A recent incident at a major botanical ingredient manufacturing site in Japan has drawn attention from buyers, formulators and supply chain teams across the cosmetic, personal care, food and pharmaceutical-related industries. Two Ethanol storage tanks went off in the incident and probably takes sometime to recover for production,more news yet to come after the local fire department released the investigation report. click here

While the full impact on product supply still requires careful observation, the incident reminds the market of an important question:

How resilient is your supply chain for key functional ingredients?

In today’s ingredient market, supply chain stability and security is no longer a topic only for purchasing departments. It has become a strategic issue for all stake-holders like brand owners, manufacturers, formulators, regulatory teams and distributors. A single unexpected event can greatly disrupts the original supply chain and causes trouble.

This is especially true for high-valued functional ingredients which plays a vital role in various formulations.

Licorice-derived ingredients are a typical example. They may not always be the largest-volume raw materials in a formula, but they often play an important functional role. In cosmetics, personal care, food, oral care and pharmaceutical-related applications, licorice derivatives are widely used for soothing, anti-irritation, taste modulation, brightening, skin comfort and formulation performance.

When supply is stable, these ingredients are often taken for granted. But when an unexpected event occurs, buyers quickly realize that a second reliable backup is of vital importance,because approval process of such suppliers can take months or even years,which should cover quality check and consistency,stability test, documentation for regulatory point,down-stream customers further approval etc.

Licorice Derivatives: Small Ingredients with Strategic Importance

Licorice has a long history of use in food, traditional medicine, cosmetics and health-related applications. With modern extraction and purification technologies, licorice has become a valuable source of several important active ingredients.

Dipotassium Glycyrrhizinate is widely used in cosmetic and personal care formulations,dermal medications, especially in soothing products, sensitive skin care, after-sun care, facial masks, lotions, creams, shampoos and oral care products.

Monoammonium Glycyrrhizinate is commonly used in food, cosmetics and pharmaceutical-related applications. It can function as a sweetening, taste-modifying or functional ingredient.

Glycyrrhetinic Acid, is a hydrolysis product of glycyrrhizic acid and is widely recognized in soothing and anti-inflammatory applications. It is used in personal care, cosmetic and pharmaceutical-related products.

Stearyl Glycyrrhetinate is an oil-soluble derivative, making it particularly useful in creams, emulsions, balms and oil-phase formulations where water-soluble glycyrrhizinate salts may not be suitable.

Glabridin, a high-value flavonoid from licorice, is well known in brightening and skin tone evenness concepts.

Licorice Extract itself is used in food, cosmetics, nutritional products and botanical formulations, depending on its specification, active content, solvent system and regulatory status.

Because these materials serve different functions,these are not standard products which can be replaced in the formulation easily.It is not just the buyer or distributor who will approve the products, the end-user has also or even more strict requirements on approving process, some times it has to approved down-stream customers, it may probably impact too many parties involved,last but not least, usually the evaluation process of this functional ingredients is much more complicated than evaluating standard products like pure solvents, which usually takes much longer time and more efforts.

This is why supply chain resilience matters.

The Risk of Relying on a Single Qualified Source

In many companies, raw material approval is a long and careful process. A supplier may be selected after months of sample testing, documentation review, stability testing, regulatory assessment and price negotiation. Once approved, that supplier may remain the primary or only qualified source for years.

This approach works well when everything is stable. However, it also creates hidden risk.

If a key supplier faces production interruption, logistics delays, raw material shortages, regulatory issues, equipment failure or force majeure, the downstream customer may suddenly face several problems at the same time:

· insufficient inventory;

· uncertain delivery schedule;

· urgent need for alternative samples;

· incomplete documentation from new suppliers;

· formulation re-testing;

· regulatory re-qualification;

· possible changes in product performance;

· increased purchasing pressure;

For highly regulated or performance-sensitive products, the challenge is even greater. A cosmetic brand using a specific licorice derivative in a sensitive skin product cannot simply switch suppliers overnight. A food manufacturer using licorice extract for taste modulation needs to consider flavor profile and labeling requirements. A pharmaceutical-related customer may need stricter quality documentation,stability and consistency evaluation and internal approval.

The real cost of a supply disruption is not only the raw material price. It is the cost of brand reputation,customer’s trust,production delay.

What Is a Qualified Second Source?

A second source is not just “another supplier who can offer the same product.” A qualified second source is a supplier that has already passed, the customer’s technical, regulatory and quality evaluation process.

