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The global market for vanilla is estimated to grow at a CAGR of 4.7% by value and 4.6% by volume during the forecast period 2018-2028

Vanilla is a flavor majorly used in the food industry for bakery products, dairy products, beverages, and much more. Though, it also has a variety of uses in other industries like cosmetics and pharmaceutical. In food and beverages, vanilla is a well-known flavoring, relished all over the world. The most general type of vanilla is vanilla extract, which is arranged by transuding chopped vanilla beans in ethyl and water for around 2 days. The obtained mixture is then stored for a number of months, and then eventually filtered. There are quite a few varieties of vanilla that are available in the market, out of which, Madagascar vanilla is the most widely used in the vanilla market. The amusing sweet Madagascar vanilla takes up more than 70% of the vanilla market, whereas, the remaining types are vanilla from Tahiti and Mexico. The global vanilla market has experienced an incredible growth in recent years, and is expected to grow at a healthy CAGR of 4.6% in the years of forecast. The APAC region is expected to register the highest CAGR, due to progression in the retail division, with an increase in ready-to-eat food and packaged food consumption. Europe is also expected to witness robust growth in the vanilla market on account of the increasing presence of confectionary, biscuit and cookies, and cakes & pastry manufacturing divisions.

vanilla market

Vanilla Market Segmentation:

  • By Origin
  • By Nature
  • By Form
  • By End Use 

APAC - the key region for global vanilla market revenue growth

The global Vanilla market is projected to perceive a stimulating growth imminent from the APAC market. In terms of value, the vanilla market in APAC is expected to grow at a CAGR of 6% over the forecast period, to reach a market value of US$ 204.6 Mn by 2028. APAC accounts for more than 21% of the total share of the global vanilla market in terms of revenue, which is expected to increase comprehensively by 2028 end. India is emerging as the leading grower of vanilla, owing to farming implemented broadly in the southern states of Tamil Nadu, Andhra Pradesh, Karnataka, and Kerala. Bourbon class vanilla beans with sweetened, aromatic, and nourishing flavors are developed and preserved for a treating period of 5-6 months in order to fulfil the ever-growing demand for vanilla from different sectors. The demand in Europe is strong as vanilla is a very widely-held and a resourceful ingredient for many applications.

Asia Pacific vanilla market – segment-wise overview 

By form, the vanilla market is expected to witness the most input from the liquid segment. In terms of volume, the liquid vanilla segment holds the biggest share, and accounts for over 50% of the total APAC vanilla market, and is expected to continue to grow at a significant CAGR during the period of forecast.

In the APAC vanilla market, in the end-use segment, the food industry segment is assessed to dominate, and account for more than a whopping 60% value share by 2018 end, which is expected to decline slightly by 2028 end. The demand from bakery products such as breads, cakes and pastries, etc., is expected to fuel the vanilla market by a lucrative CAGR over the period of forecast. Moreover, in the Asian market, the liquid form of vanilla is the key target point of producers, owing to an increase in the usage of cakes and pastries, ready-to-eat food products, etc. Fluctuations in prices, limited supply, and poor farming & harvesting practices that harm the quality of beans are some of the factors restraining the growth of the vanilla market.

Manufacturers are aiming to develop new technologies that allow innovation in powder stability at a viable price. Moreover, sustainability and active supply chain management are some of the major distinguished tactics that are expected to be implemented by vendors present in the vanilla market.

North America is also a noteworthy regional vanilla market, which is anticipated to register a substantial growth trend among other regions in the global vanilla market during the forecast period. North America observed a significantly high demand, and is one of the hot prospects in the vanilla market.

Vanilla Market to Limp Back to Growth amid Recovery in demand in Post-Pandemic World

Vanilla has been long been a crop of vast commercial significance worldwide, given the high popularity its flavor holds. Global production in the last few years has risen and also the pricing touched new highs, all of which reverberate the high potential of vanilla in the food industry. The high remunerative value of vanilla in agricultural markets has attracted farmers in several nations. Despite the astounding appetite vanilla has held among consumers all these years, the vanilla market has hit temporary snags during the COVID-19 pandemic in 2020. The pandemic ruptured various food supply chains, led down the closure of food retail chains, and resulted in huge decline in consumption. These trends were especially evident during the consecutive months in the second quarter after the pandemic hit the world. This has dampened the production activities, leading to decline in profit margins in the vanilla market. Along with the mounting price volatility triggered by COVID, labour shortages also temporarily put the brakes on the production of vanilla, thus acting as bottlenecks in the vanilla market.

In the last few months, the consumer sentiment in various industries are improving. Together with this, the demand for vanilla in various confectionary products is also expected to pick up pace. As a result, price stability is expected to spur new growth prospects in the vanilla market in the next few months. Further, countries that have been new entrants will also ramp their investment in vanilla production infrastructure. These new entrants will tread more cautiously in largely unstable scenario in the vanilla market. Major producers in the vanilla market will try to attain cost-effectiveness in production and extraction processes, to meet B2B consumer demands at new pricing points. This will also enable them to weather future price fluctuations on one hand and emerge as resilient markets in post-COVID era on the other hand.

