Global Licorice Extract Market - Forecasts from 2025 to 2030

The global licorice extract market is expected to grow from USD 2.037 billion in 2025 to USD 2.717 billion in 2030, at a CAGR of 5.93%.

The licorice extract market is experiencing robust growth, driven by shifting consumer lifestyles, heightened health awareness, and a growing preference for natural and organic products. Derived from the root of the Glycyrrhiza glabra plant, licorice extract is valued for its antioxidant and anti-inflammatory properties, making it a sought-after ingredient in food and beverages, cosmetics, and pharmaceuticals. The increasing demand for plant-based ingredients aligns with consumer trends toward health-conscious and sustainable choices, particularly in developing countries like India. The market is further propelled by the rising popularity of licorice-flavored products and its expanding applications in skincare and haircare formulations. However, challenges such as high production costs and limited raw material availability in some regions may pose constraints to growth.

Market Drivers

Rising Demand in Cosmetics

The surge in demand for beauty and personal care products, fueled by self-consciousness and social media influence, is a key driver of the licorice extract market. Licorice extract is increasingly incorporated into skincare products for its skin-brightening, anti-inflammatory, and blemish-reducing properties. For instance, in June 2023, 82°E launched its Licorice Beam Sunscreen Gel in the U.S., offering SPF 40 PA+++ broad-spectrum protection. Enriched with licorice and ceramides, this lightweight, non-greasy formulation enhances skin brightness and smoothness, gaining significant popularity and reflecting the growing consumer preference for functional, natural ingredients in cosmetics.

Health and Wellness Trends

Growing consumer awareness of licorice extract's health benefits, particularly its antioxidant and anti-inflammatory compound glycyrrhizin, is driving its inclusion in various products. The trend toward organic and health-focused consumption, especially in developing markets, supports market expansion. Consumers are increasingly seeking products with functional benefits, and licorice extract's versatility in medicinal, cosmetic, and culinary applications positions it as a valuable ingredient across industries.

Popularity of Licorice-Flavored Products

The rising demand for licorice-flavored food and beverages is another significant growth factor. Innovative product launches catering to diverse consumer tastes are expanding the market. The appeal of licorice as a flavor enhancer in confectionery and beverages aligns with evolving culinary preferences, further driving demand for licorice extract.

Geographical Outlook

North America

North America, particularly the United States, dominates the licorice extract market, driven by strong consumer demand for natural and plant-based ingredients across food, beverage, cosmetic, and pharmaceutical sectors. The U.S. market benefits from growing awareness of licorice extract's health benefits, including its antioxidant and anti-inflammatory properties, which resonate with health-conscious consumers. The popularity of licorice-flavored products and the incorporation of licorice extract in personal care formulations, such as sunscreens and haircare products, further fuel market growth. Canada also holds a significant market share, supported by similar trends in health awareness and the adoption of natural ingredients. In Mexico, the market is expanding due to the use of licorice extract in traditional medicine and herbal remedies, alongside increasing recognition of its health benefits.

The licorice extract market is poised for significant growth, driven by consumer demand for natural, health-focused, and sustainable products. Its applications in cosmetics, food and beverages, and pharmaceuticals, coupled with its functional benefits like skin brightening and antioxidant properties, position it as a versatile ingredient. The U.S. leads the market, supported by innovative product launches like the 82°E Licorice Beam Sunscreen Gel and the rising popularity of licorice-flavored offerings. While challenges such as production costs persist, the market's alignment with health and wellness trends and its expansion into diverse applications signal a positive outlook, particularly in North America.

Key Benefits of this Report:

• Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, and other sub-segments.
• Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
• Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape future market developments.
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Report Coverage:

• Historical data from 2022 to 2024 & forecast data from 2025 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others.

Segmentation:

By Form

• Block
• Powder
• Paste
• Others

By Application

• Food and Beverage
• Cosmetics and Personal Care
• Tobacco Products
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• USA
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Indonesia
• Thailand
• Others