root can cause serious side effects when consumed excessively or for prolonged periods. These include elevated blood pressure and lowered potassium levels, posing significant risks, especially for individuals with hypertension, heart disease, or kidney problems.
Due to variations in product composition, determining a universally safe intake level is challenging. Thus, while licorice root offers potential health benefits, caution is advised to mitigate potential adverse effects on health.
| Attributes | Details |
|---|---|
| Licorice Extract Market Size (2024E) | USD 894.3 million |
| Licorice Extract Market Projected Size (2034F) | USD 1,625.4 million |
| Value CAGR (2024 to 2034) | 6.2% |
| Top 3 Countries Market Share | 33.3% |
Furthermore, the effects of licorice on blood pressure and potassium levels underscore the importance of moderation in its use, particularly for those with existing medical conditions. Research suggests that glycyrrhizin, a compound found in licorice root, may contribute to these effects by affecting hormone regulation and fluid balance in the body.
As a result, healthcare providers often recommend monitoring blood pressure and potassium levels regularly for individuals using licorice supplements or products. Despite these concerns, ongoing studies continue to explore licorice root's potential therapeutic benefits and optimal usage guidelines to ensure safe and effective supplementation practices.
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| Particular | Value CAGR |
|---|---|
| H1 | 6.2% (2023 to 2033) |
| H2 | 5.8% (2023 to 2033) |
| H1 | 5.9% (2024 to 2034) |
| H2 | 6.1% (2024 to 2034) |
The above table presents the expected CAGR for the global Licorice Extract industry over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 6.2%, followed by a slightly lower growth rate of 5.8% in the second half (H2) of the same decade.
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 5.9% in the first half and remain relatively moderate at 6.1% in the second half. In the first half (H1) the industry witnessed an decrease of 30 BPS while in the second half (H2), the industry witnessed an increase of 30 BPS
Rising Demand for Natural Ingredients in Medicinal Supplements
The global trend towards natural ingredients in medicinal supplements is driven by increasing consumer preference for health-conscious choices. Licorice extracts have gained prominence due to their versatile therapeutic properties.
They are known for their ability to reduce inflammation, combat microbial infections, and protect liver health. These qualities make licorice extracts valuable in treating conditions such as hyperlipidemia (elevated blood lipids) and skin hyperpigmentation caused by inflammation.
The demand for licorice extracts in medicinal supplements is bolstered by their efficacy and safety profile compared to synthetic alternatives. Consumers are increasingly opting for natural remedies that offer holistic health benefits.
This shift is not only influencing consumer choices but also shaping the sales dynamics for botanical extracts like licorice. As research continues to validate their therapeutic uses, licorice extracts are expected to play a significant role in the future of natural healthcare solutions.
Surge in Herbal Medicine: Boosting the Licorice Extract Industry
The resurgence of interest in herbal medicine, particularly Chinese herbal remedies, is propelling the licorice extract sales forward. Traditional Chinese medicine (TCM) has gained recognition for its holistic approach to health, which includes the use of herbs like licorice root.
In regions such as the USA and Europe, there is a growing acceptance and demand for TCM practices, driving the adoption of licorice extracts in pharmaceutical and dietary supplement formulations.
Licorice extract's popularity in herbal medicine stems from its diverse therapeutic benefits, ranging from respiratory and digestive health support to its use in skincare and dermatology. As more consumers seek natural alternatives with proven efficacy, the demand for licorice extracts is expanding beyond traditional sales.
This trend presents lucrative opportunities for manufacturers and suppliers involved in the herbal medicine supply chain, positioning licorice extract as a key ingredient in modern healthcare solutions.
Consumer Awareness and the Rise of Immune Health Supplements
The increasing consumer awareness of immune health has spurred significant industry growth for licorice extracts. Particularly among younger demographics, there is a heightened focus on maintaining overall well-being and enhancing immune function. Licorice extracts are valued for their ability to support immune health through their anti-inflammatory and antioxidant properties.
In response to rising health, concerns such as allergies, asthma, and autoimmune diseases, consumers are turning to natural supplements that offer immune-boosting benefits. Licorice extracts, known for their bioactive compounds like glycyrrhizin, glycyrrhetinic acid, and flavonoids, are recognized for their potential in supporting immune responses and promoting resilience against infections.
The preference for plant-based, gluten-free, and sugar-free products aligns with current health trends, driving the demand for licorice extracts in immune health supplements. Manufacturers are responding by developing innovative formulations that harness the therapeutic potential of licorice extracts, thereby expanding their industry presence in the nutritional supplement industry.
Investments in Technological Advancements and Research
The dietary supplement industry is witnessing substantial investments in research and development to meet the growing demand for health-promoting products. Advances in production technologies are enabling manufacturers to enhance the efficacy, safety, and bioavailability of dietary supplements, including those containing licorice extracts.
