Licorice Extracts Market Growth Forecast and Consumer Insights

Key Insights

The global licorice extracts market, valued at approximately $XX million in 2025, is projected to experience robust growth, exhibiting a compound annual growth rate (CAGR) of 4.75% from 2025 to 2033. This expansion is driven by the increasing demand for natural sweeteners and flavoring agents in the food and beverage industry, coupled with the rising popularity of licorice root's purported health benefits in dietary supplements and cosmetics. The versatility of licorice extracts, available in block, powder, paste, and other forms, caters to diverse applications across various sectors. Growth is further fueled by innovative product formulations leveraging licorice's unique properties, such as its anti-inflammatory and antioxidant capabilities. However, price fluctuations in raw licorice root and potential supply chain disruptions due to regional weather patterns represent key restraints. The market is segmented geographically, with North America and Europe currently holding significant shares, while the Asia-Pacific region demonstrates promising growth potential due to expanding consumer bases and increased manufacturing activities. The competitive landscape features a mix of established players and emerging regional businesses, indicating ongoing market consolidation and innovation.

The food and beverage segment remains the dominant application area for licorice extracts, leveraging its sweetening and flavor-enhancing properties. The cosmetics and personal care segment is also witnessing significant growth, driven by the incorporation of licorice extracts in skincare products for its purported brightening and anti-aging effects. The dietary supplements segment benefits from consumer awareness of licorice's potential health benefits, including immune support and digestive health. While the tobacco industry utilizes licorice extracts for flavoring, its contribution is expected to remain relatively stable or even slightly decline in the coming years due to increasing health concerns and regulatory pressures surrounding tobacco consumption. Future growth will hinge on leveraging sustainable sourcing practices, expanding into new applications (e.g., pharmaceuticals), and effectively addressing consumer concerns about potential side effects associated with high licorice consumption. Technological advancements in extraction techniques that improve product quality and efficiency will also play a significant role in shaping the market's future trajectory.

Licorice Extracts Market: A Comprehensive Report (2019-2033)

This in-depth report provides a comprehensive analysis of the global Licorice Extracts market, encompassing market dynamics, growth trends, regional insights, and competitive landscapes. The study period covers 2019-2033, with 2025 serving as the base and estimated year. The report caters to industry professionals, investors, and researchers seeking actionable intelligence on this lucrative market. The parent market is the natural extracts market and the child market is the food and beverage ingredient market. The total market value in 2025 is estimated at xx Million.

Licorice Extracts Market Market Dynamics & Structure

The global licorice extracts market is characterized by moderate concentration, with several key players holding significant market share. Technological innovation, particularly in extraction methods and product formulation, is a major driver. Stringent regulatory frameworks concerning food safety and ingredient labeling influence market dynamics. Competitive substitutes, such as other natural sweeteners and flavoring agents, exert pressure on market growth. End-user demographics, particularly the growing demand for natural and functional food and beverages, significantly impact market expansion. The market has witnessed a moderate level of M&A activity in recent years, with a projected xx number of deals in 2025.

• Market Concentration: Moderately concentrated, with top 5 players holding approximately xx% market share in 2025.
• Technological Innovation: Focus on sustainable extraction methods and enhanced product quality drives market expansion. Barriers to innovation include high R&D costs and complex regulatory approvals.
• Regulatory Framework: Stringent regulations regarding food safety and labeling impact product development and market entry.
• Competitive Substitutes: Other natural sweeteners and flavoring agents pose competitive pressure.
• End-User Demographics: Rising demand for natural and functional food products fuels market growth.
• M&A Trends: Projected xx M&A deals in 2025, indicating consolidation and expansion within the market.

Licorice Extracts Market Growth Trends & Insights

The global licorice extracts market experienced significant growth during the historical period (2019-2024), driven by increasing consumer demand for natural ingredients. The market size is expected to reach xx Million in 2025 and is projected to exhibit a CAGR of xx% from 2025 to 2033. This growth is attributed to several factors, including rising health consciousness, expanding applications in food and beverages, cosmetics, and pharmaceuticals, and ongoing technological advancements in extraction and purification techniques. Market penetration in emerging economies continues to grow, further contributing to market expansion. Consumer behavior shifts towards clean-label products and increased awareness of licorice's health benefits (e.g., antioxidant properties) are bolstering market growth. Technological disruptions, such as the introduction of advanced extraction technologies, are improving product quality and yield, driving cost efficiency, and contributing to the overall market expansion.

Dominant Regions, Countries, or Segments in Licorice Extracts Market

North America currently holds the largest market share in the licorice extracts market, driven by high consumer demand for natural ingredients and established regulatory frameworks. Europe follows as a significant regional market, showcasing substantial growth opportunities due to its expanding functional food and beverage sector. Within the segments, the Powder form dominates due to its versatility and cost-effectiveness, followed by the block form. The Food and Beverages application segment holds the largest market share due to the extensive use of licorice extract as a flavoring agent and sweetener.

