Global Licorice Root Market Outlook
Revenue, 2024
$462M
Forecast, 2034
$1.03B
CAGR, 2024 - 2034
8.3%
The Licorice Root industry revenue is expected to be around $500.3 million in 2025 and expected to showcase growth with 8.3% CAGR between 2025 and 2034. The consistent rise in market value of Licorice root highlights its enduring importance. Increasing demand across various industries. Factors driving the market include the roots medicinal qualities, growing consumer awareness of natural and organic products and its extensive use in the food and beverage sector. Furthermore advancements in extraction techniques and promising research on the health benefits of licorice root have bolstered its presence in well being and pharmaceutical sectors. These factors collectively illustrate the growth of licorice root, in global markets.
Licorice root is well known for its taste and numerous health advantages and has long been a fundamental element of traditional medicine practiced globally. It plays a role in herbal remedies in Asia as well as in medicinal preparations in the West. The growing. Uses of licorice root extend from enhancing digestion to skincare. The recent surge in the demand for licorice root can be attributed to trends such as the preference for ingredients a willingness to explore unique flavors in gourmet cooking and the increasing research, on its anti inflammatory and antimicrobial properties.
Market Key Insights
- The Licorice Root market is projected to grow from $462.0 million in 2024 to $1.03 billion in 2034. This represents a CAGR of 8.3%, reflecting rising demand across Herbal and Alternative Medicine, Tobacco Industry and Food and Beverage Industry.
- Nature's Way, Starwest Botanicals, Licorice International are among the leading players in this market, shaping its competitive landscape.
- China and India are the top markets within the Licorice Root market and are expected to observe the growth CAGR of 6.1% to 8.7% between 2024 and 2030.
- Emerging markets including Brazil, Indonesia and South Africa are expected to observe highest growth with CAGR ranging between 8.0% to 10.4%.
- Transition like Rising Health Consciousness is expected to add $80 million to the Licorice Root market growth by 2030
- The Licorice Root market is set to add $563 million between 2024 and 2034, with manufacturer targeting Herbal Medicine & Tobaccos Additive Function projected to gain a larger market share.
- With Growing awareness of health benefits, and Expansion of application base in the cosmetic sector, Licorice Root market to expand 122% between 2024 and 2034.
Opportunities in the Licorice Root
The beauty industry has yet to explore the potential of licorice root due to its natural benefits for skin health such as reducing inflammation and oil levels and enhancing skin radiance This makes it a valuable ingredient, in skincare and beauty items especially as more consumers seek out organic and natural cosmetic options.
Growth Opportunities in North America and Asia Pacific
North America Outlook
In North America's region realm licorice root has experienced growth in demand because of its rising popularity in health supplements and natural medicines. The increasing knowledge about well being among individuals has fueled this phenomenon. The market competition is fierce in this region with many leading companies competing for their share of the market. However the driving force, behind this rivalry lies in the pursuit of notch organic licorice root products as consumers are growing more mindful of what they purchase. The changing regulatory landscape in nations such, as the United States and Canada is also influencing the markets trends.
Asia Pacific Outlook
The demand for licorice root in the Asia Pacific region is on the rise due to its standing medicinal history in countries such as China and India. One notable trend in this region is the integration of licorice root into Ayurvedic and Chinese medicine practices. Despite facing competition the market shows promising growth prospects driven by the growing use of licorice root, in the food and beverage sector and the rising disposable income levels. Moreover the thriving cosmetic market in the Asia Pacific region plays a role in driving the demand for licorice root. This is because licorice root is an used ingredient, in skincare items known for its anti inflammatory and antioxidant qualities.
Market Dynamics and Supply Chain
01
Driver: Growing Awareness of Health Benefits, and Advancements in Processing Technologies
The number of health consumers is also increasing steadily which has also led to a surge in the popularity of organic and natural items such as licorice root due to its well known health advantages, like aiding digestion problems and reducing stress while also enhancing immune system functions. This shift is also expected to boost the licorice root market especially in the categories of regular food and medicinal goods. As the licorice root industry evolves and grows older, new and improved processing techniques are also being developed. Cutting edge extraction methods are also now making it easier for businesses to extract licorice root extracts effectively while keeping its valuable active components intact. This technological advancement is also fueling the expansion of the licorice root market in the field of pharmaceutical production.
The skin brightening and anti inflammatory qualities of licorice root are also driving its use in the cosmetics industry as part of the growing trend towards ingredients in skincare products. Licorice root is also an example of this movement and is also expected to boost its popularity, in the creation of organic skincare items.
The skin brightening and anti inflammatory qualities of licorice root are also driving its use in the cosmetics industry as part of the growing trend towards ingredients in skincare products. Licorice root is also an example of this movement and is also expected to boost its popularity, in the creation of organic skincare items.
02
Restraint: Supply Chain Disruptions
The expansion of the licorice root industry has faced challenges due to repetitive problems in the worldwide supply chain system. This is mostly because it relies heavily on areas like China and the Middle East which are famous for their fertile land suitable for growing licorice roots. Unfavorable weather conditions, conflicts and worldwide health crises can obstruct transportation and reduce the availability and quality of licorice root, in the market. The fluctuation in prices doesnt just impact the availability of products and price consistency. Also brings up major worries about the security of the supply chain – affecting everything from production, to customer demand and ultimately shaping how the market operates.