Technological innovations are crucial in addressing consumer preferences for functional beverages and supplements that offer targeted health benefits. Research into the biological mechanisms of licorice extracts, particularly their effects on immune modulation and metabolic health, is driving product innovation. This scientific progress is essential for developing evidence-based formulations that meet regulatory standards and consumer expectations.
Furthermore, the emergence of antibiotic-resistant pathogens underscores the need for alternative health solutions. Licorice extracts are being explored for their potential to support microbiota diversity and enhance immune defense mechanisms against infectious diseases.
As the dietary supplement sales evolves, investments in technology and research will continue to shape the future landscape, promoting sustainable growth and innovation in health-promoting products.
Licorice Extract's Role in Skincare Benefits and Demand
Licorice extract's applications extend beyond internal health supplements to skincare formulations, where it is valued for its dermatological benefits. In skincare, licorice extract is prized for its ability to inhibit tyrosinase, an enzyme involved in melanin production. By reducing melanin synthesis, licorice extract helps fade dark spots and hyperpigmentation, promoting a more even skin tone.
Additionally, licorice extract exhibits potent antioxidant and anti-inflammatory properties, which contribute to its effectiveness in calming skin irritation and redness. These attributes make it a versatile ingredient in skincare products targeted at sensitive skin, acne-prone skin, and those seeking anti-aging benefits.
The demand for natural and plant-based skincare solutions has driven the popularity of licorice extract in the beauty industry. Consumers are increasingly drawn to products that offer holistic benefits while minimizing exposure to synthetic chemicals. As skincare trends continue to prioritize natural ingredients with proven efficacy, licorice extract remains a key player in meeting these evolving consumer preferences.
Innovation Hubs and Test Markets Opportunities for Manufacturers
Innovation hubs and test markets serve as critical platforms for accelerating product development and market entry strategies in the nutrition industry. These hubs facilitate collaboration among stakeholders from diverse sectors, fostering synergies in research, development, and commercialization efforts.
By leveraging innovation hubs, manufacturers gain access to advanced technologies and expertise, enabling them to enhance product formulations and production processes. This collaborative approach accelerates innovation cycles and improves the competitiveness of nutrition products, including those incorporating licorice extracts.
Tests play a pivotal role in validating consumer preferences and optimizing marketing strategies. Manufacturers can gauge product performance, adjust packaging designs, refine pricing strategies, and tailor distribution channels based on real-time feedback. This iterative process allows for rapid adaptations and improvements, ensuring products meet consumer expectations and regulatory requirements.
The integration of innovation hubs and test indutries enables manufacturers to navigate complex industry dynamics effectively. By embracing technological advancements and industry insights, companies can capitalize on emerging trends and seize opportunities for growth in the competitive nutrition product landscape.
Principal Consultant
In the historical outlook of the licorice extract sales, the value increased from USD 510.5 million in 2019 to USD 855.4 million in 2023, with a compounded annual growth rate (CAGR) of 5.3% over this period.
Looking forward, projections indicate robust growth, with the industry expected to reach USD 894.3 million by 2034, growing at a CAGR of 6.2%. This growth trajectory underscores increasing consumer awareness and demand for licorice-based products across various industries.
With the rising demand for organic, sugar-free, and calorie-free products, consumers have become increasingly interested in improving their health through their diet over the past few years. This has led to the development of several entirely new additives in the Dietary Supplement industry such as sugar-free, organic, and calorie-free additives.
One focus of healthy eating is the reduction of chemical additives in food and Dietary Supplement products, which has influenced supplement manufacturers to divert their conventional supplement production into organic and natural ingredients Supplements by using Licorice.
The licorice extract industry demonstrates a moderate to high level of player concentration, characterized by a mix of dominant leaders and smaller, regional firms shaping the landscape.
Key players such as Naturex SA, Frutarom Industries Ltd. (a subsidiary of International Flavors & Fragrances Inc.), and Shaanxi Fujie Pharmaceutical Co., Ltd. command significant company shares owing to their extensive product portfolios, robust distribution networks, and substantial investments in research and development.
These industry giants leverage economies of scale, established brand equity, and rigorous quality control protocols to maintain their competitive edge. In parallel, numerous smaller and regional companies compete by specializing in niche segments or specific geographic. They differentiate themselves through unique product formulations, emphasizing organic ingredients, sustainable practices, and localized insights.
Industry competition is driven by continuous innovation, adherence to stringent quality standards, and meeting regulatory requirements, reflecting a growing consumer preference for natural health products. This dynamic environment, shaped by the interplay between major and minor players, fosters overall growth and spurs innovation across the licorice extract sector.