For licorice-derived ingredients, a qualified second source should be able to provide more than a quotation. It should be able to support the buyer with complete and consistent product information, including:

· COA;

· TDS;

· SDS;

· specification sheet;

· Analysis method;

· Impurity profile where applicable;

· Residual solvent information;

· Heavy metals data;

· Pesticide residue data where required;

· Microbiological limits;

· Allergen statement;

· GMO statement;

· BSE/TSE statement;

· Country of origin information;

· Cosmetics raw materials registration;

· Halal or Kosher documents if applicable;

A qualified second source helps customers avoid emergency decision-making. Instead of waiting until a shortage happens, companies can build a backup supply strategy in advance.

Why Early Qualification Is Better Than Emergency Sourcing

Emergency sourcing often looks fast at first, but it can become slow when details are involved.

A buyer may quickly find several suppliers from its network,traders or distributors. Samples may arrive within days. Prices may be attractive. However, once the technical team starts evaluation, many questions arise:

Is the analysis method the same?
Is the purity comparable?
Does the color affect the final formula?
Is the odor acceptable?
Are the residual solvents controlled?
Are heavy metals and pesticide residues within customer limits?
Is the material suitable for cosmetic, food or pharmaceutical-related use?
Can the supplier provide stable batches over time?
Can the supplier support export documentation for registration?
Can the supplier answer regulatory questions quickly?

These questions cannot be solved in a fast way.

Early qualification allows buyers to compare suppliers calmly, test samples properly, review documentation carefully and approve alternatives before a crisis occurs. It also gives formulators time to evaluate performance and gives regulatory teams time to check market requirements.

In many cases, the best time to approve a second source is when the current supply chain still looks stable.

Key Factors When Selecting an Alternative Supplier for Licorice Derivatives

When evaluating licorice derivative suppliers, buyers should avoid focusing only on product name and price. A professional evaluation should include several dimensions.

First, confirm the exact product identity. For example, Dipotassium Glycyrrhizinate, Monoammonium Glycyrrhizinate, Glycyrrhetinic Acid and Stearyl Glycyrrhetinate are different products with different solubility, application areas and regulatory considerations.

Second, review the specification carefully. Assay, moisture, ash, pH, appearance, solubility, particle size and impurity limits may all affect formulation performance.

Third, check application suitability. A material suitable for general cosmetic use may not automatically be suitable for food, oral care or pharmaceutical-related applications.

Fourth, compare documentation quality. A reliable supplier should provide clear, consistent and updated documents. Poor documentation may delay customer approval even if the material quality is acceptable.

Fifth, evaluate batch consistency. For plant-derived ingredients, natural variation is unavoidable, but professional suppliers should control this through raw material sourcing, extraction process, purification, testing and quality management.

Sixth, consider supply continuity. The supplier should have stable production planning, export experience,communication capability.

Finally, consider technical support. When a customer is qualifying a new source, fast and professional responses can significantly reduce approval time.

FORU CHEMTECH’s Role in Supporting Licorice Ingredient Supply

At FORU CHEMTECH, we understand that global buyers are not only looking for raw materials. They are looking for reliable supply, responsive communication, professional documentation and practical solutions.

We support customers with a portfolio of licorice-derived ingredients for cosmetic, personal care, food and related formulation applications, including:

Dipotassium Glycyrrhizinate
A widely used water-soluble soothing ingredient for cosmetic and personal care formulations.

Disodium Glycyrrhizinate
A widely used water-soluble soothing ingredient for cosmetic and personal care formulations.

Trisodium Glycyrrhizinate
A widely used water-soluble soothing ingredient for cosmetic and personal care formulations.

Monoammonium Glycyrrhizinate
A versatile licorice derivative used in food, cosmetic and related applications depending on the target market and specification.

Glycyrrhetinic Acid / Enoxolone
A functional ingredient used in soothing, anti-irritation and pharmaceutical-related applications.

Stearyl Glycyrrhetinate
An oil-soluble derivative suitable for creams, lotions, balms and emulsion systems.

Glabridin
A high-value licorice flavonoid used in brightening and advanced skincare concepts.

Licorice Extract
A botanical extract option for food, cosmetic and personal care applications, available according to customer specification requirements.

Our team can support customers with samples, COA, TDS, SDS and other documentation like Halal,Kosher,Food and cosmetics compliance,ISO management system,carbon footprint evaluation data etc. We also understand that each customer’s application is different. Cosmetic, food, personal care and pharmaceutical-related customers may have different requirements, and we aim to provide practical support according to the final use and target market.

At FORU CHEMTECH, we are ready to support global customers with reliable licorice-derived ingredients, documentation assistance and alternative supply options.

If you are reviewing your sourcing strategy for licorice derivatives, our team will be glad to support your supplier qualification process.