Global Licorice Root Market – Industry Trends and Forecast to 2031

Licorice Root Market Analysis and Size

In the pharmaceutical industry, licorice root serves as a valuable ingredient in various formulations due to its rich medicinal properties. Extracts from licorice root contain compounds such as glycyrrhizin, glycyrrhetinic acid, and flavonoids, which exhibit anti-inflammatory, antiviral, and antimicrobial effects. These properties make licorice root extracts beneficial for treating respiratory conditions such as coughs and sore throats, as well as digestive issues and skin ailments.

Global licorice root market size was valued at USD 4.20 billion in 2023 and is projected to reach USD 5.62 billion by 2031, with a CAGR of 3.7% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation       

Market Definition

Licorice root, derived from the Glycyrrhiza glabra plant, is a widely used herb in traditional medicine and culinary applications. It is known for its distinct sweet flavor and is often utilized in herbal teas, candies, and traditional remedies for its potential health benefits, including soothing sore throats, aiding digestion, and supporting respiratory health. However, it should be consumed in moderation due to its active compound, glycyrrhizin, which can cause adverse effects in high doses.

Licorice Root Market Dynamics

Drivers

• High Demand for Licorice Root due to Escalating Demand for Natural Ingredients

Consumers are increasingly seeking products derived from natural sources due to concerns about synthetic additives and chemicals in their food, beverages, and personal care items. Licorice root, known for its medicinal properties and historical use in traditional medicine systems, aligns with this consumer preference for natural remedies. Its perceived health benefits, including anti-inflammatory and digestive support, make it a sought-after ingredient in pharmaceuticals, herbal supplements, and skincare products. This growing demand for natural ingredients propels the expansion of the licorice root market as it continues to be integrated into a wide range of consumer goods worldwide.

• Expansion of Licorice Root's Applications Across Multiple Industries

Beyond its traditional use in pharmaceuticals, licorice root is increasingly utilized in diverse sectors such as food and beverage, cosmetics, and nutraceuticals. This diversification opens up new revenue streams and market opportunities for licorice root suppliers and manufacturers. The versatile nature of licorice root allows it to cater to different consumer needs, from providing natural sweetness in food products to offering skin-soothing properties in cosmetics. As industries continue to explore the potential benefits of licorice root, its demand is expected to further rise, driving market expansion and innovation in product development.

Opportunities

• Increased Research and Development Increases the Adoption of Licorice Root

Ongoing R&D efforts focus on identifying and isolating bioactive compounds within licorice root, such as glycyrrhizin and flavonoids, and exploring their potential health benefits. This research enhances our understanding of licorice root's medicinal properties and drives innovation in product formulations, leading to the development of novel pharmaceuticals, nutraceuticals, and cosmeceuticals. R&D investments facilitate the optimization of extraction techniques, improving the efficiency and scalability of licorice root production, thus meeting the growing demand for natural ingredients in consumer products.

• Rising Health Awareness Increases the Adoption of Licorice Root

As people become more health-conscious, they are drawn to the perceived benefits of herbal products such as licorice root, known for its medicinal properties. Awareness campaigns, coupled with an emphasis on holistic health practices, further propel the demand for licorice root-based products. The growing interest in alternative medicine and traditional healing methods contributes to the market's expansion, as licorice root has a long history of use in traditional medicine systems. This rising health consciousness creates a favorable environment for the growth of the licorice root market, driving demand across various industries such as pharmaceuticals, food and beverage, and cosmetics.

Restraints/Challenges

• Regulatory Constraints hampers the Demand of Licorice Root

Compliance with diverse regulatory frameworks across different regions adds complexity and costs to licorice root production and trade. Requirements related to good agricultural and collection practices (GACP), good manufacturing practices (GMP), and quality standards must be adhered to, increasing the burden on market participants. Regulations regarding permissible levels of bioactive compounds like glycyrrhizin in licorice root products can limit market access and product formulation flexibility.

• Fluctuating Raw Material Prices Decreases the Demand of Licorice Root

High prices of licorice root raw materials can be subject to volatility due to various factors such as climate variability, crop diseases, geopolitical tensions, and fluctuations in demand and supply dynamics. These fluctuations can disrupt the supply chain and impact the profitability of licorice root-based products for manufacturers and suppliers. Moreover, sudden price spikes may lead to increased production costs, which could be passed on to consumers, potentially affecting product affordability and market demand.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Licorice Root Market Scope

The market is segmented on the basis of product form, product type, function type, grade type, raw material type, ingredient type, and end user. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Product Form

• Roots
  • Blocks
  • Powder
  • Paste
  • Other
• Extracts

Product Type

• Essential Oils
• Liquid Malt Extract
• Oleoresins
• Herbs And Spices Dry Malt Extract
• Malt Flour

Function Type

• Performance Enhancers
• Palatability Enhancers

Grade Type

• Essential Standard Malt
• Caramelized Malt
• Roasted Malt

Raw Material Type

• Maize
• Barley
• Wheat
• Rice
• Rye
• Oat

Ingredient Type

• Lipids
• Protein
• Polysaccharide
• Others

End User

• Food and Beverage Industry
• Tobacco Industry
• Pharmaceutical Industry
• Cosmetic Industry
• Dietary Supplements

Licorice Root Market Regional Analysis/Insights

The market is analysed, and market size insights and trends are provided by country, product form, product type, function type, grade type, raw material type, ingredient type, and end user as referenced above.

The countries covered in the market report are U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), Brazil, Argentina, Rest of South America as a part of South America, UAE, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA).

North America dominates in the market due to the region's heightened consumer awareness. This awareness such asly stems from various factors such as health-conscious trends, cultural preferences, and marketing efforts highlighting the benefits of licorice root. North America's robust distribution networks and accessibility to diverse products may further bolster its market dominance. As consumers become more discerning about their choices, the demand for licorice root and its derivatives is such as to continue growing in the region, reinforcing its leading position in the market.

Asia-Pacific is expected to grow at a substantial growth, largely driven by escalating demand within the pharmaceutical sector. This surge can be attributed to several factors, including population growth, rising healthcare expenditures, and advancements in healthcare infrastructure and technology across the region. Increasing investments in research and development, coupled with favorable government policies, are fostering innovation and driving pharmaceutical industry expansion.

The country section of the report also provides individual market impacting factors and changes in regulations in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Licorice Root Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Some of the major players operating in the market are

• Norevo (Germany)
• Hepner & Eschenbrenner GmbH & Co. KG (Germany)
• MARUZEN PHARMACEUTICALS CO., LTD. (Japan)
• Nutra Green Biotechnology Co., Ltd. (China)

SKU-53242