- Summary
- Table Of Content
- Methodology
Licorice Extract Market Introduction :
Consegic Business Intelligence analyzes that the licorice extract market size is growing with a healthy CAGR of 6.0% during the forecast period (2023-2030), and the market is projected to be valued at USD 3,253.91 Million by 2030 from USD 2,056.48 Million in 2022.
Licorice Extract Market Definition & Overview:
Licorice extract is a product extract from a plant known as glycyrrhiza glabra. The extract is available in various grades such as powder, liquid, and block. This extract is utilized in the treatment of a variety of conditions such as liver, lung, kidney diseases, and circulatory, among others. In addition, the extract is employed as a dietary supplement for the treatment of various conditions such as menopausal symptoms, digestive problems, bacterial & cough, viral infections, and others. As a result of the above benefits, this extract is frequently utilized in various applications, including food & beverages, dietary supplements, pharmaceuticals, tobacco, and many more.
Licorice Extract Market Insights :
Licorice Extract Market Dynamics - (DRO) :
Key Drivers :
The booming pharmaceuticals sector is fostering the market
Licorice extract is a natural substance that has been used in traditional medicine for centuries. The extract contains several compounds that have medicinal properties, including glycyrrhizin, glabridin, and isoliquiritigenin. These compounds have been shown to have anti-inflammatory, anti-viral, and anti-bacterial effects. The major benefits associated with this extract include an improved respiratory system, superior antimicrobial qualities, stress reduction, and others. As a result, based on the analysis, this extract is utilized in medication for cough, digestive problems, and others. The factors such as surging government initiatives in pharmaceuticals, and the development of new plants, among others, are some of the prime factors accelerating the ride of the pharmaceutical sector in Europe. For instance, according to the European Federation of Pharmaceutical Industries and Associations (EFPIA), in 2020, Europe pharmaceutical production was Euro 286,697 million (USD 320,950.1 million). In 2021, the production of pharmaceuticals increased to Euro 300,000 million (USD 335,842.5 million), an increase of 4.6% over 2020. Thus, the booming pharmaceutical sector is boosting the demand for this extract to reduce inflammation. This, in turn, is driving the expansion of the licorice extract market.
Increasing demand for dietary supplements is benefiting the market
It is frequently utilized in dietary supplements to treat gastrointestinal, oral, and liver disorders. The extract solution provides holistic digestive health benefits to regulate host metabolism and immune functions. As per the analysis, the rising awareness about gut health at the global level is favoring the adoption of dietary supplements at the global level. For instance, as per the recent survey published 2021 IFIC Survey, consumers are increasingly consuming probiotics and prebiotics to maintain a healthy gut microbiome. Additionally, nearly one in four respondents, which is 24% of the total respondent said digestive health is the most important aspect of their overall health. These respondents further stated that they consume prebiotics to maintain better gut health. Hence, the increasing demand for dietary supplements is fueling the adoption of this extract to improve gut health. This prominent determinant is fostering the revenue expansion and trend of the market.
Key Restraints :
The high cost of licorice extract is restraining the market
The higher requirement for licorice extract and restricted wild licorice resources are creating a significant gap between supply and demand. As per the analysis, this prominent factor is resulting in higher cost of the this product. For instance, the average price of this extract ranges between USD 115 per KG to USD 135 per KG or more. Furthermore, the key variables, such as higher transportation costs, expansion in the prices of electricity, supply chain constraints, and others are impacting the overall pricing of these products. Therefore, the above-mentioned factors are leading to the higher cost of this product, thereby creating a bottleneck for the market expansion and trends during the projected forecast period.
Future Opportunities :
The development of new food & beverage manufacturing facilities will boost the market
The development of novel food and beverage manufacturing facilities is creating lucrative licorice extract market opportunities and trends in the coming years. The extract is deployed as a flavoring agent in the food and beverage sector. The solution is employed in food & beverage products such as tea, candy, bakery products, ice creams, and others. The increasing development of new food manufacturing facilities at the global level is attributed to factors such as increasing investments in new manufacturing plants, government subsidies, and others. For instance, in November 2022, Hershey, a United States-based manufacturer of snacks such as chocolates, cookies, cakes, and others announced the development of a new food manufacturing facility in Pennsylvania, U.S. The construction of the state-of-the-art food manufacturing facility will be completed by the end of 2024. As a result, the development of new food manufacturing facilities is projected to drive the demand for this extract since it is utilized as an ingredient in food and beverage, this, in turn, will accelerate the market opportunities and trends in the long run.
Licorice Extract Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2017-2030 |
| Market Size in 2030 | USD 3,253.91 Million |
| CAGR (2023-2030) | 6.0% |
| By Grade | Food Grade, Feed Grade, and Pharmaceutical Grade |
| By Form | Powder, Liquid, and Block |
| By Application | Food & Beverages, Dietary Supplements, Pharmaceutical, Tobacco, and Others |
| By Region | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
| Key Players | Norevo GmbH, MAFCO Worldwide LLC, C.E. Roeper GmbH, FC Licorice, Sepidan Osareh Jonoob Co., Zagros Licorice Co.,BGG World, VPL Chemicals PVT Ltd., Extroil Naturals, and Botanic Healthcare |
Licorice Extract Market Segmental Analysis :
Based on the Grade :
The grade segment is categorized into food grade, feed grade, and pharmaceutical grade. In 2022, the pharmaceutical grade segment accounted for the highest market share in the licorice extract market. The key benefits associated with pharmaceutical-grade help in the reduction of leaky gut, heartburn, adrenal fatigue, and pain relief. Furthermore, the pharmaceutical-grade ensures anti-inflammation, superior hepatoprotective properties, and others. As per the analysis, these benefits make pharmaceutical-grade as an ideal solution for the pharmaceutical sector. For instance, according to the General Statistics Office of Vietnam, the total medicines output in Vietnam in 2019 was USD 3255.6 million, and in 2020 it was USD 3484.5 million, a 7.03% rise. Henceforth, the rise in the production activities associated with pharmaceutical products is supplementing the licorice extract market demand to ensure superior health benefits. This, in turn, is boosting the market trends.
