Licorice Extract Market Size, Share, Growth, and Industry Analysis, By Type (Feed Grade, Food Grade, Pharmaceutical Grade), By Application (Cosmetic Industry, Food Industry, Pharmaceutical Industry), and Regional Forecast to 2033

  
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LICORICE EXTRACT MARKET OVERVIEW

The global Steel Shot Market was valued at USD 1.91 Billion in 2025 and is expected to grow to USD 2.67 Billion by 2034, with a projected CAGR of 3.78% during the forecast period 2025 to 2034.

The measurement extract market is experiencing continuous international development, pushing its expansion in many fields, including pharmaceutical drugs, food and beverages, private care, and nutraceuticals. Drinking extracts are recognized for their natural sweet, anti-inflammatory, and antioxidant properties, rapidly desired as a clean factor. The developing preference of consumers for herbal and natural remedies is decreasing, especially among the health-insured population of North America and Europe. In the pharmaceutical field, drugs are used widely to treat respiratory, gastrointestinal, and dermatological conditions. Meanwhile, in the food and beverage industry, it acts as a delicious agent and Chinese option in snacks, sweets, tea, and health drinks. Cosmetics Enterprise has also embraced the alcohol extracts for its skin-lightening and anti-aging benefits, including the presence in its various markets.

Regional, Asia-Pacific dominates production, and in countries such as China and India, the fastest growth is detected in traditional medicinal use and adequate utility. Europe remains a primary protector due to strict standards in favor of vegetable components in food and cosmetics. North America, during maturing, continues to expand continuously due to the extended demand for functional foods and welfare products. However, the marketplace faces several challenges, including price volatility in unseen roots, environmental issues related to overhanding, and mainly complex regulatory structures in Europe. Despite those barriers, technological advances in extraction strategies, investments in sustainable sourcing, and the development of R&D into healing programs are anticipated to free up new possibilities, retaining the licorice extract marketplace on an upward trajectory globally.

LICORICE EXTRACT MARKET KEY FINDINGS

• Market Size and Growth: The International Drug Commerce market is about 0.4 billion dollars in 2024, and it is expected to increase continuously, reaching USD 0.42 billion in 2025 and increasing to 0.56 billion by 2033, which records a compound annual growth rate of 3.67% during the forecast period.
• Key Market Driver: Increasing inclusion of drug extracts as a plant-based sweetener and their anti-diabetic and anti-inflammatory characteristics have promoted the increase in the market, especially within the nutraceutical field, which has experienced more than a 30% increase in applications since 2020.
• Major Market Restraint: Drinking cultivation is rapidly restrained with the help of environmental factors, contributing to achieving discrepancies up to 20% each year in major farming areas with soil erosion and weather-related issues.
• Emerging Trends: The demand for smooth-labeled goods caused a 25% spike in the sale of organic and non-GMO products in 2024, indicating a spectacular change in the buyer behavior in the direction of healthy and more natural component pics.
• Regional Leadership: China and Iran are the main suppliers worldwide in the roots of drugs, along with more than 70% of the total supply, and China has led in exporting processed drug extracts.
• Competitive Landscape: Major groups, including prime roots, Hunan Hucheng Food Material, and Shanty Skifer Biotechnology, collectively maintain more than 60% market ratio, highlighting an extraordinary consolidated competitive environment.
• Market Segmentation: Pharmaceutical programs account for about 40% of the world's ridiculous extracts, especially in the yogas designed for breathing and digestive health treatment.
• Recent Development: As of 2023, the global volume of licorice extract has passed 18,000 metric tons, propelled by growing usage in both the pharmaceutical and confectionery industries.

COVID-19 IMPACT

Licorice Extract Industry Had a Positive Effect Due to Increased Usage during the COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The purpose of bloodless, flu, sore throat, and respiratory diseases became more prominent in pharmaceutical products, causing a slight increase in intake throughout Europe and Asia. Lockdown pushed one upwards in health-conscious food habits, which promoted the demand for purposeful food and nutraceuticals rich in plant-based components, such as measures. Increased investment in natural aspect studies is said to be used in dietary dosage, immune boosters, and herbal tea.

Lockdowns and restrictions on global trade seriously affected the distribution of drug roots from major producers such as China and Iran, leading to delays, reductions, and raw material costs. Many dysfunctional processing facilities face efficient labor deficiency, restricted running hours, and logistic obstacles, which reduce the time limit of production and exports. Limited availability of meat roots caused sharp value ups and downs, affecting profit margin for small manufacturers and causing value volatility for buyers.

