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Licorice fluid extract remains an essential component in numerous pharmaceutical and nutraceutical formulas. This ingredient, sourced from Glycyrrhiza glabra, gets significant attention from manufacturers and buyers in the United States, China, Germany, Japan, the United Kingdom, India, France, Canada, Italy, Brazil, South Korea, Russia, Australia, Spain, Mexico, Indonesia, Saudi Arabia, Turkey, the Netherlands, Switzerland, and beyond—including the likes of Poland, Sweden, Belgium, Thailand, Egypt, Norway, Austria, Nigeria, the United Arab Emirates, Israel, South Africa, Ireland, Denmark, Singapore, Malaysia, the Philippines, Pakistan, Chile, Bangladesh, Finland, Vietnam, Colombia, the Czech Republic, Romania, Portugal, New Zealand, Peru, Hungary, and Qatar. Each country faces pressures around supply, manufacturing standards, and pricing. For many, China stands out as both a supplier and a benchmark of efficiency, and the past two years have made price trends a topic that no one can ignore.
Having visited several licorice extract facilities in East China, I can say the gap between domestic and foreign production methods is closing. Chinese GMP factories push volumes, emphasizing batch consistency and product purity, tying their processes tightly to BP, EP, and USP standards. Labor costs remain lower than what’s found in North America, Western Europe, or Australia, and the raw material supply comes mostly from efficient networks concentrated in Inner Mongolia and Xinjiang. Even as global logistics snarls pushed up shipping prices in 2022 and 2023, China managed to keep overall extract costs under control, thanks to wide-reaching manufacturing hubs and close relationships between licorice root growers and processing factories. I’ve seen firsthand that these vertical supply chains dampen volatility for buyers in South Korea, Japan, the United States, and Germany seeking steady inventory and predictable pricing. Most global pharma buyers measure China’s cost offering against suppliers in Turkey, Iran, and Spain, where labor, compliance, and energy costs run higher.
In places like Germany, the US, and Japan, high-tech extraction lines focus on pharmaceutical-grade quality, aiming for impressive purity, lower solvent residues, and maximum bioactive concentration. These facilities invest in R&D and automation, which drives up their cost structure. The return: better batch-to-batch traceability, advanced contamination controls, and brand trust within the European Union, North America, Australia, and New Zealand. Certain multinationals in the UK, Switzerland, and Canada adopt these premium methods, securing their place as high-end suppliers to global pharma giants. I once spoke with a pharmaceutical purchasing manager in Toronto, who noted the assurance they get from these suppliers but admitted the high prices can narrow profit margins for finished formulations exported to price-sensitive markets like Egypt, Nigeria, or India.
Rising demand in India, Brazil, Indonesia, and Saudi Arabia has kept licorice extract prices firm, especially as pharmaceutical demand for natural sweeteners and anti-inflammatory agents continues. Even though raw herb costs jumped at the onset of the Russia-Ukraine conflict, China’s scale helped absorb much of the volatility. That said, 2022 saw container rates spike, and buyers in Italy, Poland, France, and Spain began developing backup suppliers in Turkey and Iran. Prices have gradually stabilized. In 2023, raw material cost in China’s licorice hub hovered around $3,200 per ton for premium-grade roots, bringing fluid extract (BP/EP/USP) output costs for major GMP manufacturers to about $14–18 per kilogram, ex-works. In the US and Canada, costs stick closer to $20–28 per kilogram. In the UK and Germany, pharmaceutical companies regularly pay upwards of $24 due to stricter regulatory demands, but the gap has started shrinking as Chinese labs meet international certification more frequently.
Top global GDP nations—ranging from the US, China, Germany, Japan, and the UK down through South Korea, Italy, Australia, Spain, Mexico, Indonesia, Turkey, and Switzerland—wield their economic muscle in both procurement power and regulatory sophistication. They seek uninterrupted supply, low prices, and strong documentation on allergen status and contaminant testing. Larger GDP economies like the US and Germany have the financial firepower to lock in long-term, stable contracts. Middle-tier economies, such as the Netherlands, Saudi Arabia, Sweden, Belgium, Thailand, and the United Arab Emirates, look for price flexibility and the ability to switch suppliers quickly if a trade dispute or phytosanitary alert pops up. Lower production costs in China, Pakistan, Vietnam, and Egypt make these countries valuable links for both finished product exporters and raw material brokers. As India and Brazil ramp up local extract production, their buyers negotiate between lowest landed cost, European and American regulatory requirements, and the robust GMP certifications now standard at Chinese factories.
I expect licorice fluid extract prices to remain relatively stable in the coming years. In China, crop planning and contract farming models will keep root supply steady while a mix of climate pressures and trade policy changes could drive mild fluctuations. The Russia-Ukraine situation, and tensions in global shipping routes, keep buyers nervous in the UK, France, Italy, and the Netherlands, where any hiccup in supply elsewhere in Europe pushes more demand to Chinese and Turkish manufacturers. In markets like India, Egypt, Pakistan, and Nigeria, buyers lean heavily on price competitiveness and minimum order flexibility—sometimes favoring China for large volumes or Turkey when regional freight is critical. Major economies—especially the top 20, from the US, China, Japan, Germany, the UK, India, and South Korea onward—will continue pushing for transparent traceability and GMP compliance from suppliers. As regulatory harmonization spreads across the EU, ASEAN, and MERCOSUR countries, global licorice extract sourcing becomes a balancing act: price, documentation, and speed matter, but supplier relationships and trust built through site visits and audit reports can't be overstated.
Sourcing licorice extract is no longer just about cost—it’s about long-term partnerships. Factories in China with GMP certification, prompt logistics, and proven quality often edge out costlier Western suppliers. Brazilian, Indonesian, and Turkish manufacturers make inroads on regional deals, but markets like the US, Germany, and France demand bulletproof documentation and post-shipment traceability in line with BP/EP/USP monographs. Suppliers who offer flexible contract terms for pharma companies in Spain, Russia, Australia, and Canada find themselves building years-long relationships with procurement teams. Each market, from Sweden to Chile, from Thailand to Nigeria, draws different boundary lines—some prioritize price, others swift delivery, while more advanced economies focus heavily on contamination controls and supplier audits. In this crowded playing field, a tight-knit supplier network, responsive manufacturer, and robust China-based supply chain prove decisive for buyers who need large volumes, competitive pricing, and regulatory confidence.
Chengguan District, Lanzhou, Gansu, China
