The global licorice extract market size was $1,872.9million in 2020, and is projected to reach $3,578.6 million by 2030, registering a CAGR of 6.8% from 2021 to 2030. The pharmaceuticalsegment led in terms of licorice extractmarketshare in 2020, and is expected to retain its dominance throughout the forecast period.
Licorice is also known as Liquorice, or Glycyrrhizaglabra. From the roots of these medicinal plants the extracts are obtained. The extracts from roots of licorice plants are aromatic flavoring and sweet in nature. These plants are native to North Africa, Western Asia, and southern Europe. Much of the sweetness in licorice extracts comes from the compound named glycyrrhizin having a sweet taste and is around 30-50 timessweeterthan sugar. Licorice is generally grown in Afghanistan, India, China, Italy, Iran, Pakistan, Azerbaijan, Turkmenistan, Uzbekistan, Turkey, and Iraq. It is widely used in pharmaceutical, cosmetics, food & beverage as well as tobacco industry.
Licorice extracts and roots have been used since thousands of years particularly in Asia for treatment of variety of ailments, including but not limited to digestive distress, respiratory conditions, and inflammation. Licorice consists of more than 300 compounds having myriad of properties such as anti-viral, anti-microbial, and anti-inflammatory. Traditionally licorice was widely used as a treatment for heartburn, stomach ulcers, toothache, indigestion, asthma, fever, bronchitis, and coughs. Hepatitis C, cancer memory loss, and skin infections are new areas where this medicine is found to be highly useful.
Licorice extract is used as a flavoring agent in many kinds of food & beverages. It is also used as a sweetener to enhance the sweetness of some food. But it is not the only food additive or natural sweetener available on the market. Stevia, a natural sweetener, is more commonly used and more widely known. Anise is another naturally available plant that has a very similar taste to licorice, and is often used as a licorice substitute. Other naturally occurring herbs such asfennel, basil, chervil, tarragon, and tea tree are the alternatives to licorice extract. These alternatives pose as a barrier to licorice extract industry growth and impede the adoption of licorice extract as a natural flavoring and sweetening agent.
The global licorice extract market is segmented on the basis of product type, form, application, and region. Based on product type, the global market is segmented into food grade, feed grade, and pharmaceutical grade. By form, the market is segmented into powder, liquid, and block. Based on application, the global market is studied across food & beverages, pharmaceutical, tobacco, and others. The global market is also analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Product Type
Feed grade segment would exhibit the highest CAGR of 8.5% during 2021-2030.
Based on product type, the global licorice extract market is segmented into food grade, feed grade, and pharmaceutical grade. The pharmaceutical grade segment leads in terms of licorice extract market share; however, the feed grade segment is poised to grow with highest CAGR, owing to adoption of licorice extracts in feed to improve immunity and health of livestocks.
Powder segment would exhibit the highest CAGR of 7.4% during 2021-2030.
Based on form, the global licorice extract market is studied across powder, liquid, and block. The powder segment dominates the global market, and is likely to retain its dominance during the forecast period. Powder form of licorice extracts is widely used in pharmaceutical as well as the food & beverages industry.
Others segment would exhibit the highest CAGR of 9.0% during 2021-2030.
Based on application, the globallicorice extract market is studied across food & beverages, pharmaceutical, tobacco, and others. The pharmaceutical segment to retain maximum market share, owing to anti-viral, anti-inflammatory, antimicrobial properties of licorice extracts being widely used in pharmaceutical products.
Asia Pacific region would exhibit the highest CAGR of 7.7% during 2021-2030.
The report focuses on the licorice extractmarketgrowth prospects, restraints, and opportunities. The study provides Porter’s five forces analysis to understand the impact of various factors such as competitive intensity of competitors, bargaining power of suppliers, threat of substitutes, threat of new entrants, and bargaining power of buyers of the licorice extractmarket.
Some of the major players profiled in the licorice extract market analysis areBGG World, C.E. Roeper GmbH, F&C Licorice Ltd, Glycyrrhiza Glabra Co., Ltd, Mafco Worldwide LLC, Maruzen Pharmaceuticals Co., Ltd, Norevo GmbH, Ransom Naturals, Shaanxi Fujie Pharmaceutical Co, Ltd, and Zagros Licorice Co. Other prominent players analyzed in the report are ASEH, Sanat Products Limited, HB Natural Ingredients, Zelang Group, Sepidan Osareh Co., Vpl Chemicals Pvt. Ltd, and Aushadhi Herbal.
COVID-19 Impact Analysis
- The licorice extractindustry is positivelyimpacted by the pandemic, owing to increased health consciousness amongst consumers.
- The first few months of the COVID-19 pandemic had disrupted the supply chains.
- However, the demand in pharmaceutical have gained high traction in the last year.
- The COVID-19 has altered consumer behavior with more consumer transitioning toward clean label, natural, and organic products;thus, augmenting the market demand in the food & beverages as well as cosmetics industries.
Key Benefits For Stakeholders
- The report provides an extensive analysis of the current and emerging licorice extractmarkettrends and opportunities.
- The report provides detailed qualitative and quantitative analysis of the currenttrends and future estimations that help evaluate the prevailing licorice extractmarket opportunities in the market.
- The licorice extractmarketforecast is offered along with information related to key drivers, restraints, and opportunities.
- Themarket analysis is conducted by following key product positioning and monitoring the top competitors within the market framework.
- The report provides extensive qualitative insights on the potential and niche segments or regions exhibiting favorable growth.
Licorice Extract Market Segments
By Product Type
- Food Grade
- Feed Grade
- Pharmaceutical Grade
- Food & Beverages
- North America
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Latin America
- Middle East
Licorice Extract Market Report Highlights
By PRODUCT TYPE
Key Market Players
BEIJING GINGKO GROUP, MAFCO WORLDWIDE LLC (Part of World Earth Brands Group), F&C LICORICE LTD., MARUZEN PHARMACEUTICALS CO., LTD, RANSOM NATURALS LTD, NOREVO GMBH, GLYCYRRHIZA GLABRA CO., LTD, .ZAGROS LICORICE CO., SHAANXI FUJIE PHARMACEUTICAL CO., LTD, .C.E. ROEPER GMBH
The global licorice extract market is expected to witness optimistic growth in upcoming yearsas it is known for its sweet taste. Growth in awareness regarding myriad of benefits of licorice surgesits demand in the market. The market is likely to witness diversification in application of licorice extracts with animal feed and cosmetics market providing new growth avenues for the proliferation of the market. Nevertheless, the market also faces stiff competition from other high intensity sweeteners such as Stevia and Aspartame. However, with growing demand for clean label natural products the prospects for future remain positive.
The manufacturers of licorice are mainly based in China with high trade flow across the world including Japan, the U.S., the UK, and other European countries. The market has also witnessed huge surge, owing to COVID-19 pandemic. Studies reveal the positive impact of licorice extracts on recovery from corona virus. Furthermore, licorice has been widely accepted in Asian countries particularly in China and India for its anti-viral properties. With increased consumer consciousness toward their health and immunity, the demand for licorice and its extracts to remain fairly high for atleast coming two years. The new demand arising is likely to be compensated by new players entering in the market and existing players expanding their production capabilities.