The global licorice extract market is entering a new growth phase, driven by surging demand for natural, clean-label, and functional ingredients across food, beverage, pharmaceutical, and personal care industries. According to the latest market data, the industry is projected to expand from approximately US $894.3 million in 2025 to reach US $1.6 billion by 2035, registering a robust 6.2% CAGR over the forecast period.
Key Market Insights at a Glance
- Powdered licorice extract dominates the market, accounting for nearly 70% share, thanks to its stability, versatility, and easy integration in tablets, powders, and dry-mix applications.
- The overall market value is estimated to rise from US $2.17 billion in 2024 to approximately US $3.30 billion by 2033, reflecting a steady 4.5% CAGR.
- The key growth catalysts include rising consumer preference for natural sweeteners, increasing use of herbal formulations in pharmaceuticals, and growing adoption of plant-based skincare in the cosmetic sector.
- However, challenges such as fluctuating raw material supply and stringent regulatory frameworks continue to shape market dynamics.
Segment Overview
By product type, pharmaceutical-grade extracts hold a significant share, driven by their use in anti-inflammatory, digestive, and dermatological products. Food-grade extracts are witnessing growing traction in confectionery, beverages, and functional foods, where licorice serves as a natural flavor enhancer and sweetening alternative.
In terms of form, powdered licorice extract continues to outperform liquid forms due to its longer shelf life, cost-efficiency, and adaptability in multiple formulations. On the application front, the pharmaceutical segment leads, followed closely by food & beverages and cosmetics, as consumers increasingly favor natural and botanical ingredients over synthetic additives.
Regional Overview
Europe remains the largest regional market, commanding more than 30% of global revenue, fueled by the continent’s long-standing preference for botanical and natural ingredients in food, healthcare, and cosmetics.
Asia Pacific is forecast to be the fastest-growing region, projected to expand at a CAGR exceeding 7% through 2035. The growth is anchored by strong traditional use of licorice in herbal medicine, rising disposable incomes, and an expanding nutraceutical sector in China, India, and Japan.
In North America, market momentum is accelerating, supported by consumer demand for clean-label and functional food products. The region is expected to record a healthy CAGR near 8% over the next decade. Emerging markets in Latin America and the Middle East & Africa are gradually expanding due to increased awareness and diversification of distribution networks.
Competitive Landscape
The licorice extract industry is moderately consolidated, featuring a mix of multinational and regional players. Leading companies are focusing on vertical integration, sustainable root sourcing, and the development of high-purity extract varieties to meet demand from food, pharma, and cosmetic sectors.
Prominent market participants include BGG World, C.E. ROEPER GmbH, F&C Licorice Ltd, Mafco Worldwide LLC, Maruzen Pharmaceuticals Co., Ltd, Norevo GmbH, and Zagros Licorice Co.
These companies are actively investing in advanced extraction technologies, expanding production facilities, and forming strategic partnerships to strengthen global supply chains and enhance product innovation.
Market Outlook: Powering the Next Decade
The next decade will witness the licorice extract market evolving from a niche botanical ingredient into a mainstream wellness and functional-ingredient powerhouse. With consumers embracing natural alternatives to synthetic compounds, brands are turning to licorice for its proven antioxidant, anti-inflammatory, and flavor-enhancing properties.
The industry’s future growth hinges on supply-chain resilience, sustainable cultivation, and innovation in extraction processes. Companies that prioritize traceable sourcing, eco-friendly production, and product differentiation will secure long-term competitive advantage. By 2035, the market’s projected value of US $1.6 billion reflects not only rising consumer awareness but also the global shift toward holistic and plant-based lifestyles.
Key Players of Sustainable Label Industry
Sustainability is rapidly becoming a strategic imperative. Market leaders are introducing eco-certified extracts, reducing water and energy consumption in production, and promoting traceable sourcing of Glycyrrhiza roots. Firms like Mafco Worldwide and Norevo GmbH are setting benchmarks through renewable-energy extraction plants and transparent supply networks that align with global environmental goals.
Recent Strategic Developments
The market has recently seen a wave of collaborations and innovation-driven initiatives. Notable moves include the launch of next-generation licorice-based cosmetic actives with high purity levels, expansion of manufacturing capacities in Central and East Asia to secure root supply, and new partnerships between botanical extract specialists and contract manufacturers aimed at scaling production efficiency. Collectively, these developments highlight a sector transitioning from traditional flavoring toward high-value nutraceutical and pharmaceutical applications.
To access the complete data tables and in-depth insights, request a sample report here: https://www.futuremarketinsights.com/reports/sample/rep-gb-21676
Purchase Full Report for Detailed Insights: https://www.futuremarketinsights.com/reports/licorice-extract-market-share-analysis
Why FMI: https://www.futuremarketinsights.com/why-fmi
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
