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United Kingdom Licorice Candy Market to Expand at 4.6% CAGR Driven by Rising Demand for Natural Confectionery

The licorice candy market is experiencing steady growth, driven by rising consumer preference for natural and herbal confectionery products.
Published 19 September 2025

The global licorice candy market is set for a decade of promising growth, rising from USD 306.4 million in 2025 to USD 455.2 million by 2035, at a CAGR of 5.2%, according to the latest industry outlook. This upward trajectory is fueled by shifting consumer preferences toward natural, herbal, and functional confectionery, combined with bold innovations by both established confectioners and emerging artisanal players.

The licorice candy market in the United Kingdom is experiencing steady growth, fueled by the enduring popularity of traditional confectionery flavors. The presence of premium and flavored licorice varieties further supports market expansion. Additionally, rising demand from health-conscious consumers seeking gluten-free and reduced-sugar licorice options is contributing to the market’s upward trajectory.

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Health Meets Indulgence: A New Era for Licorice

Once viewed as a nostalgic treat, licorice candy is stepping into a modern spotlight. Consumers today value its anti-inflammatory, antioxidant, and digestive properties, prompting manufacturers to launch organic, sugar-free, and gluten-free formulations that align with clean-label expectations. The growing demand for plant-based confectionery has also positioned licorice as a functional ingredient that bridges indulgence with wellness.

Established players like Haribo and Twizzlers (The Hershey Company) are reimagining their product lines with sugar-free twists and premium flavors, while innovators such as Panda Licorice and Katjes International are championing vegan and sustainably sourced licorice products. Alongside these leaders, newer entrants like Darrell Lea, Wiley Wallaby, Gustaf’s Licorice, and Venco are experimenting with bold flavors, artisanal craftsmanship, and healthier formulations to carve their space in this evolving market.

Regional Outlook: Tradition Meets Modern Taste

  • North America remains a stronghold for licorice, where the U.S. and Canada blend nostalgia with innovation. Specialty candy shops and booming e-commerce channels are expanding reach, though regulatory scrutiny on sugar and artificial ingredients is prompting reformulations.
  • Europe holds deep cultural roots for licorice, particularly in the Netherlands, Germany, Sweden, and the UK. Here, consumers enjoy both sweet and salty varieties, with growing demand for sugar-free and organic versions driving further growth.
  • Asia-Pacific is emerging as a vibrant hub. Countries like China, Japan, South Korea, and India are combining traditional uses of licorice in medicine with modern candy trends. Rising disposable incomes and diversified flavor offerings, from fruity twists to fusion varieties, are fueling regional expansion.

Challenges and Opportunities: The Balancing Act

While licorice enjoys a strong health halo, concerns around glycyrrhizin—the compound responsible for licorice’s signature taste—pose challenges. Excessive consumption has been linked to hypertension and potassium imbalance, leading regulators like the FDA and EFSA to impose strict limits.

But where there are challenges, there are also opportunities. The market is witnessing a boom in sugar-free, functional licorice candies infused with natural sweeteners such as stevia and monk fruit, as well as functional additions like probiotics and vitamins. These innovations resonate with health-conscious consumers who seek confectionery that delights without guilt.

Looking Ahead: Market Shifts 2025–2035

Between 2020 and 2024, licorice candy growth was largely nostalgia-driven, with moderate innovation in natural and organic offerings. Moving forward into 2025–2035, the spotlight will shift toward:

  • Healthier formulations – organic, plant-based, and sugar-free licorice candies becoming mainstream.
  • Exotic flavor innovations – from fruity fusions to herbal blends targeting younger demographics.
  • Sustainable practices – recyclable packaging and responsibly sourced licorice root gaining traction.
  • Digital-first strategies – online retail and subscription boxes boosting accessibility worldwide.

Country-Level Insights: Where Growth is Headed

  • United States: Driven by sugar-free and organic launches, CAGR of 4.9%.
  • United Kingdom: Premium and traditional flavors remain popular, CAGR of 4.6%.
  • European Union: Largest consumer base, CAGR of 4.7%, led by Germany, Netherlands, and Sweden.
  • Japan: Rising demand for functional confectionery with herbal infusions, CAGR of 4.8%.
  • South Korea: Innovation in flavors and e-commerce accessibility driving CAGR of 5.0%.

Competitive Landscape: A Sweet but Fierce Contest

Market share remains concentrated among leading confectioners:

  • Haribo – 20–24% share, excelling with premium flavors and sugar-free gummies.
  • Twizzlers (Hershey) – 15–19% share, dominating the twist-style segment with nostalgic appeal.
  • Panda Licorice – 12–16% share, known for vegan, organic, and preservative-free offerings.
  • Katjes International – 10–14% share, recognized for plant-based, gelatin-free products.
  • Other Players (30–40%) – Darrell Lea, Wiley Wallaby, Venco, and Gustaf’s Licorice lead innovation in gluten-free, artisanal, and bold-flavored licorice treats.

Together, these companies are pushing the category forward with clean-label recipes, sustainable sourcing, innovative packaging, and functional benefits that appeal to both traditional licorice lovers and new-generation consumers.

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Conclusion: A Market with Flavorful Potential

The licorice candy market is on the cusp of transformation. With consumer demand leaning toward natural, functional, and guilt-free indulgence, manufacturers—both global giants and creative newcomers—are racing to innovate. Whether it’s black licorice steeped in tradition or fruity, sugar-free twists crafted for modern palates, the next decade promises a sweet and steady rise for this beloved confectionery category.

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