Liquorice Extracts Market Forecast 2025: Growth, Trends, Key Drivers, and Regional Insights for Future

Liquorice Extracts Market Forecast 2025: Trends, Growth, and Opportunities

The global liquorice extracts market is poised for significant growth in 2025, driven by increasing consumer demand for natural ingredients across various industries, including pharmaceuticals, food and beverages, and cosmetics. This article delves into the key trends, growth drivers, regional dynamics, and future outlook of the liquorice extracts market.

Market Overview

Liquorice extract, derived from the root of the Glycyrrhiza glabra plant, has been utilized for centuries due to its distinct flavor and medicinal properties. The global market for liquorice extracts was valued at approximately USD 2.23 billion in 2023 and is projected to reach USD 4.30 billion by 2030, registering a compound annual growth rate (CAGR) of 4.30% from 2023 to 2030 .

Growth Drivers

Several factors are contributing to the robust growth of the liquorice extracts market:

1. Rising Health Consciousness: Consumers are increasingly seeking natural and functional ingredients in their diets. Liquorice extract, known for its anti-inflammatory, antimicrobial, and antioxidant properties, is gaining popularity as a natural remedy for various ailments, including digestive issues and respiratory problems.

2. Expanding Pharmaceutical Applications: The pharmaceutical industry is a significant consumer of liquorice extracts, utilizing them in the formulation of syrups, tablets, and topical treatments for conditions such as coughs, ulcers, and inflammation .

3. Demand in Food and Beverages: Liquorice extract is widely used as a flavoring agent in candies, confectionery, chewing gums, and beverages. The rising popularity of licorice-flavored alcoholic beverages, such as liqueurs and spirits, has further propelled the growth of the liquorice market .

4. Cosmetic Industry Growth: In the cosmetics sector, liquorice extract is valued for its skin-brightening and anti-inflammatory properties. It is increasingly incorporated into skincare products like creams, lotions, and serums, catering to the growing demand for natural and organic beauty solutions .

Regional Insights

• Asia Pacific: The Asia Pacific region holds a dominant position in the liquorice extracts market, with China being a leading producer and consumer. The country's pharmaceutical and herbal industries are experiencing rapid growth, driven by factors such as increasing healthcare expenditures and a growing aging population .

• Europe: Europe accounts for the largest market share in the liquorice extracts market. The region's established food and beverage industry, coupled with a strong preference for natural ingredients, contributes to the widespread use of liquorice extract in various products .

• North America: North America is estimated to grow at the highest CAGR over the forecast period. The increasing demand for natural and organic products, along with rising health awareness among consumers, is driving the adoption of liquorice extracts in the region .

Market Segmentation

The liquorice extracts market can be segmented based on form, application, and grade:

• By Form: The market includes liquid, powder, and block forms. Liquid extracts are preferred for their ease of incorporation into various formulations, while powdered extracts are widely used in the pharmaceutical sector for tablet and capsule formulations .

• By Application: Major applications encompass pharmaceuticals, food and beverages, and cosmetics. The pharmaceutical sector holds the largest market share, driven by the extensive use of liquorice extract in treating gastrointestinal ailments, respiratory issues, and its role in immune support formulations .

• By Grade: Pharmaceutical-grade liquorice extracts are in high demand due to their stringent quality standards and purity levels, making them suitable for medicinal applications .

Challenges and Opportunities

While the liquorice extracts market presents numerous growth opportunities, it also faces certain challenges:

• Regulatory Constraints: The presence of glycyrrhizin in liquorice extract can lead to health concerns when consumed in large quantities. Regulatory bodies have set limits on its concentration in food and pharmaceutical products, which manufacturers must adhere to.

• Sustainability Issues: The cultivation of liquorice plants requires specific climatic conditions, and overharvesting can lead to environmental degradation. Sustainable farming practices and ethical sourcing are essential to ensure the long-term viability of the liquorice extracts market.

Despite these challenges, the market offers several opportunities:

• Product Innovation: There is potential for developing new formulations and applications of liquorice extracts, particularly in the nutraceutical and functional food sectors.

• Emerging Markets: Growing awareness and demand for natural products in emerging economies present untapped opportunities for market expansion.

Future Outlook

The liquorice extracts market is expected to continue its upward trajectory in 2025 and beyond. With a projected CAGR of 4.5% to 6.2% during the forecast period, the market is anticipated to reach a valuation of approximately USD 4.30 billion by 2030 .

In conclusion, the liquorice extracts market is experiencing robust growth, driven by increasing consumer demand for natural ingredients and the expanding applications across various industries. While challenges such as regulatory constraints and sustainability issues exist, the market's future prospects remain promising, offering ample opportunities for stakeholders to capitalize on the growing trend towards natural and functional products.