Licorice Root Market By Form (Licorice Extract [Liquid & Powder], Raw Root, Deglycyrrhizinated Licorice [DGL]); By Application (Pharmaceuticals, Nutraceuticals, Food & Beverage, Cosmetics, Tobacco Alternatives); By Distribution Channel (B2B, Retail); By Geography, Segment Revenue Estimation, Forecast, 2024–2030

1. Introduction and Strategic Context

The Global Licorice Root Market is poised to expand at a CAGR of 5.9% , with an estimated valuation of USD 2.6 billion in 2024 , projected to cross USD 3.7 billion by 2030 , according to Strategic Market Research.

 

Licorice root, long valued for its flavoring and medicinal properties, is undergoing a quiet resurgence. While it's been a staple in traditional systems like Chinese medicine and Ayurveda for centuries, what's changing now is its role in commercial wellness, functional foods, pharmaceutical formulations, and even tobacco harm reduction.

 

There’s a growing shift toward botanical therapeutics — not as fringe alternatives, but as mainstream complements. Licorice root extract (glycyrrhizin and glycyrrhetinic acid) is being integrated into sore throat lozenges, gut health supplements, and dermatological creams. At the same time, reduced-sugar confectionery brands are rediscovering licorice as a natural sweetener and emulsifier.

 

On the regulatory front, health authorities in the U.S., Europe, and parts of Asia are updating safety guidelines — especially concerning glycyrrhizin intake levels. That’s creating demand for deglycyrrhizinated licorice (DGL) across nutraceuticals. Meanwhile, global supply chains are becoming more sophisticated, with licorice now cultivated not just in Central Asia and the Middle East but increasingly in China’s interior and select U.S. regions.

 

Investors are watching the market closely. With rising consumer interest in plant-based healing, natural immunity boosters, and anti-inflammatory compounds, licorice is back in the strategic spotlight. It’s not just about herbs — it’s about what those herbs represent: cleaner labels, lower side effects, and cross-category appeal.

Key stakeholders in this market include pharmaceutical manufacturers , nutraceutical and dietary supplement companies , cosmetics and personal care brands , tobacco alternative manufacturers , agricultural cooperatives , and regional processing units . Governments and regulatory agencies are also influencing market dynamics through evolving ingredient certifications and sustainable wild-harvest protocols.

 

2. Market Segmentation and Forecast Scope

The licorice root market cuts across several end-use industries — each pulling the ingredient in a different direction. What began as a traditional botanical is now being refined, fractionated, and certified to meet modern commercial needs. Here’s how the segmentation typically plays out:

By Form

Licorice Extract (Liquid & Powder ) This is the most dominant segment, accounting for over 58% of total market value in 2024 . Extracts are favored for their consistency, concentration, and ease of formulation. Pharmaceutical companies and supplement manufacturers rely heavily on standardized extracts, often with specific glycyrrhizin percentages.

Raw Root (Whole or Cut & Sifted ) Still used in traditional medicine and some artisanal food applications, but growth is modest due to challenges in storage, transport, and dosage accuracy.

Deglycyrrhizinated Licorice (DGL) A fast-growing segment, particularly in the U.S. and Europe, where DGL is seen as safer for long-term use — especially in digestive support formulations.

By Application

Pharmaceuticals and OTC Drugs Used in cough syrups, anti-ulcer medications, and inflammation control. Regulatory validation has made this segment one of the most stable and profitable, particularly for processed extracts.

Nutraceuticals and Dietary Supplements The fastest-growing application segment, with rising interest in licorice’s adaptogenic and anti-inflammatory properties. Soft gels, powders, and chewables dominate here.

Food and Beverage Mainly used in candies, herbal teas, and functional drinks. Europe, especially Nordic countries, remains a cultural stronghold for licorice-flavored confectionery.

Personal Care and Cosmetics Popular for its skin brightening and anti-inflammatory effects, licorice extract is now a regular in skincare serums, creams, and soaps.

Tobacco Alternatives and E-Cigarette Liquids An under-reported but significant segment. Licorice acts as a flavoring and smoother in herbal cigarettes and nicotine-replacement products.

