Vanilla Extract Industry Analysis in South Asia & Oceania

Vanilla Extract Sales Outlook for South Asia & Oceania (2024 to 2034)

Revenue from vanilla extract sales in South Asia & Oceania is projected to reach US$ 433.7 million in 2024 and increase to US$ 910.64 million by the end of 2034, rising at 7.7% CAGR over the next ten years (2024 to 2034).

Vanilla orchids, which yield vanilla beans, are mainly found in tropical regions with certain soil and environmental requirements. Tahiti, Madagascar, and Comoros are a few of the major regions that produce the majority of the world's vanilla. The industry is at risk due to its concentrated geographical distribution since it is vulnerable to the difficulties that these areas bring, such as unfavorable weather, unstable political environments, and uncertain economic situations. Cyclones and droughts are two examples of natural calamities that can have a significant influence on the vanilla crop, resulting in shortages and price increases.

A wide variety of products, such as baked foods, dairy products, confections, and beverages, use vanilla extract. The demand for premium vanilla extract in South Asia & Oceania has been further encouraged by the rise in consumer baking and cooking activities as well as the growing appeal of gourmet and artisanal goods.

Pure and genuine vanilla extract is in high demand in South Asia & Oceania due to a number of trends, one of which being consumers' growing preference for natural and clean-label products. This change is directly related to consumer’s awareness of making health-conscious decisions and their desire for products without artificial additives and preservatives. Furthermore, the market is also experiencing a notable increase in the demand for gourmet and artisanal food items, which is impacting the use of premium vanilla extract in a variety of culinary applications.

Report Attributes	Details
Vanilla Extract Sales in South Asia & Oceania (2024E)	US$ 433.7 Million
Projected Sales (2034F)	US$ 910.64 Million
Demand Growth (2024 to 2034)	7.7% CAGR
Sales in India (2024E)	US$ 97 Million
Demand Growth in Indonesia (2024 to 2034)	7.3% CAGR
India Market Share (2024E)	35.7%
Sales Growth of Powder Vanilla (2024 to 2034)	8% CAGR
Key Companies Profiled	Synthite Industries Ltd. Queen Fine Foods Essential Ingredient Heilala Vanilla Ozone Naturals

Why is Popularity of Vanilla Extract Rising Rapidly in South Asia & Oceania?

“Surging Demand for Clean-Label Ingredients and Natural Flavours”

Manufacturers of goods, such as food & beverages, medications, and fragrances, have been seen to be looking for components that can be marketed or claimed to be clean label. Frequently mentioned claims include organic, natural, and non-GMO. This may be related to the fact that more customers are paying attention to product labels and are looking for goods with "clean" ingredient lists with shorter, easily recognized lists of naturally produced ingredients.

Demand for natural flavors in South Asia & Oceania is mostly driven by consumers' growing acceptance that foods made with natural components, like vanilla, must be healthier. Customers are being cautious when making purchases of these products due to the growing emphasis on transparency, growing concern for health, and increased curiosity about what is included in routinely consumed food and beverages, among other things.

Country-wise Insights

India is a key vanilla growing country, although its production is much smaller compared to major producers like Madagascar. The states of Kerala, Karnataka, and Tamil Nadu are known for cultivating vanilla. Like other countries in Southeast Asia, Thailand's vanilla extract sales are influenced by culinary trends as well as regional consumption habits.

Why is Demand for Vanilla Extract High in India?

“Increasing Local Cultivation to Reduce Import Dependency”

Attribute	India
Market Value (2024E)	US$ 97 Million
Growth Rate (2024 to 2034)	6% CAGR
Projected Value (2034F)	US$ 173.7 Million

The country's developing food and beverage industry, increased consumer awareness of quality ingredients, and the growing appeal of Western lifestyle and cuisine have all contributed to India's relatively small but growing demand for vanilla extract. Because of the expanding food-processing sector, rising consumer spending on high-quality food ingredients, and a developing cafe culture that prioritizes natural ingredients, the Indian market for vanilla extract seems to have a bright future.

