Vanilla Extract Market Report

Vanilla extract is made up of socking vanilla pods into a mixture of water and ethanol alcohol. Vanilla extract adds flavour and taste to the food products along with bringing out the flavour of other ingredients as well. Along with that, vanilla extract is known to add aroma in the food product and creates an aesthetic appeal which make food items more delicious and mouth-watering. Vanilla extract is widely popular in making dessert and ice-cream, also it has application in a wide range of food items. Food items made up with the help of vanilla extract is popular among people of every age group and it is also very popular among professional chefs as well. Few drops of Vanilla extract can entirely change the taste and flavour of food items and can make these items more desirable.     

Vanilla Extract Market Dynamics

Globally, demand for Vanilla Extract is increasing drastically and the key factor behind the growth of Vanilla Extract market is the wide application of vanilla extract in the food and beverages due to which there is a huge demand of vanilla extract in the market. Vanilla extract not only just add taste to the food items but also it adds fragrance and flavour to food items which creates the demand for vanilla extract in the market. In addition to that, people all around the globe are influenced by western culture due to which pattern of food consumption has been changed and the demand for baked items has been increased which has fuelled the demand of vanilla extract in the market. 

COVID 19 Impacts on Vanilla Extract Market

COVID-19 has had a global impact on nearly every market, it has also impacted the Vanilla Extract market. In most of the part of globe, owing to the lockdown many of the food outlet remained closed which lowered the demand for vanilla extract in the market. Also, covid crisis has caused shut down of many of the physical stores due to which sales of vanilla extract decreased and restraint the growth of vanilla extract. On another hand, lockdown forced people to stay at home which allowed people to make food items and increased the demand of vanilla extract for residential use. Also, online stores have helped the vanilla extract market to grow further during covid crisis.

Vanilla Extract Market by Overview

The global vanilla extract market is segmented based on form, application, nature, distribution channel and geography. 

Vanilla Extract by Nature 

The vanilla extract products are either organic or synthetic in nature. Synthetic vanilla extract covers the major share in the market. Synthetic vanilla is made up from synthetic vanillin which is the compound that occurs in vanilla beans and give almost same taste and flavour to organic synthetic flavour. Synthetic flavour of vanilla is most demanded in the market because it is less costly as compared to organic vanilla extract and it is widely available. However, as the people are moving towards the consumption of organic food the demand for organic vanilla extract is increasing across the world. Organic vanilla extract is rich in taste and it makes food items more delicious which has helped the market for organic vanilla extract to grow further. 

Vanilla Extract by Form 

The vanilla extract products are available in liquid and powder form. Liquid form of vanilla extract has captured the majority of the market. Liquid form of vanilla extract can be easily used in the food products it doesn’t change the structure of food products but add taste and flavour to the food items due to which demand of liquid form of vanilla extract has been fuelled. Liquid form of vanilla extract is used in almost every food product which include cake, cookies, ice-cream, pastries, smoothies etc. In addition to that, with increased demand of vanilla flavour in dessert items has fuelled the demand of liquid form of vanilla extract. 

Vanilla Extract by Application

The vanilla extract market finds application into of bakery products, alcoholic beverages, nutritional supplements, dairy products and other. Vanilla extract is considered to be versatile food ingredient which enhance the taste and flavour of food items, it has wide applicability and most commonly used in making baked items. Vanilla extract enhances the taste of baked products, and the baked items such as cakes, pastries, cookies and several other items made up of vanilla extract are very popular. Most of the bakers also prefer vanilla extract to add flavour in the baked items which has made vanilla extract more popular. 

Vanilla Extract by Distribution Channel

Hypermarkets, specialty stores, retail stores, online stores are the distribution channels through which vanilla extract products are made available. Hypermarket and specialty stores play important role in the growth of vanilla extract market. As the demand for vanilla extract is growing rapidly in the developing counties as well the role of hypermarkets and specialty stores is also increasing. Consumers prefer these stores because these stores have well trained staff who guide customers to take a better decision also shopping in these stores is very convenient. Along with that, role of online stores is also increasing in the growth of vanilla extract market. Online stores are growing rapidly with increased penetration of mobile internet and strong digitalization across the globe. 

Vanilla Extract Market by Geography

Geographically, global vanilla extract market is studied for the major countries of North America, Europe and Asia-Pacific and rest of the world. Europe is considered to be the major market for vanilla extract owing to the huge production of vanilla extract in the region, also increased domestic income and enhanced taste of food items along with nutritional benefits of vanilla extract has augmented the growth of vanilla extract market in North America region. North America and Asia-Pacific region has also witnessed in the significant growth of vanilla extract market, as the domestic income is increasing and the online stores are expending in the developing part of these regions. Also, increased popularity of vanilla extract in dessert, baked items and ice-creams has augmented demand for vanilla extract and it is expected to grow further with growth in of bakery industry in these regions.  

Vanilla Extract Market Key Players

Some of the major players operating in this market are McCormick (U.S.), Adams Extract (U.S.), OliveNation LLC (U.S.), Wilton (U.S.), Nielsen Massey (U.S.), Lochhead Manufacturing Company (U.S.), PROVA (Belgium), NATURALIGHT FOODS (Canada), Cook’s Vanilla (U.S.), Synergy (U.S.), Symrise (Germany), Fermeniche International SA (Switzerland), The Vanilla Company (U.S.), Hawaiian Vanilla Co (U.S.), Penzeys Ltd (U.S.), and among others.

Recent Developments

• In 2019, Coca-Cola launched its new flavour Coke orange vanilla and coke orange vanilla with zero sugar which was blended with vanilla extract.  
• In October 2020, Vnlla Extract Co. (vnlla) announced the launch of new line of vanilla extract on Amazon, this new line of vanilla is based upon 200 years old concept, reimagined with adding fruits and spice extract in it. 
• In 2021, Singing Dog (US) announced the launch of Organic Double Strength Pure Vanilla Extract to the retail market for use in making ice-cream and boosting vanilla flavour in baked goods.