Vanilla Market size is set to grow by USD 256.6 million from 2024-2028, Health benefits of vanilla boost the market, Technavio

NEW YORK, Aug. 1, 2024 /PRNewswire/ -- The global vanilla market size is estimated to grow by USD 256.6 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 4.49% during the forecast period. Health benefits of vanilla is driving market growth, with a trend towards increasing global vegan population. However, fluctuating price of vanilla poses a challenge. Key market players include Amadeus Trading Co., Apex Flavors Inc., Boston Vanilla Bean Co., Charles H. Baldwin and Sons, Daintree Vanilla and Spice, E.A. Weber and Co., Eurovanille, Frontier Co op, Lochhead Manufacturing Co., MacTaggarts Brand, McCormick and Co. Inc., Mikoya Kasho Co. Ltd., Nielsen Massey Vanillas Inc., Rodelle Inc., SAMBIRANO AROMATIC, Shanks Extracts Inc., Tharakan and Co., Touton SA, Vanilla Food Co., and VanillaPura.

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Market Driver

The global vanilla market is anticipated to experience growth during the forecast period due to various factors. One significant factor is the increasing number of consumers adopting a vegan lifestyle worldwide. With rising awareness about the health benefits of a vegan diet, more individuals are choosing to exclude animal-derived products from their consumption. A vegan diet offers numerous advantages, such as providing fiber, antioxidants, and beneficial plant compounds. It is rich in essential nutrients like potassium, magnesium, folate, and vitamins A, C, and E. Additionally, it aids in weight loss, improves kidney functioning, lowers blood sugar levels, and reduces the risk of heart disease. As veganism gains popularity, particularly among millennials, the demand for vanilla, a common ingredient in vegan food products, is expected to rise. In the US, around 2-6% of the population identifies as vegan, while in Canada, nearly 3 million consumers have adopted this lifestyle. The trend is also gaining traction in Mexico and other European countries like the UK, Germany, and France, where the number of vegans is substantial and growing. Consequently, the expanding vegan population will contribute to the expansion of the global vanilla market. 

The vanilla bean business is experiencing a significant inclination due to the increasing preference for natural flavoring agents in processed food and beverages. People value the health benefits of vanilla, which includes relief from cold and respiratory infections, vomiting, and as an essential ingredient in cosmetic hygienic goods like shampoos and soaps. The demand for vanilla in the baking industry is high, with its use as a flavoring agent in cupcakes, cakes, brownies, puddings, and more. The market for vanilla is driven by its nutritional benefits, which include vitamins, minerals, and phenols. However, climate change, cyclones, droughts, and other natural disasters have affected vanilla output, leading to a rise in vanilla prices. Political instability, poor farming practices, and theft also contribute to the volatility of the market. The liquid vanilla segment holds a large market share, but the demand for vanilla powder is increasing due to its convenience and longer shelf life. The market for plant-based and synthetic vanilla flavoring is also growing, offering more options for businesses. 

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Market Challenges

• The vanilla market faces a significant challenge with the volatile pricing of vanilla, which may hinder market expansion during the forecast period. In 2022, Madagascar was the leading producer, accounting for over 80% of the global supply. Natural disasters, such as cyclones, adversely affected vanilla cultivation in Madagascar in 2018, causing price increases. These price fluctuations can significantly impact the costs of various end-products, including cosmetics and food items. Natural calamities, such as floods, earthquakes, and extreme weather conditions, can cause substantial losses in the agricultural sector, totaling approximately USD5 billion in the US in 2017. The cultivation of vanilla is also susceptible to plant diseases, which can impede market growth during the forecast period.
• Vanilla market faces several challenges in the food industry. Climate change brings unpredictable weather conditions like cyclones and droughts, affecting vanilla output. For instance, Hurricane Enawo devastated Madagascar's plantations in 2017. Political instability and poor farming practices also impact production. Theft is a significant issue, especially in the liquid segment, which is currently dominating the market due to its use in lifestyle and health care industries for its therapeutic capabilities. Climatic conditions and manufacturing bases in countries like Indonesia and Mexico are crucial for raw resources. Market demand for vanilla remains high due to its role in heart health and healthy digestion. Conventional and organic agricultural methods offer cost advantages and standardization in the category. The liquid and powder forms have different market dynamics, with liquid having a larger share.

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Segment Overview 

This vanilla market report extensively covers market segmentation by

1. Application 
• 1.1 Food and beverages
• 1.2 Pharmaceuticals and cosmetics
2. Geography 
• 2.1 North America
• 2.2 APAC
• 2.3 Europe
• 2.4 South America
• 2.5 Middle East and Africa

1.1 Food and beverages- The food and beverages segment holds the largest share in the global vanilla market, accounting for significant revenue. Vanilla is widely used as an ingredient in various food products and as a flavoring agent in ice cream, beverages, and baked goods. Its addition in food and beverages helps reduce the amount of sugar, particularly in cakes, pastries, and desserts. Moreover, vanilla is utilized in savory dishes like lobster and butter. The expanding utilization of vanilla in bakery items, such as bread, cakes, and pastries, is expected to boost the growth of the food and beverages segment. However, evolving consumer preferences towards ethnic and spicy flavors may hamper market expansion. Alternative flavoring agents, such as maple syrup and almond syrup, are also gaining traction among consumers. Despite these challenges, the food and beverages segment is projected to register a consistent growth rate throughout the forecast period.

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Research Analysis

The vanilla bean business is experiencing an increasing inclination among people due to the health benefits associated with this prized spice. Vanilla is used in various processed foods, cosmetics, hygienic goods, shampoos, fortified beverages, and food industries. However, the vanilla output is affected by several factors, including cold weather, respiratory infections, and vomiting, which can harm the vanilla plants. Climate change, cyclones, droughts, and political instability also contribute to the volatility of vanilla prices in the market. Poor farming practices, theft, and other challenges further impact the vanilla market demand. Despite these challenges, the preference for vanilla remains strong due to its unique taste and aroma.

Market Research Overview

The vanilla market is experiencing an increasing inclination towards natural vanilla beans due to the people's preference for processed food with health benefits. Vanilla, a flavoring agent, is used in various industries including bakery business for cupcakes, cakes, brownies, puddings, and even fortified beverages. The vanilla bean business offers health-promoting compounds like vitamins, minerals, and phenols, providing nutritional benefits. However, the availability of vanilla is affected by climate change, cyclones, droughts, and other natural disasters, leading to volatility in vanilla output and prices. The market demand for vanilla is driven by its therapeutic capabilities, particularly in treating cold, respiratory infections, vomiting, and as a hygienic ingredient in cosmetic products like shampoos and soaps. The liquid vanilla segment dominates the market due to its versatility and ease of use, but vanilla powder is gaining popularity for its cost advantages and standardization. The organic agricultural sector is growing, with raw resources being sourced from various plantations around the world. The vanilla market is influenced by various factors including political instability, poor farming practices, and theft, leading to fluctuations in prices. Despite these challenges, the vanilla market continues to thrive due to its role as a flavoring agent and its health-promoting properties.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Food And Beverages
• Pharmaceuticals And Cosmetics
• Geography
• North America
• APAC
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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