• Rising demand for natural sweeteners and plant-based ingredients is driving the growth of the licorice extract market, as food and beverage manufacturers replace synthetic additives with clean-label botanical extracts.

• Increasing use of licorice extract in pharmaceutical and nutraceutical formulations is expanding its market presence. Its anti-inflammatory, antioxidant, and antimicrobial properties are making it a key component in herbal medicines and supplements.

• In the cosmetic industry, licorice extract is gaining traction as a natural skin-brightening and anti-aging ingredient. It helps reduce pigmentation and improve skin tone, aligning with the global shift toward organic skincare products.

• Asia-Pacific leads the global market due to widespread traditional usage in Chinese and Ayurvedic medicine, while Europe and North America are seeing increased demand for functional foods and herbal therapies.

• Challenges such as supply chain instability and overharvesting of Glycyrrhiza roots are affecting raw material availability. Manufacturers are focusing on sustainable sourcing and cultivation practices to maintain consistent quality.

• The trend toward sugar-reduction and low-calorie food products is creating new applications for licorice extract as a natural flavor enhancer, particularly in beverages, confectionery, and dairy products.

• Leading companies are investing in R&D, extraction technology, and product diversification to expand into value-added markets such as pharmaceuticals and cosmetics, positioning licorice extract as a multifunctional bioactive ingredient.

• In March 2024, Norevo GmbH introduced a Fair Trade–certified licorice extract line aimed at European confectionery manufacturers, emphasizing sustainable sourcing and ethical trade practices.

• In April 2023, Mafco Worldwide LLC launched an organic licorice extract powder targeting North American pharmaceutical companies, aligning with the growing demand for clean-label and natural ingredients.

In this report, Licorice Extract Market has been segmented by Grade, Form, Application, and Geography.

Licorice Extract Market, Segmentation by Grade

The licorice extract market is segmented by grade into Pharmaceutical Grade, Food Grade, and Feed Grade. Each grade is formulated to meet distinct regulatory standards, safety requirements, and performance expectations in end‑use sectors such as healthcare, food processing, and animal nutrition.

Pharmaceutical Grade

Pharmaceutical grade licorice extract complies with stringent purity and safety standards for medicinal use. It is widely used to develop therapeutic formulations for respiratory support, gastro‑protective applications, and adrenal health supplements. This grade supports high efficacy and stringent regulatory compliance, making it critical in drug manufacturing.

Food Grade

Food grade licorice extract is used as a natural flavoring agent and functional ingredient in confectionery, beverages, and baked goods. It adds characteristic sweetness and functional notes while aligning with consumer demand for natural and clean‑label products. This segment is important in food innovation and product differentiation.

Feed Grade

Feed grade licorice extract is tailored for animal nutrition and feed additive applications, providing benefits such as immune support and digestive health in livestock. The feed grade segment is gaining traction with the rise of sustainable livestock practices and demand for natural health promoters in feed formulations.

Licorice Extract Market, Segmentation by Form

The market is segmented by form into Liquid, Powder, Block, and Others. Form influences usability, formulation flexibility, shelf life, and preferred application industries.

Liquid

Liquid licorice extract is highly valued for its fast solubility and ease of integration into beverages and syrups. This form delivers uniform distribution in applications requiring homogeneous blending and is favored in beverage and liquid supplement production.

Powder

Powder form licorice extract offers longer shelf stability, ease of transport, and convenient dosing for dry formulations. It is widely used in baking mixes, capsules, and dry blends, appealing to manufacturers seeking flexible formulation options across food and nutraceutical segments.

Block

Block licorice extract is used in applications where a solid and concentrated form is preferred, such as in certain traditional confectioneries and industrial ingredient blocks. This form supports controlled dissolution and is suitable for specialty manufacturing processes.

Others

Other forms include specialty processed extracts, encapsulated formats, and composite blends tailored for specific functional needs. These cater to niche applications requiring enhanced performance characteristics or novel product formats.

Licorice Extract Market, Segmentation by Application

The licorice extract market is segmented by application into Food & Beverages, Pharmaceuticals, Tobacco, and Others. These applications reflect the broad adoption of licorice extract across flavor, health, and industrial uses.

