Vanilla Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Origin [Natural, Synthetic], By Form [Beans, Extract, Paste, Others], By End-Use Industry [Food And Beverages, Personal Care, Pharmaceuticals, Others], By Distribution Channel [Online, Offline], And By Geography - Forecasts From 2022 To 2027

Published:  Jun 2022 Report Code: KSI061613901 Pages: 120

The vanilla market is expected to grow at a compound annual growth rate of 6.65% over the forecast period to reach a market size of US$1,464.573 million in 2027 from US$933.341 million in 2020.  

As of 2018, the total trade of vanilla was to the tune of $1.47 billion. The exports of vanilla reportedly grew by 9.6%, from $1.34 billion, which was registered in 2017, to $1.47 billion, which was registered in 2018. Moreover, the trade-in vanilla reportedly represents 0.008% of the total world trade [Source: Observatory of Economic Complexity (OEC)].  According to FAO, the top three global producers of vanilla in 2018 were Madagascar at 3102 tons, Indonesia at 2259 tons, and Mexico at 495 tons, and the top three importers of vanilla in 2018 were the United States of America which registered an import quantity of 13526 tons, France that registered 850 tons and Germany with 497 tons. Shifting consumer preferences for exotic bakery products in the developing economies, increasing availability of allergen-free variants of the traditional bakery products, an increasing number of urban home bakers, expanding retail footprint, and rising female participation in the workforce, especially in high-income and emerging economies leading to increased availability of disposable income. Further, the proportion of household income that is predicted to be spent on food is anticipated to attain an average of 43% in 2029, as per FAO. Bakery products have been a staple in every household since time immemorial. Additionally, with various cultural evolutions and the advent of technological enhancement and food and beverage innovation, bakery and confectionery products are now made commercially available in profusion as a response to various consumer preferences. Therefore vanilla, especially in the form of extracts, is expected to be in great demand for being integral to the food service industry. For instance, in January 2020, it was reported that Nielsen-Massey Vanillas, Inc., which is known as the world’s leading manufacturer of premium, pure vanilla extracts, had reportedly announced its plans to launch its popular range of vanilla pastes called Madagascar Bourbon Pure Vanilla Bean Paste and Pure Vanilla Bean Paste in 2ounce bottles, which are also available in 4-ounce, 32-ounce, and gallon sizes. These, among others, are anticipated to propel the global vanilla market to unprecedented heights.

This strategic shift has been planned to be invested in with the consideration of retail consumers, especially first-time purchasers who are in search of containers with small sizes, which reportedly provide them with the convenience of imparting a gourmet look, feel, and flavour in their culinary creations and baked goods, without the need of scraping vanilla beans by hand. Further, during the lockdown period, which almost the entire world was subjected to and still is in a few countries due to COVID-19, there has been an upswing in home baking that has driven the sale of vanilla essence to be used for domestic purposes. Currently, nations are gradually relaxing their restrictions, and food and beverage establishments are becoming operational for a longer duration; a renewed demand for the global vanilla market is expected to reinforce the market growth. Moreover, the food and beverage industry, particularly that of food services as well as food additives companies, has forayed into the developing countries as well as has increased investments in developed economies that have incentivized the players in the vanilla market space to expand their geographical footprint. Thus, from the aforementioned, it can be conclusively suggested that the end-use industry of food and beverage is going to hold a substantial share of the global vanilla market.

The increasing global population and rural-urban migration are also expected to result in the growth of the share of the end-use industry of personal care in the market, thereby facilitating the global vanilla market growth.  In view of the above, and effectuation of swift adoption of new lifestyle trends that are expected to drive the demand for personal care products is anticipated to occur during the next few years.  This would partly stem from the increasing availability of disposable income, which would ensure the facilitation of transitioning from the traditional way of living to lifestyles that are common among urban dwellers. The effects of rapid urbanization also invariably would lead to the obtaining of better and higher education by a relatively larger size of population which automatically would result in the capacity of high-income generation as well as a conscientious investment in personal grooming efforts through the means of personal care products leading to a surge in global vanilla markets among others. In this regard, it should be noted that 1.7 billion people, i.e., around 23% of the world population, lived in a city in 2016, and 45 % of the world’s population resided in rural areas, which is expected to fall by 40% by 2030 as per United Nations (UN). Moreover, the increasing female population has reportedly led to increased purchases of personal care products around the world through both offline and online channels. This development has contributed to the increasing sales of over eCommerce channels already in the order of 25 trillion USD in 2018, which was reportedly equivalent to 30% of the global GDP (gross domestic product) of 2018 as per UNCTAD. The value of B2B eCommerce was registered in the order of $21 trillion, which reportedly translates to 83% of all eCommerce, and that of B2C eCommerce was $4.4 trillion. China, the United States, and the United Kingdom were the top three countries that registered the highest B2C sales. Moreover, cross-border B2C e-commerce sales have been estimated to be in the order of $404 billion in 2018. A few of the notable market development like the launch of a fragrance line by NaturaBrasil across international markets, which in June 2018 reportedly comprised a fragrance called “terra” that constituted vanilla musk, among others. The organization is known to tap into the trend for more personalized and highly curated scents based on natural notes with ingredients sourced according to the company’s ethical and sustainable practices.

