LICORICE EXTRACT MARKET ANALYSIS

Regional Analysis

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.