Vanilla Bean Market

Vanilla Bean Market: Sustainability in Production to Lead to Consistent Supply of Natural Vanilla Bean: Global Industry Analysis (2013 - 2017) & Opportunity Assessment (2018 - 2027)

  • 2019-01-17
  • REP-GB-8558
  • 138 Tables
  • 108 Figures
  • 180 pages
  • Format: PDF/PPT/Excel

An Incisive, In-depth Analysis on the Vanilla Bean Market

This study offers a comprehensive, 360 degree analysis on the Vanilla Bean market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Vanilla Bean market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.

Vanilla beans have long been coveted for their tantalizing scent and delicious flavour. Vanilla beans are one of the oldest and most precious spices in the world, having their origin in Mesoamerican, where they are easily found in the wilderness of the tropical forests. It was reported that thousands of years ago, even before the Europeans tasted vanilla, pre-Colombian Mayan people were using vanilla in beverages. Vanilla beans are used commercially as well as domestically. Vanilla beans find application in several industries, including the food and beverage industry, cosmetic industry, personal care industry, and nutraceutical industry. Vanilla beans also have potential application in the medical field.

Madagascar is the largest producer of vanilla beans in the world, as well as the top exporter. Indonesia, China, Mexico, and Papua New Guinea are other top producers of vanilla beans. The U.S. and Indonesia are the largest consumers of vanilla beans, followed by France, Mexico, and other countries. The high cost of vanilla beans is a major challenge to this market, which is due to the fluctuating production of vanilla beans. Climatic conditions in vanilla bean producing countries have a significant impact on their production and price, and creates uncertainty in the global market. Due to this, increasing illegal trade of vanilla beans has been observed. Also, the vacuum packing of partially cured vanilla beans and storing them is being opted for by many vanilla bean growers in an effort to hold the beans till their market value increases. However, the quality of the vanilla beans is compromised by this due to an undesirable phenolic note in the beans.

Renaissance of Traditional Production of Vanilla from Vanilla Beans

In the late 19th century, the discovery of the production of synthetic vanilla using chemical compounds from coal or coal tar was made. This resulted in a decrease in the demand for natural vanilla beans, since the production of synthetic or artificial vanilla was not as labor-intensive and time-consuming as compared to natural vanilla from vanilla beans. Moreover, the price of synthetic vanilla is less than that of natural vanilla. However, the traditional way of producing vanilla from vanilla beans is enjoying a renaissance in the vanilla market off late. Increasing consumer demand for all-natural products in the food and beverage industry, cosmetic industry, and other applications has forced major players in respective industries to use vanilla of natural origin, shifting away from synthetic vanilla in their products, to increase their sales. In 2015, Nestlé, a major food and beverage manufacturer, announced a strategic plan to use only naturally-derived ingredients in its products. The use of natural vanilla over synthetic vanilla in its products commenced, and this was followed by some other big companies such as Hershey’s and Kellogg’s. This strategic decision made by large firms resulted in a surge in the demand for vanilla beans. However, the demand for vanilla beans is surging, while the supply is limited, since vanilla bean producing countries are few, and are limited by natural and environmental factors.

Promising Health Benefits of Vanilla to Support Demand for Vanilla Beans

Vanilla beans and vanilla products are typically used in the food and beverage industry for their aromatic flavour. These vanilla beans contain antioxidants, most of which are retained in vanilla extract. Vanilla has been shown to have many health benefits through many research studies. Vanilla supports heart health, prevents cancer, and reduces inflammation, and also helps in acne prevention, weight-loss, hair care, etc. Due to the promising results in helping weight-loss, vanilla is incorporated in protein powders targeting fitness enthusiasts. The increasing prevalence of cardiovascular diseases, obesity, and other ailments all over the world is expected to drive the use of natural vanilla in functional foods and nutraceuticals. The increasing demand for natural vanilla is likely to drive the global vanilla bean market.

Current Trends in the Global Vanilla Bean Market: Clean Label and Fair Trade

Many of the world’s vanilla producers are operating at the ground level, working with farmers growing vanilla beans in countries such as Madagascar, Mexico, Uganda, and Indonesia. These companies become involved in the early stages of the supply chain, which enables them to provide better transparency in food ingredient products and fair trade. Fair trade and product transparency or clean labeling are the current trends in the food and beverage industry as well as other industries, due to the increasing concerns regarding food safety by consumers. Consumers across various countries are becoming more and more aware on the sustainability aspect of food production, and are getting familiarized with the general terms and simple ingredients in food products. Clean label is a consumer-driven movement, and food manufacturers are following this trend to boost the sales of their products.

FMI has compiled a study on vanilla beans, which offers an analysis and forecast of the vanilla bean market, in its publication titled, 'Vanilla Bean Market: Global Industry Analysis 2013–2017 and Opportunity Assessment 2018–2027. This report on the vanilla bean market covers some of the vital facets that are key influencing factors on the demand and supply of vanilla beans over the next several years. An in-depth review of the growth drivers, potential challenges, unique trends, and opportunities for market participants equip readers to fully comprehend the overall landscape of the vanilla bean market. The report on the vanilla bean market also covers analysis of the key regions and countries of particular interest that are anticipated to become frontrunners or remain laggards over the forecast period. The report covers a historical analysis of the market from 2013 to 2017, and provides forecasts from 2018 to 2027 in terms of volume in metric tons and revenue in US$.