Moreover, in July 2018, it was reported that Laline, a personal care brand that is a subsidiary of Fox Group, an apparel retailer based in Israel, entered the Canadian beauty market during the latter half of the preceding month last year. The signature scents of the brand constitute vanilla patchouli and vanilla pink pepper. On the other hand, it is pertinent to note that newly industrialized countries are witnessing an increased presence of online retailers facilitating the growth of the personal care segment apart from factors like the growing middle-income group and the rising population of working women. In the case of China, as opposed to their predecessor, today’s consumers are seeking out the swiftest and the most convenient methods to meet their demands, facilitated by the means to purchase via mobile payment apps like WeChat Pay and AliPay. Conversely, organizations worldwide are capitalizing on the data pertaining to individual consumer preferences, which are derived from their data-centric operation model. In this manner, they are equipped with the tool to better understand the varied segments of the consumers and appropriately target the concerned segment through the better placement of products, ultimately influencing marketing strategies to foster higher revenue returns and ensure repeat business. As a result of the high level of competition, the data-driven innovations retails are increasingly inclined to integrate their brick & mortar stores and online portals with social media marketing platforms [Source: USDA].

Covid 19 impact:

The global market has seen a great increase in the continuous trend for items created with natural components, such as the COVID-19. Natural vanilla, primarily for use in functional foods and beverages, has seen a huge increase in demand as a result of this. Furthermore, vanilla cultivation requires a lot of effort, especially during harvest and post-harvest. As a result, they are reliant on seasonal employees, the majority of whom are migrants. COVID-19 had an impact on these workers. Consumer demand caused a bullwhip effect in the food business, resulting in more convenient, shelf-stable, and processed items, keeping the vanilla market in its current phase.

Key developments:

  • At the 2020 winter gourmet food show, Neilsen Massey vanillas inc introduced 2-ounce bottles of its Madagascar bourbon pure vanilla bean paste. Customers can get smaller and more convenient items by using excellent vanilla extracts infused with real vanilla bean specks.
  • FONA International LLC and certain of its affiliates (FONA), a privately held corporation, was acquired by McCormick & Company Inc. in December 2020. FONA is a prominent maker of clean and natural flavours, offering products to a wide range of customers in the food, beverage, and nutritional industries. It is planned to broaden the flavour solutions division of McCormick & Company Inc. and strengthen its skills.

Segmentation

  • By Origin
    • Natural
    • Synthetic
  • By Form
    • Beans
    • Extract
    • Paste
    • Others
  • By End-Use Industry
    • Food and Beverages
    • Personal Care
    • Pharmaceuticals
    • Others
  • By Distribution Channel
    • Online
    • Offline
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • France (including Tahiti)
      • Germany
      • UK
      • Spain
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • Morocco
      • Others
    • Asia Pacific
      • China
      • Japan
      • India
      • South Korea
      • Indonesia
      • Papua New Guinea
      • Others

Frequently Asked Questions (FAQs)

Q1. What will be the vanilla market size by 2027?
A1. The vanilla market is expected to reach a total market size of US$1,464.573 million by 2027.


Q2. What is the size of the global vanilla market?
A2. Vanilla Market was valued at US$933.341 million in 2020.


Q3. What are the growth prospects for the vanilla market?
A3. The global vanilla market is expected to grow at a CAGR of 6.65% during the forecast period.


Q4. How is the vanilla market segmented?
A4. The vanilla market has been segmented by origin, form, end-use industry, distribution channel, and geography.


