Global Vanilla Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Vanilla Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Vanilla is a spice and a flavoring. The plant it grows on is the orchid Vanilla, which is a vine. The vanilla grows into a close-knit vine, from which a light green yellow flower emerges. Pollination is required to make the plants produce the fruit from which the vanilla spice is obtained.

Market Overview:

The latest research study on the global Vanilla market finds that the global Vanilla market reached a value of USD 3076.68 million in 2022. It’s expected that the market will achieve USD 4247.93 million by 2028, exhibiting a CAGR of 5.52% during the forecast period.

Influence of COVID-19 Outbreak on Vanilla Industry Development.

The big harvest will satisfy the demand created by Covid 19. The virus and subsequent blockade caused severe damage to restaurants, bakeries and food services. The food company that serves the office workers in the city center has gone bankrupt. The restaurant suffered a cruel blow. This makes the demand for vanilla a serious drop. However, strong retail demand for vanilla used in home cooking and baking offset some of the decline. Overall, the increasing supply of vanilla has met the weak demand, but the supply has exceeded it. The pandemic has caused changes in the demand market, causing vanilla prices to fall by 50% from the peak. However, as the situation of the epidemic improves and global production activities gradually resume, it may rebound during the forecast period.

Market SWOT Analysis

Strength

The growth of the vanilla market is driven by its diverse applications in end-user industries, from food flavors, cosmetic additives to pharmaceuticals. Vanilla is one of the most widely used flavoring agents in the food industry and can be used in various bakery products around the world, such as cakes, ice cream, brownies, cupcakes, puddings and yogurt. Due to the growing demand for frozen desserts and baked products, the global vanilla market is expected to grow significantly in the next few years. The antioxidant and antibacterial properties of vanilla make it suitable for cleansing skin and treating problems related to damaged skin. The pharmaceutical industry uses vanilla extract because of its active properties, especially its antioxidant, anti-inflammatory, antibacterial and anti-cancer properties. The extensive demand market has brought strong growth momentum to the vanilla industry.
Vanilla is the second most expensive spice after saffron. It takes about two to four years for vanilla vines to fully mature, and vanilla flowers bloom from December to February, and each flower lasts only one day. On this day when the flowers are in full bloom, they must be pollinated to make the plants grow beans. Manual pollination is very time-consuming and labor-intensive. In addition, once the vanilla bean pods are harvested, it usually takes several months to solidify the aroma. These factors make vanilla prices relatively high, but the same high prices have also attracted many growers and promoted the development of the market.

Weakness

The cultivation of vanilla is very susceptible to the weather. Vanilla orchids grow best in tropical or subtropical climates. They thrive in high humidity and dry winters. They cannot tolerate any frost or night temperature below 55° F. Therefore, drought, high temperature and excessive rain will also affect the production of vanilla. Rainy and high temperatures can easily rot the vanilla vine, causing the pods to fall off the vine, and drought is not conducive to its growth. Once severe weather occurs, it is likely to cause the price of vanilla beans to rise and the production of vanilla to decrease. This may limit the market.

Opportunities

The global demand for natural flavors is widely promoted by consumers generally agreeing that foods derived from natural ingredients such as vanilla are healthy. Since consumers now use these two terms as synonyms, this usually affects them to skip products formulated with artificial ingredients, thereby further benefiting the market being studied. This ever-changing consumer behavior and food flavoring market dynamics are pushing food manufacturers to stop formulating artificial additives in food. As consumers' awareness of health and the environmental impact of regulatory standards continues to increase, some major market players have announced that they will use natural colors and flavors in their products. This is expected to drive global demand for vanilla.

Threat

There are vanilla substitutes and synthetic fragrances. Vanillin is the main component of vanilla bean extract. Synthetic vanillin is now more commonly used as a flavoring agent in foods, beverages and medicines than natural vanilla extracts. Due to the scarcity and expensiveness of natural vanilla extracts, the synthetic preparation of its main ingredients has long attracted attention. Synthetic vanillin, which is cheaper and more readily available, hinders the development of the vanilla market.

Region Overview:

North America had the highest growth rate of all regions.

Company Overview

Merger, Acquisition and New Investment

MARCH 6, 2020- Firmenich announced that it has entered into exclusivity with Ardian, Tikehau Capital and family shareholders to acquire Les Dérivés Résiniques et Terpéniques (DRT). DRT is a world leader in plant-based chemistry, mainly from pine trees, and is one of the leading suppliers globally of high quality, renewable ingredients.

DRT is at the forefront of developing sustainable, renewable and naturally-derived ingredients from terpenes and rosin derivatives. DRT offers green alternatives for a range of applications and markets. Founded in 1932 and headquartered in Dax, France, DRT developed a unique, backward integrated business model over many decades, including access to sustainable raw materials, best-in-class extraction and distillation capabilities and advanced innovation processes. DRT has been a family-owned company for most of its history and has grown thanks to its commitment to long-standing relationships with its suppliers and its customers.

