Licorice Extract Market Size & Forecasts 2026-2035, By Segments (Grade, Form, Application), Growth Opportunities, Innovation Landscape, Regulatory Shifts, Strategic Regional Insights (U.S., Japan, China, South Korea, UK, Germany, France), and Competitive Dynamics (Norevo, Mafco, F&C Licorice, Sepidan Osareh, VPL)

Market Outlook

Licorice Extract Market size is projected to grow steadily from USD 2.41 billion in 2025 to USD 3.81 billion by 2035, demonstrating a CAGR exceeding 4.7% through the forecast period (2026-2035). The 2026 revenue is estimated at USD 2.51 billion.

• Base Year Value (2025): USD 2.41 Billion
• CAGR (2026-2035): 4.7%
• Forecast Year Value (2035): USD 3.81 Billion
• Historical Data Period: 2021-2025
• Largest Region: Asia Pacific
• Forecast Period: 2026-2035

Key Takeaways

• Asia Pacific region gained over 41.2% revenue share in 2025, led by use in food, beverage, and cosmetics.
• Asia Pacific region will achieve more than 5.5% CAGR from 2026 to 2035, due to natural ingredient demand in asia.
• With 46.35% market share in 2025, pharmaceutical grade segment’s growth was led by strong demand in herbal medicines and supplements.
• The powder segment will hold 49.5% licorice extract market share in 2025, led by preferred for ease of handling in food and pharmaceutical applications.
• Securing 41.2% of the market in 2025, pharmaceuticals segment was strengthened by increasing use in herbal and anti-inflammatory drugs.
• Top companies in the licorice extract market comprise Norevo (Germany), Mafco (USA), F&C Licorice (Israel), Sepidan Osareh (Iran), VPL (India), Zagros Licorice (Iran), Ransom Naturals (UK), Zelang Group (China), Naturex (France), Maruzen Pharmaceuticals (Japan).

Market Dynamics

Increasing Use of Licorice Extract in Food, Beverage, and Pharmaceuticals

The licorice extract market is experiencing significant growth due to its rising incorporation in various sectors, particularly food, beverages, and pharmaceuticals. Consumers are increasingly seeking natural ingredients, influenced by a shift towards healthier lifestyles and clean-label products. For instance, the European Food Safety Authority has recognized licorice as a flavoring agent, prompting food manufacturers to adopt it for its unique taste and potential health benefits. This trend not only caters to consumer preferences but also aligns with regulatory shifts favoring natural additives over synthetic alternatives. Established players in the food and beverage industry are thus presented with opportunities to innovate product lines, while new entrants can capitalize on niche markets focused on health-oriented offerings.

Innovations in Extraction and Purification Techniques

Technological advancements in the extraction and purification of licorice have made it more accessible and versatile, significantly impacting the licorice extract market. Companies such as M. A. E. (Molecular Absorption Extraction) have pioneered methods that enhance the yield and purity of licorice compounds, making them suitable for a broader range of applications. These innovations not only improve product quality but also reduce production costs, allowing manufacturers to offer competitively priced products. As the market becomes more efficient, both established firms and startups can leverage these advancements to differentiate their offerings, thereby capturing a larger share of the growing demand across various sectors, including cosmetics and herbal supplements.

Growing Awareness of Licorice Health Benefits Driving Adoption

The increasing awareness of the health benefits associated with licorice is significantly shaping the licorice extract market. Research published by the World Health Organization highlights licorice's potential anti-inflammatory and antioxidant properties, driving consumer interest in its use for wellness products. This heightened awareness is fostering demand not only in traditional pharmaceutical applications but also in dietary supplements and functional foods. Companies like Herbalife have already begun incorporating licorice extract into their formulations, demonstrating a proactive approach to meeting consumer health trends. As awareness continues to spread through social media and health-focused campaigns, both established brands and new entrants have the opportunity to expand their product portfolios, aligning with the growing consumer preference for natural health solutions.