LATEST TRENDS

Focus on Sustainability to Drive Market Growth

Focus on Sustainability are vital benefits of licorice extract market share. As the call increases for natural extracts, durable sourcing, stringent quality control, and strong traceability are an elevated cognizance inside the market. Concerns about stability and overhasting of the measurement route, combined with geopolitical stress and climate adjustment affecting farming, seek conditions for frequent supply and value stability. In response, enterprises are rapidly emphasizing ethical sourcing practices and discovering novel extraction methods to improve yield and purity by reducing environmental effects. There is a growing call for natural and licensed drug extracts, which reflects a comprehensive consumer tendency towards morally produced and transparently citrus elements. Regulatory bodies are also playing an important role, as strict laws control the use of herbal extracts in many products.

  
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LICORICE EXTRACT MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Feed Grade, Food Grade, Pharmaceutical Grade.

• Feed Grade: Licorice extract utilized in animal feed enhances digestion and supports breathing health in farm animals.
• Food Grade: Food-grade licorice extract serves as a natural sweetener and flavoring agent in liquids, chocolates, and natural teas.
• Pharmaceutical Grade: Pharmaceutical-grade licorice extract is applied in drugs for its anti-inflammatory, antiviral, and gastroprotective properties.

By Application

Based on application, the global market can be categorized into Cosmetic Industry, Food Industry, Pharmaceutical Industry.

• Cosmetic Industry: Licorice extract is used in skincare merchandise for its skin-brightening, anti-inflammatory, and soothing properties.
• Food Industry: It acts as an herbal sweetener and taste enhancer in confectionery, drinks, and natural teas.
• Pharmaceutical Industry: Widely implemented in formulations for breathing, digestive, and anti-viral medications because of its healing advantages.

MARKET DYNAMICS

Driving Factors

Growing Demand to Boost the Market

A factor in the licorice extract market growth is growing demand. Consumers are increasingly moving away from artificial chemical compounds in meals, cosmetics, and remedies. Licorice extract, being plant-based and rich in bioactive compounds, is widely admired as a more secure and cleaner alternative. Licorice extract is used in pharmaceutical formulations (breathing, digestive treatments), food & liquids (as a natural sweetener), cosmetics (for hyperpigmentation, anti-getting old), and animal feed. Its multi-enterprise versatility helps consistent worldwide call for. Rising consciousness about holistic health and herbal immunity boosters post-COVID has pushed licorice extract into mainstream fitness dietary supplements, teas, and over-the-counter medications.

Advancements in Extraction Technology to Expand the Market

Modern extraction techniques (e.g., solvent-free or supercritical CO₂ extraction) are making it possible to produce fantastically purified licorice derivatives, improving their usability in touchy industries like pharmaceuticals and cosmetics. Long-standing use of licorice in Ayurveda, Traditional Chinese Medicine (TCM), and Unani medicine has helped preserve constant domestic call for in international locations like China, India, and Iran, even when worldwide markets vary. Some governments, in particular in Asia and the Middle East, are helping the usage of traditional herbal substances in healthcare and exports, which benefits licorice producers and exporters.

Restraining Factor

Environmental Concerns and High Cost to Potentially Impede Market Growth

Overharvesting of untamed licorice roots without proper crop rotation or soil healing has caused land degradation and reduced licorice plant yields. This makes long-term delivery sustainability a challenging task. Producing wonderful licorice extract—especially pharmaceutical-grade or natural-licensed—calls for a giant investment in uncooked material sourcing, processing, and quality management, main to higher stop-product expenses. The worldwide licorice extract supply is based heavily on countries like China, Iran, and Afghanistan. Political instability, exchange restrictions, or local disruptions in these areas can substantially affect worldwide availability and pricing. Excessive intake of glycyrrhizin (the lively compound in licorice) can lead to aspect effects like high blood pressure and occasional potassium. This has led to strict utilization policies in meals and drug formulations throughout the EU and North America.

Product Innovation and New Use Cases to Create Opportunity for the Product in the Market

Opportunity

There’s room for improvement of modern licorice-based merchandise, consisting of strength bars, herbal lozenges, immune-boosting shots, and anti-stress supplements, across fitness and wellness sectors. Rapid urbanization, growing disposable incomes, and interest in natural fitness remedies present untapped market capability in Africa, Southeast Asia, and parts of Latin America. With customers seeking transparency in elements, smooth-label formulations using natural, non-GMO licorice extract are gaining traction, mainly in developed markets. Online systems permit producers to skip traditional vendors and promote at once to international clients, supplying higher margins and wider market attain for forte licorice merchandise.

Inconsistent Product Quality Could Be a Potential Challenge for Consumers

Challenge

Varying first-rate of licorice roots from exclusive regions and incorrect processing can lead to inconsistencies in extract efficiency, affecting logo reliability and efficacy in formulations. Licorice crops are touchy to soil pH, water levels, and temperature. Climate change, droughts, or floods can considerably reduce yields and disrupt the entire supply chain. Negative publicity or incorrect information approximately glycyrrhizin toxicity can have an effect on client confidence, even for safe or regulated doses of licorice extract in merchandise. New product launches containing licorice extract, in particular in pharmaceutical or functional food categories, frequently face long regulatory assessment times that delay marketplace access.

