Liquorice Market size is set to grow by USD 676 million from 2024-2028, Growing demand for food and beverages with herbal ingredients boost the market, Technavio

NEW YORK, July 12, 2024 /PRNewswire/ -- The global liquorice market is estimated to grow by USD 676 million from 2024-2028, at a CAGR of 5.97%, according to Technavio. The growing demand for food and beverages with herbal ingredients, driven by the trend towards immunity-boosting properties of herbal extracts, is a key driver of market growth. However, providing high-quality herbal products poses a challenge. Key market players include AOS Products Pvt. Ltd., Aushadhi Herbal, Avestia Pharma, Beijing Gingko Group, and others.

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Market Driver

The global liquorice market has witnessed rising demand for herbal liquorice products due to their immunity-boosting properties. Liquorice root contains enzymes that stimulate the production of lymphocytes and macrophages, which are essential for the body's natural defense system. In developed countries like the US, Canada, and the UK, where health concerns are a priority, the consumption of herbal supplements is high. Obesity and inflammatory health conditions are prevalent in these regions, leading consumers to opt for functional foods and beverages that enhance immunity. These factors are projected to fuel the growth of the liquorice market in the forecast period. 

The licorice market is experiencing significant growth due to the increasing recognition of its medicinal properties. With trends like stomach ulcers, skin disorders, and various digestive ailments, licorice extract has emerged as a popular natural sweetener and flavoring agent. Its anti-inflammatory, antimicrobial, anticancer, antioxidant properties make it a sought-after ingredient in the pharmaceutical sector and food industry. Licorice plant extracts, rich in isoliquirtin, offer numerous pharmacological benefits. They help alleviate menopausal symptoms such as hot flashes and acid reflux. In the food industry, licorice extract is used in dairy, bakery, beverages, dietary supplements, craft beers, herbal drinks, immune-booster drinks, water plus, and dairy drinks. Moreover, licorice extract's stress-reducing properties and skin-soothing abilities make it an excellent addition to various products. It aids in combating bacterial infections, viral infections, high blood pressure, and gut-related issues like celiac diseases. Overall, the market for licorice extract continues to expand, driven by its versatility and health benefits. 

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Market Challenges

•         In the global liquorice market, vendors face the challenge of ensuring the stringent quality standards for herbal extract products. Herbal products are derived from naturally grown herbal plants, which may be subjected to varying conditions during cultivation and sourcing. Manufacturing methods and quality control procedures for herbal extracts differ significantly from those used for conventional pharmaceutical products, consumer goods, and food and beverages. The cultivation of herbs like Glycyrrhiza glabra increases the risk of toxic contamination. Adherence to Good Manufacturing Practices (GMP) is crucial for quality assurance. The World Health Organization provides guidelines for GMPs in manufacturing herbal medicines. In the European Union (EU), manufacturers of herbal medicinal products must comply with the Traditional Herbal Medicinal Product Directive (2004/24/EC), which includes submitting product constituents, manufacturing methods, therapeutic indications, adverse reactions, and posology. Strict adherence to these regulations and guidelines poses a challenge for vendors in the global liquorice market and may negatively impact market growth during the forecast period.

•         Liquorice Market faces several challenges in the modern beverage industry. Non-alcoholic spirits and cocktails segment witnessing growth pose competition. The millennial population prefers healthier options, leading to a focus on functional foods and natural flavors. Obesity is a concern, limiting the use of chemical impact and artificial sweeteners. Botanical ingredients and natural flavors from the Glycyrrhiza plant offer licorice therapeutic benefits, but challenges include eczema, athlete's foot, and psoriasis due to potential inflammation and irritation. Skin-lightening benefits are a plus, but extraction technology and pharmaceutical-grade licorice segments face regulatory hurdles. Applications in pharmaceuticals, feed, food and beverages, tobacco products, and skincare products present opportunities. Online and offline sales channels expand market reach, but licorice's impact on lung infections and glycyrrhizin, glycyrrhizinate, flavonoids, blocks, paste, powder, granules, and semi-liquid forms require careful consideration.

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Segment Overview 

This liquorice market report extensively covers market segmentation by  

1. Grade Type
• 1.1 Food grade
• 1.2 Feed grade
• 1.3 Pharmaceutical grade
2. Application
• 2.1 Food and beverages
• 2.2 Pharmaceuticals
• 2.3 Tobacco
• 2.4 Others
3. Geography
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Food grade-  The global liquorice market is experiencing growth due to increasing consumer preference for natural food and beverage ingredients. Key market players are focusing on research and development (R&D) investments to launch herbal extracts, such as liquorice, that cater to this demand. Consumer awareness regarding the health risks of synthetic chemicals in food and beverages is driving this trend. Regulatory bodies, including the European Food Safety Authority (EFSA) and the US Food and Drug Administration (FDA), are promoting the use of herbal extracts and banning synthetic flavorings. For instance, EFSA approved the use of liquorice extract in food and beverages in May 2020, while the FDA banned seven synthetic flavorings linked to cancer. These regulations are expected to boost the demand for herbal extracts, including liquorice, and contribute to the growth of the food and beverage segment of the global liquorice market during the forecast period.

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Research Analysis

Liquorice, derived from the Glycyrrhiza plant, offers various forms such as Glycyrrhizin, Glycyrrhizinate, Flavonoids,Blocks, Paste, Powder, Granules, and Semi-Liquid. These forms find extensive applications in diverse sectors. In the Pharmaceutical sector, they are used for treating Diabetes, Gut-related issues, and Celiac diseases due to their medicinal properties. In the Food Industry, they serve as a Natural Sweetener, replacing Artificial sweeteners, and are used in Food and Beverages, especially in licorice extracts. The Pharmaceutical grade segment is used in producing Pharmaceuticals, while the Food Industry utilizes the lower-grade forms. Liquorice extracts are also used in Skincare products and as Plant-based Ingredients in Dairy. The flavonoids Isoliquirtin and Glycyrrhizinate have significant health benefits. Overall, Liquorice and its derivatives have a wide range of applications in various industries.

Liquorice, derived from the Glycyrrhiza plant, offers various forms such as Glycyrrhizin, Glycyrrhizinate, Flavonoids, Blocks, Paste, Powder, Granules, and Semi-Liquid. This natural sweetener and flavoring agent is used extensively in Pharmaceutical, Feed, Food and Beverages, Tobacco Products, and various industries online and offline. Licorice therapeutic benefits include treatment for lung infections, stomach ulcers, skin disorders, and more. It acts as an anti-inflammatory, antimicrobial, anticancer, antioxidant, and menopausal symptom reliever. In the Food Industry, licorice is used in Dairy, Bakery, Beverages, Dietary Supplements, Craft Beers, Herbal Drinks, Immune-booster drinks, and functional foods. Its medicinal properties are explored in the Pharmaceutical Sector and Skincare products. With the rise of plant-based ingredients, licorice extract is gaining popularity as a natural sweetener and functional ingredient in various industries. The millennial population's preference for natural and functional foods fuels the demand for licorice extract and its derivatives. However, it's important to note that excessive consumption of licorice can have side effects, including high blood pressure and potassium levels. Extraction technology plays a crucial role in ensuring the quality and purity of licorice extract. While licorice has numerous health benefits, it's essential to consider the chemical impact and potential interactions with medications.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Grade Type
• Food Grade
• Feed Grade
• Pharmaceutical Grade
• Application
• Food And Beverages
• Pharmaceuticals
• Tobacco
• Others
• Geography
• APAC
• Europe
• North America
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

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SOURCE Technavio