Licorice Extract Market

Market Overview

The global licorice extract market had a revenue share of USD 1,978 million in 2021, presumed to reach USD 3,351 million, expanding at a CAGR of 6.81% during the forecast period. The roots of the medicinal plant liquorice are used to make licorice. Liquorice plant extracts from the roots have a fragrant flavor and are sweet. Glycyrrhizin, an ingredient in licorice root, can have adverse effects if consumed excessively. Licorice is known to include compounds that lower swelling, lessen coughing, and boost the body's natural ability to heal ulcers. Southern Europe, Western Asia, and North Africa are the native habitats of licorice plants. Glycyrrhizin, which is between 30 and 50 times sweeter than sugar, accounts for a significant portion of the sweetness in licorice extracts. Licorice extract is frequently used to treat indigestion symptoms like heartburn, acid reflux, and upset stomach. Afghanistan, India, China, Italy, Iran, Pakistan, Azerbaijan, Turkmenistan, Uzbekistan, Turkey, and Iraq are often the countries where licorice is farmed. It is extensively utilized in the tobacco, cosmetics, food & beverage, and pharmaceutical industries.

A rise in customer concern over their looks has led to strong demand for advanced cosmetic products that are safe, effective, and have appealing sensory properties; this increases the use of licorice extract in cosmetics products. Additionally, the demand for natural clean label products is rising globally but is particularly strong in the US, the EU-5, China, Japan, and Australia. Due to licorice's anti-inflammatory and skin-lightening effects, extracts are also now utilized in cosmetics. The signaling route for skin inflammation is blocked by using active licorice extracts in cosmetic formulations, which helps regulate flushing, redness, and other skin inflammations. Due to the presence of glabridin, which blocks tyrosinase, the enzyme that results in pigmentation from exposure to the sun, licorice extracts also help to lighten skin.

Market Dynamics

Global Licorice Extract Market Drivers

The Multiple Benefits of the Product and the Use in the Cosmetic Industry

For thousands of years, especially in Asia, licorice extracts and roots have been used to treat various illnesses, including but not limited to inflammation, respiratory issues, and gastrointestinal trouble. More than 300 chemicals, including anti-viral, anti-microbial, and anti-inflammatory, are found in licorice. A common remedy for heartburn, stomach ulcers, toothaches, indigestion, asthma, fever, bronchitis, and coughs was licorice. New applications for this medication include the treatment of hepatitis C, cancer-related memory loss, and skin infections. 

Additionally, glycyrrhizin acid and glycyrrhizin reduce the growth of tumors in breast, uterine, cutaneous, and colon malignancies. The medical benefits of licorice root and extracts have been the subject of several studies conducted worldwide along similar lines. The benefits of licorice extracts to the pharmaceutical sector have led to their widespread use in OTC medications, cough syrups, and lozenges. Such benefits boost the demand for licorice extracts in various applications. 

Additionally, there is a growing demand for advanced beauty products with high efficacy, sensory advantages, and safety due to the development in public consciousness about their looks. Additionally, the desire for natural, clean-label products has grown significantly globally. Due to licorice's anti-inflammatory and skin-lightening effects, extracts are frequently employed in cosmetic products. The signaling route for skin inflammation is blocked by using active licorice extracts in cosmetic formulations, which helps regulate flushing, redness, and other skin inflammations. 

Due to the prevalence of glabridin, which blocks tyrosinase, the enzyme that results in pigmentation from exposure to the sun, licorice extracts also help lighten skin. Products containing licorice extract are now readily accessible in gel, serum, and cream forms at retail locations. Additionally, the top companies in the cosmetics industry have conducted new research on characteristics to create natural, clean-label goods that incorporate licorice extracts for improved skin protection and healing products. Therefore, such an upsurge application of licorice extracts in the cosmetics industry expands the market. 

Global Licorice Extract Market Restraints

The Declining Tobacco Industry

The global tobacco business is projected to see a decline in the following years due to a rise in health consciousness and a growing understanding of the harmful effects of tobacco on health. Since 2010, the demand for tobacco usage has fallen in almost 60% of the countries. By 2025, the WHO predicts a decrease in tobacco usage by 27 million people from 2018. Licorice gives the smoke a sweet and earthy flavor. In addition, various tobacco products like chewing tobacco and cigars use licorice as a taste. It may make up about 4% of the tobacco weight in cigarettes. Due to a global decline in consumer base, widespread use of licorice extracts in the cigarette business may suffer.

Global Licorice Extract Market Opportunities

The Growing Demand for Natural and Clean Label Products

The consumer lifestyle is constantly evolving. Customers purchase appropriate goods for their social level, living standard, and culture. On the other side, businesses are designing their products to include elements that complement the way of life of their target market. Positive trends like these also foster innovation in the food, beverage, and cosmetics industries. A shift toward items made of natural, organic materials has been brought on by growing worries about the detrimental effects of synthetic substances and the growth of allergies in food and cosmetics products. As a result, the organic market for licorice extract presents a massive opportunity for both the food and beverage industry and the cosmetics industry.

Regional Analysis

The region-wise segmentation of the global licorice extract market includes North America, Europe, Asia-Pacific, and LAMEA. 