Vanilla is a commonly used spice and flavouring agent in various food and beverage products, including ice cream, baked goods, chocolates, soft drinks, coffee, etc., as well as in other major industries such as cosmetics and personal care. Vanilla is derived from orchids belonging to the genus vanilla. The area of origin of vanilla orchids is in Mesoamerica, which includes modern day Mexico and Guatemala. Currently, vanilla beans are grown in many places around the world. Madagascar is the world’s top vanilla bean producing country, followed by Indonesia, China, and Mexico, among other countries. According to the U.N. Food and Agriculture Organization, Madagascar and Indonesia, together, accounted for around half the vanilla bean production in the world in 2017. The commercial production of vanilla is a very labor-intensive procedure, consisting of the hand-pollination and careful selection of mature vanilla pods/beans for harvest. The harvested green vanilla beans are subjected to a curing step, where usually the vanilla beans are dried under the sun to commence the enzymatic reaction that converts ferulic acid into vanillin, the compound responsible for providing the flavour of vanilla. Artificial or synthetic vanilla is experiencing a drop in demand due to the increasing unpopularity of these products, and the growing trend of using natural flavouring agents, which is eventually resulting in a surge in the demand for pure vanilla from vanilla beans.

This report on the vanilla bean market has been broken down into different chapters to enhance clarity and provide context. A brief executive summary at the beginning of the report consists of some of the key findings of the study on the vanilla bean market, as well as market estimates and growth rates for important segments. The following chapter presents the definitions and scope of the study, as well as the coverage in terms of the way the vanilla bean market is structured. Subsequently, the chapter on market background presents the evolution of vanilla beans, relevant economic indicators such as GDP and per capita spending, including an assessment of the supply chain, policy developments and regulatory scenario, and dynamics impacting the vanilla bean market, as well as an explanation of the factors considered important to develop forecasts and estimates. The report on the vanilla bean market also includes a chapter on pricing analysis, highlighting price point variations between different regions and products, including pricing forecasts. The following chapters dive deep into the global vanilla bean market, covering detailed information based on variety, nature, form, and distribution channel. The next set of chapters provide region-wise analysis and forecasts of the vanilla bean market, covering vital aspects of the markets in North America, Latin America, Europe, Asia Pacific excluding Japan, the Middle East & Africa, and Japan.

A dashboard view of some of the key companies operating in the vanilla bean market in terms of their offerings, regional presence, and other metrics is a precursor to the detailed profiles of these participants, including financial information, strategy overview, SWOT analysis, and market share, as well as analyst commentary. Some of the key players analyzed in the vanilla bean market report include Nielsen-Massey Vanillas Inc., Archer Daniels Midland Company, Venui Vanilla, Eurovanille, Heilala Vanilla Limited, Daintree Vanilla and Spices, Tharkan and Company, Vanam Orchids, Symrise AG, Apex Flavors Inc., Synergy Flavors Inc., Lemur International Inc., Sambirano Aromatic, etc.

For the estimation of the market size of vanilla beans, green vanilla bean production in various regions/countries was taken into account, along with the processing into ground vanilla beans. The production quantity of vanilla beans in top countries and regions, and trade of vanilla beans were considered to estimate the overall consumption of vanilla beans. To cross-reference the estimates of overall supply, the consumption of vanilla beans for key end-use applications was taken into consideration. Region-wise production as well as the consumption of vanilla beans was considered for market sizing in top countries. The market distribution of the sales of vanilla beans across different channels was analyzed, such as B2B and B2C. This was cross-validated with the market share of vanilla beans within the overall herbs and spices market. The prices of vanilla beans have been collected for bulk sales to arrive at the market size for vanilla beans.

Our team of analysts review and interpret data from a variety of sources. Data attributed to ‘FMI’ is derived by using a combination of various approaches, which are then consolidated, interpreted, and extrapolated by FMI analysts. Data is sourced from government statistics, trade associations, company annual reports and investor presentations, press articles and directories, technical publications, and online databases, which are cross-referenced with FMI’s reports and internal repository of data to filter and validate the collected information. Intelligence gathered from desk research is supplemented by extensive interviews with selected key expert participants across the value chain, not only to gain information specific to their roles and operations but also to obtain their perspective and insights of the issues impacting the vanilla bean market.

Global Vanilla Bean Market: Segmentation

By Variety:

  • Madagascan

  • Indonesia

  • Indian

  • Mexican

  • Tahitian

  • Others (Tongan/Ugandan)

By Form:

  • Whole

  • Ground

By Nature:

  • Organic

  • Conventional

By Distribution Channel:

  • Direct/B2B

  • Indirect/B2C

    • Online Retailers

    • Specialty Stores

    • Supermarkets/Hypermarkets

    • Mass Grocery Retailers

By Region:

  • North America

  • Latin America

  • Europe

  • Japan

  • Asia Pacific excluding Japan

  • Middle East & Africa

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