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

• In February 2023, Mafco Worldwide LLC launched an organic licorice extract powder aimed at pharmaceutical companies in North America, aligning with the growing demand for clean-label and natural ingredients.

In this report, the Licorice Root Market has been segmented by Product Form, End-User and Geography.

Licorice Root Market, Segmentation by Product Form

The Licorice Root Market by product form showcases a wide range of applications across industries such as pharmaceuticals, cosmetics, food, and dietary supplements. Each form offers distinct advantages in terms of extraction efficiency, formulation compatibility, and storage stability. The demand for processed licorice forms such as powder and extracts has surged due to their ease of integration into food and health products. Manufacturers are increasingly investing in advanced extraction techniques to enhance yield and purity, which is driving the growth of this segment.

Roots

The roots segment remains the traditional source form, widely used in herbal medicine and natural remedies. Its market share continues to be significant due to strong demand from the pharmaceutical and nutraceutical sectors. Roots are valued for their high glycyrrhizin content, which supports immune modulation and anti-inflammatory properties, contributing to steady consumption across Asia and Europe.

Extracts

The extracts segment is expanding rapidly as it offers concentrated bioactive compounds suitable for large-scale industrial applications. With the growing preference for standardized plant extracts in food and cosmetics, producers are investing in sustainable extraction technologies. This segment has gained popularity for its consistency, shelf life, and versatile use in functional beverages and skincare formulations.

Blocks

The blocks segment caters primarily to traditional confectionery and tobacco applications. These compressed forms of licorice enable easier handling and controlled flavor release. Emerging innovations in organic block production are increasing the appeal of this form in markets emphasizing natural ingredients and reduced chemical processing.

Powder

The powder form dominates in dietary supplements and cosmetics due to its high solubility and adaptability in product formulations. It supports efficient blending with other botanical ingredients, enhancing both texture and efficacy. The adoption of spray-drying and freeze-drying methods has improved the powder’s quality, leading to an estimated 20% growth rate in demand across food and personal care sectors.

Paste

The paste segment serves niche applications such as natural sweeteners and herbal preparations. It offers a rich, viscous texture that makes it suitable for formulations requiring strong flavor profiles. Increasing utilization in premium confectionery and herbal syrups has positioned this segment as a specialty category with growing export potential.

Others

The others category includes innovative and blended forms such as liquid concentrates and encapsulated licorice. These products are tailored for modern nutraceutical and beverage industries focusing on convenience and targeted health benefits. Continuous R&D is fostering new product development aimed at improving bioavailability and consumer appeal.

Licorice Root Market, Segmentation by End-User

The Licorice Root Market by end-user industry highlights its versatility across multiple sectors. Demand varies depending on the desired therapeutic, flavoring, or cosmetic attributes. The food and beverage industry leads in consumption, while the pharmaceutical and cosmetic segments are expanding rapidly due to increasing awareness of licorice’s health and skin-enhancing properties. Strategic collaborations between herbal extract manufacturers and end-product brands continue to strengthen market presence worldwide.

Food & Beverage Industry

The food and beverage industry accounts for a major share of global licorice consumption. It utilizes licorice as a natural sweetener, flavor enhancer, and functional ingredient in teas, candies, and alcoholic beverages. Rising trends in clean-label and natural flavoring are boosting the segment, particularly in Europe and North America, where consumers seek alternatives to artificial additives.

Tobacco Industry

The tobacco industry remains a traditional consumer of licorice root, using it for flavor balancing and moisture retention in tobacco blends. While regulatory pressures have slowed growth in developed regions, the segment continues to sustain moderate demand in emerging markets due to traditional preferences and evolving formulations that incorporate herbal blends.

Pharmaceutical Industry

The pharmaceutical industry represents one of the fastest-growing segments, leveraging licorice’s anti-inflammatory, antiviral, and hepatoprotective properties. It is widely used in throat lozenges, syrups, and herbal formulations targeting respiratory and digestive ailments. The segment’s growth is further fueled by research validating licorice’s role in immune support and gut health.

Cosmetic Industry

The cosmetic industry is increasingly adopting licorice extracts for their skin-brightening and anti-aging effects. It is a preferred ingredient in formulations addressing pigmentation, acne, and sun damage. Rising demand for plant-based and hypoallergenic skincare products has elevated licorice’s role in the beauty sector, with global brands expanding product lines featuring natural actives.

Dietary Supplements

The dietary supplements segment is growing rapidly as consumers seek botanical alternatives for wellness and immunity. Licorice-based supplements are formulated for stress relief, digestion, and hormonal balance. With increasing consumer awareness of adaptogenic herbs, this segment is expected to maintain double-digit growth, supported by e-commerce and global nutraceutical trends.

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.

North America

In North America, the licorice root market is driven by the strong presence of functional food and nutraceutical industries. Growing interest in plant-based remedies and dietary supplements supports continuous product innovation. The U.S. remains a leading importer, while Canada contributes to rising demand for natural cosmetic ingredients and herbal infusions.

Europe

Europe holds a prominent share due to established usage of licorice in confectionery and pharmaceuticals. Countries like Germany, the U.K., and Italy have robust manufacturing capabilities and stringent quality standards. The region’s inclination toward organic and sustainably sourced botanicals continues to influence production and trade dynamics positively.

Asia Pacific

Asia Pacific dominates global production, with major contributions from China, India, and Japan. The market benefits from traditional medicine systems such as Ayurveda and Traditional Chinese Medicine (TCM). Increasing export demand and investments in licorice cultivation are enhancing regional competitiveness and positioning Asia Pacific as a global supply hub.

Middle East & Africa

The Middle East & Africa region has a growing market for licorice due to its traditional use in herbal drinks and remedies. Expanding pharmaceutical applications and the adoption of herbal dietary supplements are supporting regional growth. Countries such as Egypt and Iran are notable producers and exporters within this segment.

Latin America

In Latin America, the market is emerging with increased use of herbal ingredients in wellness and beauty products. Brazil and Mexico are at the forefront, witnessing rising imports of licorice extracts for pharmaceutical and personal care applications. The region’s focus on natural product development presents significant potential for future market expansion.

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.

Licorice Root Market is defined by competition among herbal extract manufacturers, dietary supplement producers, and regional distributors. Companies adopt strategies such as mergers, partnerships, and collaboration to enhance purity, efficacy, and consistency. With nearly 60% of share concentrated among leading players, continuous innovation in extraction methods, formulation, and product applications drives steady growth across food, pharmaceutical, and cosmetic industries.

Market Structure and Concentration
The industry demonstrates moderate concentration, with about 55% of revenues controlled by multinational licorice root manufacturers. Regional producers contribute to expansion through niche extracts and cost

Key players in Licorice Root Market include:

• MAFCO Worldwide LLC
• Norevo GmbH
• Zagros Licorice Co
• BGG World
• C E Roeper GmbH
• F&C Licorice Ltd
• Glycyrrhiza Glabra Co Ltd
• Herbochem
• VPL Chemicals Pvt Ltd
• Naturex
• ASEH Licorice MFG
• Hyundai Bioland
• Maruzen Pharmaceuticals Co Ltd
• Alfarid Corporation
• Sepidan Osareh Co

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