Licorice Root Market

Licorice Root Market: Growing Use as a Sweetener in the Food and Beverage Industry to Provide a Plethora of Opportunities to Vendors: Global Industry Analysis (2013 - 2017) & Opportunity Assessment (2018 - 2028)

  • 2018-05-28
  • REP-GB-3135
  • 244 pages
  • Format: PDF/PPT/Excel

An Incisive, In-depth Analysis on the Licorice Root Market

This study offers a comprehensive, 360 degree analysis on the Licorice Root market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Licorice Root market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.

Central Asia is facing a massive problem with its saline accumulated land. As licorice is a salt-tolerated shrub that contains sweetener as a core functional ingredient, the high salt content in the land is good for the sweetener ingredient that is found in licorice root. However, a major portion of the irrigation land in the region has been designated for the cultivation of cotton and wheat and other crops. The cost of production of these crops is comparatively high and switching production to licorice will help the farmers as well as crop producing companies in the region to gain profits from and also suffice the growing demand for licorice from several end-use industries. As numerous farmers are at times even compelled to abandon this sort of land that has been dedicated for cotton and wheat owing to the high salinity, rehabilitating this land for harvesting licorice will present them with ample growth prospects. This will involve obtaining permission from the government to harvest licorice root instead of cotton, wheat, and other different staple crops. With the adoption of this strategy, it is being expected that this region will witness a proper production of licorice root in the coming years.

Tobacco is projected to be the leading industry in the consumption of licorice root as an active ingredient

Licorice root extract is a very important flavouring agent and component at present in the confectionery and tobacco industries. Currently, it is being employed in the food industry as a flavouring agent and in the tobacco industry as a de-bittering agent in order to mask the off-note taste of stevia that has till now been a favourite in the market. Stevia has been a prominent sweetener in the tobacco as well as food industry till date. However, researchers and food specialists are looking to incorporating licorice to mask the off-note taste of stevia. With the tobacco industry fast moving towards the development of sweet and flavoured tobacco, the demand for licorice is expected to rise in this industry over the coming years.


Consumption of licorice root is expected to rise in the coming years in the pharmaceutical industry owing to its inherent herbal properties

In the last few years, the demand for licorice has increased from the pharmaceutical industry as it is a noteworthy component of Chinese herbal medicine. The demand for Chinese herbal medicines that comprise almost 70% licorice is increasing extensively, especially in Europe and the U.S. as the population in these regions is shifting towards the consumption of organic medicines. The demand for licorice in the pharmaceutical industry is mainly governed by the burgeoning demand for Chinese medicines. In order to meet the growing demand from the pharmaceutical and other vertical industries, manufacturers are collaborating with harvesters to maintain a stable production of licorice and prevent the prices from shooting up in the global market. This is expected to help boost the extent of cultivated land for licorice, eventually leading to a substantial growth in revenue of the global licorice root market.

An Overview of the Global Licorice Root Market with Reference to the Food and Beverages Global Industry Outlook

The food and beverage industry in North America is colossal and comprises and number of players in largely fragmented and multi-tiered supply chains. The industry is stringently regulated and players often have to adapt to a landscape that changes quite frequently. The primary demand drivers in North America are witnessing fast-paced evolution, as dietary habits receive emphasis, especially among consumers who scour every label to read the ingredients. Although mergers and acquisitions have been a staple in the food and beverage industry, uncertainties in political climate in Europe and America lead to a slowdown in 2016. As there is more clarity on the U.S. Presidential election and Brexit, the pace of mergers and acquisitions is likely to pick up.

The evolving tastes and preferences of consumers are not lost on manufacturers, as offerings have been broadened to accommodate organic and natural food products. Many established players are focusing in acquiring smaller companies which have the expertise and reputation of being pros in specific organic and natural domains. These smaller companies have deep brad loyalty, and owing to the small scale of production, it is much easier for them to come up with innovative products. These factors, combined with increasing emphasis on organic and natural, are likely to make smaller companies attractive targets for mergers and acquisitions.

In Europe, notable developments that the food and beverage industry needs to lookout for are stricter monitoring of unfair trade practices (UTPs) by the European Commission (EC). Many food and beverage manufacturers are currently assessing the risk to business once Brexit comes into effect. As the timing and full impact of Brexit is still uncertain, food and beverage companies are focusing on taking preventive action to secure their business interests.

List of factors tracked in the Food Ingredients Market Report

In the food ingredients sub-domain, the following factors have been tracked.

  • Food ingredients consumption by different markets

  • Food ingredients produced by key manufactures

  • Allied market growth

  • Utilization of ingredient by volume in food products

  • Key use area (eg. Bakery, beverages, dairy, baby food etc.)

  • Parent market growth and share for allied industry

  • Level of usage

  • Key manufacturers

  • Forms available (Form of ingredients)

  • FOB and CIF pricing Final product- Consumption pattern and preferences

  • Demand for organic, natural and conventional

Research Methodology

FMI utilizes robust methodology and approach to arrive at market size and related projections. The research methodology for this report is based on 3 dimensional model. We conduct about 45-60 min duration detailed interviews with product manufacturers; apart from this we also collect market feedback from industry experts. To validate this data, we interact with senior panel members having more than 10 years of experience in relevant field. The panel members help in validating the findings and fill the gaps if any.  In addition, we leverage on our existing pool of information, paid database and other valid information sources available in public domain. Usually industry interactions extend to more than 50+ interviews from market participants across the value chain.

Data Collection

FMI collects data from secondary sources including company annual reports, association publications, industry presentations, white papers, and company press releases apart from these we leverage over paid database subscriptions and industry magazines to collect market information and developments in exhaustive manner. After being done with desk research, detailed questionnaire and discussion guide is formulated to initiate primary research with key industry personnel; the discussion aims at collecting key insights, growth perspectives, prevalent market trends and quantitative insights including market size and competition developments. Both of these research approaches help us in arriving at base year numbers and market hypothesis.

Data Validation

In this phase, FMI validates the data using macro and micro economic factors. For instance, growth in electricity consumption, industry value added, other industry factors, economic performance, growth of top players and sector performance is closely studied to arrive at precise estimates and refine anomalies if any.

Data Analysis and Projection

Data analysis and projections were made based on proprietary research frameworks and statistical analysis, which was further validated from industry participants. These frameworks include Y-o-Y growth projections, macro-economic factor performance, market attractiveness analysis, key financial ratios, and others.

For public companies we capture the data from company website, annual reports, investor presentations, paid databases. While for privately held companies, we try to gather information from the paid databases (like Factiva) and based on the information we gather from databases we estimate revenue for the companies. In addition, the team tries to establish primary contact with the companies in order to validate the assumptions or to gather quality inputs.

Standard Report Structure

  • Executive Summary

  • Market Definition

  • Macro-economic analysis

  • Parent Market Analysis

  • Market Overview

  • Forecast Factors

  • Segmental Analysis and Forecast

  • Regional Analysis

  • Competition Analysis

Market Taxonomy

The global licorice market has been segmented into:

By Product Form

By End Use

By Region

  • Roots

  • Extracts

    • Blocks

    • Powder

    • Paste

    • Others

  • Food & Beverage Industry

  • Tobacco Industry

  • Pharmaceutical Industry

  • Cosmetic Industry

  • Dietary Supplements

  • North America

  • Latin America

  • Western Europe

  • Eastern Europe

  • Asia Pacific Excluding Japan (APEJ)

  • Japan

  • Middle East & Africa (MEA)

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