The global licorice extract market is positioned for steady and sustained expansion over the coming decade, driven by rising demand across food and beverages, pharmaceuticals, cosmetics, and nutraceutical applications. According to industry estimates, the market size is projected to grow from US$ 521.8 million in 2026 to US$ 805.6 million by 2033, reflecting a robust compound annual growth rate (CAGR) of 6.4% during the forecast period from 2026 to 2033. This growth trajectory highlights the increasing commercial relevance of licorice extract as a multifunctional ingredient valued for its flavoring properties, medicinal benefits, and natural origin.

Licorice extract, derived primarily from the roots of Glycyrrhiza glabra, has long been utilized in traditional medicine systems. In recent years, its adoption has expanded significantly into modern industrial formulations, supported by growing consumer preference for plant-based and clean-label ingredients. The rising incidence of lifestyle-related disorders, coupled with increasing awareness of herbal and functional ingredients, is contributing to the consistent uptake of licorice extract in pharmaceutical and nutraceutical products. Additionally, the food and beverage sector continues to incorporate licorice extract as a natural sweetener and flavor enhancer, especially in confectionery, beverages, and tobacco products.

Market growth is further supported by advancements in extraction and processing technologies, which have improved product purity, consistency, and shelf life. Manufacturers are increasingly investing in standardized extracts with controlled glycyrrhizin content to meet regulatory requirements and diverse application needs. Expanding research into the antioxidant, anti-inflammatory, and antimicrobial properties of licorice extract is also strengthening its value proposition across multiple end-use industries.

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Segmentation Analysis

By Type

Based on type, the licorice extract market is broadly segmented into glycyrrhizin-rich extracts and deglycyrrhizinated licorice (DGL). Glycyrrhizin-rich licorice extract currently dominates the global market due to its extensive use in pharmaceuticals, traditional medicines, and food flavoring applications. Glycyrrhizin, the primary active compound, is valued for its sweetness, which is significantly higher than sucrose, as well as its therapeutic properties, including antiviral and anti-inflammatory effects.

Deglycyrrhizinated licorice is expected to witness faster growth during the forecast period, particularly within the nutraceutical and dietary supplement segments. This variant is preferred for applications targeting gastrointestinal health, as it eliminates potential side effects associated with excessive glycyrrhizin consumption. Growing regulatory scrutiny and increasing consumer awareness regarding ingredient safety are encouraging manufacturers to expand their DGL product portfolios, supporting segmental growth.

By Vehicle, Product, or Service Type

By application or product type, the market encompasses food and beverages, pharmaceuticals, cosmetics and personal care, tobacco, and nutraceuticals. The food and beverage segment accounts for a substantial share of global demand, driven by the use of licorice extract as a natural flavoring and sweetening agent in candies, chewing gums, herbal teas, and functional beverages. Clean-label trends and the shift away from synthetic additives are reinforcing its adoption in this segment.

The pharmaceutical segment represents one of the fastest-growing application areas, supported by the extract’s proven efficacy in cough syrups, throat lozenges, anti-ulcer medications, and liver health formulations. Increasing investments in herbal drug development and supportive government policies for traditional medicine systems are further accelerating growth. Meanwhile, the cosmetics and personal care segment is gaining momentum as licorice extract is widely used in skin-brightening, anti-aging, and anti-inflammatory formulations due to its glabridin content and antioxidant properties.

By Technology, Channel, or Processing Method

From a processing and distribution perspective, the market is segmented into conventional extraction and advanced extraction technologies, along with offline and online distribution channels. Conventional solvent-based extraction remains widely used due to its cost-effectiveness and scalability. However, advanced technologies such as supercritical fluid extraction and membrane filtration are witnessing increasing adoption as they enable higher yield, reduced solvent residue, and improved bioactive retention.

On the distribution front, offline channels, including direct B2B sales and specialty ingredient distributors, continue to dominate due to established supply relationships with large manufacturers. Nevertheless, online and digital procurement platforms are gradually gaining traction, particularly among small- and medium-sized enterprises seeking greater transparency, traceability, and procurement efficiency.