Q5. What factors are anticipated to drive the vanilla market growth?
A5. The increasing global population and rural-urban migration are also expected to result in the growth of the share of the end-use industry of personal care in the market thereby facilitating the global vanilla market growth.

1. INTRODUCTION
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation

2. RESEARCH METHODOLOGY  
2.1. Research Data
2.2. Assumptions

3. EXECUTIVE SUMMARY
3.1. Research Highlights

4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.4. Industry Value Chain Analysis

5. VANILLA MARKET, BY ORIGIN
5.1. Introduction
5.2. Natural
5.3. Synthetic

6. VANILLA MARKET, BY FORM
6.1. Introduction
6.2. Beans
6.3. Extract
6.4. Paste
6.5. Others

7. VANILLA MARKET, BY END-USE INDUSTRY
7.1. Introduction
7.2. Food and Beverages
7.3. Personal Care
7.4. Pharmaceuticals
7.5. Others

8. VANILLA MARKET, BY DISTRIBUTION CHANNEL
8.1. Introduction
8.2. Online
8.3. Offline

9. VANILLA MARKET, BY GEOGRAPHY
9.1. Introduction
9.2. North America
9.2.1. North America Vanilla Market, By Origin, 2020 to 2027
9.2.2. North America Vanilla Market, By Form, 2020 to 2027
9.2.3. North America Vanilla Market, By End-Use Industry, 2020 to 2027
9.2.4. North America Vanilla Market, By Distribution Channel, 2020 to 2027
9.2.5. By Country
9.2.5.1. USA
9.2.5.2. Canada
9.2.5.3. Mexico
9.3. South America
9.3.1. South America Vanilla Market, By Origin, 2020 to 2027
9.3.2. South America Vanilla Market, By Form, 2020 to 2027
9.3.3. South America Vanilla Market, By End-Use Industry, 2020 to 2027
9.3.4. South America Vanilla Market, By Distribution Channel, 2020 to 2027
9.3.5. By Country
9.3.5.1. Brazil
9.3.5.2. Argentina
9.3.5.3. Others
9.4. Europe
9.4.1. Europe Vanilla Market, By Origin, 2020 to 2027
9.4.2. Europe Vanilla Market, By Form, 2020 to 2027
9.4.3. Europe Vanilla Market, By End-Use Industry, 2020 to 2027
9.4.4. Europe Vanilla Market, By Distribution Channel, 2020 to 2027
9.4.5. By Country
9.4.5.1. France (including Tahiti)
9.4.5.2. Germany
9.4.5.3. UK
9.4.5.4. Spain
9.4.5.5. Others
9.5. Middle East and Africa
9.5.1. Middle East and Africa Vanilla Market, By Origin, 2020 to 2027
9.5.2. Middle East and Africa Vanilla Market, By Form, 2020 to 2027
9.5.3. Middle East and Africa Vanilla Market, By End-Use Industry, 2020 to 2027
9.5.4. Middle East and Africa Vanilla Market, By Distribution Channel, 2020 to 2027
9.5.5. By Country
9.5.5.1. Uganda
9.5.5.2. Morocco
9.5.5.3. Others
9.6. Asia Pacific
9.6.1. Asia Pacific Vanilla Market, By Origin, 2020 to 2027
9.6.2. Asia Pacific Vanilla Market, By Form, 2020 to 2027
9.6.3. Asia Pacific Vanilla Market, By End-Use Industry, 2020 to 2027
9.6.4. Asia Pacific Vanilla Market, By Distribution Channel, 2020 to 2027
9.6.5. By Country
9.6.5.1. China
9.6.5.2. Japan
9.6.5.3. India
9.6.5.4. South Korea
9.6.5.5. Indonesia
9.6.5.6. Papua New Guinea
9.6.5.7. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrativeness
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix

11. COMPANY PROFILES
11.1. Hawaiian Vanilla Company 
11.2. Pro Agro. 
11.3. VAINUZ ECUADOR 
11.4. Venui Vanilla 
11.5. Pure Vanilla
11.6. Nielsen-Massey Vanillas, Inc.
11.7. Eurovanille 
11.8. Symrise 
11.9. Indovanili  
11.10. MIKOYA KOSHO CO., LTD

Hawaiian Vanilla Company 

Pro Agro. 

VAINUZ ECUADOR 

Venui Vanilla 

Pure Vanilla

Nielsen-Massey Vanillas, Inc.

Eurovanille 

Symrise 

Indovanili  

MIKOYA KOSHO CO., LTD

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