Licorice Extract Market Forecasts from 2023 to 2028

The global licorice extract market is expected to grow at a compound annual growth rate of 5.57% over the forecast period to reach a market size of US$1, 095.259 million in 2028, from US$749.443 million in 2021.

Licorice is an aromatic plant extract used for several purposes such as medicinal uses, culinary uses, and cosmetic uses.

Growth Drivers of the global licorice extract market

The changing lifestyle, increased health awareness, and consumer preferences are also driving the licorice market growth. People are becoming more aware of the health and positive impacts of licorice extract. For instance, the survey conducted by Ipsos in 2021 revealed that 63% of people try to eat healthy most of the time and 64% of people consider healthfulness while purchasing food and beverages. Further, the consumption of organic products among people is rising, especially in developing countries like India, thus, leading to the increasing demand for licorice extracts market in numerous medicinal, cosmetic, and food products.

Demand in Cosmetics and Product Launches

The rising demand for beauty products owing to self-consciousness and increased use of social media is driving the licorice extract market growth. Licorice is used as a skin-lightening serum and reduces blemishes and inflammation. Various brands are incorporating licorice exact in their skincare products to enhance consumer satisfaction. Further, more than one-third of the consumers in the US spent more time on skincare in 2021 as compared to 2020.

North America is an Expected Dominant Market

The regional market has been further segmented into a country level, including major countries like the United States, Canada, and Mexico. The USA holds the largest share of this market driven by increasing consumer demand for natural and plant-based ingredients, expanding applications in food and beverages, cosmetics, and pharmaceuticals, raising awareness of the potential health benefits of licorice extract, and the popularity of licorice-flavored products and beverages. Canada is another country that holds a significant share of this market after the United States due to factors such as rising awareness of the potential health benefits associated with licorice extract, including its antioxidant and anti-inflammatory properties. The licorice extract market growth in Mexico is being driven by expanding applications of licorice extract in traditional medicine and herbal remedies, along with the growing awareness of its potential health benefits,

USA licorice extract market is expected to grow significantly.

Firstly, there is rising consumer demand for natural and plant-based ingredients across various industries, including food and beverages, cosmetics, and personal care. Licorice extract, derived from the root of the licorice plant (Glycyrrhiza glabra), aligns with this demand as it is a natural ingredient with perceived health benefits. Secondly, there is a growing awareness of the potential health benefits associated with licorice extract. It contains glycyrrhizin, a compound known for its antioxidant and anti-inflammatory properties. As consumers become more health conscious, they are seeking out products that offer functional benefits, and licorice extract fits this requirement.

Furthermore, the popularity of licorice-flavored products and beverages drives the market growth. In 2022, Wiley Wallaby introduced a limited-edition flavor called Candy Corn Drops. Their Sourrageous Drops combine a chewy licorice center with a sour and crunchy exterior, merging contemporary licorice enjoyment with the traditional taste of Halloween candy corn. This innovative offering caters to a wide consumer base, fueling the demand for licorice extract and contributing to the expansion of the licorice extract market.

Additionally, the incorporation of licorice extract in skincare and hair care products is on the rise. It is believed to offer benefits such as skin brightening, reducing hyperpigmentation, and promoting scalp health, driving its inclusion in various personal care formulations. For instance, 82°E Licorice Beam Sunscreen Gel, launched in June 2023, provides SPF 40 PA+++ broad-spectrum protection and has gained immense popularity in the USA. Enriched with licorice and ceramides, the unique formulation effortlessly glides onto the skin, offering a lightweight, non-greasy finish while visibly enhancing brightness, suppleness, and smoothness.

Growth in export price

The export price per kilogram of licorice roots from the US has experienced a slight increase from 11.97 US$ in 2017 to 12.33 US$ in 2022. This data indicates a moderate growth trend in the licorice extract market in the USA. The rise in export prices suggests an increased demand for licorice roots and reflects the market's ability to command higher prices for its products. This growth can be attributed to factors such as the growing popularity of licorice-flavored products and beverages, expanding applications in various industries including food and beverages, cosmetics, and pharmaceuticals, as well as the rising awareness of the potential health benefits associated with licorice extract. The upward trajectory of export prices signifies a positive market outlook and underscores the economic viability and demand for licorice extract in the USA.

Key Developments

• In June 2023, 82ºE launched a new addition Licorice Beam sunscreen gel particularly for oily skin ensuring skin protection and care.
• In September 2021, dark spot gel was launched by Versed after an eight-week user perception trial. It minimizes dark spots and corrects uneven-looking skin tone.

Segmentation:

By Form

• Block
• Powder
• Paste
• Others

By Application

• Food and Beverage
• Cosmetics and Personal Care
• Tobacco Products
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Indonesia
• Thailand
• Others