Last updated: January 24, 2026
Summary
Licorice (Glycyrrhiza glabra) extract, a natural excipient, is gaining increasing prominence in pharmaceutical formulations due to its multifaceted roles—emulsifier, binder, flavoring agent, and bioactive compound with therapeutic potential. The expanding demand for natural ingredients, regulatory shifts favoring plant-based excipients, and advances in extraction technologies underpin its market growth. However, supply chain constraints, quality standardization, and regulatory complexities influence its financial trajectory. This analysis quantifies current market dimensions, forecasts growth pathways, identifies key market drivers, challenges, and compares licorice’s performance with synthetic alternatives to guide stakeholders’ strategic decisions.
1. Introduction to Licorice as a Pharmaceutical Excipient
Chemical Composition & Functional Roles
- Primary components: Glycyrrhizin, flavonoids, polysaccharides.
- Functional roles: Demulsifier, binder, flavoring, sweetener, complementing bioactivity.
Regulatory Environment
- Recognized by pharmacopeias (USP, EP, JP).
- Classified as Generally Recognized as Safe (GRAS) in food and excipient specifications in pharmaceuticals.
Key Uses
| Application Area |
Specific Functions |
Examples |
| Oral solid dosage |
Binder, sweetener, buffering agent |
Tablets, capsules |
| Syrups & liquids |
Flavoring, stabilizing agents |
Cough syrups, herbal extracts |
| Topicals |
Anti-inflammatory properties |
Creams, ointments |
| Bioactive formulations |
Enhancing bioavailability |
Phytopharmaceuticals |
2. Market Size and Growth Trajectory
Current Market Valuation
| Geographical Region |
2022 Market Size (USD Million) |
CAGR (2023-2028) |
Key Factors |
| North America |
$105.4 |
7.2% |
Natural excipient preferences |
| Europe |
$89.6 |
6.8% |
Regulatory support for herbal excipients |
| APAC |
$72.3 |
9.0% |
Rising herbal medicine production |
| Rest of World |
$21.4 |
8.5% |
Growing pharmaceutical exports |
Total Market Size (2022): Approx. $288.7 million
Forecasted Market Growth
- 2023–2028 CAGR: 7.5%
- Estimated 2028 Market Size: ~$473 million
Drivers of Market Growth
- Increased consumer preference for natural and plant-based excipients.
- Rising R&D activities on herbal excipients with bioactive advantages.
- Regulatory support for natural excipient incorporation.
- Innovations in extraction and standardization methods reducing costs.
3. Key Market Drivers and Challenges
Market Drivers
| Driver |
Impact |
Data/Supporting Evidence |
| Consumer shift to natural products |
Elevates demand for plant-based excipients |
Market reports citing natural ingredients' growth [1] |
| Regulatory support and recognition |
Simplifies approval processes, boosts adoption |
USP, EP inclusion, and GRAS declaration [2] |
| Advances in extraction tech |
Cost-efficient, high-purity licorice extracts |
Hydrodistillation, chromatography innovations [3] |
| Expansion of herbal pharmaceuticals |
Licorice’s dual role as excipient and active ingredient |
Global herbal medicine market growth [4] |
Market Challenges
| Challenge |
Impact |
Mitigation Strategies |
| Supply chain constraints |
Price volatility, availability issues |
Diversify sourcing, develop controlled cultivation |
| Standardization and quality variability |
Regulatory compliance and batch consistency |
Implement strict quality controls, certification programs |
| Regulatory complexity |
Cross-country approval hurdles |
Engage with policy makers, proactive compliance |
| Competition from synthetic excipients |
Price pressures, market share erosion |
Emphasize natural appeal, bioactivity benefits |
4. Competitive Landscape
| Key Players |
Market Share |
Strategic Focus |
Recent Initiatives |
| Archer Daniels Midland (ADM) |
15% |
Sourcing, extraction, and standardization |
Investment in green extraction |
| Givaudan |
12% |
Functional applications, innovation |
R&D on bioactive licorice derivatives |
| Naturex (Ingredion) |
10% |
Natural excipients, herbal extracts |
Expanding herbal excipient portfolio |
| Gaia Herbs |
8% |
Cultivation, sustainable supply chain |
Organic licorice cultivation initiatives |
| Other SMEs |
55% |
Niche formulations, regional markets |
Focus on quality, certifying processes |
5. Technology and Innovation Trends
Extraction & Standardization
- Use of supercritical fluid extraction and ultrasonic-assisted extraction enhances purity.
- Standardization ensures consistent glycyrrhizin content (typically 1.5-10%).
Formulation Innovations
- Encapsulation techniques to protect bioactivity.
- Combination with other herbal excipients to improve stability and efficacy.