Striking a balance between consistency, price, and quality is crucial to success. Furthermore, there is room for expansion in the market for sustainably and organically derived vanilla extract, as consumers' awareness of the environmental and ethical implications of food production grows.

Why is Indonesia an Attractive Market for Vanilla Extract Companies?

“Steady Growth of Baking and Food Processing Industry”

Attribute	Indonesia
Market Value (2024E)	US$ 46 Million
Growth Rate (2024 to 2034)	7.3 % CAGR
Projected Value (2034F)	US$ 93.06 Million

Rising popularity of Western-style baking, a booming food and beverage industry, and a burgeoning middle class with a taste for upscale and gourmet foods are all expected to contribute to Thailand's expected increase in demand for vanilla extract. However, a balance between quality, cost, and consumer knowledge is necessary for this sector to thrive. There's also room for niche markets, like those for organic and responsibly sourced vanilla extract, that cater to a smaller but increasingly health and environmentally sensitive consumer base.

Growing popularity of cooking shows, social media influencers, and worldwide cuisine trends, there is a growing interest in both professional pastry making and home baking in Thailand. The demand for premium baking ingredients, such as vanilla extract, is increased by this trend. Vanilla extract is used in a variety of goods, including beverages and confections, by Thailand's food processing industry, which is renowned for its inventive and dynamic methods.

Category-wise Insights

Why is Consumption of Liquid Vanilla Higher?

“Growth of Online Retail and Regulations for Food Safety”

Attribute	Liquid Vanilla
Segment Value (2024E)	US$ 184.06 Million
Growth Rate (2024 to 2034)	8.8% CAGR
Projected Value (2034F)	US$ 429.78 Million

A concentrated version of vanilla called vanilla oleoresin is widely utilized in applications such as food flavoring and aroma. Solvent extraction is used to extract oleoresin from vanilla beans, as opposed to infusing them in an alcohol and water solution to make vanilla extract. Vanilla produced by this procedure is more concentrated. Because of the wide range of culinary customs and economic environments found throughout South Asia & Oceania, these regions have a very diverse market for liquid vanilla.

Modern cuisines and international culinary trends have had some influence on the rise in interest in professional pastry making as well as home baking. Customers may now more easily obtain premium liquid vanilla from around the globe because of the expansion of e-Commerce platforms. Consumer perception and marketing of vanilla goods are impacted by the growing food safety and labeling standards.

Which Application is Leading Market Growth for Vanilla Extract?

“Versatile Properties of Vanilla Used for Aromatic and Flavor-enhancing in Food Sector”

Attribute	Food
Segment Value (2024E)	US$ 86.42 Million
Growth Rate (2024 to 2034)	5.4% CAGR
Projected Value (2034F)	US$ 146.92 Million

Vanilla extract is essential to the food industry. It can be used in savory meals, baked goods, confections, and sweets to enhance flavor profiles and satisfy changing customer tastes. This market category has a significant market share since vanilla extract is used in so many culinary creations.

A remarkable ingredient that gives a meal depth and taste is vanilla essence. It is frequently used in baking to improve the flavor of pastries, cakes, and cookies. The whole flavor profile of your dish can be significantly altered by a modest amount. It comes from vanilla beans and is a rich, fragrant flavor that is difficult for other flavorings to match.

Segmentation of Vanilla Extract Study in South Asia & Oceania

• By Concentration :

  • Infusion
  • Oleoresin
  • Absolute

• By Nature :

  • Organic
  • Conventional

• By Form :

  • Whole or Ground
  • Liquid
  • Powder
  • Paste

• By Application :

  • Food
  • Beverages
  • Personal Care Products
  • Pharmaceuticals
  • Nutraceutical

• By Technology :

  • Single-fold
  • Double-fold
  • Three-fold

• By Country :

  • India
  • Indonesia
  • Thailand
  • Malaysia
  • Australia & New Zealand
  • Rest of SAO