The Australia Licorice Extract market is estimated to be worth USD 26.5 million by 2025 and is projected to reach a value of USD 59.1 million by 2035, reflecting a CAGR of 12.3% over the assessment period 2025 to 2035
| Attributes | Values |
|---|---|
| Estimated Australia Industry Size (2025) | USD 26.5 million |
| Projected Australia Value (2035) | USD 59.1 million |
| Value-based CAGR (2025 to 2035) | 12.3% |
The licorice extract market of Australia is quite an important subsector of the natural ingredients and the health product industry since licorice root extract was applied in lots of applications as food, beverages, dietary supplements, and cosmetics, among others.
Licorice extract is obtained from the root part of the plant Glycyrrhiza glabra, mainly valued for a sweet flavor of medicinal properties that add functional values. It contains bioactive compounds such as glycyrrhizin, flavonoids, and polysaccharides. Such compounds promote digestive health, immune support, and skin health.
The market for licorice extract in Australia is boosted by the rising demand of consumers for natural and plant-based ingredients. As the health-conscious and organic trend increases, licorice extract has become one of the highlighted ingredients in functional foods, supplements, and skincare products, as it could have anti-inflammatory, antioxidant, and antimicrobial effects.
Australian consumers are increasingly demanding natural alternatives to synthetic additives, making licorice extract a good option for food manufacturers and health product developers.
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The table below offers a detailed comparative assessment of the changes in the compound annual growth rate (CAGR) over six months for the base year (2024) and the current year (2025) specifically for the Australian Licorice Extract market.
This semi-annual analysis highlights crucial shifts in market dynamics and outlines revenue realization patterns, providing stakeholders with a more precise understanding of the growth trajectory within the year. The first half of the year, H1, covers January to June, while the second half, H2, spans July to December.
H1 signifies the period from January to June, and H2 Signifies the period from July to December.
For the Australian market, the Licorice Extract sector is predicted to grow at a CAGR of 11.7% during the first half of 2025, increasing to 12.7% in the second half of the same year. In 2024, the growth rate is anticipated to slightly decrease to 9.3% in H1 but is expected to rise to 10.1% in H2.
This pattern reveals a decrease of 20 basis points from the first half of 2024 to the first half of 2025, followed by an increase of 35 basis points in the second half of 2025 compared to the second half of 2024.
These figures highlight the dynamic and evolving landscape of the Australian licorice extract market, shaped by various factors such as regulatory shifts, changing consumer preferences, and advancements in product formulations.
This semi-annual analysis provides crucial insights for businesses looking to align their strategies with the market's growth potential and address the challenges posed by emerging market dynamics. Understanding these factors will enable companies to stay ahead of trends and capitalize on opportunities in the licorice extract sector.
| Date | Development/M&A Activity & Details |
|---|---|
| 2024 | MAFCO Worldwide LLC has announced that its production facility would be expanded to enhance output of high-quality licorice extract. |
| 2023 | Zagros Licorice released a new line of organic licorice extract products to meet the rising demand for clean-label components. |
Growing Demand for Licorice in Functional Foods and Beverages
With the rise of personalized nutrition, Australians are looking for tailored diets to combat specific health issues such as bloating, indigestion, and low immunity. This is an ideal product for the consumptions of such dietary solutions, as it contains therapeutic qualities within it.
As the demand for immunity-boosting and gut-health supplements continues, licorice extract will gain more importance within the Australian market. This is likely to inspire innovation in the development of products in this niche with food and beverage manufacturers opening new markets by incorporating licorice extract into more convenient, ready-to-consume formats, including functional drinks and snack bars.
Growth in the Use of Licorice Extract in Natural Skincare Products
The market for cosmetic products in Australia is growing. There is a greater need now for more natural, plant-based ingredients. This means the usage of licorice extract in skincare products increases with its soothing and brightening effects and anti-inflammatory. Since it can lighten the pigmentation on the skin and reduce inflammation, licorice extract is being added to formulations of products that address hyperpigmentation, acne, and skin irritation.
