Licorice Extract Market

Licorice Market Size, Growth, Forecast (2023-2028)

The Global Licorice Extract Market size is estimated to grow from US$1873.9 million in 2022 to US$ 3579.6 million by the end of 2028, expanding at a CAGR of 6.9% during 2023 and 2028.

Global Licorice Extract Market Scenario:

The Global Licorice Extract Market is augmented to have the highest market revenue owing to the increasing benefits of licorice extracts, growing awareness of licorice extracts for treatment of COVID-19, and increasing forces by the cosmetic industry. Licorice extract is primarily used in sweets as a flavoring agent and a sweetener. Licorice extracts are produced from the glycyrrhiza glabra plant, mainly in North Africa, Western Asia, and Southern Europe. Licorice extracts are broadly utilized in traditional medicine and herbalism. Licorice extracts are 30 to 50 times sweeter than sugar. In addition, it is also used as a flavoring agent for tobacco, which offers natural sweetness. Licorice is generally produced in India, China, Italy, Iraq, Afghanistan, Pakistan, Uzbekistan, and Turkey. In addition, licorice extracts are crucially used as a flavoring agent for enhancing the sweetness of some food. These are some significant factors that boost the global licorice extract market growth during the forecast period.

REPORT COVERAGE:

Licorice Extract Market Drivers:

The increasing awareness among the population across the globe regarding the benefits of licorice extracts for the treatment of COVID-19 and the rapidly increasing forces by the cosmetic industry are the significant factors fueling the global licorice market growth in the upcoming years. Moreover, licorice extract is considered the oldest herbal remedy globally, which is produced from glycyrrhiza glabra. Licorice extract is a flavor ingredient used in a variety of foods and beverages. It's also used as a sweetener to make sure foods are sweeter. However, it isn't the only natural sweetener or food ingredient on the market. Stevia, a natural sweetener, is becoming increasingly extensively used and recognized. Anise is a naturally occurring plant with a taste that is quite similar to licorice. It is used to treat several ailments, used as a flavoring agent in sweets and candies, and drinks. In recent years, most of the world's population uses licorice roots to treat coughs, heartburn, acid reflux, bacterial and virus infections. It is also available as a capsule in the market. These are the primary factors that propel the global licorice extract market growth during 2022 - 2027.

Licorice Extracts Market Restraints:

The government regulations regarding declining the tobacco industry and the availability of various alternatives in place of licorice in the food and beverage sector are the essential factors that hamper the licorice extract market growth in the upcoming years. The government has declared several rules and regulations on the tobacco industry. It was in an idea of declining the tobacco sector since it harms the lives of many people. Keeping the safety of the people in view, the government has decided to slow down the tobacco industry, which in turn hinders the growth of licorice extract. On the other hand, licorice extracts are replaced by star anise, which offers the same flavor as licorice. Thus, declines the global licorice extract market growth in the near future.

Recent Developments in the Licorice Extract Market:

Norevo GmbH explains that its licorice paste is low-viscous and comfortable in handling. Moreover, like blocks or granules, it offers the advantages of dissolving faster and thoroughly. Thus, these are primarily used in the food and beverage industry.

MAFCO Worldwide LLC announced new Magna brand products used for multi-tasking and address the flavor-formulation problems. It also added that these brands are available in powder and liquid forms.

Challenges in the Licorice Extract Market:

Some of the world's population may be sensitive to licorice and experience various symptoms include congestive heart failure, absence of a menstrual period, erectile dysfunction, excess fluid in the lungs, fluid and sodium retention, high blood pressure, headache, hypertensive encephalopathy, hypokalemic myopathy, lethargy, muscle wasting, mineralocorticoid effects, swelling, tiredness, weakness, etc. According to a study, it is said that people who intake a massive amount of salt or 5-6 grams of licorice may suffer from these problems. Therefore, although licorice extract is considered safe as a food ingredient, it may possess the above-mentioned side effects. Thus, it slows down the global licorice extract market growth during the forecast period.

Licorice Extract Market Segmentation:

By Product Type:

• Feed grade
• Food grade
• Pharmaceutical grade

Depending on the product type, the global licorice extract market is augmented into feed grade, food-grade, and pharmaceutical grade. Pharmaceutical grades tend to hold the most prominent global licorice extract market share. Licorice extract is traditionally proven that these can be majorly used in medicines to treat various diseases. In addition, European medical agencies included licorice in herbal medicine. On the other hand, feed grade is estimated to have a significant CAGR due to the adoption of licorice extracts to enhance and improve the immunity and health of the livestock.

 By Form:

• Powder
• Liquid
• Block

Depending on the form, the global licorice extract market is divided into powder, liquid, and block. Besides liquid and block, powder form plays a dominant role in the global licorice extract market. It is anticipated to grow with the highest CAGR during the forecast period owing to the increasing demand for licorice extracts in powder form by the food & beverage sector and pharmaceutical sector.

By Application:

• Pharmaceutical
• Food & Beverage
• Tobacco
• Others

The global licorice extract market is divided into pharmaceuticals, food & beverages, tobacco, and others, depending on the application. However, the pharmaceutical sector held the maximum global licorice extract market growth during 2022 - 2027 owing to the anti-inflammatory, anti-viral and anti-microbial properties of licorice extracts broadly used in pharmaceutical firms.

Licorice Extract Market Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

Asia Pacific region held the largest global licorice extract market share and is projected to have the highest CAGR in the global licorice extract market during the foreseen period owing to the increasing demand for licorice extract and increasing awareness regarding the benefits of the licorice extracts among the population mainly in India and China. On the other hand, North America and Europe tend to hold the significant global licorice extract market growth owing to the increasing opportunities for new suppliers of licorice, mainly in Germany, the U.S, and France. Furthermore, the Middle East & Africa Licorice Extract Market tends to grow with a significant CAGR in the upcoming years owing to the rising food and beverage industry in Africa, Brazil, and Saudi Arabia.

Impact of COVID-19 on the Global Licorice Extract Market:

Global Licorice Extract Market experienced a negative impact by COVID-19 in the first phase of lockdown because of the increasing prices for raw materials and disruptions in the supply chain. However, the growing awareness regarding the benefits of licorice among consumers worldwide positively affects the global licorice extract market. Moreover, the growing demand for clean labels, natural products, and organic products is further uplifting the global licorice extract market growth during the forecast period.

Licorice Extract Market Key Players:

The companies covered in the report include:

• Norevo GmbH
• FC Licorice
• MAFCO Worldwide LLC
• Zagros Licorice Co.
• Sedan Osareh Co.
• Naturex SA
• VPL Chemicals
• Aseh Co.