Licorice Root Market

Market Outlook from 2024 to 2034

The value of the licorice root market for 2024 is billed to be USD 980 million. By 2034, the market value is estimated to have shot up to USD 2,002.1 million. During the forecast period, the market is in line to book a CAGR of 7.4%.

Key Market Trends and Highlights:

• Increasing awareness regarding the health benefits is a major factor that is anticipated to boost the growth of the licorice root market.
• Rising preference for natural ingredients is another major factor that is expected to accelerate the market growth.
• Scope of licorice root is rapidly expanding, with the application of the root ranging from herbal supplements to the confectionery industry.
• As complementary and alternative medicine starts being trusted by a greater percentage of the population, the demand for the product is set to surge.

Attributes	Key Insights
Licorice Root Market Estimated Size in 2024	USD 980.0 million
Projected Market Value in 2034	USD 2,002.1 million
Value-based CAGR from 2024 to 2034	7.4%

2019 to 2023 Historical Analysis vs. 2024 to 2034 Market Forecast Projections

A CAGR of 7.4% was tipped for the market in the historical period. By contrast, the forecast period is set to see the global market develop at a slower pace, with a CAGR of 6.9% predicted.

As the health benefits of licorice root became more prominent, the popularity of the product increased by leaps and bounds, aided by consumer appetite for natural and herbal remedies. Diverse applications in both the pharmaceutical and food and beverage indsutry also helped the market’s prospects in the historical period.

As preventive healthcare becomes more of the norm, the demand for licorice root is set to expand. This growth is also set to be more evident in the nutraceutical and functional food sector.

As regulatory frameworks turn favorable for the licorice root, the industry is set to benefit. An increase in research validating the therapeutical properties of the product also helps in raising demand. Manufacturers are also increasingly relying on sustainable sourcing practices, keeping in line with the environmental considerations of the consumers.

Licorice Root Market Key Drivers

• Technological advances have made the extraction process of licorice root more efficient, thereby ensuring industry growth.
• Growing disposable incomes have led to better care being taken of bodies, which is including the root as well in increasing measure.
• Manufacturers are gaining regulatory support, which is easing their pathway in the industry.
• Partnerships between competitors are commonplace in the licorice root market.

Challenges in the Licorice Root Market

• Licorice root faces competition from synthetic alternatives, cutting into the demand for the product.
• Infestations or outbreaks of plant diseases serve to limit the raw material available to manufacturers.
• Licorice root consumption is not risk-free, especially being prone to cause problems for pregnant women, people with hypertension, and patients who are taking certain medications.
• Concerns about allergenic potential are expected to limit the use of licorice root in certain products and applications, impacting market growth.

Country-wise Insights

The below table showcases revenues in terms of the top 5 leading countries, spearheaded by India and Japan. The countries are expected to lead the market through 2034.

Countries	Forecast CAGRs from 2024 to 2034
The United States	5.1%
Germany	3.5%
China	5.9%
Japan	6.3%
India	7.9%

Expanding Applications in Food and Beverages Driving the Market in the United States

The licorice root market in the United States is expected to expand at a CAGR of 5.1% through 2034. The use of licorice root as a flavoring agent is increasing in the food and beverage industry of the United States.

The popularity of herbal teas and confectionery products, two goods that make prominent use of the root, is conducive to the growth of the market. Consumer demand for natural remedies, and especially herbal remedies, is fostering the demand for the product.

Innovation in Product Formulations to Accelerate Market Growth in Germany

Germany is set to see licorice root demand advance at a CAGR of 3.5% through 2034. Licorice-based products are being experimented with, resulting in Germans developing a taste for the product.

Sugar-free licorice options are becoming more pronounced as more Germans turn away from sugar. The producers are also benefitting from functional foods and dietary supplements becoming more common across the country.

Rising Health Consciousness Accelerate the Market in China

In China, licorice root trends are taking a turn for the better. Market expansion is set to happen at a CAGR of 5.9% in China over the projected period. Natural and herbal remedies are commonplace in China and have been used for a long period of time, paving the way for the root’s use in the country. The various medicinal properties of the root have seen the product being used by traditional Chinese medicine for a prolonged period of time.

Cultural Significance Fueling the Market in Japan

The market in Japan is anticipated to book a CAGR of 6.3% through 2034. Licroice’s significance in Japan is seen by the ingredient being a part of not only traditional medicine but also traditional cooking.

Licorice root extracts are also being used widely in Japanese cosmetics. Beauty and personal care are no longer relegated to being a secondary concern for the Japanese youth, with the popularity of J-pop and media culture rising. Thus, cosmetics is a wide avenue for producers to expand in Japan.

Supportive Regulatory Environment for Herbal Products Driving the Demand in India

Demand in India is set to bolster at a CAGR of 7.9% in India for the forecast period. Favorable regulatory policies in India for the distribution of herbal products make it lucrative for manufacturers to target Indian denizens. Regulations such as the Ayurvedic Pharmacopoeia of India provide the blueprint for the industry to prosper.

