The global licorice extract market is on a remarkable growth trajectory, projected to increase from USD 894.3 million in 2025 to USD 1,600 million by 2035 , registering a CAGR of 6.2% over the forecast period. The market's expansion is fueled by the growing adoption of licorice extracts in nutraceuticals, herbal supplements, pharmaceuticals, and functional foods , as consumers increasingly embrace natural, plant-based wellness solutions.

Licorice, known for its adaptogenic, anti-inflammatory, and immune-supporting properties , is witnessing rising demand across health-conscious populations. Its applications extend from digestive and liver health to skin and respiratory support , with specialized forms like glycyrrhizin-rich and de-glycyrrhizinated (DGL) extracts catering to both therapeutic and dietary needs. The liquid extract segment , commanding 44.9% of the market in 2025 , is emerging as the preferred form due to its concentration, ease of formulation, and rapid absorption in pharmaceutical and personal care products.

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Key Drivers and Industry Trends

The surge in plant-based immunity boosters is a major driver for licorice extract adoption. Post-pandemic health awareness has led to a heightened interest in immune support formulations , which now account for approximately 22.6% of market applications . From herbal teas to nutraceutical blends, licorice extract is becoming a staple ingredient in products designed to strengthen the body's natural defenses.

Simultaneously, the global shift towards clean-label, botanical ingredients has reinforced the use of licorice in cosmeceuticals and skincare , where its anti-inflammatory and skin-brightening properties address hyperpigmentation and sensitive skin concerns. The cosmetic and personal care segment, currently representing 1-2% of the market , is expanding steadily as consumers prioritize natural, sustainable ingredients.

Technological Advancements and Innovation

Leading players are investing heavily in R&D and technological innovations to enhance extract purity, bioavailability, and efficacy. Companies are exploring capsules, chewable tablets, gummies, and HPMC-based supplements to broaden consumer access. Additionally, innovation hubs such as the food innovation center in Campinas, Brazil , established by Givaudan, Bühler, and Cargill, exemplify collaborative efforts to develop next-generation, sustainable solutions in functional foods and beverages.

Global Trade Dynamics

China, Iran, and India are at the forefront of licorice root cultivation and extract exports , benefiting from favorable climates and well-established processing infrastructure. Exporting nations supply high-quality pharmaceutical and food-grade licorice products to North America, Europe, Japan, and South Korea , regions that rely on imports due to limited local cultivation. The well-integrated supply chain, spanning raw material sourcing to end-product manufacturing, ensures that licorice extracts meet stringent global regulatory and quality standards .

Regional Market Insights

• United States : Expected to grow at a CAGR of 6.7% , driven by increased consumer awareness of natural health supplements and immune-supporting products.
• Germany : Anticipated CAGR of 5.6% , supported by demand for functional foods and beverages enriched with natural botanical ingredients.
• China : Leading the market with 7.8% CAGR , fueled by traditional Chinese medicine practices and expanding dietary supplement use.
• Australia : Rapid growth at 8.4% CAGR , propelled by the preference for plant-based, anti-inflammatory, and antioxidant-rich products.
• India : Projected CAGR of 11.5% , driven by Ayurvedic medicine and nutraceutical sectors, along with rising healthcare awareness.

Market Players and Competitive Landscape

The licorice extract market is characterized by a blend of established and emerging players , creating a competitive yet innovative landscape. Global leaders such as MAFCO Worldwide LLC, Shaanxi Jiahe Phytochemicals, and Norevo GmbH dominate through large-scale production, robust distribution, and adherence to pharmaceutical and food-grade standards. Meanwhile, specialized companies like Zagros Licorice, F&C Licorice, Sepidan Osareh, and Ransom Naturals are carving niches with high-purity, sustainably sourced extracts .

Recent developments highlight industry innovation: Norevo GmbH launched a Fair-Trade certified licorice extract line in Europe , while Mafco Worldwide LLC introduced organic licorice powder catering to North American pharmaceutical markets. Both initiatives underscore the sector's growing emphasis on sustainability, clean-label solutions, and ethical sourcing .

Future Outlook

As consumer awareness of plant-based health solutions rises , the licorice extract market is set to continue its robust growth. Innovation in delivery formats, skincare applications, and functional foods combined with strategic investments in technology and research will drive sustained expansion. With established and new manufacturers actively exploring sustainable sourcing, product diversification, and global distribution , the market is poised for a decade of dynamic growth , creating opportunities for industry stakeholders worldwide.

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