Liquorice Extracts Market

Liquorice Extracts Market Size (2024 to 2029)

Liquorice Extracts Market share value in 2024 was 2.17 billion, and it is expected to grow at a CAGR of 5.76 % during the forecast period 2024-2029 to reach USD 2.86 billion by 2029.

Liquorice or licorice is also called as Glycyrrhiza glabra. This is an herb that grows mostly in European and Asian regions. Licorice root consists of glycyrrhizin. Licorice is a source of proteins, amino acids, sugar, mineral salts, resins, sterols, and gums. The consumption of licorice can cause side effects when consumed in huge amounts. The licorice contains chemicals that decrease swelling and cure cough. Licorice increases chemicals inside the human body, which heals ulcers. This is used to cure eczema and mouth sores. Licorice is used to cure swelling of the liver and many other conditions. It also contains various plant compounds, such as antioxidants and anti-inflammatory agents. Additionally, licorice is also used in food products as additives. This is also used as a sweetener in food products like cake batters, chewing gums, and custard. This is also used as a flavor enhancer in meat rub.

The increase in development in the cosmeceutical industry creates an opportunity in the forecasting period for the Global Liquorice Extract Market. The increase in demand for licorice extract by the cosmeceutical industry. This is due to Licorice having the ability to decrease pigmentation and lighten skin tone. Additionally, Licorice has some properties such as skin-soothing and anti-inflammatory. This makes Licorice a perfect agent for various cosmetic products. Hence the enhancement in the cosmetics industry will create an opportunity for market growth. Also, increase in awareness among the population regarding the properties of licorice. The licorice has numerous health benefits which help to decrease stress. This is due to it producing adrenaline and releasing cortisol. Additionally, it helps with indigestion problems and some stomach problems like food poisoning, etc. These are the factors that influence the opportunity for market growth.

Liquorice Extracts Market Driver:

The increase in health consciousness among the population drives the Global Liquorice Extracts Market demand. The rise in awareness across the globe regarding the adverse effects of synthetic and chemical ingredients. Hence people prefer organic and natural products. Licorice has a large number of chemical ingredients that benefit individuals health-wise. Licorice contains a lot of material that benefits health, such as proteins, amino acids, etc. This drives the growth of the Liquorice extract market. The licorice extract is used to create medicines for various purposes. This is one of the major driving factors for the Global Liquorice Extract Market. The main content in the licorice is glycyrrhizin which helps to reduce the size of breast tumors, uterine and colon cancers. There are various benefits of licorice extract in the pharma sector. The licorice extract is widely used in the manufacturing of OTC products such as Cough syrup and lozenges. These are also used to treat hepatitis C, Cancer related memory loss. Hence propelling the Liquorice extract market shares.The rise in demand for licorice in the food and beverage industry drives the Global Liquorice Extract Market. This is due to an increase in demand for licorice extract as a sweetener. Additionally, because of the health benefits of licorice, they are widely used in the food and beverage industry as people are more preferring sweeteners to be added to their food to be natural instead of any conventional sweetener. Overall, the increase in the use of licorice in the pharmaceutical sector and the food and beverage industry are the amplifying factors of the market growth rate.

Liquorice Extracts Market Restraints:

The consumption of licorice extract is associated with some health-related concerns. This restricts the Global Liquorice Extract Market. This can happen when consumed in large amounts. The adverse events are caused by the overconsumption of compounds like glycyrrhizin. This may lead to cause high blood pressure, and the carbenoxolone in it may lead to cause gastric ulcers. These adverse events are caused by this restricting the market growth. Additionally, the increase in price variation of licorice plant roots is widely cultivated in emerging nations such as China. The variation in the cost of licorice root directly increases the price of licorice extract. The price of licorice extract is high. Hence it can be affordable in already developed countries, but the sale of licorice extract is less in developing countries because of the high cost. Hence, the volatility of the price of raw materials for the manufacturing of Licorice extract restricts the market growth over the projected period.

Impact of COVID-19 on Global Liquorice Extracts Market:

The resultant decline in the Liquorice extract output had a significant effect on the Global Liquorice Extract Market. Numerous businesses, including offline stores and online sites, were forced to close as a result of COVID-19. Hence led to a decrease in supply management and disruption in different distribution channels during the pandemic. The disruption of supply chain management due to the lockdown and restrictions led to an impact on sales of alcohol, additionally due to the shortage of raw materials required for the production of licorice extract. Hence, initially, the impact of COVID-19 on the market was negative, but after some period, demand for licorice increased. This is due to an increase in demand for licorice in the pharma industry. 

