According to “The Insight Partners” latest market study, titled "Vanilla Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Form (Paste, Liquid, Powder, and Beans), Category (Organic and Conventional), and Application (Food and Beverage, Personal Care, Pharmaceuticals, and Others)," the market was valued at US$ 1,434.51 million in 2021 and is projected to reach US$ 1,951,956.09.09 million by 2028. It is expected to grow at a CAGR of 4.5% from 2021 to 2028.
The protein powder manufacturers also use vanilla as a flavoring agent in their products. Vanilla is extensively used across multiple end-use industries and is experiencing massive demand due to its rich flavor and unique aroma. Thus, the rising demand for vanilla in various end-use industries is boosting the market substantially.
Key players in the global vanilla market include Camlin Fine Sciences Ltd; Givaudan S.A.; Heilala Vanilla US; LAFAZA Foods; Nielsen-Massey Vanillas, Inc.; Symrise; The Vanilla Company; Kerry Group; Touton S.A.; and Madagascar Vanilla Company.
Vanilla is widely used across several industries, such as food and beverage, personal care and cosmetics, pharmaceuticals, home fragrance, and animal feed. It is one of the most popular flavoring agents used in various food products and beverages, such as cakes, pastries, cookies, muffins, biscuits, ice creams, desserts, smoothies, chocolates, coffee, cocktails, and dairy products. Due to its unique fragrance, it is extensively utilized in perfumes, deodorants, and soaps. It also finds application in medicines for masking off-flavor and in ointments due to its anti-bacterial properties.
Based on form, the vanilla market is bifurcated into paste, liquid, powder, and beans. The beans segment accounted for a larger market share in 2020 and the liquid segment is expected to register a higher CAGR in the market during the forecast period. Liquid vanilla offers a richer, purer vanilla taste than vanilla essence since it is less processed. Liquid vanilla can be used in various bakery products, such as cakes, pastries, and cookies. It is also used as a flavoring agent in various beverages, such as wines, cocktails, hot chocolate, and coffee.
Vanilla extract finds usage in ice creams, smoothies, desserts, and other products. Liquid vanilla is utilized in skincare and pharmaceutical products due to its anti-inflammatory properties. Liquid vanilla is also used in perfumes and fragrances. The rising utilization of liquid vanilla for a wide range of applications is projected to drive the product demand over the forecast period.
The COVID-19 pandemic has affected economies and industries in various countries due to lockdowns, travel bans, and business shutdowns. The food & beverage industry is one of the leading industries, suffering severe disruptions, such as supply chain breaks and shutdowns of production plants due to the pandemic. During the initial days of the pandemic, various companies had announced possible delays in product deliveries and slump in future sales of their products. In addition, the global travel bans imposed by countries in Europe, Asia, and North America have been affecting business collaborations and partnership opportunities.
All these factors are anticipated to negatively affect the food & beverage industry, thereby acting as a restraining factor for the growth of various markets related to this industry, including the global vanilla market. The price fluctuation triggered by COVID-19 and labor shortages is a limiting factor for the vanilla market as well. Businesses are gaining ground as previously imposed limitations are being eased across various locations.
Moreover, the introduction of COVID-19 vaccines by governments of different countries has further eased the situation leading to a rise in business activities worldwide. Due to rising vaccination rates across the globe, the market started recovering from the losses, which is expected to positively impact the vanilla market's growth in the near future.