Licorice Extract Market to Reach USD 1,600 Million by 2035 Driven by Herbal and Functional Food Demand

The global licorice extract market is on track to expand from USD 894.3 million in 2025 to USD 1,600 million by 2035, registering a CAGR of 6.2% during the forecast period. This growth reflects increasing demand for natural, plant-based solutions across health, wellness, and personal care industries. Consumers are actively seeking botanical alternatives, positioning licorice extract as a versatile ingredient in nutraceuticals, herbal supplements, pharmaceuticals, functional foods, and skincare products.

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Rising Consumer Awareness and Shifting Preferences

Health-conscious consumers are gravitating toward plant-based immunity boosters, elevating licorice extract’s profile as a natural adaptogen and anti-inflammatory agent. Its applications in digestive health, liver support, and skin care have expanded its reach across diverse industries. Glycyrrhizin-rich and de-glycyrrhizinated licorice (DGL) variants are particularly in demand, aligned with the global shift toward clean-label and botanical formulations.

Expanding Applications Across Multiple Industries

Licorice extract is now more than just a flavoring agent. In the nutraceutical ingredients market, it holds a 3–5% share, widely used for anti-inflammatory and respiratory health benefits. Within pharmaceuticals, its presence is notable in cough syrups, throat lozenges, and anti-inflammatory drugs. The personal care sector embraces licorice for its skin-brightening, soothing, and anti-aging properties, while the flavor and fragrance industry values its sweet and complex taste.

Recent collaborations highlight the industry’s forward momentum. For instance, Givaudan, Bühler, and Cargill partnered in 2022 to establish a food innovation hub in Brazil, focusing on sustainable, next-generation food and beverage solutions. Such initiatives underscore the growing recognition of natural extracts like licorice in shaping future health products.

Trade and Global Consumption Trends

Major exporters including China, Iran, and India dominate the licorice trade, supported by favorable growing conditions and established extraction infrastructure. Importing countries such as the United States, Germany, Japan, and South Korea continue to drive demand for pharmaceutical-grade extracts and functional foods.

Consumption patterns vary widely. Germany and Northern Europe use licorice extensively in confectionery and herbal remedies, while the United States and Japan emphasize its role in pharmaceuticals and tobacco flavoring. In emerging markets like India and Australia, rising health awareness and interest in traditional medicine systems such as Ayurveda and TCM are spurring fresh growth.

Segment Insights: Liquid Extracts and Immune Health

The liquid licorice extract segment is projected to dominate with a 44.9% market share by 2025. Its ease of formulation and ability to blend seamlessly with other ingredients make it highly attractive for pharmaceuticals, herbal tonics, and skincare products. Meanwhile, the immune support application is set to lead product usage, accounting for 22.6% of the market by 2025, with strong demand for teas, nutraceuticals, and functional foods fortified with licorice.

Key Industry Highlights

The resurgence of herbal medicine, particularly Traditional Chinese Medicine (TCM) and Ayurveda, has amplified licorice’s importance in modern healthcare. Increasing investments in research and production technologies are ensuring higher purity levels and standardized concentrations, giving manufacturers an edge in meeting regulatory and consumer expectations.

Licorice extract’s role in skincare is equally noteworthy. With proven benefits in reducing hyperpigmentation, calming irritation, and promoting an even skin tone, it has become a vital ingredient in premium beauty and personal care formulations.

Regional Growth Leaders

• India leads with a projected CAGR of 11.5%, fueled by its Ayurvedic medicine industry and growing nutraceutical market.
• Australia follows with an 8.4% CAGR, where demand for botanical skincare and natural supplements is surging.
• China continues to capitalize on TCM traditions, holding a 7.8% CAGR.
• United States and Germany show steady growth driven by consumer preference for natural health and functional foods.

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Competitive Landscape

The licorice extract industry features both established global leaders and fast-rising regional players. Companies like MAFCO Worldwide LLC, Shaanxi Jiahe Phytochemicals, Norevo GmbH, and Sichuan Union Herb command strong positions with robust distribution and R&D capabilities. Emerging firms such as Zagros Licorice, Ransom Naturals, and Sepidan Osareh are carving niches with sustainable sourcing and high-purity products.

In 2024, Norevo GmbH launched a Fair-Trade certified licorice line in Europe, meeting the demand for ethical sourcing. Similarly, Mafco Worldwide introduced organic licorice powders in 2023, targeting clean-label supplement manufacturers in North America. These developments highlight the industry’s shift toward sustainability, transparency, and consumer-driven innovation.

Looking Ahead

The licorice extract market is entering a transformative decade, marked by rising demand for plant-based wellness products, innovative applications in functional foods, and breakthroughs in herbal medicine. With strong growth prospects across pharmaceuticals, skincare, and nutraceuticals, the industry is poised to expand its global footprint.

Established manufacturers are leveraging economies of scale, while emerging players are innovating with niche solutions, creating a dynamic and competitive market. As consumer preferences align with sustainability and health-focused trends, licorice extract stands out as a vital natural ingredient shaping the future of wellness and functional living.

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