The Licorice Extract Market size was estimated at USD 650 million in 2023 and is projected to reach USD 1.3 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 10.50% during the forecast period (2024-2030).

Licorice Extract Market

Market Summary

The licorice extract market is a significant segment within the global food and beverages industry, characterized by its versatile applications and natural sweetening properties. Derived from the root of the Glycyrrhiza glabra plant, this extract is prized for its distinct flavor profile and functional benefits, making it a valuable ingredient for numerous product formulations. The market is driven by increasing consumer preference for natural and plant-based ingredients over synthetic alternatives, aligning with the broader health and wellness trend. Manufacturers across confectionery, pharmaceuticals, and beverages are integrating licorice extract to enhance taste, mask bitterness, and leverage its inherent sweetness, which is considerably higher than that of sucrose. The market operates within a complex supply chain, involving cultivation, extraction, processing, and distribution, with key producing regions including Asia Pacific and Europe. Regulatory frameworks concerning glycyrrhizin content influence product development and labeling, necessitating compliance from industry participants. The competitive landscape features both specialized ingredient suppliers and large diversified corporations, all striving to innovate and capture market share through quality improvements and application expansion.

Key Highlights

The licorice extract market is distinguished by several pivotal factors that underscore its growth and strategic importance. A primary highlight is the extract's role as a natural sweetener and flavorant, catering to the rising demand for clean-label products in the food and beverage sector. Its application extends beyond taste enhancement to include functional properties such as anti-inflammatory and antioxidant effects, which are leveraged in health-oriented products. The market benefits from extensive use in traditional and herbal remedies, particularly in Asian markets, where it holds cultural significance. Another key aspect is the ongoing research and development activities focused on optimizing extraction techniques to improve yield, purity, and sustainability, addressing environmental concerns and supply chain efficiencies. Major players are engaging in strategic initiatives like capacity expansions, partnerships, and new product launches to strengthen their market presence. The versatility of licorice extract allows for its incorporation into a diverse range of products, from candies and teas to dietary supplements and oral care items, demonstrating its cross-industry appeal. These factors collectively highlight the market's resilience and potential for continued expansion.

Drivers, Opportunities & Restraints

Several drivers propel the licorice extract market forward, with the foremost being the escalating consumer inclination towards natural ingredients and clean-label products. This shift is reinforced by growing health consciousness and awareness of the adverse effects associated with artificial additives, prompting manufacturers to adopt licorice extract as a viable alternative. Additionally, the expanding functional food and beverage sector utilizes the extract for its beneficial properties, further stimulating demand. Opportunities abound in the development of novel applications, such as in sports nutrition and wellness products, where its natural sweetening and therapeutic attributes can be leveraged. Emerging markets present significant growth potential due to increasing disposable incomes and changing dietary patterns. However, the market faces restraints, including stringent regulations regarding glycyrrhizin content due to potential health risks like hypertension with excessive consumption. Supply chain vulnerabilities, such as climatic dependencies affecting licorice root cultivation and price volatility of raw materials, also pose challenges. Balancing these drivers, opportunities, and restraints is crucial for stakeholders to navigate the market effectively and capitalize on growth prospects while mitigating risks.

Concentration Insights

The competitive concentration in the licorice extract market is characterized by the presence of both global players and regional specialists, creating a moderately consolidated landscape. Leading companies such as MAFCO Worldwide, Norevo, and FandC Licorice dominate through extensive product portfolios, robust distribution networks, and significant investments in research and development. These entities often engage in vertical integration, controlling aspects from cultivation to extraction, which enhances their supply chain stability and cost efficiency. Regional players, particularly in Asia Pacific and Europe, focus on catering to local preferences and traditional applications, leveraging deep-rooted expertise and cultural familiarity. The market concentration is influenced by factors like technological advancements in extraction processes, which larger firms are better positioned to implement, and regulatory compliance capabilities. Partnerships and mergers are common strategies to expand geographical reach and application expertise. Despite the dominance of key players, opportunities exist for smaller entrants specializing in organic or high-purity extracts, catering to niche segments. This dynamic concentration necessitates continuous innovation and strategic positioning for companies to maintain competitiveness and market share.

Type Insights

Licorice extract is available in various types, primarily differentiated by form and glycyrrhizin content, each catering to specific industry needs. The two main forms are liquid and powder, with powder gaining traction due to its longer shelf life, ease of handling, and versatility in dry mix applications such as powdered beverages and confectionery blends. Liquid extracts are preferred in formulations where solubility and rapid integration are crucial, such as in beverages and syrups. Based on glycyrrhizin concentration, extracts range from standard to de-glycyrrhizinated varieties. Standard extracts with higher glycyrrhizin content are valued for their intense sweetness and flavoring potency, making them ideal for candies and oral care products. De-glycyrrhizinated licorice extract (DGL) is processed to remove glycyrrhizin, mitigating health concerns associated with excessive consumption while retaining other beneficial properties; it is widely used in dietary supplements and throat lozenges. The choice of type depends on application requirements, regulatory guidelines, and desired functional outcomes, driving manufacturers to offer a diversified product range to meet evolving customer demands.