By Distribution Channel

B2B (Manufacturers and Formulators ) Bulk buyers, including pharma labs and nutraceutical brands, dominate demand. Procurement depends heavily on extract purity, traceability, and global certifications (e.g., Kosher, Halal, GMP ).

Retail (Health Stores, Online Channels ) Driven by wellness enthusiasts and DIY herbalists. Powdered root, DGL chewables , and herbal blends are gaining traction online, especially in North America and Germany.

By Region

Asia Pacific Home to the largest cultivation zones and traditional demand. China and India dominate both supply and usage in traditional medicine.

Europe Strong demand from both the food and cosmetics industries. Scandinavian countries drive high per capita licorice consumption.

North America Fastest-growing market for DGL and botanical supplements. U.S. consumers are warming up to functional herbal blends for gut and adrenal health.

LAMEA (Latin America, Middle East & Africa ) Emerging but erratic demand. Iran remains a major exporter of raw licorice root, while local consumption is limited.

 

3. Market Trends and Innovation Landscape

Licorice root might be ancient, but the way it’s processed, positioned, and regulated today is anything but traditional. From advanced extraction technologies to AI-assisted quality testing, the licorice value chain is modernizing fast. Let’s unpack what’s shaping the next phase of growth.

Cleaner Extracts and Precision Standardization

Today’s leading manufacturers aren’t just producing licorice extracts — they’re engineering them. Using technologies like supercritical CO2 extraction and low-temperature spray drying, suppliers are able to preserve bioactive compounds while minimizing degradation.

More importantly, they’re offering highly standardized glycyrrhizin or glabridin content — essential for pharmaceutical and nutraceutical compliance. The shift toward “active-ingredient- centric” licorice is helping the product move upmarket, especially in regulated OTC drugs and premium skincare.

DGL Is Becoming a Category, Not a Subset

Once a niche derivative, deglycyrrhizinated licorice (DGL) is now a strategic focus for many brands. As consumer awareness about glycyrrhizin’s potential side effects grows, DGL is emerging as the go-to format for chronic use — especially in gut health supplements.

Leading supplement players are launching probiotic + DGL combinations , marketed for conditions like GERD, leaky gut, and gastritis. These formulations often include zinc carnosine and slippery elm, further repositioning licorice as a targeted therapeutic rather than a generalized adaptogen .

Licorice in Skincare Is Getting Scientific

In cosmetics, glabridin , a flavonoid found in licorice, is gaining traction for its melanin-inhibiting and anti-inflammatory properties . What’s different now is the level of scientific backing. Brands are using clinical studies and in vitro testing to justify claims around hyperpigmentation and post-acne care.

Cosmeceutical manufacturers are also blending licorice extract with niacinamide and hyaluronic acid, enabling multi-function serums for sensitive skin markets. Expect growth in hypoallergenic and clean-label personal care lines featuring licorice as a core active.

Tech-Enabled Traceability and Supply Chain Reform

With licorice now considered a high-value ingredient, traceability has moved to the front of the conversation . Companies are integrating blockchain and satellite-based agricultural monitoring to verify wild-harvested roots and avoid overharvesting — especially in Iran, Uzbekistan, and Mongolia.

One European herbal supplier now uses AI to analyze soil integrity and harvest timing to optimize glycyrrhizin yield per root. These aren’t fringe upgrades — they’re becoming essential for maintaining organic certifications and gaining entry into premium formulations.

Licorice Is Quietly Supporting Tobacco Harm Reduction

While not widely advertised, licorice remains a key flavoring and smoothening agent in nicotine-free pouches, herbal cigarettes, and some vape liquids . As governments crack down on artificial flavorings, natural compounds like licorice are gaining favor.

Some manufacturers are experimenting with micronized licorice extract blends to reduce throat harshness and mimic sweetness without additives. This has made the ingredient a subtle but strategic asset in the next generation of “cleaner” tobacco alternatives.

 

4. Competitive Intelligence and Benchmarking

The licorice root market may look fragmented from the outside, but in reality, it’s shaped by a few well-positioned global players and a complex web of regional processors, extractors, and contract manufacturers. The competitive edge now depends less on scale and more on compliance, standardization, and application-specific innovation . Here's how the top players are competing.