This report by TMR on the global vanilla market analyzes the trends and opportunities in the market, and presents a comprehensive market outlook of the vanilla market, along with imparting updates, valuable growth insights, and the ongoing and future trends of various segments in the global vanilla market over a forecast period of 10 years from 2018–2028.

The principal objective of this report is to showcase insights about the key developments, opportunities, and takeaways in the vanilla market, globally, which are gradually helping revolutionize global businesses associated with it. Along with the impending opportunities, the existing opportunities in the global vanilla market are also highlighted, to provide the client with lucid and comprehensible decision-making insights. The report systematically covers the various performance parameters and segments of the global vanilla market in terms of market volume and value.

To apprehend consumption patterns in a coherent way, and compute opportunities in the vanilla market, the market has been split into four segments - vanilla by origin, vanilla by nature, vanilla by form, and vanilla by end-use. The report describes the market dynamics and outlook of vanilla in six regions, namely, North America, Latin America, Western Europe, Eastern Europe, APAC, and Middle East & Africa. To understand and analyze the market share and growth expansion of vanilla in a better way, several microeconomic and macroeconomic factors are taken into consideration, which include population growth, GDP of countries in the different regions, trade, rising disposable income, and others. Along with these factors, the production and farming pattern of Vanilla and its various extracts in different regions are also studied, and accordingly, insights have been drawn. This report also includes TMR’s analysis and explanation of the various factors driving and restraining the worldwide growth of the vanilla market. Key trends across the value chain in the vanilla market are also mentioned in the report. The vanilla market is studied and analyzed from the demand as well as supply side, and is represented with its value chain, to understand the different stages of the process, starting from the farming of Vanilla orchids on farms to the reaching of the final vanilla or its product to end consumers.

To understand the vanilla market in a cohesive and crystal-clear way, and to scrutinise the latest trends, developments, opportunities, and demands in the vanilla market, significant and key manufacturers, distributors, and end-use companies involved in the production of vanilla are studied, and are characterized in an effectual way, drawing insights related to diverse target product offerings, market share, revenue growth, and tracking the recent developments in the competitive landscape segment of the report. 

Some of the key market participants in the global vanilla market identified across the value chain include Archer Daniels Midland Company, Givaudan SA, Sensient Flavors LLC, Takasago International Corporation, International Flavors & Fragrances, Lochhead Manufacturing Company, Synergy Flavors, Heilala Vanilla Limited, McCormick & Company, Symrise AG, Döhler GmbH, Kerry Group Plc, Firmenich SA, Robertet Group, Synthite Industries Limited, Organic Spices Inc., E.A. Weber Flavors, and Nielsen-Massey Vanillas, Inc., among others. Before the detailed and in-depth competition analysis of the key market participants in the vanilla market, a competitive dashboard is provided to compare the industrial scenario in the vanilla market. 

The report commences with the executive summary depicting the overall global vanilla market in a nutshell, showcasing the recorded global CAGR of the market, along with the segmental share and CAGR. The section also represents the vanilla market scenario and the various key strategies used by key market participants. Following this is a buttoned-up, in-depth introduction of the vanilla market, along with the market taxonomy. Further, opportunity analysis is represented to showcase the surging opportunities in the vanilla market. Then, the market sizing is analyzed while considering the base year in terms of volume and value. This forms the basis for estimating and forecasting how the vanilla market is anticipated to take shape in the upcoming years. Given the attributes of the market, the data is triangulated by TMR via different analysis methods based on demand side, supply side, and the various dynamics of the global vanilla market. Further, the Y-o-Y growth of the market, market share analysis, BPS, and value and volume sales of the various regions in the Vanilla market and segments is represented in graphical form. In this imperative world, along with the Y-o-Y growth, market share, and CAGR, we provide pricing analysis as well as market attractiveness. To generate the market forecast, TMR conducted factor analysis to study and anticipate the impact of various factors on the vanilla market.

The final section comprises the market structure of the vanilla market and competitive landscape, presenting a detailed analysis of the key global and regional participants involved in the vanilla market. Moreover, it is primarily designed to provide clients with a detailed and comparative assessment of key providers specific to the segments in the vanilla market. Report audiences can gain segment-specific manufacturer insights to identify and evaluate key competitors based on the in-depth assessment of their capabilities and success in the global vanilla marketplace. 

Following are the major segments in the vanilla market:

by Origin

  • Natural
  • Synthetic

by Nature

  • Organic
  • Conventional 

by Form

  • Liquid
  • Powder
  • Paste 

by End Use

  • Food Industry
    • Bakery
    • Confectionery
    • Dairy Products
  • Beverages
  • Cosmetics Industry
  • Pharmaceuticals Industry 

by Region

  • North America
  • Latin America
  • Eastern Europe
  • Western Europe
  • APAC
  • Middle East & Africa 

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Vanilla Market