Licorice Extract Market - Global Forecast 2025-2030

The Licorice Extract Market size was estimated at USD 850.94 million in 2024 and expected to reach USD 894.59 million in 2025, at a CAGR 5.35% to reach USD 1,163.67 million by 2030.

The licorice extract market has a storied heritage that spans centuries, marked by its diverse usage in culinary, medicinal, and cosmetic domains. Derived from the roots of Glycyrrhiza species, licorice extract has long been prized for its sweetening capabilities and bioactive compounds, particularly glycyrrhizin, which impart both flavor and functional benefits. In recent years, the extract has transcended traditional applications, finding renewed favor in sectors driven by clean-label trends and a growing emphasis on naturally sourced ingredients. As consumers intensify their demand for authenticity and transparent sourcing, licorice extract has emerged as a versatile ingredient that bridges taste, health, and cosmetic efficacy.

Against a backdrop of evolving consumer preferences, supply chain realignments, and regulatory dynamics, understanding the strategic importance of licorice extract is critical for stakeholders across the value chain. Ingredient suppliers, formulators, and end users alike are navigating an environment where quality, traceability, and compliance converge. This introduction sets the stage for a deeper exploration of the transformative shifts reshaping the landscape, the ramifications of recent tariff adjustments, the nuances of market segmentation, and the regional and competitive insights that will inform forward-looking strategies. By situating licorice extract at the intersection of tradition and innovation, this summary frames the essential considerations for industry leaders poised to capitalize on emerging opportunities.

The licorice extract industry is undergoing significant transformation as multiple vectors of change converge to redefine product development, sourcing, and distribution paradigms. Consumer wellness trends have catalyzed a shift away from synthetic additives toward botanically derived ingredients, thereby elevating licorice extract’s appeal for formulators in dietary supplements and cosmetics. Simultaneously, sustainability imperatives are prompting stakeholders to embrace ethical cultivation practices, traceable supply chains, and certifications that resonate with environmentally conscious end users. These consumer- and sustainability-driven forces are being complemented by regulatory reforms in key markets, which are tightening quality standards around glycyrrhizin content and labeling requirements, thereby creating both challenges and competitive differentiators for compliant suppliers.

On the technological front, innovative extraction methodologies-such as supercritical fluid extraction, ultrasound-assisted extraction, and membrane separation techniques-are enhancing yield efficiency and purity, enabling producers to tailor glycyrrhizin concentrations to specific application requirements. At the same time, digital supply chain platforms are emerging to offer real-time visibility into cultivation, processing, and distribution, allowing organizations to mitigate risk and ensure product integrity. As these transformative shifts gain traction, companies that align R&D investments, operational strategies, and sustainability commitments with evolving market expectations will be positioned to capture value in a rapidly maturing licorice extract ecosystem.

The imposition of new United States tariffs in 2025 on imported licorice roots and derivatives has materially altered the cost calculus and sourcing strategies of industry participants. Historically reliant on major suppliers such as China and Spain, U.S. buyers have encountered increased landed costs, prompting a reevaluation of supplier portfolios and motivating a search for alternative origins, including Russia and domestically produced American licorice. This reorientation has had a cascading effect on supply chain architecture, with importers diversifying their contracts and forging strategic partnerships to secure stable volumes under more favorable terms.

Rather than simply passing tariff-related expenses onto downstream customers, many suppliers have pursued backward integration by investing in cultivation and primary processing capabilities in tariff-exempt jurisdictions. This approach has not only mitigated margin pressures but also fostered closer collaboration with growers to implement quality control measures at the source. Moreover, the broader trade environment has accelerated discussions about tariff-hedging mechanisms, such as long-term offtake agreements and customs-bonded warehousing solutions, enabling companies to optimize inventory management while maintaining cost competitiveness. In this context, navigating the cumulative impact of 2025 tariffs requires a nuanced understanding of evolving trade policies, flexible sourcing frameworks, and cooperative supply chain models that balance price stability with assured product quality.

