• 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 Root Market has been segmented by Product Type, Function Type, Grade Type, Raw Material Type, Ingredient Type, Product Form, End-Use Industry and Geography.

Licorice Root Market, Segmentation by Product Type

The Licorice Root Market has been segmented by Product Type into Essential Oils, Liquid Malt Extract, Oleoresins, Herbs and Spices Dry Malt Extract, and Malt Flour.

Essential Oils

The essential oils derived from licorice root represent about 28% of the global market. These oils are widely used across industries such as cosmetics, pharmaceuticals, and aromatherapy due to their natural anti-inflammatory and antioxidant properties. Their therapeutic benefits continue to drive strong global demand.

Liquid Malt Extract

With a market share of roughly 22%, liquid malt extract is a popular choice in the food and beverage sector. Known for its natural sweetness and clean-label appeal, it serves as an alternative to synthetic additives. Demand is rising with consumer focus on natural ingredients.

Oleoresins

Oleoresins make up about 18% of the licorice root market and are favored in pharmaceutical, nutraceutical, and functional food applications. These extracts provide a concentrated source of bioactive compounds, offering both efficacy and extended shelf life.

Herbs and Spices

The herbs and spices segment accounts for nearly 15% of the licorice market. Dried licorice root is frequently used in traditional medicine and culinary spice blends. Rising consumer demand for organic and plant-based health products supports this segment’s growth.

Dry Malt Extract

Holding about 10% of market share, dry malt extract is valued for its stability, ease of storage, and utility in brewing and baking. It enables consistent product formulation and extends shelf life in diverse applications.

Malt Flour

With approximately 7% share in the market, malt flour is commonly used in confectionery and artisanal bakery sectors. It enhances texture, flavor, and color of baked goods, appealing to the trend of craft baking.

Licorice Root Market, Segmentation by Function Type

The Licorice Root Market has been segmented by Function Type into Performance Enhancers and Palatability Enhancers.

Performance Enhancers

Performance enhancers account for nearly 58% of the licorice root market by function. These ingredients are highly valued in the pharmaceutical and nutraceutical industries for their role in boosting immune response, digestive health, and respiratory support. The rise in demand for functional ingredients has propelled this segment's growth.

Palatability Enhancers

With a market share of around 42%, palatability enhancers play a critical role in improving the flavor and sensory profile of products. Commonly used in beverages, food formulations, and animal feed, these licorice-derived components are favored for delivering natural sweetness and appealing taste. The segment benefits from the global trend toward healthier flavoring solutions.

Licorice Root Market, Segmentation by Grade Type

The Licorice Root Market has been segmented by Grade Type into Standard Malt, Caramelized Malt, and Roasted Malt.

Standard Malt

Standard malt leads the grade type segmentation with about 50% market share. Its mild flavor, light color, and adaptability make it a staple ingredient in pharmaceutical, food, and beverage manufacturing. Its consistent performance across applications fuels ongoing demand.

Caramelized Malt

Making up close to 30% of the licorice root market by grade type, caramelized malt is highly sought after for its rich hue and caramel-like taste. It’s particularly popular in premium confectionery, gourmet baked goods, and specialty beverages. Demand grows with the shift toward indulgent flavor profiles.

Roasted Malt

Roasted malt, contributing to approximately 20% of the market, is favored for its intense roasted flavor and dark color. It is widely used in craft beverages, dark bakery products, and gourmet foods. This segment appeals to those seeking bold and handcrafted taste experiences.

Licorice Root Market, Segmentation by Raw Material Type

The Licorice Root Market has been segmented by Raw Material Type into Maize, Barley, Wheat, Rice, Rye, and Oat.

Maize

Maize leads the raw material segment with an estimated 32% market share. Known for its high starch yield and affordability, maize is extensively used in large-scale licorice production across food and pharmaceutical applications. Its global availability makes it a preferred choice.

Barley

With a share of around 22%, barley is valued for its rich malt content and role in brewing, health drinks, and functional supplements. Rising demand for natural grains supports this segment’s growth.

