Liquorice Extract Market Overview

The global liquorice extract market is experiencing significant growth, driven by increasing consumer demand for natural ingredients across various industries, including food and beverages, pharmaceuticals, and cosmetics. This surge is attributed to the growing awareness of health and wellness, the shift towards clean-label products, and the expanding applications of liquorice extract in diverse sectors.

Market Size and Growth

In 2024, the global liquorice extract market was valued at approximately USD 2.17 billion, with projections indicating an increase to USD 3.30 billion by 2033, reflecting a compound annual growth rate (CAGR) of 4.53% from 2025 to 2033 . The European market holds a significant share, accounting for over 32.8% of the global market in 2024, driven by the region's preference for natural and organic products .

Key Applications

1. Food and Beverages: Liquorice extract is widely used as a natural sweetener and flavoring agent in candies, confectionery, chewing gums, and beverages due to its distinct sweet and aromatic taste. The rising popularity of liquorice-flavored alcoholic beverages such as liqueurs and spirits has further propelled the growth of the liquorice market .

2. Pharmaceuticals: The pharmaceutical-grade segment held over USD 901 million in revenue in 2023. Liquorice extract is valued for its anti-inflammatory, antimicrobial, and antioxidant properties, making it a common ingredient in medicines targeting digestive, respiratory, and skin health .

3. Cosmetics and Personal Care: In the cosmetic industry, liquorice extract is increasingly used in skincare products due to its skin-brightening and anti-inflammatory properties. It helps in managing skin conditions such as eczema, acne, and hyperpigmentation .

Regional Insights

• Europe: Europe leads the market, driven by the demand for clean-label products and sustainable sourcing. The region's deep-rooted acceptance of herbal remedies and stringent regulatory frameworks support the use of liquorice extract in various applications .

• Asia-Pacific: The Asia-Pacific region is witnessing rapid growth, with China being a leading producer of liquorice extract. The country's pharmaceutical and herbal industries are expanding, fueled by increasing healthcare expenditures and a growing aging population .

• North America: North America is the fastest-growing market, propelled by the rising preference for organic products and the increasing prevalence of chronic disorders. The United States market has seen greater incorporation of plant-based ingredients in functional foods .

Market Trends

• Clean-Label and Natural Ingredients: Consumers are increasingly seeking products with natural ingredients, driving the demand for liquorice extract as a natural sweetener and flavoring agent in food and beverages .

• Health and Wellness: The growing awareness of health and wellness among consumers has spurred the use of liquorice extract in dietary supplements and functional foods, owing to its anti-inflammatory and antioxidant properties .

• Sustainable Sourcing: Companies are focusing on sustainable sourcing practices to meet the rising consumer demand for ethically produced and environmentally friendly products .

Challenges

Despite its growing popularity, the liquorice extract market faces several challenges:

• Sustainable Supply Chain: The limited geographical regions where the liquorice plant can be cultivated, combined with the impact of climate change on crop yields, poses a threat to the consistency of raw material supply .

• Regulatory Landscape: Different countries have varied regulations regarding the permissible levels of glycyrrhizin, the active compound in liquorice extract, due to its potential adverse health effects in high quantities. Navigating these differing regulations can be complex and costly for companies operating in the global market .

• Fluctuations in Raw Material Prices: Liquorice root, the primary raw material for liquorice extract production, is susceptible to price volatility due to factors such as weather conditions, geopolitical instability in major liquorice-producing regions, and supply chain disruptions .

Conclusion

The liquorice extract market is poised for continued growth, driven by the increasing demand for natural ingredients and the expanding applications across various industries. However, addressing the challenges related to sustainable sourcing, regulatory compliance, and raw material price fluctuations will be crucial for maintaining market stability and ensuring long-term success. Companies that focus on innovation, sustainable practices, and adherence to regulatory standards will be well-positioned to capitalize on the opportunities in this burgeoning market.