Norevo GmbH

Based in Germany, Norevo is one of the most established licorice product suppliers in Europe. They specialize in refined extracts , offering various glycyrrhizin concentrations suited for pharmaceuticals, confectionery, and cosmetics. Norevo also emphasizes traceability, with sourcing partnerships in Central Asia and North Africa.

Their strength? An integrated approach — from wild harvesting to formulation-ready extracts, with consistent quality control across batches. They’re particularly favored by European supplement brands that need compliance with EFSA purity standards.

ASEH ( Amoot Iranian Licorice Co.)

As one of the largest licorice exporters from Iran, ASEH dominates the raw and semi-processed licorice root market. They handle everything from cut roots to pharmaceutical-grade blocks and powders. Despite political and logistical hurdles, their extracts remain widely used in India, China, and Eastern Europe.

ASEH’s edge lies in supply depth and price competitiveness . However, Western buyers may face import restrictions and documentation challenges — a factor that’s led to diversification of sourcing away from Iran in recent years.

Magnasweet ( Tronox LLC)

Magnasweet is a U.S.-based licorice extract specialist that focuses primarily on sweetening and flavor-masking applications . Their proprietary licorice blends are widely used in chewable tablets, lozenges, nicotine-replacement products, and functional beverages .

Their strength? Custom flavor systems and formulations. They don't just sell extract — they help clients build palatability into health products. That makes them a preferred partner for oral health and nutraceutical companies in North America.

Shaanxi Jintai Biological Engineering Co., Ltd.

A key Chinese player, Jintai produces both conventional and organic licorice root extracts for export. Their strength lies in volume and variety — they supply everything from DGL powders to highly concentrated glycyrrhizin extracts tailored for pharma-grade inputs.

They’re also investing in R&D, recently launching licorice-based polysaccharide compounds for use in immune-support nutraceuticals . Their ability to scale at speed makes them a strong partner for private-label supplement brands globally.

Herbochem

An Indian supplier with growing influence, Herbochem focuses on standardized botanical extracts, including licorice. What sets them apart is their GMP-certified production facilities and focus on herbal drug compliance under India’s AYUSH ministry.

They’ve recently expanded into ready-to-fill licorice capsules and DGL chewables , targeting both the domestic Indian market and Gulf region exports. Their flexibility in format and regulatory agility makes them a solid pick for mid-sized wellness brands.

Competitive Landscape at a Glance:

• European players dominate high-purity, compliance-heavy segments.

• Middle Eastern and Central Asian exporters lead in raw material supply, though geopolitical risks persist.

• Chinese and Indian firms win on price, scalability, and format variety.

• North American companies focus on taste modulation, DGL innovation, and wellness alignment.

 

5. Regional Landscape and Adoption Outlook

The licorice root market doesn’t follow a simple developed-vs-developing trajectory. Its growth varies widely based on cultural familiarity, regulatory frameworks, local health trends, and even political ties. Here's how licorice demand and supply are unfolding across key regions.

Asia Pacific

This region is both the largest producer and a key consumer — but for very different reasons depending on the country.

• China leads in cultivation, extraction, and traditional usage. Licorice is a foundational herb in Traditional Chinese Medicine (TCM) and is also used as a pharmaceutical excipient. Local companies export massive volumes of extract globally, but domestic demand is equally strong.

• India sees consistent demand through Ayurvedic applications, especially in gastrointestinal and respiratory formulations. DGL and root powder formats are becoming common in branded OTC gut health products.

• In Japan and South Korea , licorice extract is incorporated into skincare and beauty routines, especially for brightening and calming inflamed skin.

Asia Pacific isn't just the production hub — it's where licorice is culturally normalized, giving local companies an edge in low-barrier, high-volume usage.

Europe

This region has the most diverse application base , from confectionery to dermaceuticals .

• Nordic countries — especially Finland and Sweden — have a strong tradition of licorice-flavored candies. Per capita consumption here is among the highest globally.

• Germany and France are pushing demand for clean-label DGL supplements and cosmeceutical formulations. Licorice is often paired with other botanicals in products targeted at stress, gut health, or skin tone correction.

• The EU regulatory framework plays a big role — extracts must meet stringent purity standards, driving demand for traceable and standardized formats.

Europe’s mature regulation gives it the strictest bars — but also the highest margins — for licorice products that pass those bars.