Licorice extract’s versatility is reflected in its segmentation across multiple axes that inform strategic decisions at every stage of the value chain. When evaluating form type-which encompasses Liquid Extract and Solid Extract-companies must consider compatibility with end-use processes, storage stability, and the precision of dosage control; liquid formats often cater to flavoring and sweetening requirements in beverage applications, while solid forms provide convenience for powder blends in nutraceuticals and pharmaceutical intermediates. Packaging typology-ranging from Bulk Packaging to Single Packaging-dictates not only logistical efficiencies and scale economies but also shelf presentation for retail environments, where single-serve sachets or pouches resonate with convenience-driven consumers.

Licorice variety selection further refines product positioning, as American Licorice is prized for its distinct flavor profile, while Chinese Licorice offers high glycyrrhizin concentrations preferred by pharmaceutical formulators. Russian Licorice, Spanish Licorice, and Ural Licorice each contribute unique phytochemical compositions that can be leveraged for specialized cosmetic formulations, dietary supplements, or flavor enhancers. Distribution channels are split between Offline Retail and Online Retail, with brick-and-mortar outlets maintaining strongholds in traditional supply networks, while e-commerce channels unlock direct-to-consumer opportunities and subscription-based models.

Applications span Coloring Agent, Cosmetic Formulations, Dietary Supplements, Flavoring Agent, and Sweetening Agent, with each category containing subsegments aligned to licorice variety-for example Russian Licorice as a Coloring Agent and Spanish Licorice in Cosmetic Formulations-underscoring the importance of variety-specific functional attributes. Homing in on end-use industries-Cosmetics & Personal Care, Food & Beverage, Nutraceuticals, and Pharmaceutical-reveals differentiated product requirements: Cosmetics & Personal Care applications demand stringent purity and traceability standards, whereas Food & Beverage leverages licorice extract’s dual role as a flavoring and sweetening agent to meet clean-label claims. Nutraceuticals emphasize standardized bioactive content, and pharmaceuticals require pharmacopeial-grade extract to satisfy regulatory stipulations.

Regional analysis of the licorice extract market highlights distinctive demand drivers and sourcing dynamics across the Americas, Europe-Middle East-Africa, and Asia-Pacific. In the Americas, rapidly evolving consumer awareness of botanical ingredients has elevated licorice extract in dietary supplements and functional beverages, while regulatory frameworks in the United States and Canada encourage transparent labeling and organic certifications. This regulatory encouragement, paired with rising consumer expectations around product provenance, is motivating suppliers to secure Certified Organic or Non-GMO Project Verified status, fostering a premium segment for traceable licorice extract offerings.

The Europe-Middle East-Africa region is characterized by a complex mosaic of regulatory regimes, especially within the European Union, where glycyrrhizin content limits and health claim restrictions necessitate rigorous quality control. Despite these compliance hurdles, demand remains robust in the cosmetics and personal care segment, driven by luxury brands in Western Europe and burgeoning markets in the Gulf Cooperation Council states. Strategic sourcing from Spain and Russia helps meet the region’s appetite for diverse licorice varieties, while EU-based extractors leverage proximity and regulatory familiarity to offer just-in-time delivery models.

In Asia-Pacific, licorice extract is deeply rooted in traditional medicine practices, with China retaining its position as both a major producer and an innovator in novel extraction technologies. Emerging markets in India and South Korea are exhibiting growing interest in licorice-based food ingredients and nutraceutical formulations, catalyzed by homegrown dietary supplement brands and government-backed research initiatives. Cross-border trade flows from China, complemented by an expanding network of contract manufacturers, underpin a dynamic regional marketplace where cost-competitive production and R&D synergies coalesce to drive further adoption.

The competitive landscape of the licorice extract market is shaped by a mix of vertically integrated producers, specialized botanical extractors, and ingredient formulators that differentiate through innovation and strategic partnerships. Leading extractors have invested in proprietary technologies to optimize glycyrrhizin removal or concentration, enabling tiered product offerings tailored to food-grade, nutraceutical-grade, and pharmaceutical-grade standards. Meanwhile, specialty ingredient houses are expanding upstream into cultivation agreements to secure feedstock quality, negotiating long-term contracts with growers across multiple continents to mitigate climate and geopolitical risks.

