The price of liquorice extract has been climbing in recent years as excess harvesting of the wild root puts pressure on supply. Prices for fresh roots collected from Western China this winter escalated to RMB5.1 per kg according to the Gingko Group, a Chinese manufacturer of liquorice extracts.
Demand for high quality liquorice extract comes mainly from the tobacco and confectionery industries and has been stable for some time. However, liquorice is increasingly being used as a source of the natural sweetener Mono Ammonium Glycyrrhizinate (MAG) in beverages often mixed with stevia. It is also finding new demand in natural cosmetics.
China is limiting liquorice harvesting by issuing fewer licenses for collection, and is also controlling exports of the finished extracts. It is thought that the government is increasingly concerned about conserving the environment.
Liquorice also grows in central Asia but political instability and corruption in this region makes sourcing the root very difficult.