15 November 2021- As part of its 2025 strategy to expand the capabilities of its fragrance business, Givaudan today announced that it has reached an agreement to acquire Custom Essence, a US based fragrance creation house.

Founded in 1981, Custom Essence is a family owned business based in New Jersey, USA. They specialise in the formulation of natural fragrances and create perfumes across categories for both local and regional and for larger customers. The company employs 70 people globally.
Custom Essence unique know-how in natural fragrance creation has largely contributed to their success in the USA and in particular in natural products for the personal care category. Driven by a culture of creativity, agility and quality, they have won the loyalty of a large base of customers for whom they have created some of the leading consumer preferred fragranced products in the USA.

11/23/2020- Symrise AG has signed a purchase agreement with Sensient Technologies Corporation (Milwaukee, USA) to acquire their fragrance and aroma chemicals activities. These comprise a wide range of aroma molecules and fragrances from natural and renewable sources. In fiscal year 2019, the business unit generated revenues of approx. 77 million Euros. With the acquisition, Symrise will strengthen its backward integration and broaden its leadership position as a supplier of fragrance ingredients which are increasingly demanded for use, especially in personal and home care products. Symrise will furthermore gain access to additional customers and strengthen its presence particularly in EAME and Latin America. Going forward, Symrise plans to also strengthen its manufacturing footprint in Spain with targeted investments in the manufacturing site in Granada that will be acquired.

The Sensient fragrances and aroma chemicals business unit has been part of Sensient Flavors and Extracts group. The unit holds longstanding business relationships with local, regional and global customers from the consumer goods industry. It supplies out of manufacturing sites in Spain and Mexico. The Sensient aroma molecules and fragrance solutions are mainly derived from renewable raw materials such as pine oil and citrus by-products amongst others. The portfolio will strengthen the Symrise products line with unique fragrance ingredients used in application such as perfumes, shampoos, soaps, detergents and antiperspirants. Through the acquisition, Symrise will not only be able to significantly expand its renewable ingredients portfolio, but to also increase its green chemistry value chain which includes various downstream products coming from sustainable cultivated sources.
Symrise plans to combine the R&D competencies and manufacturing capacities of Sensient fragrance and aroma chemicals activities with parts of its own at the site in Granada. Over a period of three years, targeted investments will be made to grow the Granada site and make it the second largest compounding facility in EAME for fragrance ingredients and compounds.

Firmenich is one of the major players operating in the Vanilla market, holding a share of 13.89% in 2021.

Segmentation Overview:

Among different product types, Extract segment is anticipated to contribute the largest market share in 2027.

Bean

Vanilla beans are grown from orchid flowers on a vine that takes three years to fully mature. The flowers are hand pollinated on the day the orchid blooms to ensure a healthy crop of beans months later. The harvested beans are cured for several months to develop a deep, rich flavor.

Extract

Vanilla extract is made from vanilla beans that are cured and soaked in a solution that helps to draw out the complex notes. The resulting brew is highly concentrated and deeply flavorful, ready to be deployed into cookie doughs, cakes, frostings, and more.

Powder

Vanilla powder provides vanilla flavor as well, but it consists of ground vanilla beans or artificial vanilla flavor which are contained in a sugar base. There are several types of vanilla powders commercially available. Some are made from sucrose that has been ribbon-sprayed with vanilla extract, and some are essentially vanilla-infused maltodextrin, dextrose or finely ground sucrose.

Paste

Vanilla paste is a syrupy concoction made of both vanilla extract and beans mixed with sugar, water, and a natural thickener. Some companies use corn syrup or sugar in this product; others don not. Vanilla sauce is more suitable for desserts with a higher proportion of wet ingredients.

Application Overview:

By application, the Food and Beverages segment occupied the biggest share from 2017 to 2022.

Key Companies in the global Vanilla market covered in Chapter 3:

ADM
IFF
Frontier Co-Op
Lochhead Manufacturing Company
Vanilla Queen
McCormick & Company, Inc.
Venui Vanilla
Symrise
Penzeys
Heilala Vanilla
Givaudan
Sonoma Syrup Company
Sambirano Aromatic
Firmenich
Eurovanille
Hawaiian Vanilla Company
Nielsen-Massey
Singing Dog
Blue Cattle Truck

In Chapter 4 and Chapter 14.2, on the basis of types, the Vanilla market from 2018 to 2029 is primarily split into:

Bean
Extract
Powder
Paste

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Vanilla market from 2018 to 2029 covers:

Food and Beverages
Cosmetic
Pharma

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)