Growth Driver Assessment Framework
Growth Driver	Impact On CAGR	Regulatory Influence	Geographic Relevance	Adoption Rate	Impact Timeline
Increasing use of licorice extract in food, beverage, and pharmaceuticals	1.80%	Short term (≤ 2 yrs)	Asia Pacific, Europe (spillover: North America)	Low	Moderate
Innovations in extraction and purification techniques	1.60%	Medium term (2–5 yrs)	North America, Asia Pacific (spillover: Europe)	Low	Moderate
Growing awareness of licorice health benefits driving adoption	1.30%	Long term (5+ yrs)	Europe, North America (spillover: Asia Pacific)	Low	Slow

Industry Restraints:

Regulatory Compliance Challenges

The licorice extract market faces significant hurdles due to stringent regulatory compliance requirements, particularly in regions like the European Union and North America. Regulations surrounding food safety, labeling, and the permissible levels of glycyrrhizin—a compound in licorice extract—pose operational inefficiencies for manufacturers. For instance, the European Food Safety Authority (EFSA) has set maximum limits on glycyrrhizin intake due to its potential health risks, leading to a need for continual reformulation and testing by companies. This not only increases operational costs but also creates hesitation among consumers who may be wary of the health implications associated with licorice products. Consequently, established firms must invest heavily in compliance measures, while new entrants may find market access challenging, thereby stifling innovation and growth.

Supply Chain Vulnerabilities

The licorice extract market is also constrained by vulnerabilities within its supply chain, primarily stemming from the geopolitical instability in key producing regions such as China and Turkey. Disruptions caused by trade policies, climate change, and local agricultural practices can lead to significant fluctuations in the availability of raw materials. The Food and Agriculture Organization (FAO) has highlighted the risks posed by climate change on crop yields, which directly affects the consistency and pricing of licorice root. For market participants, this translates into increased costs and unpredictability, posing challenges for both established players and new entrants who may struggle to secure reliable sourcing channels. As these supply chain issues persist, they are likely to continue shaping market dynamics, compelling companies to explore alternative sourcing strategies and invest in resilience measures to mitigate risks.

Regional Forecast

Asia Pacific Market Statistics:

The Asia Pacific region captured over 41.2% of the global licorice extract market in 2025, making it both the largest and fastest-growing segment. This dominance is driven by increasing consumer demand for natural ingredients across various sectors, particularly in food, beverages, and cosmetics. The region's growth is further supported by a rising inclination toward health and wellness products, which has led to a greater acceptance of licorice extract due to its perceived health benefits. For instance, the Food and Agriculture Organization (FAO) has noted a significant shift in consumer preferences towards products that are both sustainable and beneficial, reinforcing the demand for licorice in functional foods and beauty products. As supply chains adapt to these changing consumer behaviors, the Asia Pacific market is poised to leverage technological advancements and regulatory frameworks that favor natural extracts, presenting considerable opportunities for growth in the licorice extract market.

Japan is positioned as a pivotal hub in the Asia Pacific licorice extract market, characterized by its sophisticated consumer base that increasingly favors premium, natural ingredients in food and cosmetics. The country's regulatory environment supports innovation in product formulations, encouraging companies to incorporate licorice extract for its flavoring and health properties. For example, a report by the Ministry of Health, Labour and Welfare highlights the rising trend of incorporating herbal extracts in traditional Japanese sweets, which has led to a surge in demand for licorice. This cultural appreciation for natural flavors not only enhances product offerings but also aligns with broader sustainability goals, making Japan a critical player in the regional licorice extract market.

China, as another major player, anchors the Asia Pacific licorice extract market with its vast consumer base and growing middle class that is increasingly health-conscious. The country's rapid urbanization and shifting dietary patterns have spurred demand for natural flavoring agents, including licorice extract, particularly in the beverage sector. The National Bureau of Statistics of China reported a significant increase in the consumption of herbal teas, which often utilize licorice for its flavor and health benefits. This trend reflects a broader movement towards natural and functional beverages, positioning China as a key driver of growth within the region. The interplay of these consumer dynamics and regulatory support for natural extracts further solidifies China's role in shaping the future of the licorice extract market in Asia Pacific.

North America Market Analysis:

North America maintained notable market presence in the licorice extract market, characterized by moderate growth driven by increasing consumer demand for natural ingredients in food and beverages. This region is significant due to its robust food and beverage industry, where licorice extract is increasingly preferred for its flavoring and health benefits. The shift towards natural and organic products is reshaping consumer preferences, leading manufacturers to innovate and adapt their offerings. Furthermore, sustainability priorities are influencing sourcing practices, prompting companies to seek ethically sourced licorice, which aligns with evolving regulatory standards and consumer expectations. For instance, the U.S. Food and Drug Administration (FDA) has been active in regulating food additives, including licorice, ensuring safety and quality, which further emphasizes the importance of compliance in this growing market. The combination of these factors positions North America as a region ripe with opportunities for expansion in the licorice extract market, as companies look to meet the rising consumer demand for healthier, natural products.