Application Insights

Licorice extract finds extensive applications across multiple industries, with the food and beverage sector being the largest consumer. In confectionery, it is a key ingredient in black licorice candies, gums, and chocolates, imparting its characteristic sweet and slightly bitter flavor. The beverage industry utilizes it in teas, soft drinks, and alcoholic beverages for flavor enhancement and as a natural sweetener, aligning with the trend towards reduced sugar content. Beyond food and drinks, the pharmaceutical and nutraceutical sectors employ licorice extract for its expectorant, anti-inflammatory, and ulcer-healing properties, incorporating it into cough syrups, dietary supplements, and herbal remedies. The personal care and oral hygiene industries leverage its soothing and flavoring qualities in toothpaste, mouthwashes, and skin care products. Each application segment demands specific extract characteristics, such as glycyrrhizin levels and form, driving tailored product development. The versatility of licorice extract ensures its continued relevance across these diverse applications, supported by ongoing research into new functional benefits and uses.

Regional Insights

The licorice extract market exhibits distinct regional dynamics influenced by cultural preferences, regulatory environments, and economic factors. Asia Pacific holds a dominant position, driven by high consumption in countries like China and Japan, where licorice is deeply embedded in traditional medicine and confectionery. China is a major producer and exporter, benefiting from extensive cultivation and processing capabilities. North America and Europe are significant markets, with growth fueled by the rising demand for natural ingredients in food, beverages, and health products. Stringent regulations in these regions regarding glycyrrhizin content shape product formulations and marketing strategies. The Middle East and Africa show growing interest, particularly in herbal and pharmaceutical applications, while Latin America presents emerging opportunities due to increasing health awareness and economic development. Regional disparities in supply and demand necessitate localized strategies for market participants, including adaptation to regulatory standards and cultural tastes. Overall, the global market is interconnected, with trade flows moving from producing regions like Asia Pacific to consuming markets worldwide, highlighting the importance of understanding regional nuances for strategic planning.

Company Insights

The licorice extract market features a competitive array of companies ranging from specialized ingredient suppliers to diversified multinational corporations. Prominent players include MAFCO Worldwide, a leader known for its high-quality extracts and strong focus on the confectionery and tobacco industries. Norevo GmbH is another key participant, offering a wide range of natural ingredients with a significant presence in Europe. FandC Licorice Ltd. specializes in licorice products, leveraging expertise from root to extract, and serves global markets. Other notable companies include Zagros Licorice, which emphasizes sustainable sourcing and processing, and ASEH Licorice MFG & Exp Co., a major supplier from the Middle East. These companies compete on factors such as product quality, consistency, regulatory compliance, and customer service. Strategic initiatives often include capacity expansions, technological advancements in extraction methods, and portfolio diversification to address various application needs. Partnerships with end-users for custom solutions and investments in sustainability practices are common approaches to enhance market position. The competitive landscape requires continuous innovation and adaptability to meet evolving industry standards and consumer preferences.

Recent Developments

Recent developments in the licorice extract market reflect ongoing innovation and strategic movements aimed at capturing growth opportunities. Companies are increasingly investing in sustainable and organic certification processes to appeal to environmentally conscious consumers and comply with stringent regulations. Technological advancements in extraction techniques, such as supercritical fluid extraction, are being adopted to improve efficiency, yield, and purity while reducing environmental impact. There has been a noticeable trend towards product launches targeting specific health benefits, such as immune support and digestive health, expanding into nutraceuticals and functional foods. Strategic collaborations and acquisitions are prevalent, with larger firms acquiring specialized producers to enhance their portfolio and geographic reach. For instance, partnerships between extract suppliers and food manufacturers are fostering the development of customized solutions for sugar reduction and flavor enhancement. Additionally, regulatory updates concerning glycyrrhizin limits in various regions are prompting reformulations and increased focus on de-glycyrrhizinated products. These developments indicate a dynamic market environment where adaptation and innovation are key to maintaining competitiveness and meeting the evolving demands of end-use industries.

Report Segmentation

This comprehensive market research report on the licorice extract market is meticulously segmented to provide detailed insights and facilitate informed decision-making. The segmentation is based on type, encompassing liquid and powder forms, as well as variations in glycyrrhizin content such as standard and de-glycyrrhizinated extracts. Application segmentation covers key sectors including food and beverages?further broken down into confectionery, beverages, and others?pharmaceuticals, nutraceuticals, personal care, and oral hygiene products. Geographical segmentation offers analysis across major regions: North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa, with country-level insights for significant markets. Additionally, the report includes segmentation by distribution channel, highlighting business-to-business sales and direct distribution strategies. Each segment is analyzed in terms of market trends, growth factors, and competitive landscape, providing a holistic view of opportunities and challenges. This structured approach enables stakeholders to identify niche segments, understand regional dynamics, and tailor strategies to specific market needs, ensuring comprehensive coverage of the licorice extract industry.