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Regional Insights

Regionally, Asia Pacific holds a leading position in the global licorice extract market, supported by abundant raw material availability, a strong heritage of traditional medicine, and the presence of major processing hubs in countries such as China and India. China, in particular, remains one of the largest producers and exporters of licorice extract, benefiting from well-established cultivation practices and extensive domestic consumption across pharmaceutical and food industries.

Europe represents another significant market, driven by stringent quality standards and strong demand from the pharmaceutical and cosmetics sectors. The region’s emphasis on herbal and natural ingredients, combined with favorable regulatory frameworks for botanical extracts, continues to support steady growth. North America is characterized by rising adoption of nutraceuticals and functional foods, with licorice extract increasingly incorporated into dietary supplements and wellness products.

The Middle East and Africa region is expected to register the fastest growth rate during the forecast period. This expansion is attributed to increasing consumer awareness of herbal remedies, growing pharmaceutical manufacturing capacity, and rising investments in food processing industries. Additionally, Latin America is emerging as a promising market, supported by expanding distribution networks and increasing demand for natural ingredients in confectionery and personal care products.

Unique Features and Innovations in the Market

Modern licorice extract solutions are increasingly differentiated by standardization, traceability, and technological integration. Manufacturers are focusing on developing standardized extracts with precise active compound concentrations to meet application-specific requirements and comply with international regulatory standards. Enhanced quality control measures, including advanced chromatography and spectroscopy techniques, are improving batch-to-batch consistency and product reliability.

The integration of digital technologies is also reshaping the market landscape. Artificial intelligence and data analytics are being used to optimize extraction parameters, predict yield outcomes, and improve supply chain efficiency. Internet of Things-enabled monitoring systems are enhancing traceability from cultivation to processing, ensuring compliance with sustainability and quality benchmarks. While 5G technology plays a more indirect role, its adoption in smart manufacturing facilities is facilitating real-time process monitoring and faster data exchange, supporting operational efficiency and scalability.

Market Highlights

The adoption of licorice extract across industries is driven by several key factors, including its multifunctional properties, natural origin, and compatibility with clean-label and sustainability trends. Businesses are increasingly incorporating licorice extract to reduce reliance on synthetic additives, align with consumer demand for plant-based ingredients, and enhance product differentiation.

Regulatory support for herbal and traditional medicine systems in several regions is playing a critical role in market expansion. At the same time, cost optimization through improved extraction efficiency and waste utilization is enabling manufacturers to remain competitive while maintaining profitability. Sustainability initiatives, such as responsible sourcing and eco-friendly processing, are becoming central to brand positioning and long-term growth strategies.

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Key Players and Competitive Landscape

The global licorice extract market is moderately consolidated, with a mix of established multinational companies and regional producers competing on quality, scale, and innovation. Leading players are focusing on strategic expansions, product portfolio diversification, and long-term supply agreements to strengthen their market presence.

Several prominent companies are investing in advanced extraction technologies and R&D to develop high-purity and application-specific extracts. These players are also expanding their footprints in high-growth regions through partnerships and acquisitions, aiming to secure raw material access and enhance distribution capabilities. Regional manufacturers, particularly in Asia Pacific, continue to play a crucial role by leveraging cost advantages and proximity to raw material sources.

Competitive strategies increasingly emphasize sustainability certifications, organic product offerings, and compliance with global regulatory standards. Companies are also aligning their product development efforts with emerging trends in functional foods, nutraceuticals, and natural cosmetics, positioning themselves to capture future growth opportunities.

Looking ahead, the licorice extract market is expected to benefit from evolving consumer preferences, technological advancements, and supportive regulatory frameworks. Opportunities are anticipated in the development of novel formulations, expansion into untapped regional markets, and integration of digital technologies across the value chain. As regulations continue to evolve, particularly concerning ingredient safety and labeling, companies that prioritize transparency, innovation, and sustainability are likely to gain a competitive edge.

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