As obesity and other health risks become more pronounced in the country, demand for licorice root is developing. Licorice root extracts, like glycyrrhizin, act as natural sweeteners, eliminating the need for artificial ones in many culinary applications.

Category-wise Insights

The below table highlights how extracts segment is projected to lead the market in terms of product form, and is expected to account for a share of 70.3% in 2024.

Based on end use, the tobacco industry segment is expected to account for a share of 70.9% in 2024.

Category	Shares in 2024
Extracts	70.3%
Tobacco Industry	70.9%

Extracts Claims High Demand for Licorice Root

Based on the product form, the extract segment is expected to account for a significant portion of the market share.

As consumers become more health conscious and seek natural remedies, there is growing interest in licorice root extracts for their potential health benefits. Consumers are propelling forward products made with plant-based ingredients. Licorice root extracts satisfy that itch and in addition to the health benefits, also offer sweetness and flavor to food products.

Tobacco Industry Segment to Hold High Demand for Licorice Root

Tobacco is set to endure as the dominating industry when it comes to end use of the product. Manufacturers are seeking alternatives to menthol that are not as potentially harmful but still provide the same cooling sensation in the mouth. Licorice extract is emerging as a popular alternative, combining cooling and soothing properties in addition to its plant-based nature.

Tobacco products make use of the root as a flavoring agent. These exotic products include flavored cigarettes, cigars, and pipe tobacco. The flavor and smell of the ingredient is intense as well as unique, seeing it combine well with tobacco.

Competitive Landscape

The competitive landscape of the licorice root Market is fragmented, as a number of players from different regions and of different scales vie for the market share. Thus, large multinational corporations tussle it out with local growers and suppliers.

Company Portfolio:

• Naturex is a subsidiary of Givaudan and is prominent in the licorice root realm. Supplying a wide range of natural products, the licorice selection of the company too is vast. It serves a number of industries, including food and beverage, pharmaceuticals, and cosmetics.
• Fratelli D'Amico Societa' Di Esercizio S.P.A. is a prominent Italian company which takes part in a host of licorice root activities, including cultivation, processing, and trading. The company prides itself on its long history of supplying reliable licorice root products.

Key Coverage in the Licorice Root Industry Report

• Licorice root extract
• Licorice root powder
• Licorice root benefits
• Licorice root uses
• Licorice root production
• Licorice root cultivation
• Natural Sweeteners Market
• Botanical Extracts Market
• Traditional Medicine Market
• Functional Foods Market
• Herbal Teas Market
• Confectionery Market
• Pharmaceutical Ingredients Market
• Cosmetics and Personal Care Market
• Health and Wellness Products Market

Report Scope

Attribute	Details
Estimated Market Size in 2024	USD 980.0 million
Projected Market Valuation in 2034	USD 2,002.1 million
Value-based CAGR 2024 to 2034	7.4%
Forecast Period	2024 to 2034
Historical Data Available for	2019 to 2023
Market Analysis	Value in USD Billion
Key Regions Covered	North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; The Middle East & Africa
Key Market Segments Covered	Product Form, End Use, Region
Key Countries Profiled	The United States, Canada, Brazil, Mexico, Germany, France, France, Spain, Italy, Russia, Poland, Czech Republic, Romania, India, Bangladesh, Australia, New Zealand, China, Japan, South Korea, GCC countries, South Africa, Israel
Key Companies Profiled	FC Licorice; Norevo GmbH; Zagros Licorice Co.; Naturex SA; Sepidan Osareh Co.; VPL Chemicals; MAFCO Worldwide LLC; Aseh Co.

Segmentation Analysis of the Pallet Box Market

By Product Form:

• Roots
• Extracts
• Blocks
• Powder
• Paste
• Others

By End Use:

• Food and Beverage Industry
• Tobacco Industry
• Pharmaceutical Industry
• Cosmetic Industry
• Dietary Supplements

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• South Asia and Pacific
• East Asia
• The Middle East and Africa

Frequently Asked Questions

What is the anticipated value of the Licorice Root market in 2024?

The licorice root market is projected to reach a valuation of USD 980.0 million in 2024.

What is the expected CAGR for the Licorice Root market until 2034?

The licorice root industry is set to expand by a CAGR of 7.4% through 2034.

How much valuation is projected for the Licorice Root market in 2034?

The licorice root market is forecast to reach USD 2,002.1 million by 2034.

Which country is projected to lead the Licorice Root market?

Korea is expected to be the top performing market, exhibiting a CAGR of 7.9% through 2034.

Which is the dominant product form in the Licorice Root domain?

Extracts segment is preferred, and is expected to account for a share of 70.3% through 2024.