Vanilla Extract Market Forecasts to 2028 – Global Analysis By Nature (Synthetic and Organic), Source (Indonesian Vanilla, Madagascar Vanilla and Other Sources), Product Type (Powder and Liquid), Concentration (Single Fold, Double Fold and Triple Fold), Distribution Channel (Indirect Sales (B2C) and Direct Sales (B2B)), Application and Geography
According to Stratistics MRC, the Global Vanilla Extract Market is accounted for $5.54 billion in 2022 and is expected to reach $7.65 billion by 2028 growing at a CAGR of 5.5% during the forecast period. Vanilla flavouring is the most popular in food and other things. It is the most dominating flavour and can be found in meals, beverages, medications, cosmetics, and perfumeries. The demand for this flavour is growing, but supply is limited. To suit the demand, various producers are putting their efforts into creating vanilla extract via adulteration in natural vanilla extract. Natural vanilla pods contain vanillin, which is also synthesised synthetically. Vanilla extract producers provide high-quality vanilla extract to end-user industries for premium product development.
According to FiBL (The Research Institute of Organic Agriculture), organic agriculture participates in 186 nations, and approximately 72 million hectares of agricultural land are managed organically by 2.8 million farmers.
Market Dynamics:
Driver:
Increasing demand in food & beverage industry
Vanilla is mostly utilised in the food business in the creation of ice cream. Because the fast food business is one of the largest users of ice cream, the growth of fast food chains globally is increasing ice cream consumption. Increasing consumer disposable income, improved living standards, and increased consumer purchasing power are driving growth in emerging markets such as India and China. Furthermore, due to rising health consciousness among customers, the demand for gourmet and premium ice cream has expanded dramatically due to its better quality, provenance, delicate taste, unique ingredients, and ethical origin.
Restraint:
Geopolitical conflicts in vanilla growing regions
Madagascar is the world's leading vanilla growing location, accounting for more than 50% of global vanilla production. Madagascar has been politically unstable for a long time. This political unrest has a short-term influence on vanilla bean availability, although the product is always available on the market. Furthermore, prices do not always remain constant due to shifting political parties, internal conflicts, and changes in import-export policies. Therefore, it is challenging for the makers to set vanilla bean pricing due to the socio-political influence and negatively impacting the market growth.
Opportunity:
Rising demand from cosmetic industry
Vanilla extract is becoming more popular in the cosmetic business due to its concentrated flavour, antioxidant effects, and phenolic component vanillin. According to Paula's Choice, LLC., vanilla extract is utilised in skincare mostly for its antioxidant properties. In cosmetic goods, it functions as a skin-soothing agent. It is used to create a pleasant flavour in lip balms, glosses, and lipsticks. It is also found in creams, lotions, and bath care products. It also helps to neutralise free radicals and prevent skin damage when used in cosmetics.
Threat:
High cost of processing
The high price is a significant barrier to the sale of vanilla extract. The complicated technique of extracting essence from vanilla beans accounts for the high price of vanilla extracts. Suppliers are confronted with difficulties such as insufficient sustainable sourcing and supply chain gaps. Customers are willing to pay a premium for sustainable solutions, thus there is a need for transparency and traceability when purchasing vanilla.
Covid-19 Impact
The covid-19 pandemic has had a significant impact on the supply chain networks of businesses across various industries. Lockdowns and restrictions hampered the management of activities. Sales were down during the period due to increased transportation expenses and higher distribution costs associated with the products. While global lockdowns forced people to remain confined to their houses for months, this had an impact on demand during the period.
The organic segment is expected to be the largest during the forecast period
The organic segment is estimated to have a lucrative growth, due to creasing consumer awareness regarding natural and organic food ingredients. Natural vanilla extract is derived from the vanilla orchid, which produces a pod containing vanilla beans when pollinated. The beverage is made by grinding up cured and fermented beans and soaking them in alcohol and water. Organic vanilla extract is in high demand in the food and beverage industries. This is owing to the popularity of vanilla flavour among consumers. Organic vanilla is often used in baking and confectionery products, among other things.
The bakery products segment is expected to have the highest CAGR during the forecast period
The bakery products segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the large preference by confectionary vendors for the usage of vanilla extracts in cakes, cookies, and others. Furthermore, increased disposable income and millennials' increasing preference in flavourful items will propel the industry even further. Vanilla extracts' ability to impart a pleasant and fresh flavour and scent to bakery products is expected to significantly improve the segment's growth in the future years.
Region with highest share:
Asia Pacific is projected to hold the largest market share during the forecast period owing to the presence of huge food & beverages manufacturers in China and India as well as the presence of a large number of pharmaceutical manufacturer companies in Asia Pacific. Furthermore, customers' increasing disposable money, millennials' increased interest in flavourful products, and rising premium food consumption. Because India is a pharmaceutical manufacturing hub and exports a significant portion of its output to the worldwide market, there is a considerable demand for vanilla extract from manufacturing facilities.
Region with highest CAGR:
Europe is projected to have the highest CAGR over the forecast period, owing to the presence of a few of the world’s largest food companies as well as cosmetic products manufacturing companies. Europe is renowned as the global cosmetics centre, with many of the world's biggest cosmetic companies headquartered in the EU zone. Furthermore, the area has the largest food industry, which contributes significantly to market growth.
Key players in the market
Some of the key players profiled in the Vanilla Extract Market include Adams Extract, Daintree, Vanilla and Spices, Synthite Industries Pvt. Ltd., ADM Company, Lochhead Manufacturing, Company LLC, Farooqi Vanilla Beans, Heilala Vanilla Ltd., Takasago International Corp., Synergy Flavors Inc., Lemur International Inc. , Varanasi Research Foundation, Apex Flavors Inc., Venui Vanilla Co. Ltd. , McCormick 7 Company, Foodchem International Corporation, NATURALIGHT FOODS, Wilton Industries, Inc., Sichuan XiaoyeBencao Biotechnology Co., Ltd., Nisarg Life Sciences India Pvt. Ltd. and Vanilla Extract Blend
Key Developments:
In September 2019, Synergy Flavors, Inc., a leading provider of flavors, extracts, and essences to the worldwide food and beverage industry, launched Dairy by Nature, a new range of unique taste solutions. The cornerstone of a new range of products intended to improve dairy enjoyment or cleanly rebuild it is the combination of experience and awareness of the taste and functional properties of dairy constituents.
In February 2019, McCormick & Co. Inc., one of the leading producers of vanilla, partnered with Buzzfeed on a new line of seasoning blends. The company also launched a new ""Flavor Maker"" app to drive growth by attracting younger generations of consumers.
Natures Covered:
• Synthetic
• Organic
Sources Covered:
• Indonesian Vanilla
• Madagascar Vanilla
• Mexican Vanilla
• Other Sources
Product Types Covered:
• Powder
• Liquid
Concentrations Covered:
• Single Fold
• Double Fold
• Triple Fold
Distribution Channels Covered:
• Indirect Sales (B2C)
• Direct Sales (B2B)
Applications Covered:
• Food and Beverages
• Nutritional Supplements
• Pharmaceuticals
• Cosmetics
• Bakery Products
• Alcoholic Beverages
• Dairy Products
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
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