Licorice Extracts - Insights
Licorice extracts are used as in medicines and is available in powdered or liquid form, which is derived from licorice roots. It is produced by boiling licorice roots (Glycyrrhiza glabra), which is a plant native to the Mediterranean region. This extract is used as a sweetener, flavoring agent, and in herbal medicines. Furthermore, it is significantly consumed owing to its anti-inflammatory, antiviral, and detoxification properties. Licorice extract is sweeter as compared to sugar (almost 50 times), hence, it is widely used in the food industry. 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.
Licorice extracts are segment on the basis of product type in food grade, feed grade, and pharmaceutical grade. The pharmaceutical grade segment is expected to account for the largest market share over the forecast period. This can be attributed to large medicinal applications of the extract 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. Licorice extracts are further segmented on the basis of application, which includes food & beverages, pharmaceutical, tobacco, and others. Pharmaceutical segment is expected to account for the highest revenue share over the forecast period, due to increasing use of licorice extracts in medicines due to its anti-microbial properties. It aids in improving the respiratory system, reducing stress, and among others fueling growth of the market. 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
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.
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