Licorice Extract Market Forecast 2023 - 2030

By 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 licorice extract help in the reduction of leaky gut, heartburn, adrenal fatigue, and pain relief. Furthermore, the pharmaceutical-grade licorice extract ensures anti-inflammation, superior hepatoprotective properties, and others. These benefits make pharmaceutical-grade licorice extract an ideal solution for the pharmaceutical industry. 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 demand for licorice extract to ensure superior health benefits. This, in turn, is boosting the market.

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 licorice extract powder at the global level, which is augmenting segmental growth.

By Form :

The form segment is categorized into powder, liquid, and block. In 2022, the powder segment accounted for the highest market share of 55.35% in the overall licorice extract market and is expected to be the fastest-growing segment during the forecast period. Licorice extract in the powder form has superior physicochemical stability along with significant surface hardness and density in comparison to other forms of licorice extract. The powder form of licorice extract is suitable for all age groups. The manufacturing of powder form is cost-effective as compared with other forms. Moreover, licorice extract in powder form is easier to store and offers superior flexibility in compounding solids, longer shelf life, and transport. The powder form of licorice extract is utilized in the food and beverage industry. For illustration, according to the State Council, The People's Public of China, the China agricultural and sideline food processing industry 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.

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By 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. Licorice extract is widely employed in the pharmaceutical industry to treat ailments such as acid reflux, heartburn, coughs, hot flashes, and bacterial and viral infections. Licorice extract is utilized in the production of herbal medicines, liquid cough preparations, and others. Global pharmaceutical production growth can be ascribed to a variety of factors, including increased output, new facility developments, and government pharmaceutical industry 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 industry is boosting the demand for licorice extract to prevent infections. This, in turn, is driving the market growth.

However, the food and beverage segment is expected to be the fastest-growing segment during the forecast period. This growth is attributed to factors such as increasing investment in new food & beverage facilities, increasing government initiatives, and others.

By Region :

The regional segment includes North America, Europe, Asia Pacific, 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 growth of the licorice extract market. 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 market growth of the food industry in the coming years. Furthermore, according to the recent statistics published by International Trade Administration (ITA), the food processing industry 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 market growth.

Furthermore, Asia Pacific is expected to witness significant growth over the forecast period, growing at a CAGR of 6.6% during 2023-20230. The prime factors such as the presence of key players in the Asia Pacific region, advancement in licorice extract manufacturing, and others are boosting the market growth in the Asia Pacific region.