The licorice candy market is projected to witness steady growth between 2025 and 2035, driven by increasing consumer preference for natural and herbal confectionery products. The market was valued at USD 306.4 million in 2025 and is anticipated to reach USD 455.2 million by 2035, expanding at a compound annual growth rate (CAGR) of 5.2% over the forecast period.
The growing awareness of licorice’s potential health benefits, including its anti-inflammatory, antioxidant, and digestive properties, is propelling market demand. Manufacturers are increasingly incorporating organic, gluten-free, and sugar-free variants to cater to health-conscious consumers. Additionally, the rise in premium confectionery offerings and clean-label trends is further driving market growth.
The expansion of e-commerce and online retail platforms has enhanced the accessibility of licorice candy worldwide, providing consumers with a diverse range of flavors and formulations. Moreover, the demand for functional and herbal-infused candies is surging, supported by increasing disposable incomes and shifting consumer preferences toward plant-based and natural sweeteners.
Metric Overview
| Metric | Value |
|---|---|
| Market Size (2025E) | USD 306.4 million |
| Market Value (2035F) | USD 455.2 million |
| CAGR (2025 to 2035) | 5.2% |
The liquorice candy market is expected to grow steadily over the forecast period as manufacturers are emphasizing on product innovation, organic certifications, and distribution innovations. Market dynamics over the next decade will be dominated primarily by steadily increasing demand for functional confectionery and herbal-based treats.
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North America dominates the licorice candy market with constant consumer demand for nostalgic and unique flavors of confectionery. The top licorice producers and consumers are the United States and Canada, where not only established brands but also artisan producers have extended their product range.
The growing demand for natural and herbal-based candies is driving the growth of licorice-infused products. Moreover, the emergence of specialty candy shops and online retail channels improves the accessibility of the market. But worries about sugar levels and regulatory scrutiny of artificial ingredients could complicate market growth.
Europe also contributes to a significant portion of the licorice candy market, where countries like the Netherlands, Germany, Sweden, and the UK are leading consumers. A deeply rooted tradition of licorice consumption in the region both sweet and salty varieties fuels steady demand.
Product innovations, including sugar-free and organic formulations, present opportunities for growth in the market. Moreover, increasing consumer awareness of potential health benefits associated with licorice supports its use in functional confectionery. Regulatory amenities may hinder the growth of the market owing to varying parameters of stringent food safety regulations and raw material costs.
The licorice candy market in the Asia-Pacific region is growing at a rapid pace, driven by the rising demand for herbal-based sweets and traditional medicines. Countries such as China, Japan, South Korea and India have been using licorice in sweets and medicines for a long time.
Increasing disposable incomes, the improvement in retail infrastructure, and the rising inclination of consumers toward international confectionery trends have fuelled the growth of the market. In addition, product diversification (e.g. fusion flavors for the younger demographics) underpins growth. Nevertheless, varying consumer preferences, as well as regulatory challenges determining food additives can affect market uptake in various regions.
Challenges
Health Concerns and Regulatory Restrictions
As worrying health effects from glycyrrhizin the stuff that produces licorice’s signature taste but may lead to hypertension, low potassium levels and other health hazards in excess continue to mount, the licorice candy space is facing an uphill battle.
Regulatory authorities such as FDA and EFSA have restricted the licorice level present in food products; hence manufacturers are strategizing accordingly. Consumer trends toward lower-sugar and sugar-free options are also forcing brands to reformulate traditional licorice candy products.
Opportunities
Expansion of Sugar-Free and Functional Licorice Candies
With this increasing health awareness, manufacturers are delving into sugar-free territory, producing functional licorice candies that use natural sweeteners stevia and monk fruit. In Addition, the growing demand for functional ingredients such as probiotics, vitamins, and herbal extracts is creating new opportunities for growth in the health-conscious consumers segment. Because the global chewy confectionery market is witnessing a gradual growth, the licorice market is expected to thrive.
From 2020 to 2024, the licorice candy market in the United States grew moderately, fuelled by purchases based on nostalgia, growing flavor varieties, and an increasing appetite for natural and organic confectionery. However, regulatory scrutiny regarding glycyrrhizin levels and increasing consumer awareness about sugar intake posed challenges for traditional licorice candy products.
Looking ahead to the 2025 to 2035 period, the market is likely to tilt towards healthier as well as functional variants, shying away from the sugary variants towards sugar-free, organic and plant-based licorice candies. The competitive landscape will also be defined by innovations in flavors, natural colorants, and sustainable packaging, appealing to both traditional and health-minded consumers alike.
