The Licorice Extract Market is witnessing a significant evolution in product formulations, with deglycyrrhizinated licorice (DGL) emerging as a critical segment that addresses safety concerns while unlocking new applications in gastrointestinal health and functional wellness. As per Market Research Future, the global licorice extract market reached an estimated USD 2.45 billion in 2025 and is projected to grow from USD 2.58 billion in 2026 to USD 4.05 billion by 2035, expanding at a CAGR of 5.15% across the forecast window. The growing adoption of deglycyrrhizinated licorice DGL reflects the industry's response to health and regulatory considerations.

The clinical literature has linked pseudoaldosteronism, hypertension, and hypokalemia to the chronic consumption of glycyrrhizin above standard thresholds. The European Food Safety Authority provides strict guidance on the requirements for unambiguous consumer labeling for elevated glycyrrhizin content in finished foods and beverages. The industrial transition to deglycyrrhizinated licorice (DGL) variants has been expedited by the introduction of formulation complexity for manufacturers as a result of these safety regulations. DGL effectively addresses health and regulatory concerns; however, it has a narrower flavor utility in traditional candy formulations and incurs higher processing costs.

Deglycyrrhizinated licorice DGL has shown efficacy in managing functional dyspepsia and mild gastroesophageal reflux in randomized controlled trials. With gastroenterology representing a USD 48 billion therapeutic area globally, DGL-based formulations offer a credible OTC alternative to proton pump inhibitors for mild symptoms — creating a significant volume opportunity for the licorice extract market. DGL removes glycyrrhizin to eliminate hypertension risk, making it preferred for daily-use digestive supplements. Full-spectrum retains broader bioactive diversity but requires dosage warnings.

The rise of functional confectionery and better-for-you snacking is creating new opportunities for DGL formulations. Brands are leveraging licorice anti-inflammatory properties in product positioning for throat-soothing lozenges, probiotic gummies, and adaptogenic chocolates. The global functional food market, valued at USD 85 billion, is opening new formulation territory for glycyrrhizin licorice root extract in health-focused products. As consumer awareness of the benefits of DGL for digestive wellness continues to grow, the segment is positioned for sustained expansion across dietary supplements, functional foods, and over-the-counter gastrointestinal health products.

FAQ Section:

Q1: What is deglycyrrhizinated licorice (DGL) and why is it important?
A: DGL is licorice extract with glycyrrhizin removed to eliminate hypertension risk associated with chronic high intake. It is important for enabling safe daily-use digestive supplements and expanding licorice applications in mainstream gastrointestinal health products.

Q2: How does DGL support gastrointestinal health compared to full-spectrum licorice?
A: DGL has shown clinical efficacy in managing functional dyspepsia and mild gastroesophageal reflux without glycyrrhizin-related side effects. It offers a credible OTC alternative to proton pump inhibitors for mild symptoms, providing targeted digestive support with a safer profile for long-term use.