• Key Drivers in North America: Strong consumer preference for natural ingredients, well-established distribution channels, and high disposable incomes.
• Key Drivers in Europe: Growing demand for functional foods and beverages, and rising adoption of licorice extracts in the cosmetic and pharmaceutical industries.
• Dominant Form: Powder (xx% market share in 2025) due to its versatility and ease of use.
• Dominant Application: Food and Beverages (xx% market share in 2025) due to its widespread use as a flavoring agent and sweetener.

Licorice Extracts Market Product Landscape

The licorice extracts market showcases a range of products with varying purity levels and functionalities tailored to specific applications. Innovations focus on enhancing extraction methods to optimize yield and purity, leading to improved product quality and performance. Unique selling propositions include superior taste, natural origin, and functional health benefits (e.g., antioxidant and anti-inflammatory properties). Technological advancements, such as supercritical CO2 extraction, enable sustainable and high-quality product development, enhancing market competitiveness.

Key Drivers, Barriers & Challenges in Licorice Extracts Market

Key Drivers:

• Growing demand for natural and clean-label ingredients in the food and beverage, cosmetics, and dietary supplement industries.
• Increasing awareness of the health benefits of licorice extracts.
• Technological advancements in extraction and processing techniques.

Key Challenges:

• Fluctuations in raw material prices and availability.
• Stringent regulatory requirements and compliance costs.
• Competition from synthetic and other natural flavoring agents. The impact of these challenges is estimated to reduce the market growth by xx% in 2025.

Emerging Opportunities in Licorice Extracts Market

• Expanding applications in emerging markets, especially in Asia-Pacific.
• Increasing demand for organic and sustainably sourced licorice extracts.
• Growing interest in using licorice extracts in new product applications, such as pharmaceuticals and nutraceuticals.

Growth Accelerators in the Licorice Extracts Market Industry

Long-term growth is driven by strategic partnerships between ingredient suppliers and food and beverage manufacturers, resulting in innovative product development and expansion into new markets. Technological advancements in sustainable extraction methods, along with increased focus on product diversification and tailored formulations for specific applications, will continue to fuel market growth.

Key Players Shaping the Licorice Extracts Market Market

• Aseh Co *List Not Exhaustive
• ASEH Licorice MFG & Exp Co
• Norevo GmbH
• Maruzen Pharmaceuticals Co Ltd
• Zagros Licorice Co
• Sepidan Osareh Co
• VPL Chemicals
• FC Licorice
• Naturex SA(Givaudan)
• MAFCO Worldwide LLC

Notable Milestones in Licorice Extracts Market Sector

• 2022 Q4: Introduction of a new sustainable extraction method by Aseh Co.
• 2023 Q1: Acquisition of a licorice processing plant by MAFCO Worldwide LLC.
• 2024 Q2: Launch of a novel licorice extract with enhanced antioxidant properties by Norevo GmbH. (Further milestones to be added as data becomes available)

In-Depth Licorice Extracts Market Market Outlook

The licorice extracts market is poised for sustained growth, driven by continuous innovation, expanding applications, and favorable market conditions. Strategic partnerships, investments in R&D, and penetration of emerging markets are key to unlocking the market's full potential. The long-term outlook is positive, with opportunities for substantial growth across various regions and product segments.

Licorice Extracts Market Segmentation

• 1. Form
  • 1.1. Block
  • 1.2. Powder
  • 1.3. Paste
  • 1.4. Others
• 2. Application
  • 2.1. Food and Beverages
  • 2.2. Cosmetics and Personal Care
  • 2.3. Dietary Supplements
  • 2.4. Tobacco Products
  • 2.5. Other Applications

Licorice Extracts Market Segmentation By Geography

• 1. North America
  • 1.1. United States
  • 1.2. Canada
  • 1.3. Mexico
  • 1.4. Rest of North America
• 2. Europe
  • 2.1. Spain
  • 2.2. United Kingdom
  • 2.3. Germany
  • 2.4. France
  • 2.5. Italy
  • 2.6. Russia
  • 2.7. Rest of Europe
• 3. Asia Pacific
  • 3.1. China
  • 3.2. Japan
  • 3.3. India
  • 3.4. Australia
  • 3.5. Rest of Asia Pacific
• 4. South America
  • 4.1. Brazil
  • 4.2. Argentina
  • 4.3. Rest of South America
• 5. Middle East and Africa
  • 5.1. South Africa
  • 5.2. Saudi Arabia
  • 5.3. Rest of MiddleEast and Africa