Food & Beverages

Food and beverages applications utilize licorice extract for its distinctive sweet flavor profile and functional properties. It is incorporated into confectioneries, soft drinks, and functional food products, supporting consumer interest in taste innovation and natural ingredients.

Pharmaceuticals

Pharmaceutical applications leverage licorice extract for its anti‑inflammatory, soothing, and adrenal support properties. It is used in cough syrups, digestive aids, and herbal therapeutics, aligning with the trend toward plant‑based medicinal formulations.

Tobacco

Tobacco applications use licorice extract as a flavor enhancer to provide sweetness and smoothness in tobacco products. Its inclusion addresses consumer preferences for customized flavor profiles and product differentiation in a competitive market.

Others

Other applications include cosmetics, personal care, and niche industrial uses where licorice extract contributes functional benefits such as soothing effects, antioxidant properties, and formulation versatility.

Licorice Extract Market, Segmentation by Geography

The licorice extract market is geographically segmented into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Regional demand is influenced by consumer preferences, regulatory frameworks, and adoption in key application sectors like food, pharma, and personal care.

North America

North America represents a significant market for licorice extract due to strong demand in food & beverage innovation, growing herbal supplement use, and established pharmaceutical industries. High consumer awareness of natural ingredients supports growth in this region.

Europe

Europe exhibits robust licorice extract adoption driven by high consumption in functional foods, stringent quality standards, and strong demand in herbal and pharmaceutical formulations. Countries including Germany, the UK, and France are key contributors to regional market growth.

Asia Pacific

Asia Pacific is expected to witness rapid growth driven by rising demand for natural and herbal products, expanding food processing industries, and increased use in traditional medicines. Growing disposable incomes and emerging markets further amplify demand.

Middle East & Africa

The Middle East & Africa region is showing steady growth in licorice extract adoption, supported by expanding food manufacturing and rising interest in natural health ingredients. Urbanization and retail expansion contribute to increased market penetration.

Latin America

Latin America’s licorice extract market is growing thanks to rising demand for functional and flavored products, greater retail distribution, and growing interest in herbal supplements. Markets like Brazil and Mexico are emerging as key areas for expansion.

This report provides an in depth analysis of various factors that impact the dynamics of Licorice Extract Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers:

• Natural Sweetener Demand
• Herbal Supplements Growth
• Pharmaceutical Applications Increase
• Rising Health Consciousness

• Growing Food Industry - The growing food industry's reliance on natural ingredients is a significant driver for the licorice extract market. Consumer preference for clean-label products and natural sweeteners has spurred the demand for licorice extract in food applications. Licorice extract's natural sweetness without added sugars aligns with current health trends focused on reducing sugar intake while maintaining flavor.

  Food manufacturers are increasingly incorporating licorice extract into various products such as confectionery, bakery items, and beverages to enhance taste profiles and meet consumer expectations for healthier alternatives. This trend is particularly prominent in developed markets where health-conscious consumers scrutinize ingredient lists and seek products perceived as natural and beneficial.

  Licorice extract offers functional benefits beyond flavor enhancement, including its use as a natural preservative and its potential health-promoting properties. These attributes make licorice extract a versatile ingredient that adds value to food products, appealing to both manufacturers aiming to differentiate their offerings and consumers seeking nutritious and flavorful options.

Restraints:

• Environmental Challenges Impact
• Fluctuating Raw Material Prices
• Regulatory Changes Complexity
• Limited Geographic Growth

• Competition Intensity Rise - This heightened competition not only affects established players but also presents challenges for new entrants trying to gain market share. Companies must differentiate themselves through product innovation, quality assurance, and strategic partnerships to maintain a competitive edge. Moreover, fluctuating raw material prices and supply chain disruptions further exacerbate competitive pressures, impacting production costs and overall market stability.

  Regulatory changes and compliance requirements also pose restraints to market growth. Licorice extract, being a natural product, is subject to varying regulations across different regions regarding cultivation, extraction processes, and product labeling. Adhering to these regulations adds complexity and costs to market participants, particularly smaller firms with limited resources.