Market Shifts: A Comparative Analysis 2020 to 2024 vs. 2025 to 2035
| Market Shift | 2020 to 2024 Trends |
|---|---|
| Regulatory Landscape | Restrictions on glycyrrhizin levels in food products |
| Technological Advancements | Reformulation of licorice candies with reduced glycyrrhizin |
| Industry Adoption | Growth in organic and natural licorice candy offerings |
| Supply Chain and Sourcing | Sourcing challenges due to fluctuations in licorice root supply |
| Market Competition | Dominated by traditional confectionery brands |
| Market Growth Drivers | Demand for nostalgic and traditional candy flavors |
| Sustainability and Energy Efficiency | Shift toward eco-friendly packaging |
| Consumer Preferences | Popularity of black and red licorice varieties |
| Market Shift | 2025 to 2035 Projections |
|---|---|
| Regulatory Landscape | Stricter global regulations on sugar and artificial additives |
| Technological Advancements | Widespread adoption of natural sweeteners and functional ingredients |
| Industry Adoption | Mainstream adoption of sugar-free and health-enhanced licorice products |
| Supply Chain and Sourcing | Increased use of alternative natural flavors and synthetic glycyrrhizin substitutes |
| Market Competition | Rise of specialty health-focused candy brands and private-label offerings |
| Market Growth Drivers | Increasing preference for organic, functional, and sugar-free alternatives |
| Sustainability and Energy Efficiency | Expansion of biodegradable and recyclable candy packaging solutions |
| Consumer Preferences | Demand for exotic flavors, plant-based options, and better-for-you licorice candies |
Licorice candy stands to make considerable gains in the USA, where consumer demand for more natural and herbal types of confectionery are propelling growth. The increasing trend on sugar-free and organic candy and the presence of major manufacturers are driving the demand.
Moreover, the increasing demand for traditional licorice flavor by various demographic segments and the launch of innovative products are further propelling the market growth. Additionally, the integration of e-commerce channels has increased market accessibility even further, enabling manufacturers to target a larger consumer market.
| Country | CAGR (2025 to 2035) |
|---|---|
| United States | 4.9% |
The licorice candy market in the United Kingdom is growing steadily, owing to the prevailing taste of traditional confectionery. Availability of premium and flavored licorice also helps the market growth. Also, the increasing number of health-conscious consumers looking for gluten-free and reduced-sugar licorice alternatives is driving demand. The competitive market is further advanced by well-known brands and experienced candy makers in the sector.
| Country | CAGR (2025 to 2035) |
|---|---|
| United Kingdom | 4.6% |
The European Union accounts for the largest share of the global licorice candy market, with Germany, the Netherlands, and Sweden as major consumption countries. The region's high affinity for licorice-based confectionery as well as well-developed retail distribution networks sustain the growth of the market here.
Innovations focusing on health such as sugar-free and organic licorice variants are becoming increasingly popular. Besides, the growing tendency of functional confectionery, which includes infusing licorice with herbal extracts for health benefits, is also driving demand.
| Region | CAGR (2025 to 2035) |
|---|---|
| European Union | 4.7% |
Japan licorice candy market is influenced by increasing inclination towards herbal and functional confectioneries. Market trends are increasingly being influenced by the rising demand for both traditional and modern flavor extracts such as match or fruit extracts.
Japan has an excellent retail infrastructure convenience stores and online sales that means product availability is guaranteed. In addition, the increasing awareness of the medicinal properties of licorice, including its digestive and anti-inflammatory effects, is driving the market growth.
| Country | CAGR (2025 to 2035) |
|---|---|
| Japan | 4.8% |
Licorice candy is also becoming more popular in South Korea, with growing consumer interest in functional confectionery and herbal-based sweets. Innovative flavors, along with premium quality licorice products have been driving the regional market.
Further, the rising use of licorice-infused beverages and desserts and the substantial efforts by domestic and international brands are contributing to the market expansion in the coming years. E-commerce channels also has an instrumental role in the dissemination of products, providing an opportunity for licorice candy manufacturers to reach a wider audience.
| Country | CAGR (2025 to 2035) |
|---|---|
| South Korea | 5.0% |
The licorice candy market is experiencing growth, as consumers are much more inclined towards natural and traditional flavored candy. Licorice candy has traditional health benefits and unique taste that people of all ages enjoy. At the same time, manufacturers are responding to two trends: new flavors and formulations that cater to ever-changing consumer taste buds and the use of more natural and organic ingredients.
Licorice candy is tipped to do particularly well in hotels, restaurants and recreational centers as a gourmet product. The growing demand for herbal and plant-based ingredients further boosts the market, given that licorice is widely regarded as a functional ingredient known for aiding digestion and reducing inflammation.
