Licorice Extract Market to Reach USD 1.6 Billion by 2035 as Demand Surges for Natural Health and Wellness Ingredients
Licorice Extract Market
The licorice extract market is witnessing steady growth driven by rising demand in food, pharmaceuticals, and nutraceutical applications.
NEWARK, DE, UNITED STATES, September 5, 2025 /EINPresswire.com/ -- The global licorice extract market is entering a new phase of expansion, poised to grow from USD 894.3 million in 2025 to USD 1,600 million by 2035, registering a CAGR of 6.2%. This growth is being driven by consumer interest in plant-based health solutions, clean-label ingredients, and natural adaptogens.
Licorice extract, long valued in traditional Chinese medicine (TCM) and Ayurvedic practices, is finding new relevance in modern markets. Its applications span nutraceuticals, herbal supplements, pharmaceuticals, cosmeceuticals, functional foods, and oral care products. With bioactive compounds like glycyrrhizin and flavonoids, licorice extract is widely recognized for its anti-inflammatory, antioxidant, and immunity-boosting properties.
Established Leaders and New Players Driving Innovation
The licorice extract market is a mix of long-standing manufacturers and emerging innovators. Global leaders like MAFCO Worldwide LLC, Norevo GmbH, and Shaanxi Jiahe Phytochemicals are strengthening their positions through organic and Fair-Trade certified offerings, advanced extraction technologies, and robust supply chain management.
Meanwhile, new and regional firms such as Zagros Licorice, F&C Licorice, Sepidan Osareh, and Ransom Naturals are focusing on sustainability, ethical sourcing, and customized high-purity extracts. Their strategies often involve catering to region-specific demands, particularly in the Middle East, Asia-Pacific, and Europe, where herbal medicine and natural wellness products are in high demand.
This balance between established multinationals and smaller innovators is fostering a competitive yet collaborative ecosystem. Together, these players are investing in new technologies, clean-label formulations, and value-added product lines to meet rising consumer expectations.
Market Dynamics: Why Demand is Rising
1. Immunity and Digestive Health
With increasing awareness of preventive healthcare, licorice extract has gained popularity as a natural adaptogen that supports immune function, respiratory health, and gut balance. Clinical research highlights its role in reducing inflammation and enhancing resilience against infections.
2. Cosmetics and Personal Care
In skincare, licorice extract is valued for its ability to reduce hyperpigmentation, calm redness, and provide antioxidant protection. Its inclusion in serums, lotions, and oral care formulations is gaining traction among beauty-conscious consumers seeking chemical-free alternatives.
3. Functional Foods and Beverages
Food and beverage manufacturers are embracing licorice extract for its natural sweetening and flavor-enhancing properties. Its use in confectionery, teas, herbal tonics, and gummies is expanding rapidly, especially in Asia-Pacific and Europe.
4. Pharmaceuticals
Long associated with cough syrups, throat lozenges, and liver support formulations, licorice extract continues to hold a strong position in pharmaceuticals. Its adoption is expected to increase as demand grows for plant-based excipients and anti-inflammatory therapies.
Investment Trends and Technological Advancements
The market is being shaped by innovations in formulation and delivery systems. Companies are investing heavily in R&D and technology to create more bioavailable, high-purity, and standardized extracts. Popular delivery formats include:
• Capsules and chewable tablets for supplements
• Gummies and beverages for functional foods
• HPMC-based supplements for vegan-friendly consumers
Vertical integration strategies are also being adopted by manufacturers like Aushadhi Herbal to ensure consistency in raw material sourcing and product purity.
Additionally, sustainability and ethical sourcing are becoming major priorities. In 2024, Norevo GmbH launched a Fair-Trade certified licorice extract line in Europe, while Mafco Worldwide LLC introduced organic licorice extract powder for the North American pharmaceutical sector. These moves highlight the growing importance of responsible ingredient sourcing in consumer decision-making.
Regional Outlook: Strong Growth in Asia-Pacific and Beyond
While licorice extract enjoys global demand, Asia-Pacific is set to dominate growth, particularly in China, India, and Australia.
• China: Strongly driven by traditional Chinese medicine, the country’s licorice extract market is projected to grow at 7.8% CAGR.
• India: Expected to see the fastest growth globally (11.5% CAGR), fueled by the booming Ayurvedic medicine and nutraceutical industries.
• Australia: With a CAGR of 8.4%, demand is rising for plant-based skincare and supplements aligned with clean-label trends.
• United States: Expected CAGR of 6.7%, supported by consumer preference for natural, research-backed dietary supplements.
• Germany: Steady growth at 5.6% CAGR, driven by demand for functional foods and pharmaceuticals.
Trade Landscape: Exporting Countries Lead the Way
The trade in licorice extract is dominated by China, Iran, and India, which together account for a significant share of global exports.
• China is the global leader, offering a wide range of pharmaceutical and food-grade extracts.
• Iran is known for high-quality licorice roots exported mainly to Europe and Asia.
• India plays a dual role, both as a consumer and exporter, leveraging its Ayurvedic medicine industry to expand exports.
On the demand side, North America, Europe, Japan, and South Korea rely heavily on imports to meet growing consumer demand for natural extracts.
Market Concentration: Balance of Giants and Niche Innovators
The licorice extract market demonstrates a moderate to high concentration. According to Future Market Insights (FMI):
• Tier 1 companies (e.g., MAFCO, Norevo, Naturex) hold 25–30% share.
• Tier 2 players account for 35–40%.
• Tier 3 players, often regional specialists, capture the rest.
This dynamic mix ensures healthy competition, continuous innovation, and product diversification across industries.
Request Licorice Extract Market Draft Report - https://www.futuremarketinsights.com/reports/sample/rep-gb-3307
For more on their methodology and market coverage, visit https://www.futuremarketinsights.com/about-us.
Key Highlights and Future Outlook
• The liquid licorice extract segment will dominate by 2025 with 44.9% market share, thanks to its higher concentration and ease of formulation.
• Immune support applications will represent 22.6% of total use by 2025, underscoring the demand for botanical immunity boosters.
• Growth will be further supported by the resurgence of herbal medicine, rising awareness of clean-label health products, and continued investments in technology and R&D.
Explore Related Insights
Licorice Root Market: https://www.futuremarketinsights.com/reports/licorice-root-market
Licorice Candy Market: https://www.futuremarketinsights.com/reports/licorice-candy-market
Licorice Extract Market Share Analysis: https://www.futuremarketinsights.com/reports/licorice-extract-market-share-analysis
Rahul Singh
Future Market Insights Inc.
+1 347-918-3531
email us here
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