• In 2024, Norevo GmbH introduced a Fair Trade-certified licorice extract line tailored for European confectionery manufacturers, emphasizing sustainable sourcing and ethical trade practices.

• In 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, the Licorice Extract Market has been segmented by Form, Product Type, Application and Geography.

Licorice Extract Market, Segmentation by Form

The Licorice Extract Market has been segmented by Form into Block, Powder, Paste and Others.

Block
The block licorice extract holds a notable share in the global market, contributing approximately 30% to the total demand. This form is especially popular in traditional medicine and herbal industries across Asia and the Middle East due to its long shelf life and high potency. It is also preferred for its ease of transport and low processing needs, making it a convenient choice for bulk buyers.

Powder
The powder licorice extract leads the market with an estimated 40% share, making it the most widely used form. Its popularity stems from its versatility and ease of integration in various sectors such as food, beverages, and pharmaceuticals. Known for its consistency and extended storage life, this form is ideal for manufacturers seeking standardized and effective ingredients.

Paste
The paste licorice extract is predominantly used in specialized industries like confectionery and tobacco, where flavor retention is a top priority. Accounting for around 20% of the market, its thick, natural texture and concentrated taste make it a valuable component for niche applications. Although less widespread, its regional demand remains strong.

Licorice Extract Market, Segmentation by Product Type

The Licorice Extract Market has been segmented by Product Type into Food grade, Feed grade and Pharmaceutical grade.

Food Grade
Food grade licorice extract leads the global market with a share of approximately 45%, thanks to its extensive application in confectionery, beverages, and food flavorings. Known for its natural sweetness and ability to enhance taste without synthetic ingredients, it aligns well with the growing trend toward clean-label and natural products.

Feed Grade
Feed grade licorice extract comprises about 20% of the market and is increasingly being adopted in animal feed formulations. Its natural anti-inflammatory and digestive properties support overall animal health, making it a preferred choice among livestock producers seeking herbal and sustainable alternatives.

Pharmaceutical Grade
Pharmaceutical grade licorice extract holds an estimated 35% share of the global market, fueled by its potent therapeutic properties. It is commonly used in both traditional and modern medicines for its proven anti-ulcer, antiviral, and anti-inflammatory benefits, with strong demand from the Asia-Pacific and European healthcare sectors.

Licorice Extract Market, Segmentation by Application

The Licorice Extract Market has been segmented by Application into Food & Beverages, Cosmetics & Personal Care, Dietary Supplements, Tobacco Products and Others.

Food & Beverages
Food & Beverages applications lead the licorice extract market, comprising approximately 38% of total consumption. Widely used in sweets, drinks, and baked goods, licorice serves as a natural flavor enhancer and sweetening agent. The increasing demand for clean-label and naturally sourced ingredients is significantly driving this segment.

Cosmetics & Personal Care
Cosmetics & Personal Care products account for about 20% of licorice extract usage. Its powerful anti-inflammatory and skin-brightening properties make it a sought-after ingredient in formulations for skincare and haircare. Growing consumer interest in botanical and chemical-free beauty solutions is accelerating its adoption in this category.

Dietary Supplements
Dietary Supplements represent roughly 18% of the market share. Licorice extract is gaining traction as a natural remedy for digestive issues, immune support, and stress management. Its adaptogenic qualities and growing popularity in herbal wellness supplements are boosting demand.

Tobacco Products
Tobacco Products use nearly 15% of the licorice extract supply. The extract enhances flavor and smoothness in cigarettes and other tobacco items. Despite increasing health regulations, this application remains steady due to its functional importance in product formulation.

Others
Others cover emerging uses in areas like pet care, pharmaceuticals, and agriculture, contributing around 9% to the market. Although currently niche, this segment shows potential for growth as companies explore new uses for botanical ingredients in diverse industries.

Licorice Extract Market, Segmentation by Geography

In this report, the Licorice Extract Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Licorice Extract Market Share (%), by Geographical Region

North America
North America contributes roughly 22% to the licorice extract market, largely fueled by its widespread use in the pharmaceutical and functional food sectors. Growing consumer interest in herbal supplements and natural health products continues to drive demand across the U.S. and Canada.

Europe
Europe captures about 27% of the licorice extract market, supported by a strong preference for natural ingredients in confectionery, cosmetics, and nutraceutical applications. Favorable regulatory policies further accelerate the market's expansion in this region.

Asia Pacific
Asia Pacific dominates with an estimated 34% share, led by high consumption in traditional medicine, food, and dietary supplements. Countries like China, India, and Japan play a significant role in this growth, leveraging licorice’s therapeutic and culinary appeal.

Middle East and Africa
Middle East and Africa hold nearly 9% of the market, where licorice extract is deeply rooted in traditional herbal practices and local cuisine. The rising shift toward natural healthcare solutions adds further momentum in the region.

Latin America
Latin America represents about 8% of the global market. Demand is growing gradually, particularly in cosmetics and food applications, with increasing consumer interest in plant-based and organic ingredients contributing to market traction.

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.

Key players in Licorice Extract Market include:

• Alfarid Corporation Limited
• AOS Products Pvt. Ltd.
• Avestia Pharma
• C.E. Roeper GmbH
• F&C Licorice Ltd.
• Herbochem
• Hyundai Bioland
• Mafco Worldwide LLC
• Maruzen Pharmaceuticals Co. Ltd.

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

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