The Asia Pacific and Europe will Dominate the Regional Market

The Asia Pacific will command the market with the largest share while expanding at a CAGR of 7.71%. Licorice extracts are a popular home treatment for treating the common cold and cough. To soothe a sore throat, try cough pills with licorice extract. During the pandemic, licorice was widely employed to create nutritious mixtures to help increase immunity and ward off illnesses. Many Asia Pacific nations utilize licorice extract to produce tea and other regional drinks. Japan likewise makes extensive use of licorice extract. Licorice is mainly imported into Japan from China; however, as Chinese licorice prices have increased, the Japanese market is facing difficulties. These factors aid in developing the licorice extract market in the Asia Pacific. 

In Australia and New Zealand, licorice extract is used to make a variety of confections and drinks. In China, licorice extract is widely utilized and plays a crucial role in traditional Chinese medicine. The majority of the licorice extract produced in Asia comes from China. It is the principal supplier of licorice extract globally. Due to the numerous uses for licorice extract in Ayurvedic medicine, the Indian subcontinent makes up a significant portion of it.

Europe will expand at a CAGR of 4.91% and hold USD 694 million. Bakery goods, candies, and confections are well-liked by the European populace. There is a large production and consumption of sweet candies, chocolates, gummies, and jellies. In various countries of Europe, licorice extract is commonly used in the production of sweets. Licorice, especially salty licorice candy, is consumed in large quantities in the Netherlands, Germany, and Scandinavian nations. The leading cause of this high licorice intake is that the people who live in these nations believe that eating salty licorice keeps them warm and regulates their blood pressure during the region's harsh winters. Consequently, this propelled the licorice extract market growth. 

Licorice is used in various confections and beverages across most of Europe's nations. As more Europeans become aware of the usage of natural components in medications and cosmetics, it is gradually being included in the manufacturing of pharmaceuticals and cosmetics. It is additionally supported by numerous scientific investigations to comprehend the various medical uses for licorice extract.

Segmental Analysis

The global licorice extract market share is classified based on product type, form, application, and region. 

On The Basis of Product Type

Based on the product type, the segments are food grade, feed grade, and pharmaceutical grade. 

The pharmaceutical grade section is projected to advance at a CAGR of 7.41% and hold the largest market share. Pharmaceutical-grade licorice extract is a common element in medications, cough syrups, lotions, and cosmetics. It helps relieve a sore throat and provides relief from acid reflux and indigestion. Licorice extract is utilized in the pharmaceutical sector as a liquid and powder as an ingredient in pills, lotions, ointments, syrups, and cosmetics. Licorice extract is used in cosmetics and creams to treat acne and eczema. The demand for licorice extracts will rise soon due to the rising popularity of natural and herbal goods.

The food grade section will hold the second-largest market share. Food-grade licorice extract is a component of confections, gummies, jellies, chocolates, sodas, wellness beverages, and teas. It poses no risks to the body and is entirely safe to consume. Food-grade licorice extract is a component of many products, including sweets, chocolates, teas, and beverages. Several nations, including Europe and America, enjoy the popularity of candies manufactured from licorice extract. Additionally, the extract is a component of the widely consumed root beer in the United States. Licorice extract is a component of organic tea that improves its flavor.

On The Basis of Form

Based on form, the segments are liquid, block, and powder. 

The powder section is projected to advance at a CAGR of 7.41% and hold the largest market share. Spray drying the licorice extract until it forms fine powder results in licorice extract powder. It is a low-dust powder with several uses. To create natural pills and tablets, powdered licorice extract is mainly employed as a component in the pharmaceutical industry. Additionally, it is one of the components of herbal tea powders and health drink powders.

The liquid section will hold the second-largest market share. The licorice plant's liquid is extracted after the roots are mashed up. The liquid has a paste-like consistency and is frequently exceedingly thick and viscous. It is the liquid extract form that is most commonly encountered. The food and beverage business employs liquid to extract the most often. In many regions of Europe and America, licorice candy is a delicacy that is widely consumed. It is also used to prepare drinks like root beer and tea.

On The Basis of Application

Based on the application, the segments are food & beverages, pharmaceutical, tobacco, and others.

The pharmaceutical section is projected to advance at a CAGR of 7.81% and hold the largest market share. Since ancient times, nations like India and China have employed the licorice plant's root for medical purposes. The use of licorice plant extract in modern drugs and medications is also widespread. In the form of pills or syrups, it is frequently used as a drug to treat conditions like acid reflux, heartburn, indigestion, inflammation, coughs, colds, and infections. Licorice extract is used to make medicinal formulations that can ease stomach discomfort and soothe a sore throat. Licorice extract is widely used in pharmaceutical products in Asia-Pacific nations, and its use is steadily expanding in Western countries.

The food & beverage section will hold the second-largest share. In many regions, licorice is a widely used food and beverage component. The plant's extract is a flavoring ingredient in various sweets, chocolates, teas, and other beverages. Due to its sweet flavor with a touch of bitterness, it is much sought after. It is frequently used to increase the sweetness of several meals. The distinct taste of licorice and its versatility in a wide range of sweets and beverages contribute to the increase in demand for licorice extract market.

Recent Developments

• In 2022, an investigation conducted by Gnanasekar Munirathinam and his research team of the molecular mechanisms of the chemical glycyrrhizin, derived from licorice, for the prevention or treatment of cancer reveals that additional study could result in particular medications for use in clinical practice.