The Latin America Licorice Extract market is set to grow from an estimated USD 66.5 million in 2025 to USD 128.6 million by 2035, with a compound annual growth rate (CAGR) of 6.8% during the forecast period from 2025 to 2035.
| Attributes | Value |
|---|---|
| Estimated Latin America Industry Size (2025E) | USD 66.5 million |
| Projected Latin America Value (2035F) | USD 128.6 million |
| Value-based CAGR (2025 to 2035) | 6.8% |
The Licorice Extract Industry in Latin America is poised for substantial growth from 2025 to 2035, driven by increasing demand for natural ingredients in various sectors such as food and beverages, pharmaceuticals, and cosmetics. e prospect looks bright for the licorice extract industry in Latin America in terms of the progression expected between 2025 and 2035.
Having the foremost influence over the growth of this region is the rising demand for natural components across diverse sectors, such as food and drinks, pharmaceuticals, as well as cosmetics.
Licorice extract, which is not only sweet but also has various health benefits, is now a popular ingredient in products targeted at health-conscious consumers. Its application as a natural sweetener along with its anti-inflammatory, antioxidant, and antimicrobial features is supposed to bring in the demand from different areas.
The licorice extract market will get a necessary push from the food and beverage industry when the switch to healthier options and clean-label products comes into play. The community of consumers is becoming more diverse, since they prefer products with as few artificial additives as possible, therefore manufacturers are forced to choose natural materials like licorice.
The licorice root continues to be in demand for its positive properties in the herbal industry, with the interest in natural products, such as remedies and supplements, increasing in Latin America.
Moreover, the cosmetic sector has begun to exploit the licorice extract for its skin-lightening and anti-aging properties which is likely to increase the demand of this segment. On the other hand, some challenges such as the changeability of the raw material prices and the bottlenecks in legislation could negatively affect the market.
Nevertheless, the Latin American licorice extract market displays the exponential development potential, particularly due to the growth factors, such as innovation, and sustainability.
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The data table that is shown below provides a detailed comparison of the changes in the compound annual growth rate (CAGR) over the half year period for the base year (2024) and the current year (2025), specific to the Latin American Licorice Extract market. The first half of the year, H1, range from January to June, and the second half, H2, is from July to December.
| Particular | Value CAGR |
|---|---|
| H1 2024 | 2.3% (2024 to 2034) |
| H2 2024 | 2.9% (2024 to 2034) |
| H1 2025 | 2.7% (2025 to 2035) |
| H2 2025 | 3.0% (2025 to 2035) |
H1 signifies period from January to June, H2 Signifies period from July to December
For the Latin American Licorice Extract market, the sector is predicted to grow at a CAGR of 2.3% during the first half of 2024, with an increase to 2.9% in the second half of the same year. In 2024, the growth rate is anticipated to slightly decrease to 2.7% in H1 but is expected to rise to 3.0% in H2.
| Date | Development/M&A Activity & Details |
|---|---|
| March-2024 | Key market players focused on strengthening their positions by acquiring regional distribution networks, forging strategic partnerships, and increasing investments in product innovation. Companies have increasingly sought to acquire local suppliers of licorice extract in Latin America to ensure a stable supply of raw materials and improve product accessibility in the region. |
| February-2024 | Companies have been investing heavily in research and development (R&D) to introduce new licorice-based products. For instance, some are working on extracting licorice in more concentrated forms or developing new ways to integrate licorice extract into functional foods and beverages |
Demand for Natural and Clean-Label Ingredients is Increasing
Latin Americans are increasingly moving towards a healthier and more natural lifestyle, which is the reason for the growing demand for clean-label, natural ingredients in food, beverages, and personal care products. Licorice extract, given its wide use for sweetening, flavoring, and functional benefits, is now popular as a sugar-free and chemical additive alternative.
This trend is most obvious in the food and beverage sector, where retailers are focusing more on products which do not include preservatives and artificial chemicals. In addition to that, licorice's application in the pharmaceutical industry and the cosmetic sector has played a crucial factor in its growth as it is well-known for its healing and skin-soothing properties.
The Expanding Consumer Knowledge Base of Herbal Remedies and Functional Foods
Herbal remedies and functional foods are gaining more attention in Latin America as people get more health-conscious and start to opt for products with benefits. Licorice extract, which is an inclusion of the compound in tea, health supplements, and other forms of medicinal items, is the source of its anti-inflammatory, antioxidant, and digestion properties.
The awereness of the health benefits of licorice extract is one the factors that influenced its increased demand in the wellness and supplement markets. As consumers are more focused on alternative ways to support their health, the boom in the licorice extract market is anticipated in the future.
The following table shows the estimated growth rates of the top four markets. These countries are set to exhibit high consumption, recording high CAGRs through 2035.
| Countries | Market Share (%) |
|---|---|
| Brazil | 35% |
| Mexico | 20% |
| Other Countries | 45% |
Brazil is a licorice extract market leader in Latin America and has a 35% market share. Factors such as an increase in the number of food and beverage companies that are shifting to using natural ingredients more and more, drive the licorice extract market in Brazil.
The use of licorice extract in food products as a natural sweetener and flavoring besides the green demand from consumers of healthier products will be a strong part of the growth of this market. Moreover, the health and wellness food categories that focus on digestive well-being have also motivated the use of licorice root in the health product business in Brazil.