According to an analysis by FMI (Future Market Insights), tier 1 companies hold approximately 25% to 30% of the industry share, with tier 2 players accounting for 35% to 40%. The remaining industry share is captured by tier 3 players, underscoring the diversity and competitiveness within the licorice extract industry.
The industry's value chain begins with sourcing raw licorice from regions known for optimal growing conditions, such as China, Spain, and the Middle East. These regions are renowned for producing high-quality licorice due to favorable climatic and soil conditions. Raw licorice undergoes processing and extraction by various companies, resulting in diverse product forms such as powders, extracts, capsules, and liquids.
These extracted licorice products are then distributed through multiple channels, including pharmaceuticals, dietary supplements, cosmetics, and the food and beverage industries, to reach end consumers globally. This comprehensive value chain ensures that licorice extract products meet diverse demands while adhering to quality and regulatory standards across different applications.
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The following table shows the estimated growth rates of the top five geographies. Australia and India are set to exhibit high licorice extract consumption, recording CAGRs of 8.4% and 11.5%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 6.7% |
| Germany | 5.6% |
| China | 7.8% |
| Australia | 8.4% |
| India | 11.5% |
The licorice extract category in the United States is projected to grow at a CAGR of 6.7% from 2024 to 2034. This growth is driven by increasing consumer awareness and adoption of natural health supplements. As consumers seek alternatives to synthetic products, licorice extract's medicinal properties, including anti-inflammatory and digestive benefits, are gaining traction.
The category is supported by robust research and development activities aimed at expanding product applications in dietary supplements, skincare, and pharmaceuticals. Additionally, stringent regulatory standards ensure product quality and safety, further boosting consumer confidence in licorice extract-based products.
In Germany, the licorice extract category is expected to grow at a CAGR of 5.6% during the forecast period. The country's industry growth is driven by increasing demand for functional foods and beverages enriched with natural ingredients. Licorice extract, known for its antioxidant and anti-inflammatory properties, is increasingly incorporated into functional food products aimed at promoting digestive health and immune support.
Moreover, pharmaceutical applications of licorice extract in treating respiratory ailments and skin conditions contribute to market expansion. The emphasis on organic and sustainable sourcing practices further aligns with consumer preferences for clean-label products in Germany's health-conscious market.
China leads the licorice extract market with a robust CAGR of 7.8% from 2024 to 2034. Traditional Chinese medicine (TCM) values licorice root for its therapeutic benefits in treating various ailments, including digestive disorders and respiratory illnesses. The country's rich herbal medicine heritage drives extensive cultivation and processing of licorice, supporting a diverse range of product formulations.
Rising disposable incomes and health awareness among Chinese consumers propel demand for licorice extract in dietary supplements and herbal remedies. Government initiatives to promote TCM globally further bolster China's role as a key producer and exporter of licorice extract.
Australia's licorice extract market is anticipated to grow at a rapid CAGR of 8.4% during the forecast period. The country's market expansion is fuelled by increasing consumer preference for natural health solutions and botanical ingredients.
Licorice extract's anti-inflammatory and antioxidant properties make it popular in skincare and dietary supplement formulations catering to Australia's health-conscious population. The Industry benefits from stringent regulatory frameworks ensuring product safety and efficacy, which support the growing adoption of licorice extract across diverse applications, including cosmetics and functional foods.
India exhibits the highest CAGR of 11.5% in the licorice extract Industry from 2024 to 2034, driven by expanding applications in Ayurvedic medicines and nutraceuticals. Licorice extract, known locally as "Yashtimadhu," holds significant cultural and medicinal value in traditional Indian medicine.
Increasing healthcare expenditures, coupled with growing consumer awareness of natural remedies, propel demand for licorice extract in treating digestive ailments, skin disorders, and respiratory conditions. The country's thriving pharmaceutical and herbal medicine sectors further contribute to Industry growth, supported by government initiatives promoting traditional medicine research and development.
| Segment | Application (Immune Support) |
|---|---|
| Value Share (2024) | 22.6% |
The Immune Support segment holds a substantial 22.6% value share in the licorice extract Industry as of 2024, indicating its critical role in promoting overall health and wellness. Licorice extract is increasingly recognized for its immune-modulating properties, making it a favored ingredient in dietary supplements, functional foods, and herbal remedies worldwide.
Consumers are turning to natural solutions to strengthen immune defences against infections and seasonal illnesses, driving demand for licorice extract-based products.
The segment's growth is supported by ongoing research into the bioactive compounds of licorice, which contribute to its efficacy in immune support formulations. As global health trends prioritize preventive healthcare and natural immune-boosting solutions, the Immune Support segment is poised for continued expansion across diverse Industries.
| Segment | form (Liquid) |
|---|---|
| Value Share (2024) | 44.9% |
The Liquid Form segment commands a significant 44.9% value share in the licorice extract market as of 2024, underscoring its versatility and widespread application across various industries. Licorice extract in liquid form offers convenience and flexibility, appealing to manufacturers in pharmaceuticals, cosmetics, food and beverages, and dietary supplements.
