Licorice Root Market Size, Share, Industry Analysis, Trends, Growth, Forecasts, 2030

Licorice Root Industry Prospective:

The global licorice root market size was evaluated at $850 million in 2022 and is slated to hit $1,500 million by the end of 2030 with a CAGR of nearly 7.36% between 2023 and 2030.

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Licorice Root Market: Overview

Licorice root comprises of a tribasic glycyrrhizin that is in the form of calcium salts & potassium salts blend. Moreover, the product has been used as a medical herb in ancient times to treat various diseases and also as a natural sweetener across the globe for many years. Furthermore, its contents, namely, highly concentrated saponin and glycyrrhizin are used as the key sweetening agents. The high anti-microbial activities of the product have made it most popular across the globe.

Furthermore, licorice has been utilized as safe & effective herb along with few of the other herbs in tea for treating holic in infants for a short period. For the record, the U.S. FDA has recognized licorice extract as GRAS (generally recognized as safe). Furthermore, nearly 300 flavonoids including isoflavonoids, phenolic acids, flavans, isoflavans, liquiritin, and chalcones as well as 20 triterpenoids along with amino acids, glycyrrhizic acid, ascorbic acid, choline, tannins, coumarins, liquiritigenin, and phytosterols have been extracted from licorice root.  In addition to this, licorice has been used as a traditional medicine in China for many centuries and was considered to possess life-improving properties, reduce pain, eradicate phlegm, tonifying the stomach, and reduce cough.

Key Insights

• As per the analysis shared by our research analyst, the global licorice root market is projected to expand annually at the annual growth rate of around 7.36% over the forecast timespan (2023-2030)
• In terms of revenue, the global licorice root market size was evaluated at nearly $850 million in 2022 and is expected to reach $1,500 million by 2030.
• The global licorice root market is anticipated to grow rapidly over the forecast timeline owing to the use of licorice in enhancing tea flavor as well as its application as a flavoring additive in candy and tobacco.
• In terms of product form, the extracts segment is slated to register the highest CAGR over the forecast period.
• Based on end-use, the food & beverage segment is projected to dominate the segment in the coming eight years.
• Region-wise, the North American licorice root industry is projected register the fastest CAGR over the assessment timeline.

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Licorice Root Market: Growth Factors

Surging use of products in treatment of respiratory diseases to boost global market trends

According to NCBI, licorice root which is a metabolite possesses antiviral, anti-inflammatory, anti-microbial, immune-modulatory, and anti-tumor features as well as myriad pharmacological characteristics. These beneficial features will drive the global licorice root market trends. In addition to this, the use of licorice in enhancing tea flavor as well as its application as flavoring additive in candy and tobacco will prop up the growth of the global market in the ensuing years. Licorice root extracts have a favorable impact on pulmonary & skin disorders, lung ailments, arthritis, hepatitis C, mouth ulcers, peptic ulcers, and liver disorders as well as body immunity, thereby steering the expansion of the market globally.

Furthermore, licorice is used for treating respiratory & gastrointestinal disorders. Reportedly, it possesses immuno-stimulatory, hepa-protective, anti-carcinogenic, anti-oxidant, anti-infective, anti-cancer, detoxifying, and anti-ulcer characteristics, thereby offering protection to endocrine, nervous, respiratory, and cardiovascular systems along with enhancing its functions. This, in turn, will embellish the growth of the market globally. The polyphenolic flavonoids of licorice impart hypoglycemic effects through modulation of lipid & glucose metabolism, thereby steering the global market elevation. Reportedly, licorice roots also find lucrative applications as feed additive in poultry sector.

Licorice Root Market: Restraints

A large proportion of product intake causing hypertension can hinder the global industry surge by 2030

Excessive product consumption can cause high blood pressure, adrenal hormone disturbance, hypernatremia, hypertension, and hypokalemia, thereby hindering the growth of the global licorice root industry. Apart from this, constant obstruction of 11 β-HSD2 due to disproportionate licorice intake can increase the volume of fluid and can create life-threatening situations for patients, particularly those suffering from heart disorders, thereby putting brakes on the global industry expansion.