Wheat

Wheat, holding nearly 18% of the market, is appreciated for its binding properties, versatile texture, and neutral flavor. It is used in confectionery, processed foods, and snack formulations.

Rice

Representing approximately 12% of the market, rice stands out as a gluten-free, hypoallergenic ingredient ideal for nutraceuticals, infant nutrition, and health-conscious foods. Demand is driven by clean-label preferences.

Rye

Rye, contributing about 9%, is known for its earthy flavor and dense texture. It is used in artisan baking, fermented foods, and traditional health recipes. Consumer interest in ancient grains supports growth.

Oat

With around 7% market share, oat is recognized for its nutritional content, particularly its beta-glucans and dietary fiber. It is a staple in health foods, functional supplements, and products promoting heart health.

Licorice Root Market, Segmentation by Ingredient Type

The Licorice Root Market has been segmented by Ingredient Type into Lipids, Protein, Polysaccharide, and Others.

Lipids

Lipids represent nearly 35% of the licorice root market by ingredient type. Known for their bioactive benefits, licorice-derived lipids are widely used in pharmaceutical, skincare, and functional wellness applications. Their anti-inflammatory and antioxidant properties make them popular in natural therapeutic products.

Protein

With a share of about 27%, protein ingredients from licorice are gaining popularity in health supplements and recovery nutrition. These naturally sourced proteins support immune strength, muscle repair, and metabolism, aligning with demand for clean-label nutrition.

Polysaccharide

Polysaccharides, holding around 25% of the market, are valued for their contributions to immune health, gut support, and use as natural sweeteners. They are a growing component in functional foods and digestive wellness products.

Others

Contributing roughly 13%, the Others category includes saponins, flavonoids, and micronutrients. These are used in targeted health products addressing skin hydration, detox, and stress relief in cosmeceutical and botanical markets.

Licorice Root Market, Segmentation by Product Form

The Licorice Root Market has been segmented by Product Form into Roots and Extracts(Powder, Blocks and Paste).

Roots

Roots contribute roughly 38% to the licorice root market by form. Favored in traditional medicine and herbal teas, whole roots are valued for their natural composition and unprocessed benefits. They remain popular in regions focused on holistic remedies.

Extracts (Powder, Blocks, and Paste)

With around 62% market share, extracts—including powder, blocks, and paste—are preferred for their ease of use, formulation consistency, and broad applications in nutraceuticals, food, and cosmetics. Rising demand for standardized, high-potency ingredients is driving growth in this segment.

Licorice Root Market, Segmentation by End-Use Industry

The Licorice Root Market has been segmented by End-Use Industry into Food & Beverage Industry, Tobacco Industry, Healthcare & Pharmaceutical Industry and Cosmetic Industry.

Food & Beverage Industry

Food & beverage leads the licorice root market with around 41% share. Licorice is used as a natural flavoring agent and sweetener in candies, herbal teas, and functional beverages. Demand is driven by the rise of clean-label and plant-based food products.

Tobacco Industry

Holding approximately 26% share, the tobacco industry uses licorice to improve flavor smoothness and reduce bitterness in cigarette blends and smokeless tobacco. It plays a key role in delivering balanced tobacco products.

Healthcare & Pharmaceutical Industry

The healthcare and pharmaceutical industry comprises nearly 22% of licorice usage. Known for its medicinal benefits, licorice is used in respiratory treatments, digestive formulations, and herbal medicines. Its value in plant-based therapeutics continues to grow.

Cosmetic Industry

Accounting for about 11%, the cosmetic industry incorporates licorice root extract for its brightening, soothing, and anti-inflammatory properties. It is especially popular in natural skincare products like serums and creams.

Licorice Root Market, Segmentation by Geography

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

Licorice Root Market Share (%), by Geographical Region

North America

North America accounts for approximately 24% of the licorice root market. The growing use of licorice in nutraceuticals, personal care, and alternative health products is driving regional demand. Consumers are drawn to natural, botanical ingredients across multiple sectors.

Europe

With a market share of about 27%, Europe is a major region for licorice-based products. High demand in the pharmaceutical and confectionery sectors, along with stringent quality standards and interest in herbal remedies, fuels growth. Countries like Germany, France, and Italy are top consumers.

