Licorice Root Market Overview
Licorice Root Market Size was estimated at 7.85 (USD Billion) in 2022. The Licorice Root Industry is expected to grow from 8.24(USD Billion) in 2023 to 12.7 (USD Billion) by 2032. The Licorice Root Market CAGR (growth rate) is expected to be around 4.92% during the forecast period (2024 - 2032).
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Key Licorice Root Market Trends Highlighted
A major market driver for licorice root is its increasing utilization in traditional medicine, especially in Asia. An increase in chronic diseases like diabetes and obesity additionally is also fuelling the acceptance of alternative therapeutic options, including licorice root. Further, due to the rise in the trends of functional foods & beverages, opportunities are present for adding licorice root in different foods as a flavoring and health-enhancing agent.
Some of the recent developments in the licorice root market include a rise in the availability of organic & free trade competition along with modern extraction and processing methods. It is anticipated that the increasing health awareness, together with the health-promoting qualities of licorice root, will also boost its demand going forward, especially in nutraceuticals and cosmetics.
In the licorice root market, there are possibilities of exploration and capture for the development of new products such as herbal supplements, skincare, and food applications. Further, the increase in these markets, chiefly China and India, presents a strong market growth opportunity. Therefore, understanding these fundamental trends will enable participants in the market to position themselves in a way that will benefit them while minimizing the challenges in the licorice root market.
Licorice Root Market Drivers
Increased Use of Licorice in Food and Beverages
Licorice root has been used as a flavoring agent in food and beverages for centuries. Its unique taste and aroma make it a popular ingredient in candies, teas, and other products. In recent years, there has been a growing demand for natural and organic ingredients in food and beverages, which has led to an increase in the use of licorice root. The growing popularity of licorice-flavored products is expected to drive the growth of the Licorice Root Market Industry over the forecast period. Licorice root extract is also used as a natural sweetener in food and beverages.
It is about 50 times sweeter than sugar, but it does not have the same negative effects on blood sugar levels. This makes it a good option for people with diabetes or other blood sugar issues. The growing demand for natural sweeteners is expected to further drive the growth of the Licorice Root Market Industry. In addition to its use in food and beverages, licorice root is also used in a variety of other products, including pharmaceuticals, cosmetics, and tobacco products.
The growing demand for licorice root in these applications is expected to contribute to the growth of the Licorice Root Market Industry over the forecast period.
Growing Demand for Licorice Root in Traditional Medicine
Licorice root has been used in traditional medicine for hundreds of years to cure several diseases, and it is believed that it has anti-inflammatory, anti-viral, and anti-bacterial properties. Licorice root also serves to cure various problems related to the digestive tract, such as heartburn and indigestion. The licorice root market industry will witness a substantial increase due to the increasing preference for traditional medicine in the past few years.
In traditional Chinese medicine, licorice root is used to cure respiratory problems, digestive problems, and skin problems. Licorice root is also used in Ayurvedic medicine to treat respiratory problems, digestive problems and reproductive problems. The licorice root market industry will witness a substantial increase in the forecast period due to the high preference for traditional medicine.
Increased Investment in Licorice Root Cultivation
The increasing demand for licorice root has resulted in growing investment in licorice root cultivation. Licorice root is a perennial herbaceous plant that can be grown in a variety of climates. However, it is most commonly grown in China, Russia, and the Middle East. The growing investment in licorice root cultivation is expected to increase the supply of licorice root, which will help to match its growing demand. Elevated investment in licorice root cultivation is also expected to decrease the price of licorice root, which will make households and food and beverage manufacturers afford this ingredient.
Thus, the rising investment in licorice root cultivation will drive the Licorice Root Market Industry.
Licorice Root Market Segment Insights
Licorice Root Market Product Type Insights
The Licorice Root Market revenue was USD 8.24 Billion in 2023 and is expected to reach USD 12.7 Billion by 2032. It will grow at a CAGR of 4.92 % during the forecast period. Product Type is a significant segment that determines the overall market dynamics. Whole Licorice Root, which is the raw form of licorice root, and Licorice Root Extract are significant product types in the Licorice Root Market. Whole Licorice Root has been used for ages in the production of traditional medicine and herbal teas as well as in culinary applications.
This product is still popular among formulating pharmaceutical products for the treatment of such diseases as bronchitis and sore throat, gastric irritation and ulcers, and loss of hair and sexual overstimulation. Licorice Root Extract is used in the pharmaceutical industry for the production of a wide range of medications. According to Ali and Blunden, these medications are aimed at treating respiratory diseases, stomach problems, and hormonal disorders. Produces applications of whole licorice root and its extract have significantly improved its product type segment.
Licorice Root Powder is a form of licorice root used in the food and beverage industry. It has become popular, as it adds a sweet taste to products and has a number of curative effects. Licorice Root Oil, it is a volatile oil that has been extracted from licorice root and is utilized by the aromatherapy, cosmetics, and perfumery industries. Finally, Other Licorice Root Products include a variety of licorice root products, which may be described as their derivatives or compositions, such as capsules, tablets, and syrups that are formulated and used for homeopathic and dietary supplement purposes.
