Vanilla Extract Global Market Report 2024

The vanilla extract market has grown steadily in recent years. It will grow from $4.93 billion in 2023 to $5.18 billion in 2024 at a compound annual growth rate (CAGR) of 4.9%. The growth observed in the historical period can be ascribed to the traditional culinary applications of vanilla, the expanding food and beverage industry, consumer preferences leaning towards natural flavors, increasing disposable income, and the flourishing bakery and confectionery sector.

The vanilla extract market is expected to see steady growth in the next few years. It will grow to $6.09 billion in 2028 at a compound annual growth rate (CAGR) of 4.1%. The anticipated growth in the forecast period can be linked to the heightened utilization of vanilla in non-food items, the influence of health and wellness trends, the adoption of sustainable sourcing practices, the growth of artisanal and craft markets, and innovations in extraction processes. Key trends expected in the forecast period involve a rising demand for natural and organic products, fluctuations in vanilla bean prices, a focus on sustainable and ethical sourcing practices, adherence to stringent quality standards and certifications, and the continued expansion of the bakery and confectionery sector.

The anticipated growth in the vanilla extract market is expected to be fueled by the increasing consumption of bakery products. Bakery products encompass a diverse range of items produced using wheat flour to create various final bakery-related products. Vanilla extract serves as a popular ingredient in bakery products, contributing a rich and nuanced flavor characterized by notes of caramel, cream, and floral undertones. As an illustration, the American Bakers Association reported a notable 18.7% increase in sales of baking ingredients and supplies in 2021. Additionally, data sourced from Euromonitor International, as published on the official website of the Government of Canada, indicates that retail sales of baked goods in the US amounted to $67.9 billion in 2021 and are projected to reach $75.8 billion by 2026. Thus, the rising consumption of bakery products is a significant driver for the growth of the bakery contract manufacturing market.

The surge in ice cream consumption is poised to drive the growth of the vanilla extract market in the foreseeable future. Ice cream, a frozen dairy product, is crafted by skillfully blending and processing cream and other milk-based ingredients with sugar, flavoring, and optionally colors and stabilizers, all during the freezing process. The increased demand for ice cream contributes to the growth of the vanilla extract market, as it is a key ingredient in ice cream production, imparting a natural aroma and flavor. According to data from the United States Census Bureau, the average American consumes approximately 4 gallons or about 20 pounds of ice cream annually, as of July 2022. Likewise, the International Dairy Foods Association reported that American manufacturers produced over 1.3 billion gallons of ice cream in 2021. Hence, the upward trend in ice cream consumption is a driving force behind the growth of the vanilla extract market.

Prominent players in the vanilla extract market are leveraging innovation to introduce unique products such as Kilimanjaro Vanilla, setting themselves apart in the industry. Kilimanjaro Vanilla, launched by Blue Pacific Flavors Inc. in January 2021, stands out as a premium natural vanilla sourced from the slopes of Mount Kilimanjaro in Tanzania. This rare African vanilla is renowned for its smooth, rich, and luxurious qualities, featuring complex sweet and exotic aromatics, a rich flavor, and a luxuriously long finish. Blue Pacific Flavors Inc. emphasizes sustainability in the production of Kilimanjaro Vanilla, operating as a social enterprise that educates Tanzanian farmers on vanilla agriculture, advocates for fair trade wages, and ensures full traceability, thereby empowering local communities toward sustainable success. The introduction of Kilimanjaro Vanilla underscores the company's dedication to sustainability, quality, and social responsibility in its flavor products.

A predominant trend in the vanilla extract market is the focus on product innovation by major industry players. Companies are committed to developing inventive products to enhance their market positioning. As an example, Blue Pacific Flavors Inc., a US-based company specializing in organic and natural fruit flavors, introduced Kilimanjaro Vanilla in January 2021, showcasing an authentic and sustainable vanilla extract. The exceptional quality of Kilimanjaro Vanilla is achieved through a genuine farm-to-flavor approach, meticulously selecting vanilla cultivars, hand-pollinating vanilla flowers, and employing patient methods during the harvesting and curing of vanilla beans. The result is a richness of sweet and creamy floral resins layered with exotic woods and unique terroir traces, providing an unparalleled vanilla taste in the modern marketplace.

In October 2021, Universal Corporation, a US-based tobacco company, completed the acquisition of Shank's Extracts Inc. for $120 million. This strategic move allowed Universal to expand its plant-based ingredients platform, augmenting its product offerings and strengthening value-added services such as custom packaging, bottling, and product development capabilities. Shank's Extracts Inc., a US-based producer of pure vanilla extract, became part of Universal Corporation's diversified portfolio.

Major companies operating in the vanilla extract market report are Adams Extract & Spice LLC, C.F. Sauer Company, McCormick & Company Incorporated, Frontier Co-op, Beyond Good LLC, Nielsen-Massey Vanillas Inc., The J.R. Watkins Co., Eurovanille SAS, Firmenich SA., Symrise Pvt. Ltd., Lochhead Manufacturing Company, OliveNation LLC, Wilton Brands LLC, Great Value Inc., Prova Inc., Naturalight Foods Inc., Cook Flavoring Company, Castella Imports Inc., Herbal Creative LLC, Shanks Extracts Inc., Heilala Vanilla Limited, Steenbergs Organic Ltd., LorAnn Oils Inc., Tharakan and Company, Synergy Flavors Inc., The Vanilla Company, Sonoma Syrup Co., Blue Cattle Truck Trading Co., Silver Cloud Estates LLC, Rodelle Inc.

Asia-Pacific was the largest region in the vanilla extract market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global vanilla extract market report during the forecast period. The regions covered in the vanilla extract market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the vanilla extract market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary forms of vanilla extract are liquid and powder, with liquid vanilla being a widely favored flavoring ingredient. Vanilla serves as a key flavoring agent in pharmaceutical syrup production and is also utilized in the formulation of fragrances. Extracted from various sources, including Madagascar vanilla, Mexican vanilla, and Indonesian vanilla, these organic and synthetic varieties find application in diverse sectors such as food and beverages, alcoholic beverages, dairy products, bakery items, nutritional supplements, pharmaceuticals, and cosmetics.

The vanilla extract market research report provides vanilla extract market statistics, including the vanilla extract industry's global market size, regional shares, competitors with a vanilla extract market share, detailed vanilla extract market segments, market trends, and opportunities, and any further data you may need to thrive in the vanilla extract industry. This vanilla extract market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The vanilla extract market consists of sales of Bourbon, Tahitian, single fold, double fold, and triple fold vanilla extracts. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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