Collaborative research initiatives between academic institutions and select industry players are generating novel applications, such as glycyrrhetinic acid derivatives for anti-inflammatory cosmetics, positioning early movers with first-to-market advantages. Mergers and acquisitions have further consolidated market share, as larger players acquire boutique extract manufacturers to broaden their geographical reach and product portfolios. Against this backdrop, companies that can seamlessly integrate end-to-end quality assurance protocols with agility in responding to regulatory shifts stand to solidify their leadership in a market that prizes both tradition and technological advancement.

To maintain and grow market presence in the evolving licorice extract landscape, companies should prioritize diversification of their sourcing networks, balancing established suppliers in China and Russia with emerging partners in the Americas and Spain. Investing in advanced extraction technologies can yield higher-purity fractions and lower operational costs, creating a competitive edge in high-value application segments. Aligning product portfolios with regulatory requirements-particularly glycyrrhizin thresholds and labeling mandates-will help mitigate compliance risks and unlock access to stringent markets such as the EU and the United States.

Further, organizations should bolster their sustainability credentials by implementing traceable supply chain solutions, pursuing certifications that resonate with environmentally and socially conscious consumers, and communicating these commitments transparently through digital channels. Expanding online retail presence and exploring subscription-based or direct-to-consumer models can capture shifting purchasing behaviors, while strategic collaborations with cosmetic and nutraceutical brands can accelerate new product development. Finally, monitoring tariff developments and deploying hedging strategies or customs-bonded warehousing will help stabilize cost structures, ensuring that companies can respond swiftly to future trade policy adjustments without compromising supply continuity.

This report’s insights are grounded in a comprehensive research methodology that integrates both primary and secondary data sources. Primary research was conducted through extensive interviews with key stakeholders, including cultivators, extract manufacturers, formulators, distributors, and regulatory experts, to capture firsthand perspectives on quality standards, supply chain challenges, and emerging application trends. These qualitative insights were supplemented by secondary research encompassing trade flow data, regulatory filings, technical whitepapers, and industry association publications to construct a holistic view of market dynamics.

Data triangulation formed a critical component of the analytical framework, cross-referencing stakeholder feedback with market reports, tariff schedules, and consumption data to validate trends and identify divergence in regional behaviors. The segmentation schema was rigorously tested through scenario analysis to ensure its applicability across multiple geographies and product types. Findings were further refined through expert panel reviews to account for recent policy developments and technological breakthroughs. This multilayered approach ensures that the conclusions drawn are robust, unbiased, and reflective of the real-world complexities shaping the licorice extract market.

Drawing together the historical context, regulatory evolutions, tariff considerations, and segmentation nuances, this report underscores licorice extract’s enduring relevance and growth potential across diverse industries. The interplay between consumer-driven wellness demands, technological advancements in extraction, and shifting trade policies presents a landscape rich with strategic inflection points. Companies that adeptly navigate quality compliance, forge resilient supply chain partnerships, and harness data-driven segmentation insights will be well-positioned to capture emerging opportunities.

As the market continues to evolve, staying attuned to regional variations and competitive developments will be paramount. The insights presented herein provide a roadmap for decision-makers seeking to align their operations with market realities, seize high-value application segments, and build sustainable differentiation. By embracing the recommended strategies and leveraging the detailed analysis of this report, industry leaders can chart a course toward sustained growth and resilient market leadership in the licorice extract domain.

To delve deeper into the comprehensive insights and strategic recommendations outlined in this report, reach out to Ketan Rohom, Associate Director of Sales & Marketing, to secure your copy of the licorice extract market research report tailored for decision-makers seeking a competitive advantage.

Engaging directly with Ketan will ensure you receive personalized guidance on how the latest market shifts, tariff impacts, and segmentation opportunities translate into actionable strategies for your organization. Connect today to unlock the full spectrum of data-driven analysis and expert perspectives needed to chart the optimal course in the evolving licorice extract landscape