  Addressing these challenges requires a proactive approach from industry stakeholders, including continuous innovation, sustainable sourcing practices, and collaboration with regulatory bodies to navigate compliance requirements effectively. Despite these restraints, the market's growth potential remains strong, driven by ongoing consumer demand for natural and health-promoting ingredients in various applications.

Opportunities:

• Expanded Product Applications
• Emerging Markets Growth
• Clean Label Trend
• Technological Advancements Opportunity

• Increased Organic Demand - The increasing demand for organic and natural products presents a significant opportunity for the licorice extract market. Consumers are increasingly opting for clean-label products and are more conscious of the ingredients used in their food, beverages, and personal care products. This shift in consumer preference towards natural alternatives positions licorice extract as a favorable ingredient due to its perceived health benefits and functional properties.

  Technological advancements in extraction methods and processing techniques offer opportunities for market players to enhance product quality and efficiency. Improved extraction technologies not only increase yield but also reduce production costs, making licorice extract more competitive in the market.

  Collaboration and partnerships across the value chain also present avenues for growth. By working together with suppliers, manufacturers, and distributors, companies can streamline operations, expand market reach, and leverage combined expertise to develop innovative licorice extract products tailored to specific consumer needs.

Licorice Extract Market is defined by competition among natural extract manufacturers, food and beverage solution providers, and regional distributors. Companies adopt strategies such as mergers, partnerships, and collaboration to enhance purity, flavor consistency, and functional benefits. With nearly 60% of share concentrated among leading players, continuous innovation in extraction processes, formulation, and applications drives steady growth across nutraceuticals, confectionery, and personal care products.

Market Structure and Concentration
The industry demonstrates moderate concentration, with about 55% of revenues controlled by multinational licorice extract manufacturers. Regional players contribute to expansion through specialized grades and cost-effective solutions. This combination of consolidated leadership and fragmented innovation shapes competitive strategies, ensuring consistent growth in licorice extract adoption.

Brand and Channel Strategies
Leading firms strengthen their brands through partnerships with food, beverage, and pharmaceutical companies, collaborations with distributors, and direct contracts with manufacturers. Nearly 60% of adoption occurs via B2B and industrial channels, while specialized distributors support channel expansion. Effective strategies emphasize purity, functionality, and consistency, reinforcing sustainable growth in the market.

Innovation Drivers and Technological Advancements
Ongoing innovation focuses on high-purity extraction, bioactive component concentration, and standardized formulations. Around 45% of R&D investments target technological advancements that improve efficacy, stability, and versatility. Strategic collaboration between manufacturers and research institutions drives strategies, enabling measurable growth in licorice extract technology.

Regional Momentum and Expansion
North America accounts for nearly 40% of demand, driven by nutraceutical and personal care applications. Europe demonstrates steady growth with confectionery and health supplement adoption, while Asia-Pacific shows rapid expansion surpassing 25% due to rising health awareness and food industry growth. Regional strategies enhance market penetration and competitive positioning.

Future Outlook
The market is projected to sustain robust growth as demand for high-purity, functional, and technologically advanced licorice extracts rises. Stronger partnerships and mergers will reshape competitive landscapes, while continuous innovation ensures improved formulation quality, bioactivity, and application versatility. The future outlook highlights broad expansion supported by nutraceutical, food, and personal care industry growth.

Key players in Licorice Extract Market include:

• MAFCO Worldwide LLC
• Norevo GmbH
• Maruzen Pharmaceuticals Co., Ltd.
• ASEH Licorice MFG & Exp. Co.
• Zagros Licorice Co.
• Sepidan Osareh Co.
• F&C Licorice Ltd.
• VPL Chemicals Pvt Ltd.
• Naturex SA
• Bio-Botanica Inc.
• Arjuna Natural Ltd.
• Azelis Group
• Beijing Gingko Group
• Hunan Huakang Biotech Inc.
• Herbochem

In this report, the profile of each market player provides following information:

• Market Share Analysis
• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis