Licorice Extract Market Size

Licorice Extract Market Size

Licorice Extract Market size was valued at USD 2.23 billion in 2023 and is anticipated to register a CAGR of over 4.5% between 2024 and 2032, owing to the increasing consumer awareness about the health benefits associated with licorice consumption and the expanding application of licorice in the pharmaceutical, food and beverage, and cosmetic industries.

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The market growth is propelled by various factors such as the rising demand for natural and herbal ingredients in consumer products. Licorice extract, with its natural sweetening properties and various health benefits, is increasingly being used as a substitute for artificial sweeteners and flavoring agents, thereby driving its market growth. The expansion of the food and beverage industry, coupled with the growing consumer preference for natural and organic products, has boosted the demand for licorice-based food and beverage products.

Despite the promising growth prospects, the licorice extract market also faces several challenges and pitfalls. One of the major challenges is the fluctuation in licorice supply and pricing. Licorice extract is primarily sourced from the roots of the Glycyrrhiza plant, which is cultivated in specific regions globally. Factors such as weather conditions, diseases, and geopolitical tensions can significantly impact licorice production, leading to supply shortages and price volatility.

Additionally, overharvesting and unsustainable agricultural practices pose environmental concerns and could potentially disrupt the supply chain of licorice products. However, the expansion of the food and beverage industry, coupled with the increasing consumer preference for natural and organic products, is expected to drive the demand for licorice in this sector.