The global licorice extract market is witnessing robust growth fueled by rising demand across food, pharmaceutical, and cosmetic industries. Increasing awareness of natural ingredients and their health benefits is shaping the market dynamics, offering substantial growth opportunities for market players globally. This comprehensive market analysis highlights recent trends, market drivers, and strategic initiatives shaping the industry landscape.
Market Size and Overview
The licorice extracts market was valued at US$ 1,779.59 Mn in 2016 and is expected to expand at a CAGR of 5.7%, in terms of revenue, during 2017–2025.
Licorice Extract Market Forecast expansion is mainly driven by escalating demand for natural sweeteners and therapeutic ingredients worldwide. Increasing incorporation of licorice extract in products ranging from confectionery to pharmaceuticals is expanding market revenue and enhancing the overall market scope, making this an essential market report for stakeholders targeting emerging market opportunities.
Market Drivers
- Rising Demand for Natural and Organic Products: The primary market driver remains the increasing consumer preference for natural and organic ingredients in food and pharmaceutical sectors. In 2024, the food and beverage segment recorded a 7% year-over-year increase in licorice extract utilization, underscoring its importance as a natural flavoring agent.
- Regulatory bodies worldwide are encouraging the use of plant-based ingredients, further fueling licorice extract market growth strategies among industry players. These trends are reflected in growing market opportunities for manufacturers delivering clean-label formulations.
- Additionally, the anti-inflammatory and antiviral properties of licorice extract bolster its application in nutraceutical products, intensifying market revenue and contributing positively to industry share growth.
PEST Analysis
- Political: In 2025, governments, including the European Union and the United States, have imposed stricter regulations on synthetic additives, promoting the adoption of natural extracts like licorice, positively influencing market demand and investments.
- Economic: Post-pandemic economic recovery in emerging markets has increased disposable income, boosting consumption of natural health products globally. This economic upswing directly supports licorice extract market growth and business expansion efforts by market companies.
- Social: Consumer awareness about the health benefits of licorice extract for digestive health and immunity enhancement has surged in 2024, prompted by social media campaigns and endorsements by wellness influencers. This social trend uplifts product acceptance and market share.
- Technological: Advances in extraction and purification techniques implemented by companies in 2025 have improved product quality and cost-efficiency, stimulating new market segments. Enhanced R&D facilitates innovative product launches, strengthening market dynamics.
Promotion and Marketing Initiative
Licorice extract market promotion focuses heavily on natural health benefits and sustainability credentials. A notable 2024 marketing initiative by a leading licorice extract supplier involved a digital campaign showcasing product versatility in natural cosmetics and herbal medicines. This strategy increased brand visibility, customer engagement, and contributed to a 12% sales growth within six months. Targeted promotional approaches, including influencer partnerships and sustainable packaging campaigns, are proving highly effective in driving market revenue and expanding market opportunities.
Key Players
Key players dominating the licorice extract market include:
- Norevo GmbH
- MAFCO Worldwide LLC
- FC Licorice
- Zagros Licorice Co.
- Ransom Naturals Ltd.
- Aushadhi Herba
- VPL Chemicals
- Sepidan Osareh Co.
- Others.
Recent growth strategies from these market players reflect dynamic market competition:
- Norevo GmbH expanded its production capacity in 2025 by 15%, integrating advanced extraction technologies that significantly improved product purity and customer satisfaction.
- MAFCO Worldwide LLC launched a new organic licorice extract line in early 2024, capturing expanding natural product market segments and contributing to a 10% increase in market share.
- FC Licorice formed strategic partnerships with regional distributors in Asia Pacific in 2025, enhancing market penetration and driving significant business growth in emerging economies.
These developments collectively reinforce the robust industry share and revenue growth trends documented in the latest licorice extract Licorice Extract Market report.
FAQs
1. Who are the dominant players in the Licorice Extract market?
Dominant market players include Norevo GmbH, MAFCO Worldwide LLC, FC Licorice, Zagros Licorice Co., and Ransom Naturals Ltd., all actively expanding production capabilities and launching new products in 2024-2025.
2. What will be the size of the Licorice Extract market in the coming years?
The market size is projected to grow from USD 1,779.59 million in 2025 at a CAGR of 5.7% through 2032, reflecting increasing demand for natural ingredients in various industries.
3. Which end-user industry has the largest growth opportunity?
The food and beverage sector, particularly natural flavorings and health supplements, represents the largest growth opportunity owing to rising consumer inclination toward organic and functional products.
4. How will market development trends evolve over the next five years?
Market trends are shifting towards enhanced extraction technologies, sustainable sourcing, and increased adoption in pharmaceuticals and cosmetics, driving diversified market segments and higher market revenue.
5. What is the nature of the competitive landscape and challenges in the Licorice Extract market?
The competitive landscape is characterized by innovation-driven growth, with challenges including sourcing raw materials sustainably and complying with evolving regulatory standards, which require adaptive market growth strategies.
6. What go-to-market strategies are commonly adopted in the Licorice Extract market?
Key strategies include product diversification, entering emerging markets via partnerships, digital marketing focusing on health benefits, and emphasizing organic certifications to attract environmentally conscious consumers.
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Author Bio:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163 )