The increasing awareness of the harmful effects of synthetic chemicals in personal care products has been driving Australian consumers toward safer, natural alternatives. As consumers seek more ingredients that offer efficacy as well as safety, licorice extract will continue to grow in popularity for face creams, serums, cleansers, and masks.
% share of Individual categories by Application and Form in 2025
The Surge of Natural Energy Boosters: Licorice Extract as the Key Ingredient in Australia’s Wellness Revolution
The Boost Energy application segment in the Australian market is gaining momentum because of the natural, plant-based energy solutions preferred by consumers. The licorice extract is receiving attention as an effective, natural alternative to boost energy levels, unlike synthetic stimulants like caffeine or sugar, which will not cause the crash associated with conventional energy drinks or supplements.
Licorice, having adaptogenic properties, does indeed help to reduce stress, restore the balance levels of cortisol, and increase vitality. This once again goes hand in hand with the trend in Australia on holistic well-being. Australian consumers are increasing in their demand to find natural solutions to enhancing sustained energy throughout the day, mostly due to lifestyles nowadays demanding much from the individual, from extended working hours through balancing family and social commitments.
Convenience and Efficacy: The Growing Popularity of Chewable Tablets in Australia's Health Supplement Market
The Chewable Tablets form in Australia is currently a major licorice extract market player that capitalizes on two significant consumer demands: convenience and the effective delivery of health benefits. A user-friendly alternative, chewable tablets allow individuals who require therapeutic benefits from licorice extract for digestive health improvement, immune system support, or energy boost without having to dissolve them in water or prepare any other way.
Ease of use makes the chewable tablet especially appealing to health-conscious, on-the-go consumers who may not have time to mix powders or steep teas. The trend towards a wellness-oriented lifestyle in Australia drives the desire for supplement forms that can easily fit into one's lifestyle.
Note: The above chart is indicative in nature
Tier 1 players in the Australian licorice extract market include large players in manufacture who are multinational companies having wide market presence, strong distribution networks, and a high brand value. They typically control the supply chain and also occupy a large market share due to their more sophisticated production capacities, their ability to invest in research and development, and access to high-quality raw materials.
Tier 2 manufacturers are midsize companies that appear to be coming on strong in Australia's licorice extract space, targeting small niches or providing innovative, more specialized products. They tend to concentrate on perhaps two or three key applications-specifically, in the case of digestive health, and to an extent, with skincare-and use this as the basis for emphasizing unique product formulations and superior bioactive content.
Tier 3 players are small, typically locally focused manufacturers of licorice extract who address specific customer segments or geographic areas. Companies at this tier may focus on artisanal production methods, local suppliers, or addressing highly specific health concerns.
By 2025, the Australia Licorice Extract market is expected to grow at a CAGR of 12.3%.
By 2035, the sales value of the Australia Licorice Extract industry is expected to reach USD 59.1 million.
Key factors propelling the Australia Licorice Extract market include the increasing demand for natural ingredients, expanding applications in functional foods and beverages, and innovation in supplement delivery formats.
Prominent players in Australia Licorice Extract manufacturing include Junee Licorice and Chocolate Factory, Native Extracts, New Directions Australia, Australian Private Label, Natural Ingredients Australia, Naturex SA (Givaudan), Norevo, MAFCO Worldwide LLC, Natural Moreish, and Maruzen Pharmaceuticals Co., Ltd, among others. These companies are noted for their innovation, extensive product portfolios, and strategic market positioning.
The industry includes various application of Licorice Extract such as Boost Energy, Brain Health, Colon Health, Digestive Health, Immune Support, Liver Support and Skin Health.
Available in forms like powder, liquid, chewable tablets, Low Intensity Sweetener, Gelatin, HPMC, Gummies/Chews, Powder and Liquid, catering to different end-use industries.
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Australia Licorice Extract Market
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