Pharmaceutical Grade Licorice Extract Market Outlook 2026–2033: Growth Drivers and Forecast

Market Overview

Pharmaceutical Grade Licorice Extract Market size is estimated to be USD 1.2 Billion in 2024 and is expected to reach USD 2.5 Billion by 2033 at a CAGR of 8.8% from 2026 to 2033.

The global pharmaceutical-grade licorice extract market was valued at approximately USD 219.6 million in 2023 and is projected to reach USD 271.85 million by 2032, exhibiting a compound annual growth rate (CAGR) of 2.4% during the forecast period . This growth is driven by the increasing demand for natural and herbal remedies, rising prevalence of respiratory and digestive ailments, and expanding applications in dermatology and skincare.

Key Drivers of Market Growth

1. Rising Prevalence of Respiratory and Digestive Disorders: Licorice extract has been traditionally used to treat respiratory and digestive issues. Its anti-inflammatory and soothing properties make it a valuable component in medications targeting conditions like bronchitis, sore throat, and gastric ulcers. The increasing incidence of these ailments globally fuels the demand for pharmaceutical-grade licorice extract .
2. Growing Consumer Preference for Herbal Medicines: There is a significant shift towards natural and herbal remedies, driven by concerns over synthetic drugs' side effects. Licorice extract, being a natural ingredient with a long history in traditional medicine, aligns well with this consumer trend, thereby boosting its demand in the pharmaceutical sector .
3. Expanding Applications in Dermatology: Licorice extract is increasingly utilized in dermatological products due to its anti-inflammatory and skin-brightening properties. It is effective in treating conditions like eczema, psoriasis, and hyperpigmentation, leading to its incorporation in various topical formulations .
4. Technological Advancements in Extraction Methods: Innovations in extraction technologies, such as supercritical CO₂ extraction and solvent-free processes, are enhancing the purity and bioavailability of licorice extracts. These advancements contribute to the production of high-quality pharmaceutical-grade extracts, meeting stringent regulatory standards .

Market Segmentation

1. By Grade

• Pharmaceutical Grade: This segment held over USD 901.1 million in revenue in 2023 and is expected to continue its dominance due to the increasing preference among consumers for natural remedies and herbal medicines .
• Food Grade: Used primarily as a natural sweetener and flavoring agent in food products.
• Feed Grade: Incorporated into animal feed for its potential health benefits.

2. By Form

• Powder: Dominated the market with a 50% share in 2023. The powder form offers superior physicochemical stability, significant surface hardness, and density, making it suitable for various applications .
• Liquid: Accounted for 42% of the market share in 2023. Liquid extracts are preferred for their ease of incorporation into formulations and precise dosing .
• Block: Less commonly used but still relevant in certain applications.

3. By Application

• Pharmaceuticals: The largest application segment, driven by the use of licorice extract in treating respiratory and digestive disorders.
• Food & Beverages: Increasing demand for natural sweeteners and flavoring agents is propelling growth in this segment.
• Dietary Supplements: Rising consumer interest in health supplements containing natural ingredients.
• Tobacco: Licorice extract is used in tobacco products for flavor enhancement.
• Others: Includes applications in cosmetics and animal feed.

4. By Region

• Asia-Pacific: Holds a significant share due to the traditional use of licorice in Chinese and Ayurvedic medicine.
• North America: Witnessing growth driven by increasing consumer awareness of natural health products.
• Europe: Stable demand, with a focus on regulatory compliance and quality standards.
• Latin America & Middle East & Africa: Emerging markets with potential for growth.

Challenges and Restraints

Despite its growth, the licorice extracts market faces challenges, including:

• Regulatory Challenges: The presence of glycyrrhizin in licorice can lead to adverse health effects in large quantities, leading to regulatory restrictions in certain markets .
• High Cost of Cultivation: Licorice requires specific growing conditions, making it more difficult to cultivate in regions that do not meet these criteria, resulting in higher prices for raw licorice .
• Supply Chain Disruptions: As demand rises, the pressure on suppliers to meet growing needs may lead to supply chain disruptions, contributing to market volatility .

Future Outlook

The pharmaceutical-grade licorice extract market is poised for continued growth, driven by ongoing research into its therapeutic properties and the development of new applications. The Asia-Pacific region is expected to exhibit the highest CAGR during the forecast period, attributed to the longstanding use of licorice in traditional medicine systems such as Traditional Chinese Medicine (TCM) and Ayurveda .

In North America, the market is witnessing growth due to increasing consumer awareness of natural health products and a rising inclination towards herbal supplements. The region's advanced pharmaceutical industry also plays a crucial role in the development and incorporation of licorice extract into various medicinal products .

Conclusion

The pharmaceutical-grade licorice extract market is experiencing steady growth, driven by the increasing demand for natural and herbal remedies, rising prevalence of respiratory and digestive ailments, and expanding applications in dermatology and skincare. Technological advancements in extraction methods and growing consumer preference for herbal medicines further contribute to the market's expansion. However, challenges such as regulatory restrictions and high cultivation costs need to be addressed to ensure sustainable growth in the coming years.