The Product Type segment depends on a variety of factors, including changing consumer preferences, new government regulations, and technological development in the field of extraction and processing. The increased desire of worldwide customers to use only natural and herbal products favored the growth of the whole licorice root and licorice root extract segments. The growth of licorice root powder and other licorice root product segments was also stimulated by the increase in the incidence of various chronic diseases and the growing popularity of alternative medicine.
The development of standardized extracts and new product delivery systems are topical issues for market players. To stay competitive, producers try to expand their product range by producing various value-added products. The market structure varies depending on regions, and both established companies and new entrants have to face a high level of competition.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Licorice Root Market Application Insights
The Application segment of the Licorice Root Market has tremendous growth prospects. Multiple industries are utilizing the unique properties of the licorice root for applications. In 2023, the Food and Beverage industry was the dominant market for the licorice root market because of the rising awareness about the consumption of natural sweeteners and flavorings in 2023 in various developed regions. The Pharmaceuticals industry is expected to witness a stupendous increase in the market for licorice root after the 2018-2027 period because of the therapeutic action of root extracts against respiratory and digestive problems.
Moreover, Confectionery applications are also expected to benefit from the rapid growth of these applications. The Cosmetics and personal care industry is also considering the use of licorice root extracts in the production of anti-aging creams and skin care products to reduce freckles, acne and wrinkles. Other applications include using the roots as a dye and in traditional medicine. The application segment of the licorice root market has a broad scope and is expected to play a vital role in the expansion of the market in the future.
Licorice Root Market Distribution Channel Insights
The Licorice Root Market segmentation by distribution channel comprises online, offline (specialty stores, supermarkets, hypermarkets), and direct sales. Among these channels, the online segment is projected to witness substantial growth during the forecast period, primarily attributed to the rising popularity of e-commerce platforms and the convenience of home delivery. In 2023, the online channel accounted for a market share of approximately 25%, and this share is expected to increase to over 30% by 2032. The offline channel, which includes specialty stores, supermarkets, and hypermarkets, is expected to remain the dominant channel during the forecast period, owing to the widespread availability and ease of access to licorice root products in these stores.
Direct sales is another important distribution channel, particularly for bulk purchases and industrial applications.
Licorice Root Market Form Insights
The Licorice Root Market is segmented by form into Organic and Conventional. Organic The organic segment is expected to witness significant growth over the forecast period due to increasing consumer preference for natural and organic products. Growing awareness about the health benefits of organic licorice root is also driving the growth of this segment. Conventional The conventional segment currently holds a larger market share compared to the organic segment. However, it is expected to experience slower growth over the forecast period due to the increasing popularity of organic products.
The Licorice Root Market segmentation provides valuable data and insights for market players to understand the market dynamics and make informed decisions. This data can be used to identify growth opportunities, target specific customer segments, and develop effective marketing strategies.
Licorice Root Market Grade Insights
The Licorice Root Market is segmented by Grade into High Grade, Medium Grade, and Low Grade. The High Grade segment is expected to hold the largest market share in 2023, accounting for around 45% of the Licorice Root Market revenue. The Medium Grade segment is expected to grow at a CAGR of 5.2% during the forecast period, reaching a market size of USD 3.2 billion by 2032. The Low Grade segment is expected to account for the smallest market share in 2023, but is expected to grow at a CAGR of 4.7% during the forecast period, reaching a market size of USD 2.1 billion by 2032.
The growth of the Low Grade segment is attributed to increasing demand from the food and beverage industry, as licorice root is used as a flavoring agent in various products.
Licorice Root Market Regional Insights
The Licorice Root Market is segmented into North America, Europe, APAC, South America, and MEA. North America dominates the market. The market growth in this region can be attributed to the increasing demand for natural and organic products, rising awareness about the health benefits of licorice root, and the presence of major manufacturers and suppliers. Europe is expected to witness significant growth over the forecast period, owing to the increasing demand for licorice root extract in the food and beverage industry. APAC is projected to register the highest CAGR during the forecast period, driven by the growing demand for licorice root in traditional Chinese medicine and the increasing disposable income of consumers in the region.
South America and MEA are expected to witness moderate growth over the forecast period due to the limited awareness about the health benefits of licorice root and the underdeveloped distribution networks in these regions.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Licorice Root Market Key Players And Competitive Insights
Major players in the Licorice Root Market are constantly developing and innovating to stay ahead of the competition. Leading Licorice Root Market players are investing in research and development to create new products and improve existing ones. They are also expanding their distribution networks and exploring new markets. The Licorice Root Market industry is characterized by a high level of competition. This is due to the presence of a large number of players, both large and small. The competitive landscape is further intensified by the entry of new players into the market. Due to the intense competition, players in the Licorice Root Market are focusing on product differentiation and innovation to gain a competitive edge. They are also investing in marketing and branding initiatives to create a strong brand image and increase market awareness. This competitive environment is expected to continue in the coming years as players continue to vie for market share and profitability.