Asia Pacific

Asia Pacific leads with nearly 34% of the licorice root market. Traditional systems like Ayurveda and Traditional Chinese Medicine rely heavily on licorice, especially for health, cosmetic, and food applications. Countries like China, India, and Japan drive regional demand.

Middle East and Africa

Middle East and Africa contributes around 8% of the global market. Licorice is used in herbal teas, digestive formulations, and cultural tonics. Its traditional use and growing urban wellness adoption support its rise.

Latin America

Latin America holds about 7% of the licorice root market. Demand is rising in organic skincare, natural supplements, and functional foods. Countries like Brazil, Mexico, and Chile are becoming emerging markets for botanical ingredients.

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

Drivers, Restraints and Opportunity Analysis

Drivers:

• Medicinal Properties Demand
• Growing Herbal Supplements
• Increasing Awareness Globally
• Pharmaceutical Applications Increase

• Natural Ingredient Popularity - The rising popularity of natural ingredients in consumer products has significantly influenced the licorice root market. Consumers are increasingly seeking products that are perceived as natural, safe, and sustainable, driven by growing health and environmental awareness. Licorice root, with its long-established reputation as a natural remedy in traditional medicine systems worldwide, perfectly aligns with these consumer preferences.

  In the pharmaceutical industry, there is a notable shift towards herbal medicines and natural supplements due to their perceived efficacy and lower incidence of adverse effects compared to synthetic alternatives. Licorice root's medicinal properties, particularly its anti-inflammatory and antimicrobial benefits attributed to glycyrrhizin, have positioned it favorably in the treatment of respiratory disorders, digestive ailments, and skin conditions. This has fueled its demand among health-conscious consumers seeking natural remedies..

Restraints:

• Regulatory Challenges Worldwide
• Environmental Concerns Impact
• Price Volatility Issues
• Supply Chain Disruptions

• Overharvesting Risks Exist - Overharvesting poses a significant risk to the sustainability of the licorice root market. As demand for licorice root increases, especially for its use in pharmaceuticals, cosmetics, and food products, there is mounting pressure on natural licorice populations in the wild. The Glycyrrhiza glabra plant, from which licorice root is derived, requires several years to reach maturity, and its wild populations are vulnerable to overexploitation.

  The environmental impact of overharvesting extends beyond depletion of licorice root populations. It can disrupt fragile ecosystems where these plants grow, affecting biodiversity and soil quality. Moreover, unsustainable harvesting practices may lead to soil erosion and degradation, further exacerbating environmental concerns.

  From a socio-economic standpoint, overharvesting threatens the livelihoods of communities dependent on licorice root cultivation. In regions where licorice root is harvested from the wild or cultivated as a cash crop, unsustainable practices can lead to economic instability and loss of income for local farmers.

Opportunities:

• Functional Food Innovations
• Emerging Markets Expansion
• Technological Advancements Support
• Sustainable Sourcing Initiatives

• Partnership Opportunities - Partnership opportunities present significant growth prospects in the licorice root market, fostering collaboration among industry players to capitalize on emerging trends and expand market reach. Strategic partnerships can encompass various aspects of the licorice root supply chain, from cultivation and extraction to product development and distribution.

  Collaborations between licorice root growers and pharmaceutical companies, for instance, can facilitate the development of new medicinal formulations and enhance the efficacy of existing treatments. By leveraging the expertise of both parties, such partnerships can accelerate innovation in pharmaceutical applications of licorice root, addressing diverse health conditions and expanding market opportunities.

  In the cosmetics industry, partnerships between skincare brands and licorice root suppliers enable the development of advanced formulations that cater to specific skin concerns, such as hyperpigmentation and inflammation. These collaborations often involve research collaborations and joint marketing efforts to promote the benefits of licorice extract-based products to consumers worldwide.

Key players in Licorice Root Market include:

• Norevo
• Mafco Worldwide
• F&C Licorice
• Zagros Licorice
• Sepidan Osareh
• VPL Chemicals
• ASEH Licorice
• Zelang, Maruzen Pharmaceuticals

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