Brazil's large pharmaceutical sector further supports the licorice extract market. The plant’s medicinal properties, such as its anti-inflammatory and antimicrobial effects, are gaining traction in natural remedies and health supplements. The increasing awareness of herbal medicine and wellness products in Brazil is driving a steady demand for licorice-based products across multiple industries.
Mexico has a 20% market share in the Latin American licorice extract segment. The demand for licorice in Mexico is also driven by the same trends of those towards natural and healthier food options. The licorice extract is also mainly used as a flavoring agent in beverages, confectionery, and herbal teas, which keeps up with the household preference for using natural ingredients.
Furthermore, it is the functional foods and beverages that are coming up and plant-based foods circulation that surges the licorice extract in Mexico. The usage of the licorice plant in certain Mexican folk remedies such as in teas and other products in the area is additionally supported by the growing health-conscious populace.
Both Brazil and Mexico demonstrate promising potential for the licorice extract sector because of their large consumer populations, strong industrial sectors, and the growing number of health-conscious people among their populations. The rise of the market in these two countries will persist, due to the growth in the use of natural materials, besides functional compounds in different industries.
% share of Individual Categories Application and Form in 2025
| Main Segment | Market Share (%) |
|---|---|
| Application (Pharmaceuticals) | 40% |
| Remaining segments | 60% |
Pharmaceutical Application Driving Growth in the Licorice Extract Market
Licorice extract is a crucial ingredient in the pharmaceutical sector, holding a 40% share of the Latin American market. Its medicinal properties, including anti-inflammatory, antimicrobial, and digestive health benefits, have made it a popular choice in various pharmaceutical formulations.
In Latin America, licorice extract is increasingly being incorporated into herbal supplements, teas, and over-the-counter remedies for conditions such as gastrointestinal disorders, respiratory issues, and skin ailments.
The growing consumer demand for natural and holistic health solutions has significantly driven the use of licorice extract in the pharmaceutical industry. Furthermore, as Latin American consumers become more health-conscious and embrace herbal treatments, the demand for licorice-based products in this sector is expected to continue expanding.
| Main Segment | Market Share (%) |
|---|---|
| Form (Liquid) | 35% |
| Remaining segments | 65% |
Rising Demand for Liquid Licorice Extract in the Latin American Market
The liquid form of licorice extract has a 35% share of the Latin American market and is very popular among the users. One of the reasons is its flexible use for the preparation of many products. It can be mixed easily into beverages, health supplements, and pharmaceuticals.
Functioning as an infusion of healing properties, liquid licorice extract is widely used in functional beverages and liquid dietary supplements, which is also a more efficient way of delivering the healthy properties of licorice out there, such as digestive support and anti-inflammatory effects.
The demand for liquid licorice extract in the Latin American area is due to the growing market segment that offers customer convenience through easy and ready-to consume products. This format is also a flexibility advantage for manufacturers as it can be made into a myriad of products from food and drinks to drugs. Consumer's comprehension of the health benefits of licorice is increasing, therefore the query on the liquid licorice will continue to rise over time.
2025 Market share of Latin America Licorice Extract manufacturers
| Manufacturer | Market Share (%) |
|---|---|
| Glycyrrhiza Glabra (Licorice Root) Co. | 23% |
| Marubeni Corporation | 20% |
| Aushadh Industries | 15% |
| Dabur India Ltd | 12% |
| Naturex (Givaudan) | 10% |
| Others | 20% |
Note: The above chart is indicative in nature
The licorice extract market Latin America is experiencing moderate concentration, characterized by a few key vendors who account for a large portion of the total market.
The concentration arises mainly from the dominance of established multinational companies since they are well-equipped, with distribution facilities, and have been in operation for a long time. Such firms particularly benefit from organizational trustworthiness, otherwise known as the company's brand or name, dependable sourcing and production capabilities superior to others in the business that cater to many different products and sectors.
Conversely, the world of local players has also been added with the smaller entrance of manufacturers casting their nets in niche and specialized products like organic or clean-label licorice extract to meet the consumer desire for natural ingredients. These small enterprises are now making a breakthrough in the market with tailored solutions and by attending to regional inclinations.
Despite big firms maintaining to hold a significant portion of the market, the growth of natural and functional ingredients is seen to create smaller entities increment and product diversification. Consequently, the area remains vibrant, marked by both large multi-national corporations and emerging local producers, leading to steady innovation and growth in the Latin American licorice extract sector.
Licorice extract is primarily used in pharmaceuticals, food and beverages, and cosmetics. It is valued for its medicinal properties, including digestive and anti-inflammatory benefits.
The liquid form holds the largest market share (35%) due to its versatility and ease of incorporation into various products, such as beverages and dietary supplements.
Brazil and Mexico are the leading countries in the region, with Brazil holding the largest market share at 35%, followed by Mexico at 20%.
The market is expected to grow steadily, driven by increasing consumer demand for natural, functional ingredients in food, health supplements, and pharmaceutical products.
Key drivers include the rising demand for natural ingredients in health and wellness products and the increasing use of licorice extract in functional foods, beverages, and herbal supplements.
As per Application, the industry has been categorized into Pharmaceutical, Food and Beverage, and Others.
As per Form Type, the industry has been categorized into Powder, and Liquid.
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Latin America Licorice Extract Market
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