North America

North America is seeing a steady rise in clinical and retail licorice adoption , particularly in wellness and alternative care.

• In the United States , DGL is gaining ground in the digestive health aisle. Licorice is often part of branded gut support supplements alongside L-glutamine and slippery elm.

• Cosmetics companies are embracing licorice for “natural brightening” lines, particularly those targeting pigmentation in multi-ethnic skin tones.

• One wildcard? The rise of herbal tobacco alternatives . Licorice is a core ingredient in nicotine-free chew products and flavored pouches.

North America isn’t interested in licorice for its roots — it’s interested in what science says about its actives. Clinical efficacy is the key unlock.

Latin America, Middle East, and Africa (LAMEA)

This region is diverse and underpenetrated — but that’s starting to change.

• Iran remains a major licorice supplier, exporting raw roots and blocks to Europe and Asia. However, political sanctions and customs issues often impact reliability.

• Brazil and Mexico are emerging as supplement and OTC health product markets, but licorice remains a minor ingredient in most formulations.

• In parts of Africa , local use is largely herbal and unregulated. Some NGOs are exploring licorice-based lozenges in community health projects, particularly for throat and respiratory care.

This is a price-sensitive region. To win here, suppliers need to prioritize affordability, shelf-stability, and multi-use potential.

 

6. End-User Dynamics and Use Case

What’s interesting about the licorice root market is how differently each end user treats the product. Some see it as a flavor enhancer. Others treat it as a bioactive compound with therapeutic intent. That variation shapes not only demand but also the format, dosage, and pricing of licorice-based ingredients.

Pharmaceutical Companies

Big pharma and specialty OTC brands are among the most consistent buyers — especially of standardized glycyrrhizin and deglycyrrhizinated licorice (DGL) . In these settings, licorice extract isn’t used for marketing flair. It’s used for specific pharmacological effects:

• Soothing mucous membranes in throat lozenges

• Reducing gastric inflammation in anti-ulcer formulations

• Supporting cortisol balance in adaptogenic products

These companies demand full transparency on origin, heavy metal limits, and consistent bioactive profiles. Batch-to-batch consistency and global certifications (USP, GMP, Kosher ) are non-negotiables.

Nutraceutical and Dietary Supplement Brands

This is the fastest-moving segment. Supplement companies want multi-functional, clean-label botanicals that can be marketed for digestive support, adrenal health, or immunity. Licorice fits all three — especially when used in DGL form.

Popular formats include:

• DGL chewables for heartburn

• Licorice + L-glutamine gut powders

• Capsules for adrenal fatigue blends

These players are highly responsive to consumer trends and are quick to adopt new research or rebrand licorice around newer health narratives (like “stress relief” or “microbiome balance”).

Cosmetic and Personal Care Manufacturers

Licorice in this segment is all about glabridin — the compound known for its skin-brightening, anti-inflammatory, and antioxidant effects. Cosmetic labs use water-soluble licorice extracts in:

• Hyperpigmentation serums

• Soothing creams for eczema or sensitive skin

• Post-acne spot correctors

End users here demand purity, light color, and no odor interference. Even a small inconsistency in extract quality can affect product aesthetics and shelf stability — so suppliers to this segment face tight QC expectations.

Food and Beverage Producers

Licorice has long been used as a natural sweetener or emulsifier, especially in Europe. Today, it's making a quiet return in functional beverages , where taste-masking and natural sweetness are both key. It’s also used in:

• Herbal teas (especially detox or digestive blends)

• Reduced-sugar candies

• Ethnic sauces and marinades

This group is often price-sensitive and less concerned with high-standardization — unless regulatory limits on glycyrrhizin content come into play (e.g., in the EU).

Tobacco and Nicotine-Free Alternatives

Some of the most innovative licorice applications are happening here, behind the scenes. The root is used for sweetening and smoothening the sensory experience in:

• Herbal cigarettes

• Nicotine pouches

• Vape liquids (especially in natural or “clean” lines)

These manufacturers are now exploring micronized licorice formats that dissolve quickly and evenly — allowing for better control over flavor intensity and texture.

Use Case Highlight

A mid-size U.S. supplement brand wanted to launch a line of gut health products targeting GERD and IBS. But they faced a challenge: their early formulations had a chalky texture and a strong botanical aftertaste.

