LICORICE EXTRACT MARKET ANALYSIS

Licorice Extracts - Insights

Licorice extracts derived from licorice roots are used as in medicines and is available in powdered or liquid form. The extract is produced by boiling licorice roots (Glycyrrhiza glabra), which is a plant native to the Mediterranean region. Apart from herbal medicines it is used as a sweetener and flavoring agent. The extract has anti-inflammatory, antiviral, and detoxification properties. It is widely used in the food industry as the extract is almost 50 times sweeter as compared to sugar. Increasing demand for herbal medicines, plant-based sweeteners, and growing awareness related to sugar-free products is expected to drive growth of licorice extracts market during the forecast period.

On the basis of product type licorice extracts market is segmented in food grade, feed grade, and pharmaceutical grade. The pharmaceutical grade segment is expected to hold dominant position in the market owing to large medicinal applications of the extracts along with increasing use in cancer prevention. Food grade segment is expected to accounts for a substantial market share in terms of revenue. Increasing use of licorice extracts in food industry and growing demand for natural ingredient is projected to boost growth of the licorice market. On the basis of application licorice extracts market is segmented into food & beverages, pharmaceutical, tobacco, and others. Pharmaceutical segment is expected to account for the largest revenue share over the forecast period, due to increasing use of licorice extracts in medicines. The extract has anti-microbial properties, improves the respiratory system, and reduces stress. This market is further segmented into forms such as powder, liquid, and block. Powder form segment was the dominant segment, in 2016, in terms of revenue share in the market. This is attributed to its wide application in food and beverages and cosmetic industries.

Asia Pacific is the dominant region in the global licorice extracts market and was valued at US$ 612.16 Mn in 2016. This is attributed to increasing demand from the pharmaceutical industry. In China, licorice extracts are widely used for the treatment of ulcers and to enhance immune system by naturally boosting interferon levels. It is also known as “The Great Detoxifier” in China. In Japan, it is used for the treatment of chronic hepatitis B. There is a rising interest of using licorice extracts in food foams. Owing to foaming properties of licorice extracts, it is gaining importance in food foams. This extract enhance the quality and shelf-life of the final product. Hence, these extracts are widely used in the beverage industry as foaming agent.

Europe is the second largest region in global licorice extracts market, in terms of revenue, over the forecast period. The market growth is driven by increasing demand for low calorie food and for the production of sweeteners such as MAG (Mono Ammonium Glyzyrrhizinat). European countries such as Germany and France are expected to account for highest imports of licorice extracts in Europe for use in food applications. In Europe, it is widely used for the production of MAG which is used as masking agent in products sweetened by stevia. Manufacturers in the market are focusing on research and development activities for developing new products.

North America is expected to show significant growth in the global licorice extracts market owing to growing usage of herbal medicines and increasing demand for plant-based natural ingredients. Licorice extracts is used to impart flavors to tobacco products hence, increasing demand for cigarettes is expected to fuel the market growth. However, in 2016, U.S. FDA (Food & Drug Administration), issued a warning to consumers against the use of licorice containing coughing liquid as it contains unidentified morphine, which may have adverse effects on human health including allergic reactions, respiratory depression, and death.

The licorice extracts market was valued at US$ 1,779.59 Mn in 2016 and is expected to expand at a CAGR of 5.7%, in terms of revenue, during 2017–2025.

Figure 1. Global Licorice Extracts Market Share, By Region

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Source: Coherent Market Insights (2017)

Asia Pacific is expected to account for a share of 34.40% in 2016, in global licorice market. The increasing usage of licorice extract for cancer treatment led to an increase in production of licorice extracts for application in the pharmaceutical industry for manufacturing herbal medicine.

Major Players in the Global Licorice Extracts Market

Some of the key players in the global licorice extracts market include Norevo GmbH, MAFCO Worldwide LLC, FC Licorice, Zagros Licorice Co., Ransom NaturalsLtd., Aushadhi Herba, VPL Chemicals, Sepidan Osareh Co., and others.