Analysis of Vanilla Extract market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
The vanilla extract gives a flavourful and rich vanilla taste to food, which is long-lasting. Consumers aged between 15 and 34 years are mainly setting new food trends and adopting new eating patterns. The primary factors that attract millennials are freshness, variety, and exotic flavors. Millennials are generally attracted to new and exciting flavors.
They are open to experimentation and are likely to mix flavors & food styles. These are some of the factors that are expected to drive the global vanilla extract market. Furthermore, the consumption of vanilla extract in diverse regions of the world is associated with numerous factors such as the standard of living, the supply & demand of different types of vanilla extract products in a particular region, recent trends, and other market-changing aspects.
Globally the vanilla extract market is estimated at USD 4.94 Billion at present in 2022. The market is further expected to surpass the valuation of USD 6.98 Billion by the end of 2032. The vanilla extract market is likely to record a CAGR of 3.52% in the forecast period.
Vanilla is one of the most dominant flavors used in food products. Vanilla extract is an essential ingredient for baking owing to its rich taste. There is no substitute for vanilla extract, and it is an important ingredient in a large number of food products. The real vanilla extract is made up of more than 200 organic compounds, which provides it with great depth and complexity. There are three basic types of vanilla extract: Madagascar Bourbon, Tahitian, and Mexican.
Market Size (2022 A)
USD 4.94 Billion
Base Year for Estimation
Forecast duration for this research
Forecasted Market value (2032 F)
USD 6.98 Billion
Global Market Growth rate (2022-2032 E)
CAGR of 3.52%
Key Companies Profiled
Know thy Competitors
Competitive landscape highlights only certain players
Complete list available upon request
“Mushrooming food and beverage industry propelling demand for vanilla extract”
The food sector application of vanilla extract is majorly done in ice creams. The faster food chains in the food sectors integrate the use of vanilla extracts in various ways. The surging income of people is making them increase their purchases resulting in demand for food and beverages globally. Rising living standards are propelling demand for more consumption like a premium range of ice creams and gourmets. These ice creams are demanded their superior quality and rich taste.
“Plant-based trend fostering growth in the vanilla extract market”
There is an alarming shift towards plant-based food in recent decades owing to concerns about health. The international laws dealing with the use of plant extracts for the food and cosmetic industry are considered safer and sustainable. These extracts are environmentally suitable for usage in food.
Additionally, vanilla extracts are expensive and popular as natural in the cosmetic sector due to their high cost and applicability. The extracts are widely used for the manufacturing of perfumes and fragrances. Antibacterial and anti-inflammatory properties are the reasons why vanilla extracts are popularly used in moisturizers and lotions. The trend of plant-based ingredients in the cosmetic sector has the potential to open lucrative opportunities in the forecast period.
“The high cost of processing may deter the growth”
The high price is a major challenge deterring the sales of vanilla extract. The high price of vanilla extracts is due to the complex process of extraction of essence from vanilla beans. The suppliers face issues with low sustainable sourcing and supply chain gaps. There is a need for transparency and traceability while procuring vanilla as customers are willing to pay a high cost for sustainable options.
“Impact of Covid-19: sluggish supply chain Network”
The recent pandemic of covid-19 has affected severely the supply chain network of firms across all industries. The management of operations was disrupted due to lockdowns and restrictions. The accelerated transportation costs and higher distribution costs associated with the products declined sales during the period.
There were limitations imposed by governments on non-essential imports and exports which resulted in border closures globally. While global lockdowns made people stay locked in their homes for months which affected demand during the period. The cosmetic and food markets started to work on the recovery of sales and demand-supply post-covid-19 pandemic. This is expected to mark an upward growth trajectory for product sales in the vanilla extract market in the forecast period.
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The vanilla extract market is expected to witness exceptional growth in Europe and Asia Pacific in the next few years. In the Asia-Pacific region, vanilla is cultivated in the southern states of India, namely Kerala, Tamil Nadu, and Andhra Pradesh.
Bourbon-class vanilla beans, which have a sweet, aromatic, and satisfying flavor, are cultivated in these states for the production of vanilla extract. Indian vanilla beans are preserved for a treating period of 5 to 6 months. Vanilla beans nurtured in various parts of India are of the world's finest variety.
The rising demand for vanilla extract is one of the key supply-side drivers responsible for market growth. The demand for vanilla extract in Europe is high as it has been used in a variety of foods in the region. Numerous food and beverage manufacturers use vanilla extract in their food preparations and are also innovating new food products that contain vanilla extract.
Bakery products dominate the application of vanilla extract segment owing to the large preference by confectionary vendors for the usage of vanilla extracts in Cakes, Cookies, and cupcakes. The beverages in form of milkshakes are also found popularly in vanilla flavors.
The bakery products are expected to grow with a CAGR of 5.12% in the forecast period which projects demand for vanilla to surge in assessment duration. Moreover, the beverage and food sector is also likely to gain faster growth in the market share of vanilla extracts.
The cosmetic industry is likely to continue on the second rank when it comes to the usage of vanilla extracts. The rising health awareness and willingness of people to pay for the quality of products are set to increase demand for Vanilla-Flavored moisturizers and personal care products.
Both the liquid and powder forms of vanilla extracts are widely used. The confectionery food segment uses the liquid form of vanilla while the sports nutrition powders and protein options use a powder form of vanilla extract.
Madagascar region holds the maximum market share in Vanilla Extract owing to higher vanilla yield.
Madagascar’s vanilla segment is dominated in terms of the best quality of vanilla across the world. The region is known for its spice industry and suitable climate conditions are favouring the growth of vanilla in plenty of amounts. The region amounts to more than half of the world’s total vanilla production.
The demand for dedicatedly cultivated vanilla pods is very high in the Madagascar region fostered by the demand from the pharmaceuticals and cosmetic industry. Vanilla originated in form of first cultivation in Mexico which drove demand from north America and made the region the dominant producer of vanilla extract in the world. Indonesia ranks second in the vanilla market owing to higher demand from Asia Pacific Region.
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The global market of vanilla extracts is consolidated and dominated by a few companies. These firms are focused on production scenarios and exclusive marketing strategies. These vendors opt for collaborations and partnerships for keeping mutual profits. Firmenich a leading perfume company has announced a partnership with Authentic products and NaturalsTogether based in Madagascar. This collaboration is expected to further contribute to a growth period.
Launching new product variants, acquiring smaller players in the market, and boosting awareness about the benefits of vanilla extract through various promotional activities and programs are some of the key factors expected to drive the vanilla extract market over the forecast period.
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Globally the vanilla extract market is estimated at USD 4.94 Billion at present in 2022.
The vanilla extract market is likely to record a CAGR of 3.52% in the forecast period.
The market is further expected to surpass the valuation of USD 6.98 Billion by the end of 2032.
The key market players in the vanilla extract market- • Tharakan and Company • Cook’s Vanilla • Synergy • The Vanilla Company • Sonoma Syrup Co. Vanilla Extract Blend • Hawaiian Vanilla Company • Penzeys Ltd. • Singing Dog Vanilla Extract • Nisa
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