They partnered with a licorice extract supplier to incorporate DGL powder with built-in stevia masking . The result? A chewable tablet that tasted better, dissolved faster, and delivered clinical-strength anti-inflammatory benefits without triggering blood pressure concerns.

After launch, repeat purchase rates jumped 27%, and the product became one of the brand’s top 3 SKUs within 9 months.

 

7. Recent Developments + Opportunities & Restraints

The past two years have seen the licorice root market evolve quietly but strategically. Behind the headlines, manufacturers and researchers are working to modernize formulations, diversify sourcing, and elevate licorice from a “legacy herb” to a validated bioactive. Let’s look at what’s changed — and what’s getting in the way.

Recent Developments (Last 24 Months)

1. Shaanxi Jintai launched high- glabridin cosmetic extracts (2023 ) The Chinese botanical major rolled out a new series of cosmetic-grade licorice extracts with standardized glabridin levels , tailored for pigmentation-focused skincare brands. These were quickly picked up by Korean and Japanese personal care companies looking to expand their natural brightening lines.

2. An Iranian-European licorice joint venture launched for traceability In late 2023, a European supplement brand and an Iranian licorice processor established a co-monitored cultivation and extraction facility in Iran. The partnership includes blockchain -based traceability , aimed at satisfying EU regulations and avoiding quality disputes tied to geopolitics.

3. U.S. contract manufacturer introduces DGL + adaptogen blend A leading U.S. contract supplement maker introduced a ready-to-brand chewable platform that combines DGL, ashwagandha , and zinc carnosine. It’s being marketed to supplement startups targeting gut-brain health and anti-stress positioning.

4. AI-based QC software rolled out in licorice extract testing (India, 2024) An Indian herbal lab deployed AI-assisted spectroscopy to verify active glycyrrhizin content faster and more accurately. This helps reduce batch rejections and aligns with evolving export regulations in the EU and Japan.

5. Clean-label e-cigarette liquid with licorice launched in the U.S. (2023 ) A California-based tobacco alternative brand released a plant-only vape line , featuring licorice and marshmallow root as natural sweeteners. This is gaining traction among younger consumers looking for “non-toxic” inhalables .

 

Opportunities

1. Rise of Personalized Botanicals in Nutraceuticals Licorice’s adaptogenic and digestive properties make it a strong candidate for stacked supplements — especially as brands look to combine stress support and gut health in single formulations.

2. Regulatory-Driven Ingredient Upgrade As regulators demand more transparency and purity, suppliers with standardized extracts and traceable supply chains will gain a commercial edge — especially in Europe and North America.

3. Skincare’s Natural Actives Boom With glabridin showing strong anti-inflammatory effects, licorice is becoming a core brightening agent in premium dermaceutical products. Brands are leaning toward botanical over synthetic ingredients, and licorice fits that shift perfectly.

 

Restraints

1. Risk of Glycyrrhizin Overuse and Regulatory Blowback Excessive consumption of glycyrrhizin can lead to hypertension and electrolyte imbalances . Markets like the EU and U.S. have strict upper limits, and any high-profile health incident could lead to tighter restrictions or recalls.

2. Supply Volatility from Central Asia and the Middle East A significant portion of licorice root still comes from politically unstable regions. Export disruptions due to sanctions or conflict (e.g., in Iran or Afghanistan) can choke supply and spike prices — particularly for raw root buyers.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 2.6 Billion
Revenue Forecast in 2030	USD 3.7 Billion
Overall Growth Rate	CAGR of 5.9% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Form, By Application, By Distribution Channel, By Geography
By Form	Licorice Extract (Liquid, Powder), Raw Root, Deglycyrrhizinated Licorice (DGL)
By Application	Pharmaceuticals, Nutraceuticals, Food & Beverage, Cosmetics, Tobacco Alternatives
By Distribution Channel	B2B (Bulk Supply), Retail (Online, Health Stores)
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., UK, Germany, China, India, Japan, Brazil, Iran, etc.
Market Drivers	- Growth in gut health and stress support nutraceuticals - Rising demand for clean-label skincare ingredients - Regulatory push for standardized botanical actives
Customization Option	Available upon request