  
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LICORICE EXTRACT MARKET REGIONAL INSIGHTS

• North America

North America is the fastest-growing region in this market. The United States licorice extract market has been growing exponentially for multiple reasons. In North America, the removal of the diligence is mainly operated by its use in prescription drugs, functional foods, and private care products. The US dominates the region due to its increasing drug industry and increasing demand for natural remedies. The extracts of measures are often used in respiratory drugs, digestive treatment, and herbal supplements, aligning with increasing consumer demand for vegetation and smooth-labeled products. Additionally, the food industry takes advantage of taste in beverages, chocolate, and unique tea. However, strict FDA guidelines about glycyrrhizin content and health claims face challenges for product innovation. Import dependence, mainly from Asia and the Middle East, makes the location weak for the supply chain disruption.

• Europe

Europe represents a mature and regulated market for the pharmaceutical, confectionery, and cosmetic sectors, and a mature and regulated market for the extracts of recruitment. Countries such as Germany, France, Italy, and the United Kingdom have a cultural use of natural medicine and drugs for the throat. European market products place excessive emphasis on safety and stability, demanding driving of citrus extracts from natural sources and responsibility. Food and beverage enterprise additionally uses individual candies in Nordic nations, especially in beverages, where traditional drug products remain famous. Additionally, the cosmetic region includes more and more skin-emerald and anti-inflammatory yogas. However, the European Union applies strict policies related to glycyrrhizin stages in consumables, which can restrict some packages.

• Asia

Asia is the biggest and most dynamic marketplace for licorice extract, each in terms of manufacturing and intake. China and Iran are the world’s main producers of licorice root, with China dominating the processed extract export marketplace. The area's large software base stems from its sturdy basis in traditional remedy systems like Ayurveda, Traditional Chinese Medicine (TCM), and Kampo (Japan), where licorice is a key herbal ingredient. Rapid urbanization, developing disposable income, and growing interest in well-being merchandise are fueling the demand for licorice-based dietary supplements, useful ingredients, and cosmetics. Pharmaceutical call for is specifically high due to the big use in natural formulations for respiratory and gastrointestinal health. Despite being a delivery hub, Asia faces challenges related to overharvesting, soil degradation, and climate-sensitive crop yields, which can affect long-term availability.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

Key players in the licorice extract market are using growth through strategic improvements and marketplace enlargement efforts. These agencies are employing superior extraction technology and refining product formulations to improve the purity, safety, and effectiveness of licorice-primarily based offerings. To meet evolving customer needs, they may be broadening their product portfolios to include specialized options, such as natural, non-GMO, and pharmaceutical-grade extracts. Moreover, firms are increasingly utilizing digital structures to enhance market visibility, enhance client engagement, and streamline worldwide distribution. By strengthening supply chain operations, making an investment in R&D, and targeting emerging markets with excessive demand for natural fitness and health products, those businesses are accelerating marketplace development and setting new benchmarks within the licorice extract industry.

List Of Top Licorice Extract Companies

• Ransom Naturals (India)
• Changyue (China)
• VPL Chemicals (India)
• Avestia Pharma (India)
• Maruzen Pharmaceuticals (Japan)
• Norevo GmbH (Germany)
• MCFS (India)

KEY INDUSTRY DEVELOPMENT

April 2025: Reports highlight a strong industry-wide consciousness on standardization and high-quality management in the licorice extract market. This collective attempt by using manufacturers aims to satisfy stringent regulatory necessities throughout pharmaceutical, food, and beauty applications by ensuring the purity and consistent active compound content of licorice extracts, often involving continuous refinement of extraction strategies to enhance yield and purity.

REPORT COVERAGE

The study offers a detailed SWOT analysis and provides valuable insights into future developments within the market. It explores various factors driving market growth, examining a broad range of market segments and potential applications that may shape its trajectory in the coming years. The analysis considers both current trends and historical milestones to provide a comprehensive understanding of the market dynamics, highlighting potential growth areas.

The licorice extract market is poised for significant growth, driven by evolving consumer preferences, rising demand across various applications, and ongoing innovation in product offerings. Although challenges such as limited raw material availability and higher costs may arise, the market's expansion is supported by increasing interest in specialized solutions and quality improvements. Key industry players are advancing through technological advancements and strategic expansions, enhancing both supply and market reach. As market dynamics shift and demand for diverse options increases, the licorice extract market is expected to thrive, with continuous innovation and broader adoption fueling its future trajectory.