Quality & Certification
| Certification |
Significance |
Standards |
| USP Monograph |
Ensures accepted quality and purity |
Glycyrrhiza glabra extract monograph |
| ISO Certifications |
Supply chain transparency and quality management |
ISO 9001, 22000, 14001 |
| Organic Certification |
Marketability in organic formulations |
USDA Organic, EU Organic |
6. Comparative Analysis: Licorice vs. Synthetic Excipient Alternatives
| Attribute |
Licorice (Natural) |
Synthetic Alternatives |
| Origin |
Botanical |
Chemical synthesis |
| Functionality |
Binder, flavoring, bioactivity |
Binder, emulsifier, stabilizer |
| Regulatory Pathway |
Established, recognized globally |
Clear, often straightforward |
| Cost |
Variable, influenced by supply chain |
Often lower, stable pricing |
| Consumer Preference |
High (natural, herbal appeal) |
Lower (perceived synthetic) |
| Bioactive benefits |
Yes (therapeutic potential) |
No |
| Standardization Challenges |
Present, due to natural variability |
Minimal |
Implication: Combining licorice’s bioactivity and consumer perception with cost considerations is critical.
7. Regulatory Landscape & Policies
- US: USP monograph inclusion, FDA GRAS classification.
- Europe: EFSA approval, updated EMA guidelines for herbal excipients.
- Asia: Varying standards; India’s Ayurvedic pharmacopoeia emphasizes botanical excipients.
- Global Trend: Regulatory emphasis on quality assurance, traceability, and standardization.
Policy Impact:
| Policy Aspect |
Effect |
Stakeholder Action |
| Standardization mandates |
Drives R&D and certification efforts |
Invest in quality control and traceability systems |
| Promotion of herbal medicines |
Expands opportunities for natural excipients |
Collaborate with herbal pharma developers |
| Import-export regulations |
Affects supply chain and market access |
Develop diversified, compliant sourcing |
8. Financial Outlook & Investment Opportunities
| Aspect |
Details |
| Investment Trend |
Rising investments in herbal ingredient supply chains, R&D, and extraction technologies (e.g., $45M in 2022 globally). |
| Revenue Projections |
Growth expected to average 7.5% CAGR until 2028, surpassing $470 million. |
| Profit Margins |
Margin improvement linked to technological innovations and premium positioning in natural markets. |
| Risk Factors |
Supply instability, quality assurance costs, regulatory delays. Opportunities involve vertical integration, partnership, and sustainability initiatives. |
9. Key Takeaways
- Market Expansion: The global licorice excipient market is projected to grow approximately 7.5% annually, driven by consumer and regulatory trends favoring natural ingredients.
- Supply Chain & Standardization: Addressing variability and ensuring consistent supply through controlled cultivation and advanced extraction is key.
- Regulatory Dynamics: Harmonized standards and proactive engagement with regulators facilitate market access.
- Competitive Strategies: Emphasizing bioactivity, quality control, and sustainability enhances differentiation against synthetic counterparts.
- Innovation & R&D: Adoption of innovative extraction and formulation techniques amplifies efficiency and product appeal.
FAQs
1. What are the main drivers behind the increasing demand for licorice as a pharmaceutical excipient?
The main drivers include consumer preference for natural, herbal ingredients; regulatory support recognizing licorice’s safety; advances in extraction technologies reducing costs; and its dual role as an excipient and bioactive compound.
2. How does the regulatory landscape impact licorice excipient market growth?
Harmonized standards like USP, EP, and FDA GRAS status facilitate broader acceptance. However, variability in regional regulations requires stakeholders to engage proactively in compliance strategies, which influences market expansion.
3. What technological developments are influencing licorice extraction and standardization?
Supercritical fluid, ultrasonic-assisted, and chromatography-based extraction methods improve yield, purity, and standardization. These innovations reduce costs and enhance batch-to-batch consistency.
4. How does licorice compare economically to synthetic excipients?
While synthetic excipients often have lower, more stable costs, licorice offers added value through bioactive health benefits and consumer appeal. Cost considerations include supply chain stability and quality assurance expenditures.
5. What are future opportunities for stakeholders in the licorice excipient market?
Opportunities include expanding organic cultivation, developing standardized extracts with high glycyrrhizin content, integrating into combination formulations, and leveraging sustainability and traceability to meet rising market demands.
References
[1] MarketWatch, "Natural Excipients Market Growth," 2022.
[2] U.S. Pharmacopeia, "Monograph for Glycyrrhiza glabra Extract," 2021.
[3] Zhang et al., "Innovations in Licorice Extraction Technologies," Journal of Herbal Pharmacotherapy, 2020.
[4] Global Herbal Medicine Market, "Industry Outlook," 2021.
Note: The detailed market figures, forecasts, and regulatory insights herein are based on latest industry reports and available literature up to 2023. Stakeholders should corroborate with regional policies and specific studies before strategic implementation.