However, the food grade segment is projected to be the fastest-growing segment during the forecast period. This is due to the increasing research and development activities for food-grade powder at the global level, which is augmenting segmental development and trends.
Based on the Form :
The form segment is categorized into powder, liquid, and block. In 2022, the powder segment accounted for the highest licorice extract market share of 55.35% in the overall licorice extract market and is expected to be the fastest-growing segment during the forecast period. In in the powder form has superior physicochemical stability along with significant surface hardness and density in comparison to other forms of this extract. The powder form of licorice is suitable for all age groups. The manufacturing of powder form is cost-effective as compared with other forms. Moreover, licorice in powder form is easier to store and offers superior flexibility in compounding solids, longer shelf life, and transport. The powder form of this extract is utilized in the food and beverage sector. For illustration, according to the State Council, The People's Public of China, the China agricultural and sideline food processing sector registered an annual growth rate of 5.7% in 2021. Thus, due to the above benefits, the adoption of powder form is increasing in pharmaceutical, food & beverage, and others are propelling the segment growth.
Based on the Application :
The application segment is categorized into food & beverages, dietary supplements, pharmaceutical, tobacco, and others. In 2022, the pharmaceutical segment accounted for the highest market share in the licorice extract market. It is widely employed in the pharmaceutical sector to treat ailments such as acid reflux, heartburn, coughs, hot flashes, and bacterial and viral infections. This extract is utilized in the production of herbal medicines, liquid cough preparations, and others. Based on the analysis, pharmaceutical production expansion can be ascribed to a variety of factors, including increased output, new facility developments, and government pharmaceutical sector activities. For instance, according to India Brand Equity Foundation (IBEF), in the year 2020, the pharmaceuticals market in India was valued at USD 42.0 billion, and by the year 2024, it is projected at USD 65.0 billion, an increase of 54.8%. Therefore, the advancement of the pharmaceutical sector is boosting the demand for this extract to prevent infections. This, in turn, is driving the market.
However, the food and beverage segment is expected to be the fastest-growing segment during the forecast period. As per the analysis, this expansion is attributed to factors such as increasing investment in new food & beverage facilities, increasing government initiatives, and others.
Based on the Region :
The regional segment includes North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
In 2022, North America accounted for the highest market share at 35.35% and was valued at USD 730.05 million, and is expected to reach USD 1,163.60 million in 2030. In North America, the U.S. accounted for the highest market share of 68.50% during the base year of 2022. Advancements in the sectors such as food & beverage, pharmaceuticals, tobacco, and others are accelerating the licorice extract market growth and trends. For illustration, in June 2021, USDA will invest more than United States Department of Agriculture (USDA) announced an investment of USD 4 billion to strengthen food production, food system, enhanced processing of food, and others. The investments will aid the food sector expansion in the coming years. Furthermore, according to the recent statistics published by International Trade Administration (ITA), the food processing sector is ranked as the 2nd largest industry in Canada, accounting for a 20% share in the manufacturing industry. In 2021, the food processing industry in Canada contributed USD 100 billion, a year-on-year increase of 14.8%. As a result, the growth of the above-mentioned end-use industries is favoring the growth and licorice extract market trends.
Furthermore, Asia Pacific is expected to witness significant growth over the forecast period, growing at a CAGR of 6.6% during 2023-20230. Based on the licorice extract market analysis, the prime factors such as the presence of key players in the Asia Pacific region, advancement in manufacturing, and others are boosting the market growth in the Asia Pacific region.
Top Key Players & Market Share Insights :
The global licorice extract market is highly competitive, with several large players and numerous small and medium-sized enterprises. These companies have strong research and development capabilities and a strong presence in the market through their extensive product portfolios and distribution networks. The licorice extract industry is characterized by intense competition, with companies focusing on expanding their product offerings and increasing their market revenue through mergers, acquisitions, and partnerships. The key players in the market include-
- Norevo GmbH
- MAFCO Worldwide LLC
- VPL Chemicals PVT Ltd.
- Extroil Naturals
- Botanic Healthcare
- C.E. Roeper GmbH
- FC Licorice
- Sepidan Osareh Jonoob Co.
- Zagros Licorice Co.
- BGG World
Recent Industry Developments :
- In August 2022, Athos Lifesciences Pvt. Ltd., an India-based manufacturer started the production of licorice extract. Thus, the expansion in the manufacturing of licorice extract will boost the market growth in the upcoming years.
Key Questions Answered in the Report
What was the market size of the licorice extract industry in 2022? +
In 2022, the market size of licorice extract was USD 2,056.48 million.
What will be the potential market valuation for the licorice extract industry by 2030? +
In 2030, the market size of licorice extract will be expected to reach USD 3,253.91 million.
What are the key factors driving the growth of the licorice extract market? +
The booming pharmaceuticals industry is fostering the licorice extract market growth at the global level.
What is the dominating segment in the licorice extract market by form? +
In 2022, the powder segment accounted for the highest market share of 55.35% in the overall licorice extract market.
Based on current market trends and future predictions, which geographical region is the dominating region in the licorice extract market? +
North America accounted for the highest market share in the overall licorice extract market.