REPORT COVERAGE: 

This research report on the Liquorice Extracts Market has been segmented and sub-segmented based on Product type, Form, application, and region. 

Liquorice Extracts Market - By Product Type:

• Food Grade
• Feed Grade
• Pharmaceutical Grade

Among these, the pharmaceutical grade segment dominates the market. The pharmaceutical-grade segment is expected to show its dominance in the market over the forecasting period. This is due to the beneficial properties of licorice extract. Licorice has the properties to cure indigestion, stomach ulcers, etc. The consumption of licorice may decrease stress. Licorice has properties like anti-inflammatory properties. These are the factors that increase the demand for licorice extract in the pharmaceutical industry. Hence driving the segmental growth. The food-grade segment is expected to show the fastest CAGR growth over the forecasting period. This is due to the use of licorice as a sweetener in gummies, jellies, chocolates, and beverages, additionally due to the increased consumption of root beer in the United States.

Liquorice Extracts Market - By Form:

• Powder
• Liquid
• Block

Among these, the powder segment dominates the market. The powder segment is expected to dominate the market over the forecasting period. The low-dust powder has various uses. The powdered licorice extract is in the pharmaceutical industry. The powdered licorice extract is used in the manufacturing of pills and tablets. Additionally, powdered licorice is also used in herbal tea and health drink powders. The Liquid segment is expected to show the fastest CAGR growth over the forecasting period. The liquid is quite viscous. This liquid-formed licorice extract is used during the manufacturing of root beer and herbal tea.

Liquorice Extracts Market - By Application:

• Food & Beverages
• Pharmaceutical
• Tobacco
• Others

Among these, the pharmaceutical segment dominates the market. The pharmaceutical segment is expected to show the fastest CAGR growth over the forecasting period. The licorice has many health benefits. Licorice has anti-inflammatory, etc. It is used to cure heartburn, indigestion, inflammation, cough, cold, etc. The Licorice extract is used during the manufacturing of medical formulations. The food and beverage industry is expected to show the fastest CAGR growth over the forecasting period.

Global Liquorice Extracts Market - By Region:

• North America 
• Europe 
• Asia-Pacific 
• Latin America 
• Middle East and Africa 

Regionally, North America dominates the Global Liquorice Extract Market. The North American region is expected to show the fastest CAGR growth over the forecasting period. This is due to an increase in preference for organic products over conventional products. The millennial population prefers mostly organic products. The increase in sales of licorice extract drives regional growth. Additionally, increase in incidences of numerous chronic diseases such as obesity, etc. Also, licorice extract is widely used in the food and beverage industry as a sweetener. This is used as a natural sweetener. Additionally, the increase in research and development also helps to drive regional growth. The increased awareness among consumers regarding plant-based products. For instance, 48% of respondents to a survey performed in the United States in 2021, according to the International Food Information Council (IFIC), said that they preferred to purchase goods with all-natural flavors.

The European region is the second largest segment in the Global Liquorice Extract Market. This is due to consumers preferring natural products over conventional products within the region. There is an increase in demand for licorice extract in the region. This is due to an increase in demand for licorice extract during the manufacturing of mono ammonium glycyrrhizinate. Hence helps to boost regional growth. Asia Pacific region is expected to show the fastest CAGR growth in the Global Liquorice Extract Market over the forecasting period. This is due to the increase in health awareness among the population. Additionally, there is an increase in demand for pharmaceutical industries. The emerging countries in the region are increasing the usage of licorice extract in the pharmaceutical field. For instance, china uses licorice extract to cure ulcer and boost the immune system as licorice boost the interferon level in the human body. Licorice is also known as Great Detoxifier in China, while in Japan, it is used to treat chronic hepatitis B.

KEY MARKET PLAYERS:

Key Market players of Global Liquorice Extracts Market are Norevo Gmbh, Mafco Worldwide Llc, Shaanxi Fujie Pharmaceutical Co., Ltd, F&C Licorice Ltd, Glycyrrhiza Glabra Co., Ltd, Maruzen Pharmaceuticals Co., Ltd, C.E. Roeper Gmbh, Ransom Naturals Ltd, Beijing Gingko Group, Zagros Licorice Co.

RECENT HAPPENINGS IN THE MARKET:

On 28th June 2023, it announced its intention to merge with American Licorice Company (ALC); Theo Chocolate (Theo), a pioneer in organic and fair-trade chocolate, made the announcement. This proposed transaction is a result of Theo's strategic decision to restructure its operations, which is now underway and will close its production facility in Seattle and reduce the number of employees working in its offices.