Within the product type segments, original black licorice and fruit-flavored candy lead the way with a substantial market share that meets the demand of both traditional and modern consumers.
The original black licorice product type continues to be the leader over all other product types as customers appreciate its signature bold flavor and the association with real licorice extract. People often eat black licorice itself because they enjoy the flavor and believe it has health benefits, including soothing throats and aiding in digestion.
Fruity peppers and derivatives like the apple and anise sweets have proved very popular, particularly with younger consumers and those seeking a less heated, sweeter liquorice product. Apple-flavored licorice provides a more refreshing twist, while anise-flavored candy is favoured for its herbal notes, appealing to consumers who may need the classic licorice flavor.
On the basis of the application, the market is segmented into restaurants and hotels, schools and institutions, recreational centers, and sports centers, all of which play a vital role in the distribution of licorice candy. Restaurants & hotels accounts for a significant market segment for licorice candy in the product as premium treats and as an ingredient in desserts and confectionery. A growing number of upscale restaurants include licorice-based confections on their dessert menus, contributing to increasing demand.
Licorice confectionary is considered as traditional and nostalgic confection hence schools and its institutions also made it vital segment. Licorice candies are popular in many educational institutions join cafeterias or as a casual snack.
Demand for licorice candy, especially chewy and sugar-free, has also been driven from Recreational Centers and Sports Centers. As consumers are on the lookout for convenient, on-the-go snacks, licorice candy is also placed in vending machines and retail outlets in sports & leisure facilities.
The licorice candy market is also evolving, with manufacturers investing in clean label ingredients, sugar-free formulations, and new flavors to reach health-conscious consumers. The rise of premium and artisanal licorice brands, coupled with unique packaging strategies, is anticipated to drive the market in the long term.
Licorice candy market is expected to witness significant growth and retail expansion in the upcoming years owing to the rising inclination of consumers towards natural based confectioneries, herbal ingredients, and nostalgic flavored candies.
Increasing health awareness, clean label trends, and the launch of innovative products in sugar free & organic licorice candy are driving this market. To attract a wider consumer base, manufacturers are focused on expanding flavor profiles, on the sustainable sourcing of licorice root, and on premiumization of confectionery products.
Market Share Analysis by Company
| Company Name | Estimated Market Share (%) |
|---|---|
| Haribo | 20-24% |
| Twizzlers (The Hershey Company) | 15-19% |
| Panda Licorice | 12-16% |
| Katjes International | 10-14% |
| Other Companies (Combined) | 30-40% |
| Company Name | Key Offerings/Activities |
|---|---|
| Haribo | Leading producer of licorice gummies and twists, focusing on premium flavors and sugar-free options. |
| Twizzlers (Hershey) | Specializes in twist licorice candies, offering a variety of fruity and classic flavors. |
| Panda Licorice | Develops all-natural, vegan, and organic licorice candies, targeting health-conscious consumers. |
| Katjes International | Focuses on plant-based licorice candies, using sustainably sourced licorice root. |
Key Company Insights
Haribo (20-24%)
One of the major competitors in the licorice candy market is Haribo, renowned for its premium licorice sweets. Its competitive edge having a premium flavors, innovative packaging and sugar-free variants line is still a leading strengths.
Twizzlers (The Hershey Co.)(15-19%)
Twizzlers is a famous brand of twist-style licorice candies that are manufactured by The Hershey Company. To meet shifting consumer trends, the company continues to roll out its version of limited-edition flavors and reduced-sugar varieties.
Panda Licorice (12-16%)
Panda Licorice is known for its organic and clean-label licorice candies that contain no artificial colours and preservatives. The company is targeting vegan and gluten-free trends to increase its consumer base.
Katjes International (10-14%)
Katjes International is a prominent player in the European licorice candy market, recognized for its plant-based and gelatin-free licorice treats. The company's focus on sustainable, natural ingredients has bolstered its market position.
Other key players (30-40%)
Licorice candy market is highly competitive with key players adopting various strategies to gain market share and improve customer experience by offering new products with innovative flavor, texture, and health-oriented formulations. Other key players include:
The overall market size for the licorice candy market was USD 306.4 million in 2025.
The licorice candy market is expected to reach USD 455.2 million in 2035.
The demand for licorice candy is expected to rise due to increasing consumer preference for natural and herbal confectionery products.
The top five countries driving the development of the licorice candy market are the USA, Germany, the UK, China, and Japan.
Sugar-based and sugar-free licorice candies are expected to dominate the market due to rising health consciousness and increasing demand for low-calorie confectionery options.
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Licorice Candy Market
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