FAQs

What are the health benefits of licorice extract?

Licorice extract offers several health benefits, including anti-inflammatory and antioxidant properties. It is commonly used to soothe respiratory issues, support digestive health, and alleviate symptoms of conditions like sore throats and ulcers. Its natural sweetness also makes it a popular sugar alternative in various products.

How is licorice extract used in the food industry?

In the food industry, licorice extract is primarily used as a flavoring agent and natural sweetener. It is incorporated into confectionery items such as candies and gums, beverages including teas and soft drinks, and even in some dairy products to enhance taste and reduce the need for artificial additives.

What is de-glycyrrhizinated licorice extract?

De-glycyrrhizinated licorice extract (DGL) is a processed form where most of the glycyrrhizin is removed to eliminate associated health risks like high blood pressure. DGL retains other beneficial properties and is often used in dietary supplements and products targeting digestive health without the side effects.

Which regions are major producers of licorice extract?

Major producers of licorice extract are concentrated in Asia Pacific, with China being the leading cultivator and processor due to favorable climatic conditions and traditional expertise. Other significant producing regions include parts of Europe, the Middle East, and Central Asia, where licorice root is abundantly grown.

What are the common applications of licorice extract in beverages?

In beverages, licorice extract is used to impart a sweet and distinctive flavor, particularly in herbal teas, soft drinks, and alcoholic beverages. It serves as a natural sweetener, helps in masking bitterness, and is valued for its functional properties, making it a versatile ingredient in both hot and cold drinks.

Citius Research has developed a research report titled “Licorice Extract Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” delivering key insights regarding business intelligence and providing concrete business strategies to clients in the form of a detailed syndicated report. The report details out the factors such as business environment, industry trend, growth opportunities, competition, pricing, global and regional market analysis, and other market related factors.

Details included in the report for the years 2024 through 2030

• Licorice Extract Market Potential
• Segment-wise breakup
• Compounded annual growth rate (CAGR) for the next 6 years
• Key customers and their preferences
• Market share of major players and their competitive strength
• Existing competition in the market
• Price trend analysis
• Key trend analysis
• Market entry strategies
• Market opportunity insights

The report focuses on the drivers, restraints, opportunities, and challenges in the market based on various factors geographically. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report. The Licorice Extract Market report is segmented on the basis of various market segments and their analysis, both in terms of value and volume, for each region for the period under consideration.

Licorice Extract Market Segmentation

Regions Covered

• North America
• Latin America
• Europe
• MENA
• Asia Pacific
• Sub-Saharan Africa and
• Australasia

Licorice Extract Market Analysis

The report covers below mentioned analysis, but is not limited to:

• Overview of Licorice Extract Market
• Research Methodology
• Executive Summary
• Market Dynamics of Licorice Extract Market
  • Driving Factors
  • Restraints
  • Opportunities
• Global Market Status and Forecast by Segment A
• Global Market Status and Forecast by Segment B
• Global Market Status and Forecast by Segment C
• Global Market Status and Forecast by Regions
• Upstream and Downstream Market Analysis of Licorice Extract Market
• Cost and Gross Margin Analysis of Licorice Extract Market
• Licorice Extract Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030
  • Competition Landscape
  • Market Share of Major Players
• Key Recommendations

The “Licorice Extract Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” report helps the clients to take business decisions and to understand strategies of major players in the industry. The report delivers the market driven results supported by a mix of primary and secondary research. The report provides the results triangulated through authentic sources and upon conducting thorough primary interviews with the industry experts. The report includes the results on the areas where the client can focus and create point of parity and develop a competitive edge, based on real-time data results.

Licorice Extract Market Key Stakeholders

Below are the key stakeholders for the Licorice Extract Market:

• Manufacturers
• Distributors/Traders/Wholesalers
• Material/Component Manufacturers
• Industry Associations
• Downstream vendors

Licorice Extract Market Report Scope

COVID-19 Impact Analysis

Like most other markets, the outbreak of COVID-19 had an unfavorable impact on the Licorice Extract Market worldwide. This report discusses in detail the disruptions experienced by the market, the impact on flow of raw materials, manufacturing operations, production trends, consumer demand and the projected future of this market post pandemic.

The report has helped our clients:

• To describe and forecast the Licorice Extract Market size, on the basis of various segmentations and geography, in terms of value and volume
• To measure the changing needs of customers/industries
• To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
• To gain competitive intelligence and uncover new opportunities
• To analyse opportunities in the market for stakeholders by identifying high-growth segments in Licorice Extract Market
• To strategically profile key players and provide details of the current competitive landscape
• To analyse strategic approaches adopted by players in the market, such as product launches and developments, acquisitions, collaborations, contracts, expansions, and partnerships

Report Customization

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