03
Opportunity: Expansion into Health and Wellness Space and Strategic Collaborations for Sustainable Sourcing
The increasing number of people around the world who prioritize their health has led to a demand for licorice root in the health and wellness sector. Licorice roots positive effects on health. Like its ability to enhance immunity and support functions. Make it an attractive selling point. This could potentially lead to its use in products, like supplements or herbal teas catering to health conscious consumers.
Given the growing worry about farming and ethical trade in society today. It might be beneficial to establish meaningful partnerships to responsibly source licorice root for your business needs. Partnering with farmers and implementing environmentally friendly agricultural practices while prioritizing transparency in the supply chain can not only bolster your companys commitment, to social responsibility but also appeal to mindful consumers looking for ethically sourced products.
Given the growing worry about farming and ethical trade in society today. It might be beneficial to establish meaningful partnerships to responsibly source licorice root for your business needs. Partnering with farmers and implementing environmentally friendly agricultural practices while prioritizing transparency in the supply chain can not only bolster your companys commitment, to social responsibility but also appeal to mindful consumers looking for ethically sourced products.
04
Challenge: Regulatory Constraints
Stringent regulations play a role in the licorice root industry due to its widespread use, in pharmaceutical products; therefore strict safety and quality standards set by regulatory authorities must be followed diligently.
Supply Chain Landscape
1
Raw Material Procurement
Norevo GmbH
STARWEST Botanicals
2
Processing & Refinement
Zhangzhou Tianzhong Co. Ltd.
Martin Bauer Group
3
Product Formulation
Naturex SA
Aveda Corporation
4
End-User Industry
Pharmaceutical industry
Cosmetic industry
Food Industry
1
Raw Material Procurement
Norevo GmbH
STARWEST Botanicals
2
Processing & Refinement
Zhangzhou Tianzhong Co. Ltd.
Martin Bauer Group
3
Product Formulation
Naturex SA
Aveda Corporation
4
End-User Industry
Pharmaceutical industry
Cosmetic industry
Food Industry
*The illustration highlights the key stakeholders within the supply chain ecosystem.
Applications of Licorice Root in Herbal & Alternative Medicine, Tobacco & Food & Beverage
Herbal and Alternative Medicine
Licorice root is commonly utilized in the realm of alternative medicine due to its diverse health advantages. Glycyrrhiza glabra is the of licorice root traditionally employed in medical practices and is recognized for its anti inflammatory and antimicrobial qualities. Several prominent companies in the health sector such as Natures Way and Gaia Herbs have integrated this root into their products to leverage these benefits and establish their dominance in the market, for natural remedies.`.
Food and Beverage Industry
In the food and beverage sector‚ licorice root is commonly employed to enhance the sweetness and taste of a variety of delights and beverages‚ with liquorice being the preferred due to its robust and sweet flavor profile‚ renowned companies such as American Licorice Company and Hersheys have embraced the distinctive essence of licorice in their confectionery items‚ which has led to a notable increase in customer favoritism, towards their products.
Tobacco Industry
The tobacco industry also utilizes licorice root to add flavor and maintain moisture in tobacco products for an enjoyable smoking experience. Turkish licorice is often chosen for its sweetness and ability to retain moisture. Companies like Imperial Tobacco and British American Tobacco leverage the advantages of licorice, in their tobacco blends to stand out in the market.
Skin Care Industry
Licorice root is also used in the skincare sector.
Recent Developments
December 2024
Phytoware Limited has upgraded its licorice root extraction facilities to boost production.
October 2024
Herbal Extract Inc unveiled a series of herbal teas featuring licorice root, for overall well being.
July 2024
Bio Tincture Labs worked together with wellness companies to create licorice root supplements.
In the health and wellness sector there has been a rise in the popularity of licorice root worldwide as it is known for its beneficial properties and has long been a key ingredient in traditional medicine practices which is now highly sought after in the current trend of natural remedies, with technological progress playing a significant part in advancing the licorice root industry.
Impact of Industry Transitions on the Licorice Root Market
As a core segment of the Nutraceuticals industry,
the Licorice Root market develops in line with broader industry shifts.
Over recent years, transitions such as Rising Health Consciousness and Expansion of Digital Platforms have redefined priorities
across the Nutraceuticals sector,
influencing how the Licorice Root market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Rising Health Consciousness
The growing worldwide shift towards adopting lifestyles has played a significant role in boosting the popularity of licorice root consumption. As more individuals lean towards plant based and natural products for their health benefits and medicinal properties licorice root has become a staple ingredient in health treatments. Its diverse applications across industries such as food and beverage, pharmaceuticals and cosmetics have experienced a rise in demand thanks to the prevailing focus, on health and well being trends. The licorice root market is currently experiencing a shift towards natural products rather than artificial ones that has notable effects, on consumption and production trends. This industry transition is expected to add $80 million in the industry revenue between 2024 and 2030.
02
Expansion of Digital Platforms
The growth of online shopping has made it easier to trade licorice root globally. Physical stores and pharmacies are now facing competition, from online marketplaces. Businesses are changing their focus to boost sales and enhance customer experiences through digital marketing tactics. Organic food producers and herbal medicine suppliers are utilizing strategies to increase visibility and reach more customers effectively.