Competition is strong among the numerous deep pocketed players in the global market for licorice. Such players are seen banking upon product innovation in order to further their stronghold over the market. F&C Licorice Ltd., Norevo GmbH, Mafco Worldwide LLC, VPL Chemicals PVT Ltd., Zagros Licorice Co., SepidanOsareh Co., ASEH Licorice MFG & Exp. Co., Zelang Group, Maruzen Pharmaceuticals Co. Ltd., and Ransom Naturals Ltd. are some such big names operating the licorice extracts market.
A recent research study on licorice extracts market by Transparency Market Research states that it would rise at a steady 4.0% CAGR between 2017 and 2025 to pull in a value of US$2.3 bn by 2025-end from US$1.70 bn in 2016.
Among the various forms in which licorice is available, the powder form is seeing maximum uptake worldwide owing to its usage in skincare products and food and beverages. Both the sectors are forecasted to proliferate impressively in the near term, thereby underpinning the demand for powder licorice extracts going forward. From a geographical standpoint, the market for licorice extracts is being led by Asia Pacific. As per the TMR report, the leading share of the region came to around 32.0% in 2016. Demand from India, China, and Japan has mainly served to buoy growth in the region so far and will continue doing so in the near term as well.
Pharmaceutical Industry Majorly Fuels Demand
Licorice extracts find application in the food and beverage, pharmaceuticals, and tobacco industry. Thanks to the continued progress in the various pharmaceutical products such as herbal medicines and other health products, the demand for the product has also seen steady rise. Explains the lead analyst of our report, “The growing usage of natural ingredients to formulate medical supplements, coupled with a rising tribe of health-conscious consumers keen on sugar-free products is majorly benefitting the global market for licorice extracts.”
A noticeable trend in the market is the players’ focus on research and development to create more evolved products for sugar-free food items. This is mainly a result of growing incidences of lifestyle related chronic conditions such as diabetes and obesity.
Synthetic Sweeteners Dampen Sales Licorice Extract to an Extent
However, one factor that is proving to be a major roadblock for the market for licorice extract is the surging popularity and sales of synthetic sweeteners since they cost less. They are also relatively easy to produce and hence are abundantly available.
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Despite such obstacles, the market is expected to tread a steady growth trajectory in the upcoming years due to the rising interest in herbal medicines in developed nations of the world. Besides, growing thrust on low calorie healthy foods in Europe and North America is also expected to generate demand for licorice extracts in the near term, thereby boosting its market.