Vanilla Market 2022-2028: Contending Applications and Trends

1. Vanilla Market 2022-2028: Contending Applications Consumer Goods and Service 22, November 2022 “When the product is right, you don’t have to be a great marketer.” This thought by Lido Iacocca, an American automotive executive, has proven true for various products, even the product in focus today –vanilla. With world exports of vanilla exceeding around $903 million in 2021, it has emerged as a popular spice with diversified applications across industries, including F&B and pharmaceuticals. Estimates indicate Madagascar is the largest vanilla exporter, at 68% in 2021, followed by France, Germany, Indonesia, and Canada. Given the trend, the global vanilla market is expected to flourish at a CAGR of 4.85% during the forecast period 2022-2028. Numerous players have heavily invested in R&D activities to improve vanilla’s production yield. In the same effort, governments worldwide are making robust efforts to improve quality and production volumes and stabilize vanillin costs, bridging the gap between demand and supply. Vanilla Market by Application | Overview 1.Food & beverageis a major category in the application segment, with ice cream and chocolate gaining the highest share. With consumers seeking non-GMO and no artificial flavor products, companies like Nestlé, General Mills, and Hershey’s are including natural flavoring, elevating vanilla demand. For instance, Nestlé is

2. reformulating products and sourcing natural ingredients to eradicate artificial additives. Besides, food companies are collaborating with natural vanilla manufacturers like Solvay that develop Rhovanil natural vanillin by fermenting ferulic acid. Such steps boost the studied market. 2.The pharmaceuticalcategory’s growth is mainly propelled by the growing use of vanilla as a medicinal flavoring agent to eliminate odor and foul taste. Also, the ingredient has gained momentum as a vital intermediate in therapeutic drugs for cancers, fever, and tooth decay. Vanilla widens its prospects as an effective component in treating respiratory tract infections and others. For instance, Tanobio provides vanillin to develop drugs for high blood pressure, Parkinson’s disease, etc. In this regard, vanilla powder has emerged as a majorly used form in the pharmaceutical sector. This has led companies like Aurochemicals to obtain a 99% purity rating in its vanillin, surpassing food and pharmaceutical grades. 3.The personal care industry is anticipated to observe the fastest consumption growth, given the surge in vanilla extract inclusion in cosmetics. Cosmetic manufacturers are widely infusing vanilla extract in soaps, body lotions, and makeup due to its antimicrobial and anti-aging properties. Additionally, due to its distinct aroma, vanilla has gained prominence in fragrance oils, mists, perfumes, deodorants, candles, etc. These benefits led IFF to acquire Fragrance Resources to contend in the fragrance category. And thus, the personal care sector’s expansion may create lucrative opportunities for vanilla manufacturers globally. Organic Food Trend: A Dynamic Opportunity? In the age of growing health consciousness, the demand for natural flavors is mostly driven by growing consumer accord to perceive healthy foods derived from organic sources. The growing negative light on artificial ingredients due to health conditions and harm to the environment further contributes to the trend. Also, changing consumer behavior trends and market dynamics for flavorings have compelled companies like ITC, Kellogg’s, Campbell, and Kraft to limit artificial additives inclusion. This represents a promising future for organic flavors in the coming future. Given this trend, retail giants like Walmart are focused on promoting natural additives like vanilla pods by 2025, which may open new avenues for the vanilla market. FAQs: Q1) What factors drive the vanilla market? The growing use of vanilla in end-user industries and organic food demand drive the vanilla market globally. Q2) Which industries use vanilla during production? End-user industries such as food and beverage, pharmaceuticals, and personal care widely use vanilla during production.