The U.S. plays a pivotal role in the North American licorice extract market, reflecting the country's strong inclination towards health-conscious consumption. The growing trend of incorporating natural flavors in food products has led to increased utilization of licorice extract, particularly in the confectionery sector and herbal supplements. American consumers are increasingly favoring products that boast clean labels, prompting manufacturers to reformulate existing products or launch new ones featuring licorice extract as a key ingredient. Regulatory bodies like the U.S. Department of Agriculture (USDA) are also promoting organic farming practices, encouraging the cultivation of licorice in an environmentally sustainable manner. This focus on sustainability and health is driving innovation among U.S. companies, as seen with brands like Twizzlers, which have explored natural flavoring options. The U.S.'s dynamic market landscape, characterized by diverse consumer preferences and a commitment to quality, reinforces North America's leadership in the licorice extract market, offering substantial growth opportunities for stakeholders.

Europe Market Trends:

The licorice extract market in Europe has maintained a notable presence, characterized by moderate growth driven by evolving consumer preferences and an increasing focus on natural ingredients. This region is significant due to its robust food and beverage sector, where licorice extract is increasingly utilized as a flavoring agent and functional ingredient. Factors such as heightened consumer awareness regarding health benefits, alongside a shift towards sustainable sourcing practices, have contributed to a dynamic landscape. Recent insights from the European Food Safety Authority highlight a growing emphasis on the safety and quality of food additives, further driving demand for licorice extracts sourced from reputable suppliers. As the market continues to evolve, opportunities abound for innovation in product formulations and applications, positioning Europe as a key player in the global licorice extract landscape.

Germany plays a pivotal role in the licorice extract market, leveraging its strong manufacturing capabilities and advanced technology in food processing. The country's commitment to quality and safety standards has prompted a surge in demand for licorice extracts, particularly within the confectionery and beverage sectors. According to a report by the German Federal Ministry of Food and Agriculture, the trend towards natural and organic products has led to an increased adoption of licorice extracts, aligning with consumer expectations for transparency and sustainability. This growth driver not only enhances competitive positioning within Germany but also reinforces the broader regional opportunities in the licorice extract market, as companies seek to cater to an increasingly health-conscious consumer base.

France, another key player in the licorice extract market, showcases a unique blend of cultural preferences and regulatory frameworks that influence consumption patterns. The French market has seen a steady rise in the use of licorice extracts in gourmet products and traditional confections, reflecting a cultural inclination towards artisanal and high-quality ingredients. The French Agency for Food, Environmental and Occupational Health & Safety has reported a growing trend in the use of natural flavoring agents, which includes licorice, in response to regulatory pressures for cleaner labels. This cultural affinity for quality, combined with a favorable regulatory environment, positions France as a significant contributor to the licorice extract market in Europe, opening avenues for innovative product development and cross-border collaborations.

Regional Market Attractiveness & Strategic Fit Matrix
Parameter	North America	Asia Pacific	Europe	Latin America	MEA
Innovation Hub	Nascent	Developing	Nascent	Developing	Developing
Cost-Sensitive Region	High	Medium	High	Medium	Medium
Regulatory Environment	Neutral	Supportive	Neutral	Supportive	Neutral
Demand Drivers	Moderate	Strong	Moderate	Strong	Moderate
Development Stage	Developed	Developing	Developed	Developing	Developing
Adoption Rate	Medium	High	Medium	High	Medium
New Entrants/Startups	Sparse	Dense	Sparse	Dense	Moderate
Macro Indicators	Strong	Stable	Stable	Stable	Stable

Segmentation Analysis

 

Analysis by Grade

The licorice extract market for Grade captured a commanding 46.4% share in 2025, primarily driven by strong demand in herbal medicines and supplements. This segment's leadership stems from the increasing consumer preference for natural remedies and the growing trend towards holistic health, which has been bolstered by organizations such as the World Health Organization advocating for traditional medicine. Established firms are leveraging this trend by expanding their product lines to include pharmaceutical-grade licorice extracts, while emerging players can capitalize on niche markets within herbal supplements. Given the ongoing emphasis on natural ingredients and wellness, this segment is expected to maintain its relevance as consumers continue to seek out effective herbal solutions in the near to medium term.