Licorice Root Market: Opportunities

Humungous product penetration in food & beverages to shape the global market surge over 2023-2030

Large-scale use of product in food & beverages and pharmaceuticals sectors is likely to open new growth avenues for the global licorice root market.  A rise in the inclination towards consuming of herbal tea is likely to leverage the growth of the market globally.

Licorice Root Market: Challenges

Fluctuations in raw material prices impede the growth of the industry globally over the forecast period

Oscillations in the costs of raw components leading to increase in the product prices can prove to be a huge challenge for the global licorice root industry progression in the upcoming years. Easy availability of alternate products can further challenge the growth of the industry across the globe in the coming decade.

Licorice Root Market: Segmentation

The global licorice root market is sectored into product form, end-use, and region.                                     

In terms of product form, the licorice root market across the globe is segregated into powder, blocks, roots, extracts, and paste segments. Furthermore, the extracts segment, which acquired nearly two-thirds of the global market earnings in 2022, is projected to register the highest CAGR over the forecast timeframe. Moreover, the segmental expansion over the forecast timeline can be owing to the growing demand for licorice extracts as they offer health benefits to individuals. 

Based on the end-use, the global licorice root industry is divided into food & beverages, cosmetic & personal care, and pharmaceutical segments. Moreover, the food & beverages segment, which dominated the end-use segment in 2022, is anticipated to lead the segmental growth even during the forecast timespan. The growth of the segment over the forecast period can be subject to a prominent use of licorice root in the food & beverages segment.

Licorice Root Market: Report Scope

Licorice Root Market: Regional Insights

Asia-Pacific is set to establish a strong footing in the global licorice root market in the upcoming years

Asia-Pacific, which accounted for nearly three-fourths of the global licorice root market earnings in 2022, will be a leading region in the coming eight years. Moreover, the regional market elevation over the forecast timeline can be ascribed to rise in the product use in pharmaceuticals sectors in the countries such as China and India. Apart from this, establishment of firms who are the key manufacturers of the product in these countries is likely to spur the regional market trends.   

North American licorice root industry is set to register the highest CAGR in the forecast timespan. The growth of the industry in North America over the forecast timeline can be subject to a surge in the export of the product from the U.S. to other countries such as Holland, Germany, and France. Growing demand for natural foods among the millennial population of the country will further spur the regional industry trends. Apart from this, growing occurrence of chronic ailments in the country will steer the expansion of the industry in the region.

Key Developments

• In second half of 2022, Givaudan, a key Switzerland firm manufacturing cosmetic ingredients, and Cargill Inc. and Buhler Group entered into strategic partnership with ITAL, a food technology institute, and FoodTech HUB Latam. The strategic initiative is aimed at setting up a food innovation unit in Campinas city that can develop sustainable food & beverage products for these firms.
• In the first half of 2021, Mafco Worldwide, a key flavour application firm, introduced a magna-brand product which addresses flavour formulation issues. The move is likely to boost the demand for licorice root globally.

Licorice Root Market: Competitive Space

The global licorice root market profiles key players such as:

• Iran Medical Herb
• Fanavaran-e-Tosee Sanat-e-Gharb
• Glycyrrhiza Glabra Co Ltd.
• Naturex SA
• NOREVO
• Green Agro Invest LLC
• Hepner & Eschenbrenner GmbH & Co. KG
• MARUZEN PHARMACEUTICALS CO. LTD.
• Nutra Green Biotechnology Co. Ltd.

The global licorice root market is segmented as follows:

By Product Form

• Powder
• Roots
• Extracts
• Blocks
• Paste

By End-Use

• Tobacco
• Food & Beverage
• Cosmetic
• Healthcare
• Pharmaceutical

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa