Vanilla Extract Market Size, Trends & Forecast 2030

Vanilla Extract Market Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis Report Coverage: By Form (Powder and Liquid), Category (Organic and Conventional), Application [Food & Beverages (Bakery & Confectionery, Dairy & Frozen Desserts, Beverages, Sweet & Savory Snacks, and Others), Personal Care, and Others], and Geography

  • Report Code : TIPRE00021836
  • Category : Food and Beverages
  • Status : Published
  • No. of Pages : 149
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The vanilla extract market size is expected to grow from US$ 261.11 million in 2022 to US$ 409.93 million by 2030; it is estimated to register a CAGR of 5.8% from 2022 to 2030.

Market Insights and Analyst View:

Vanilla extract is manufactured by curing vanilla beans and soaking them in an alcohol solution and water. It is considered an essential ingredient in many desserts, especially baked goods such as cakes, cookies, ice creams, and other. Moreover, vanilla extracts are used in cosmetics and personal care products owing to their antibacterial and anti-inflammatory properties. They are also used in sports formulations such as protein powders. These factors drive the vanilla extract market growth.

Growth Drivers and Challenges:

Vanilla has a unique flavor and aroma, making it a famous flavoring agent across the food & beverage industry. Vanilla extract has been increasingly used as a flavoring agent in cakes, muffins, pastries, doughnuts, and other bakery products for many years. Manufacturers increasingly utilize vanilla extracts in various sweet and savory snacks, with consumers' growing preference for vanilla-flavored products. The growing food & beverage industry and increasing consumer interest in tasty and flavorful products boost the demand for vanilla extract among the food & beverages industry. Moreover, vanilla has extensive usage in the personal care & cosmetic industry. As vanilla is high in antioxidants, which neutralize free radicals and help repair skin damage, it is highly utilized in cosmetics and skincare products. Also, vanilla extract is used as a flavor masking agent in various medicines to mask the off-flavor and improve palatability of the drugs. Thus, increasing usage of vanilla extract among various end-use industries boosts the vanilla extract market growth.

Furthermore, clean-label products are becoming increasingly popular as consumers prefer 100% natural products with no synthetic ingredients such as preservatives, artificial colors, flavors, and others. Consumer demand and international regulations have prompted various application industries to seek active ingredients from natural sources to produce safe and sustainable products. Thus, manufacturers of vanilla extracts expand their product portfolio to fulfil the increasing demand for natural and clean-label ingredients. These factors bolster the vanilla extract market growth across the world.

As the prices of natural vanilla are skyrocketing, local and small-scale end-use industries may switch to low-priced and low-quality synthetic vanilla extracts such as vanillin, which restrains the market growth.

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Vanilla Extract Market: Strategic Insights

Vanilla Extract Market

  • CAGR (2022 - 2030)
  • Market Size 2022
    US$ 261.11 Million
  • Market Size 2030
    US$ 409.93 Million

Market Dynamics

  • Wide Range of Applications of Vanilla Extract in Food & Beverage Industries
  • Rising Adoption of Vanilla Extract in Personal Care
  • High Demand for Organic Vanilla Products
  • Expanding Demand for Natural/Clean-Label Ingredients

Key Players

  • Eurovanille
  • Prova SAS
  • Tharakan and Co
  • HE Stringer Flavours Ltd
  • Natural Vanilla Pty Ltd
  • Kerry Group Plc
  • Archer-Daniels-Midland Co
  • Virginia Dare Extract Co Inc
  • Lochhead Manufacturing Co

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

  • Powder and Liquid
  • Organic and Conventional
  • Food & Beverages
Personal Care, and Others)
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

    Report Segmentation and Scope:

    The global vanilla extract market is segmented on the basis of form, category, application, and geography. Based on form, the market is bifurcated into powder and liquid. Based on category, the market is segmented into organic and conventional. Based on application, the market is segmented into food & beverages, personal care, and others. The market for the food & beverages segment is further segmented into bakery & confectionery, dairy & frozen desserts, beverages, sweet & savory snacks, and others. The vanilla extract market, based on geography, is segmented into North America (the US, Canada, and Mexico), Europe (Germany, France, Italy, the UK, Russia, and the Rest of Europe), Asia Pacific (Australia, China, Japan, India, South Korea, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America).

    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

    Segmental Analysis:

    Based on form, the vanilla extract market is segmented into powder and liquid. The liquid segment holds a larger market share. Vanilla extract in liquid form is used as a flavoring agent in various beverages such as wines, cocktails, hot chocolate, and coffee. Additionally, it is widely used in ice creams, smoothies, desserts, and other products. Furthermore, liquid vanilla extract is used in skincare and pharmaceutical products owing to its anti-inflammatory properties. These factors drive the vanilla extract market growth for the liquid segment.

    Segmental Analysis:
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

    Regional Analysis:

    The vanilla extract market is segmented into five key regions—North America, Europe, Asia Pacific, South & Central America, and the Middle East & Africa. North America dominated the global vanilla extract market. The market in this region was valued at US$ 83 million in 2022. The market in Europe is expected to register a CAGR of 6.4% during the forecast period. Developed and developing countries in Asia Pacific witness growth in urbanization, coupled with the rising middle-class population, offering several opportunities for the market players. Consumers seek natural additives in food and beverages, boosting the demand for vanilla extract in Asia Pacific countries. Due to lifestyle changes, urbanization, and stressful lives, people prefer to take aromatherapies for physical and emotional well-being. Vanilla extracts are increasingly used in oils that play a vital role in aromatherapy. These factors propel the Asia Pacific vanilla extract market growth.

    North America accounts for ~30% of the vanilla extract market share. North America is one of the prominent regions for the vanilla extracts market due to its increasing demand among various industries such as food & beverages, pharmaceuticals, and cosmetics & personal care. Vanilla harvested and cultivated in Mexico is known as Mexican vanilla. The demand for Mexican vanilla is high among North American countries as they get lower tariffs on vanilla imported from neighboring countries. The demand for vanilla extracts is high in the food & beverage industry, majorly for bakery and ice cream preparation. The high living standard of consumers in the region propels the demand for a premium range of ice creams containing natural ingredients. Vanilla extracts act as a natural flavoring agent. Due to these factors, the vanilla extract market is expected to grow during the forecast period.

    Industry Developments and Future Opportunities:

    Initiatives taken by key players operating in the vanilla extract market are listed below:

    • In January 2021, Blue Pacific Flavors, the US-based company, introduced a sustainable vanilla extract—Kilimanjaro Vanilla. The company states that the newly launched product can meet consumers' demand for clean-label, natural, and sustainably produced products.

    COVID-19 Pandemic Impact:

    The COVID-19 pandemic adversely affected almost all industries in various countries. Lockdowns, travel restrictions, and business shutdowns in North America, Europe, Asia Pacific, South & Central America, and the Middle East & Africa hampered the growth of several industries, including food & beverages, pharmaceuticals & nutraceuticals, personal care, and animal nutrition. The shutdown of manufacturing units disturbed global supply chains, production activities, delivery schedules, and essential and nonessential product sales. Various companies reported delays in product deliveries and a slump in their product sales in 2020, which hampered the vanilla extract market. The shortage of workforce and limited supply of raw materials also led to a halt in operations and processes across the world during the COVID-19 pandemic. These factors negatively impacted the market growth during the pandemic.

    Various trade barriers imposed by governing bodies to prevent the spread of novel coronavirus that causes COVID-19 hampered the imports of raw materials such as vanilla beans. Indonesia, Madagascar, the US, and China are among the major countries producing raw material, which leads to dependency on these countries in other parts of the world. Restrictions on international imports and exports in many countries interrupted the supply of raw materials during the COVID-19 pandemic.

    In 2021, various economies resumed operations as several governments revoked the previously imposed restrictions, which positively impacted the global marketplace. Moreover, manufacturers were permitted to operate at full capacities, which helped them overcome the demand and supply gaps.

    Competitive Landscape and Key Companies:

    Eurovanille, Prova SAS, Tharakan and Co, HE Stringer Flavours Ltd, Natural Vanilla Pty Ltd, Kerry Group Plc, Archer-Daniels-Midland Co, Virginia Dare Extract Co Inc, Lochhead Manufacturing Co, and Synergy Flavors Inc are among the prominent players operating in the global vanilla extract market. These market players adopt strategic development initiatives to expand their businesses, further driving the vanilla extract market growth. 

    Vanilla Extract Market Report Scope

    Report Attribute Details
    Market size in 2022 US$ 261.11 Million
    Market Size by 2030 US$ 409.93 Million
    Global CAGR (2022 - 2030) 5.8%
    Historical Data 2020-2021
    Forecast period 2023-2030
    Segments Covered By Form
    • Powder and Liquid
    By Category
    • Organic and Conventional
    By Application
    • Food & Beverages
    By Personal Care, and Others)
      Regions and Countries Covered North America
      • US
      • Canada
      • Mexico
      • UK
      • Germany
      • France
      • Russia
      • Italy
      • Rest of Europe
      • China
      • India
      • Japan
      • Australia
      • Rest of Asia-Pacific
      South and Central America
      • Brazil
      • Argentina
      • Rest of South and Central America
      Middle East and Africa
      • South Africa
      • Saudi Arabia
      • UAE
      • Rest of Middle East and Africa
      Market leaders and key company profiles
    • Eurovanille
    • Prova SAS
    • Tharakan and Co
    • HE Stringer Flavours Ltd
    • Natural Vanilla Pty Ltd
    • Kerry Group Plc
    • Archer-Daniels-Midland Co
    • Virginia Dare Extract Co Inc
    • Lochhead Manufacturing Co
      • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
      Report Coverage
      Report Coverage

      Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

      Segment Covered
      Segment Covered

      Form, Category, Application, and Geography

      Regional Scope
      Regional Scope

      North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

      Country Scope
      Country Scope

      This text is related
      to country scope.

      Frequently Asked Questions

      What are the key drivers for the growth of the global vanilla extract market?

      Wide range of applications of vanilla extract in food & beverage industries and rising adoption of vanilla extract in personal care are some of the key driving factors for the vanilla extract market.

      What are the major application areas of vanilla extract market?

      Personal care, food & beverages, pharmaceuticals, aromatherapy, household cleaning products etc. are some of the major application areas of vanilla extract.

      What is the largest region of the global vanilla extract market?

      North America accounted for the largest share of the global vanilla extract market due to its increasing demand among various industries such as food & beverages, pharmaceuticals, cosmetics & personal care, etc.

      Based on the application, why does the food & beverage segment have the largest revenue share?

      Based on the application, the food & beverage segment accounted for the largest revenue share as it has been increasingly used as a flavoring agent in cakes, muffins, pastries, doughnuts, and other bakery products for many years. Vanilla-flavored ice creams are one of the majorly consumed frozen desserts across the world.

      What are the opportunities for vanilla extract market in the global market?

      The rising demand for natural and clean-label ingredients is expected to provide lucrative opportunities for the global vanilla extract market during the forecast period.

      Can you list some of the major players operating in the global vanilla extract market?

      The major players operating in the global vanilla extract market are Eurovanille, Prova SAS, Tharakan and Co, HE Stringer Flavors Ltd, Natural Vanilla Pty Ltd, Kerry Group Plc, Archer-Daniels-Midland Co, Virginia Dare Extract Co Inc, Lochhead Manufacturing Co, Synergy Flavors Inc among few others.

      The List of Companies - Vanilla Extract Market

      1. Eurovanille             
      2. Prova SAS    
      3. Tharakan and Co    
      4. HE Stringer Flavours Ltd    
      5. Natural Vanilla Pty Ltd       
      6. Kerry Group Plc      
      7. Archer-Daniels-Midland Co           
      8. Virginia Dare Extract Co Inc         
      9. Lochhead Manufacturing Co         
      10. Synergy Flavors Inc

      The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

      1. Data Collection and Secondary Research:

      As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

      Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

      1. Primary Research:

      The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

      For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

      A typical research interview fulfils the following functions:

      • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
      • Validates and strengthens in-house secondary research findings
      • Develops the analysis team’s expertise and market understanding

      Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

      • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
      • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

      Below is the breakup of our primary respondents by company, designation, and region:

      Research Methodology

      Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

      1. Data Analysis:

      Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

      • 3.1 Macro-Economic Factor Analysis:

      We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

      • 3.2 Country Level Data:

      Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

      • 3.3 Company Profile:

      The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

      • 3.4 Developing Base Number:

      Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

      1. Data Triangulation and Final Review:

      The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

      We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

      We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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