This segment's dominance is attributed to the ease of formulation and administration, ensuring precise dosing and rapid absorption. Liquid licorice extract is favored for its bioavailability, making it an ideal choice for products targeting digestive health, skincare, and respiratory wellness.
As consumer preferences evolve towards convenient and efficacious delivery formats, the Liquid Form segment continues to drive innovation and market growth, solidifying its position as a preferred formulation choice globally.
In response to escalating demand from dietary supplements and pharmaceutical industries, licorice extract processors are aggressively expanding their production capacities and upgrading capabilities through advanced technologies. This strategic initiative aims to effectively meet the growing demand driven by increasing consumer awareness of health benefits associated with licorice extract.
In North America, there is a significant demand surge for licorice extract due to rising consumer interest in digestive health support supplements. This trend is underscored by the staggering prevalence of gastrointestinal (GI), liver, and pancreatic diseases, affecting a substantial portion of the population. Recent surveys indicate that a notable 61% of Americans report experiencing GI symptoms, highlighting the pressing need for effective solutions in the region.
As licorice extract continues to gain recognition for its therapeutic properties in addressing digestive ailments and promoting overall gastrointestinal health, manufacturers are focusing on scaling up production capabilities to capitalize on sales opportunities. This includes leveraging technological advancements to ensure efficient extraction processes and maintain product quality standards.
The competitive landscape in the licorice extract category is characterized by intense efforts among processors to enhance supply chain efficiencies, expand geographical reach, and innovate product formulations. These strategic endeavours are aimed at maintaining competitiveness and meeting the diverse needs of consumers seeking natural remedies and supplements for digestive health and beyond.
As per application, the industry has been categorized into Boost Energy, Brain Health, Colon Health, Digestive Health, Immune Support, Liver Support and Skin Health
The segment is further categorized into Chewable Tablets, Capsules, Gelatin, HPMC, Gummies/Chews, Powder and Liquid
Industry analysis has been carried out in key countries of North America, Latin America, Europe, East Asia, South Asia, Oceania and Middle East & Africa
The Licorice Extract sales is estimated to reach sales nearly USD 894.3 million by 2024.
Licorice Extract industry revenue is expected to increase at a CAGR of around 6.2% during the period 2024-2034.
Licorice Extract sales increased a CAGR of around 5.3% over the past half-decade.
The global Licorice Extract industry value will be around USD 1,625.4 million in 2034.
Sichuan Union Herb, Shaanxi Jiahe Phytochemicals, Zhejiang Kangling, Hebei Jingu, Hunan Huakang, and others are expected to be the top players driving the industry growth.
Innovative applications, research formulations, and medicinal properties are the factors driving growth of Licorice Extract growth.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Licorice Extract Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Licorice Extract Market Demand Analysis and Forecast, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Licorice Extract Market Analysis and Forecast 6.1. Application 6.2. Form 7. Global Licorice Extract Market Analysis and Forecast, By Application 7.1. Boost Energy 7.2. Brain Health 7.3. Colon Health 7.4. Digestive Health 7.5. Immune Support 7.6. Liver Support 7.7. Skin Health 8. Global Licorice Extract Market Analysis and Forecast, By Form 8.1. Chewable Tablets 8.2. Capsules 8.3. Gelatin 8.4. HPMC 8.5. Gummies/Chews 8.6. Powder 8.7. Liquid 9. Global Licorice Extract Market Analysis and Forecast, By Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. Eastern Europe 9.5. Asia Pacific 9.6. East Asia 9.7. MEA 10. North America Sales Analysis and Forecast, by Key Segments and Countries 11. Latin America Sales Analysis and Forecast, by Key Segments and Countries 12. Western Europe Sales Analysis and Forecast, by Key Segments and Countries 13. Eastern Europe Sales Analysis and Forecast, by Key Segments and Countries 14. Asia Pacific Sales Analysis and Forecast, by Key Segments and Countries 15. East Asia Sales Analysis and Forecast, by Key Segments and Countries 16. MEA Sales Analysis and Forecast, by Key Segments and Countries 17. Sales Forecast by Application and Form for 30 Countries 18. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 19. Company Profile 19.1. Shaanxi Jiahe Phytochemicals 19.2. Zhejiang Kangling 19.3. Hebei Jingu 19.4. Hunan Huakang 19.5. Norevo GmbH 19.6. Aushadhi Herba 19.7. MAFCO Worldwide LLC 19.8. F&C Licorice 19.9. VPL Chemicals 19.10. Zagros Licorice 19.11. Ransom Naturals 19.12. Sepidan Osareh 19.13. Others
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Licorice Extract Market
