Grade Segment Analysis: Pharmaceutical Grade (Largest & Fastest-Growing Segment)

The pharmaceutical grade segment dominated the licorice extract market with a 42.82% share in 2026 and also emerged as the fastest-growing grade category. Its strong position is driven by the increasing use of licorice extract in pharmaceutical formulations owing to its functional properties and broad applicability in health-related products. Pharmaceutical manufacturers prioritize high-purity ingredients that meet stringent quality and regulatory standards, making pharmaceutical-grade licorice extract a preferred choice. Growing interest in plant-derived ingredients and the expanding development of herbal and therapeutic formulations continue to reinforce demand for this segment. As the healthcare industry places greater emphasis on naturally sourced active ingredients, pharmaceutical-grade licorice extract is expected to maintain its leadership position within the market.

Form Segment Analysis: Liquid (Largest Segment) vs Powder (Fastest-Growing Segment)

The liquid form segment led the licorice extract market, accounting for 44.52% of the market share in 2026. Its dominance is supported by its ease of incorporation into beverages, syrups, pharmaceutical preparations, and other liquid-based formulations. Liquid licorice extract offers advantages in terms of blending efficiency, formulation flexibility, and uniform distribution of active compounds, making it widely adopted across multiple end-use industries. The growing demand for convenient ingredient solutions in food processing and pharmaceutical manufacturing further contributes to the segment’s strong market presence.

The powder form segment is witnessing the fastest growth due to its extended shelf life, ease of storage, and compatibility with dry formulation processes. Powdered licorice extract is increasingly utilized in dietary supplements, functional foods, and pharmaceutical products where precise dosage control and transportation efficiency are important considerations. Rising demand for versatile and stable ingredient formats is supporting the accelerated adoption of powder-based licorice extracts across global markets.

Application Segment Analysis: Food & Beverages (Largest & Fastest-Growing Segment)

In the licorice extract market, the food and beverages application segment accounted for the largest share of 44.94% in 2026 while also representing the fastest-growing application area. The segment’s prominence is driven by the extensive use of licorice extract as a flavoring and functional ingredient in confectionery products, beverages, bakery items, and specialty food formulations. Consumer preference for natural ingredients and clean-label products has encouraged manufacturers to incorporate plant-based extracts into their offerings. Additionally, growing demand for innovative flavors and value-added food products continues to expand the application scope of licorice extract. These factors collectively support the segment’s sustained leadership and rapid growth within the market.