Swadeshi Herbs Ltd (SHL) is a leading Licorice Root Market provider that has been in business for over 20 years. The company offers a wide range of licorice root products, including licorice root powder, licorice root extract, and licorice root tea. SHL has a strong distribution network and sells its products to customers in over 50 countries. The company is committed to providing high-quality products and services and has a team of experienced professionals who are dedicated to customer satisfaction. SHL is a reliable and trusted supplier of licorice root products and is well-positioned to continue to grow in the years to come.
Ahmad Tea Ltd is a leading Licorice Root Market competitor that has been in business for over 100 years. The company offers a wide range of tea products, including licorice root tea. Ahmad Tea Ltd has a strong distribution network and sells its products to customers in over 100 countries. The company is committed to providing high-quality products and services and has a team of experienced professionals who are dedicated to customer satisfaction. Ahmad Tea Ltd is a reliable and trusted supplier of licorice root tea and is well-positioned to continue to grow in the years to come.
Key Companies in the Licorice Root Market Include
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Harbin Pharmaceutical
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Kanehide Bio America
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The Lebermuth Company
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Kalsec
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Sweet Green Fields
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Martin Bauer
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Raiz Invest
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Phytopharm Kloud
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Wilhelm Werner
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Starwest Botanicals
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Euromed
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Indena
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Alkem Labs
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Givaudan
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Naturex
Licorice Root Market Industry Developments
Market expansion for licorice root is predicted amidst rising demand for natural sweeteners and flavorings in the food and beverage industry. In 2023, the market was valued at USD 8.24 billion and is projected to reach USD 12.7 billion by 2032, growing at a CAGR of 4.92%. Concerns over synthetic sweeteners and increasing consumer preference for organic products drive market growth. Licorice root extract finds applications in pharmaceuticals, herbal medicines, and cosmetics due to its medicinal properties. Key industry players are focusing on product innovation and strategic partnerships to cater to evolving consumer demands and expand their market presence. Technological advancements in extraction and purification techniques are further expected to support market growth in the coming years.
Licorice Root Market Segmentation Insights
Licorice Root Market Product Type Outlook
Whole Licorice Root
Licorice Root Extract
Licorice Root Powder
Licorice Root Oil
Other Licorice Root Products
Licorice Root Market Application Outlook
Food and Beverage
Pharmaceuticals
Confectionery
Cosmetics and Personal Care
Other Applications
Licorice Root Market Distribution Channel Outlook
Online
Offline (Specialty Stores, Supermarkets, Hypermarkets)
Direct Sales
Licorice Root Market Form Outlook
Organic
Conventional
Licorice Root Market Grade Outlook
High Grade
Medium Grade
Low Grade
Licorice Root Market Regional Outlook
North America
Europe
South America
Asia Pacific
Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
7.85(USD Billion) |
| Market Size 2023 |
8.24(USD Billion) |
| Market Size 2032 |
12.7(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
4.92% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Harbin Pharmaceutical, Kanehide Bio America, The Lebermuth Company, Kalsec, Sweet Green Fields, Martin Bauer, Raiz Invest, Phytopharm Kloud, Wilhelm Werner, Starwest Botanicals, Euromed, Indena, Alkem Labs, Givaudan, Naturex |
| Segments Covered |
Product Type, Application, Distribution Channel, Form, Grade, Regional |
| Key Market Opportunities |
Rising demand for natural sweeteners Expanding pharmaceutical applications Growing popularity in traditional medicine Increase in confectionery and beverage consumption Technological advancements in extraction and processing |
| Key Market Dynamics |
Growing demand for natural sweeteners Increasing prevalence of digestive issues Rising awareness of licorice roots medicinal properties Technological advancements in extraction and processing techniques Expanding applications in food and beverage industry |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Licorice Root Market is anticipated to reach a market size of approximately USD 8.24 Billion in 2023.
The Licorice Root Market is projected to grow at a CAGR of 4.92% during the forecast period of 2024 to 2032.
Asia Pacific region is expected to dominate the Licorice Root Market in 2023 due to increasing demand from the food and beverage industry.
Licorice Root is widely used in the food and beverage industry, pharmaceutical industry, and personal care industry.
Some of the key players operating in the Licorice Root Market include Naturex, Indena, and Starwest Botanicals.
Rising demand from the food and beverage industry, increasing prevalence of digestive and respiratory disorders, and growing awareness of the health benefits of Licorice Root are driving the growth of the market.
Challenges faced by the market include fluctuations in raw material prices, stringent regulations, and competition from synthetic substitutes.
Key trends include the growing demand for organic and natural products, the increasing use of Licorice Root in functional foods and beverages, and the rising popularity of herbal supplements.
The Licorice Root Market is projected to reach a market size of approximately USD 12.7 Billion by 2032.
The COVID-19 pandemic had a moderate impact on the Licorice Root Market, leading to temporary disruptions in supply chains and reduced demand from certain industries.