Analysis by Form

The licorice extract market for Form represented more than 49.5% of the total market share in 2025, with powder being the preferred form due to its ease of handling in food and pharmaceutical applications. This preference is largely influenced by the growing demand for convenience in product formulation, as noted by the Food and Drug Administration, which emphasizes the importance of ingredient versatility in modern food production. Established companies benefit from the ability to efficiently integrate powdered licorice into various formulations, while new entrants can explore innovative applications that highlight the functional benefits of powder. As the food and pharmaceutical industries continue to evolve towards more efficient processing methods, the powder segment is poised to remain a critical player in the licorice extract market.

Analysis by Application

The licorice extract market for Application held a significant 41.2% share in 2025, driven by the increasing use of licorice in pharmaceuticals, particularly in herbal and anti-inflammatory drugs. This dominance is supported by research from the National Institutes of Health, which underscores the therapeutic benefits of licorice in various medicinal formulations. The growing focus on natural ingredients in drug development presents substantial opportunities for both established pharmaceutical companies and startups looking to innovate with herbal remedies. With the rising consumer awareness of health and wellness, the pharmaceuticals segment is expected to sustain its momentum, aligning with broader trends towards natural and effective treatment options in the healthcare landscape.

Report Segmentation
Segment	Sub-Segment
Grade	Pharmaceutical Grade, Food Grade, Feed Grade
Form	Liquid, Powder, Block, Others
Application	Food & Beverages, Pharmaceuticals, Tobacco, Others

Competitive Landscape

Key players in the licorice extract market include Norevo, Mafco, F&C Licorice, Sepidan Osareh, VPL, Zagros Licorice, Ransom Naturals, Zelang Group, Naturex, and Maruzen Pharmaceuticals. These companies are recognized for their extensive expertise and established presence in the industry. Norevo stands out for its innovative extraction techniques, while Mafco is noted for its strong distribution networks in North America. F&C Licorice leverages its regional strengths in Israel, and Sepidan Osareh is prominent in the Middle Eastern markets. VPL and Zagros Licorice have a significant foothold in India and Iran respectively, focusing on quality and sustainability. Ransom Naturals emphasizes organic offerings in the UK, whereas Zelang Group is influential in the Asian market, particularly in China. Naturex and Maruzen Pharmaceuticals are recognized for their commitment to research and development, driving advancements in product efficacy and application.

The competitive landscape of the licorice extract market is characterized by a variety of strategic initiatives that enhance the positioning of these key players. Companies are increasingly engaging in collaborative ventures that foster innovation and expand product portfolios, exemplified by partnerships that leverage complementary strengths. The introduction of new product lines and enhancements in extraction technologies are frequently observed, reflecting a commitment to meeting evolving consumer demands. Furthermore, certain players are exploring mergers and acquisitions to consolidate their market presence, thereby increasing competitiveness and operational efficiency. This dynamic environment encourages ongoing advancements and responsiveness to market trends, ultimately shaping a robust competitive framework.

Strategic / Actionable Recommendations for Regional Players

In North America, cultivating partnerships with local agricultural producers can enhance supply chain resilience and ensure the availability of high-quality raw materials. Engaging in joint ventures with health-focused brands could also open new avenues for product development, particularly in the wellness sector.

For players in the Asia Pacific region, investing in emerging extraction technologies may offer significant advantages in terms of product purity and cost efficiency. Collaborations with research institutions can facilitate innovation in product applications, catering to the diverse needs of consumers in this rapidly growing market.

In Europe, targeting niche markets such as organic and natural food products could yield substantial growth opportunities. Forming alliances with distributors specializing in health and wellness products may enhance market reach and brand visibility, allowing players to capitalize on the increasing consumer preference for natural ingredients.

Competitive Dynamics and Strategic Insights
Assessment Parameter	Assigned Scale	Scale Justification
Market Concentration	Medium	Mix of global (Indena, Frutarom) and regional players, driven by nutraceutical demand.
Innovation Intensity	Medium	Advances in sustainable extraction and clean-label formulations are significant.
M&A Activity / Consolidation Trend	Moderate	Acquisitions target herbal extract portfolios, e.g., Givaudan’s 2023 Albert Vieille deal.
Degree of Product Differentiation	Medium	Differentiation via purity (e.g., glabridin content) and applications in cosmetics and nutraceuticals.
Competitive Advantage Sustainability	Durable	Long-term demand in skin lightening and digestive health ensures stable advantages.
Customer Loyalty / Stickiness	Moderate	Loyalty tied to quality and certifications, but price sensitivity drives switching.
Vertical Integration Level	Medium	Producers control extraction but rely on external raw material sourcing and distribution.