Vanilla Extract Market Report 2025

The vanilla extract market size has grown steadily in recent years. It will grow from $5.18 billion in 2024 to $5.42 billion in 2025 at a compound annual growth rate (CAGR) of 4.6%. The growth in the historic period can be attributed to traditional culinary use, growing food and beverage industry, consumer preference for natural flavors, rising disposable income, bakery and confectionery boom.

The vanilla extract market size is expected to see steady growth in the next few years. It will grow to $6.4 billion in 2029 at a compound annual growth rate (CAGR) of 4.3%. The growth in the forecast period can be attributed to increased application in non-food products, health and wellness trends, sustainable sourcing practices, expanding artisanal and craft markets, innovations in extraction processes. Major trends in the forecast period include increasing demand for natural and organic products, fluctuations in vanilla bean prices, sustainable and ethical sourcing practices, stringent quality standards and certifications, bakery and confectionery boom.

The rising consumption of bakery products is anticipated to drive growth in the vanilla extract market. Bakery products encompass a wide variety of items made from wheat flour, and vanilla extract is a favored ingredient, imparting a rich, nuanced flavor with notes of caramel, cream, and floral undertones. For example, in February 2024, the Agriculture and Horticulture Development Board, a UK-based levy board funded by farmers and growers, reported a 1% increase in baking occasions (equating to 13 million additional occasions) in 2023 compared to 2022. Chocolate cake emerged as a significant contributor, with an impressive rise of 11 million occasions (+63%) between 2022 and 2023. Furthermore, data from Euromonitor International indicated that retail sales of baked goods in the US reached $67.9 billion in 2021 and are projected to grow to $75.8 billion by 2026. Thus, the increasing consumption of bakery products is fueling the growth of the vanilla extract 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.

Major companies in the vanilla extract market are increasingly focused on developing high-quality products, such as premium flavoring agents, to meet the rising consumer demand for natural ingredients and enhance the flavor profiles of various culinary applications. Premium flavoring agents are concentrated, high-quality substances derived from natural sources that enrich the taste and aroma of food and beverages, delivering authentic and rich flavor experiences. For instance, in May 2023, Urban Vanilla Farm, a sustainable organic spice farm based in Costa Rica, launched its line of authentic vanilla extract and vanilla syrup products. These offerings are crafted from hand-picked, sustainably grown vanilla beans, ensuring a rich and flavorful experience for consumers. By providing premium-quality vanilla extract and syrup, Urban Vanilla Farm aims to set a high standard in the market, appealing to chefs and home cooks who prioritize authentic flavors in their culinary creations. This launch addresses the growing consumer interest in natural ingredients and reinforces the company's commitment to quality and sustainability in the vanilla extract sector.

Major companies in the vanilla extract market are increasingly focusing on developing organic products, such as clean-label and sustainable ingredients, to meet the rising consumer demand for transparency, health-conscious options, and environmentally responsible sourcing. Clean-label and sustainable ingredients are characterized by being free from artificial additives and preservatives, with a strong emphasis on responsible sourcing to promote both environmental health and consumer trust. For example, in June 2024, Euringus, a France-based supplier of organic and functional ingredients, launched three new clean-label organic Bourbon Madagascar vanilla extracts. These extracts are made from high-quality, sustainably sourced vanilla beans, ensuring a rich and authentic flavor experience without any artificial additives. By introducing these organic options, Euringus addresses the growing consumer interest in natural flavoring agents and reinforces its commitment to quality and sustainability within the competitive vanilla extract market.

In February 2023, OC Flavors, a US-based company specializing in natural flavor solutions, acquired Novotaste for an undisclosed amount. This acquisition aimed to expand OC Flavors' product offerings and strengthen its position in the flavor industry, particularly in premium vanilla extracts and natural ingredients. Novotaste, based in Canada, is recognized for its expertise in innovative flavor development, enhancing OC Flavors' capabilities in creating high-quality flavor solutions. This strategic move aligns with the growing consumer demand for authentic and natural flavors in various food and beverage applications.

Major companies operating in the vanilla extract market include 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 2024. 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.

Vanilla extract is a liquid flavor crafted from a vanilla bean, which is cultivated within the pod of an orchid plant. The extraction process involves immersing the vanilla bean in a mixture of water and alcohol, followed by an aging period spanning several months to develop the extract.

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 is one of a series of new reports that 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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