“Global Vanilla Extract Market to reach a market value of USD 6.5 Billion by 2030 growing at a CAGR of 4.8%”
The Global Vanilla Extract Market size is expected to reach $6.5 billion by 2030, rising at a market growth of 4.8% CAGR during the forecast period. In the year 2022, the market attained a volume of 27,180.29 tonnes, experiencing a growth of 4.0% (2019-2022).
Convenience stores have become quick and accessible sources for consumers purchasing baking essentials on the go. The convenience factor aligns with the need for immediate access to ingredients for spontaneous cooking and baking ventures. Consequently, the convenience stores segment would generate approximately 17.2 % of the market by 2030. Also, France would utilize 1,417.80 tonnes of vanilla extract in personal care by 2030. Convenience stores can diversify their vanilla extract offerings, providing options such as single-use packets, smaller bottles, or multipacks.
Vanilla extract is obtained from vanilla beans, making it a natural flavoring agent. Consumers often associate natural ingredients with better health and wellness, as opposed to artificial or synthetic additives. The perception that vanilla extract is a pure and natural flavor contributes to its popularity. Thus, these factors will assist in the expansion of the market.
Additionally, Vanilla's sweet, warm, and comforting scent makes it a popular choice in the fragrance industry. As a base note, it is frequently incorporated into perfumes and colognes, alone or in conjunction with other fragrances. Vanilla's association with relaxation and comfort adds to its appeal in products that promote well-being. Hence, these aspects will assist in the growth of the market.
However, Vanilla orchids thrive in specific temperature and humidity conditions. Changes in climate, including rising temperatures and altered rainfall patterns, can disrupt the delicate balance required for optimal vanilla growth. Extreme heat or excessive rainfall can negatively impact flowering, pollination, and the overall development of vanilla pods. Thus, owing to these factors, the market will witness decreased demand in the coming years.
Based on product type, the market is segmented into liquid and powder. In 2022, the powder segment garnered a 22.95 % revenue share in the market. Vanilla extract in powder form offers convenience in handling and incorporating the flavor into various recipes. This makes it a practical choice for consumers and manufacturers, ensuring a stable and reliable ingredient in the pantry. Hence, these aspects will pose lucrative growth prospects for the segment.
On the basis of source, the market is divided into natural and synthetic. The natural segment recorded a 70.6 % revenue share in the market in 2022. In terms of volume, natural segment would produce 18,324.35 tonnes in 2022. Consumers, motivated by a desire for healthier lifestyles, are actively avoiding products with artificial additives, preservatives, and synthetic flavorings. Natural vanilla extract aligns with clean label preferences, as it is derived directly from vanilla beans without synthetic compounds. Hence, these factors can boost the growth of the segment.
Based on application, the market is divided into food & beverages, personal care, and others. In 2022, the personal care segment witnessed a 28.8 % revenue share in the market. Using vanilla in personal care aligns with the growing popularity of aromatherapy. South Korea’s trade surplus in the cosmetics sector grew by 28.6 percent to $7.8 billion. Thus, these aspects will boost the growth of the segment.
On the basis of distribution channel, the market is divided into business-to-business, supermarkets & hypermarkets, convenience stores, departmental stores, and online sales channels. The business-to-business segment recorded the 36.7% revenue share in the market in 2022. Vanilla extract is a staple ingredient in the bakery and confectionery industry. Therefore, these aspects can lead to enhanced demand in the segment.
Free Valuable Insights: Global Vanilla Extract Market size to reach USD 6.5 Billion by 2030
By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2022, the Europe segment acquired a 31 % revenue share in the market. Europe has a rich culinary heritage with a diverse range of cuisines. The demand for vanilla extract has been fueled by its versatile use in traditional European recipes and global culinary innovations. Consumers appreciate the ability of vanilla to enhance the flavor profile of various dishes, from desserts to savory dishes. Thus, the segment will expand rapidly in the upcoming years.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 4.5 Billion |
| Market size forecast in 2030 | USD 6.5 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 4.8% from 2023 to 2030 |
| Revenue Growth Rate | Volume in Tonnes, Revenue in USD Billion, and CAGR from 2019 to 2030 |
| Number of Pages | 392 |
| Number of Tables | 870 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Product Type, Source, Distribution Channel, Application, Region |
| Country scope |
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| Companies Included | McCormick & Company, Inc., Kerry Group PLC , Nielsen-Massey Vanillas, Inc. , International Flavors & Fragrances, Inc. , Sauer Brands Inc. , Naturalight Foods Inc. , OliveNation, LLC , Frontier Cooperative DSM-Firmenich , Adams Flavors, Foods & Ingredients, LLC |
By Product Type (Volume, Tonnes, USD Billion, 2019-2030)
By Source (Volume, Tonnes, USD Billion, 2019-2030)
By Application (Volume, Tonnes, USD Billion, 2019-2030)
By Distribution Channel (Volume, Tonnes, USD Billion, 2019-2030)
By Geography (Volume, Tonnes, USD Billion, 2019-2030)
This Market size is expected to reach $6.5 billion by 2030.
Growing Consumer Demand For Natural Flavors are driving the Market in coming years, however, Long Growth Cycle And Vulnerability To Climate Change restraints the growth of the Market.
McCormick & Company, Inc., Kerry Group PLC , Nielsen-Massey Vanillas, Inc. , International Flavors & Fragrances, Inc. , Sauer Brands Inc. , Naturalight Foods Inc. , OliveNation, LLC , Frontier Cooperative DSM-Firmenich , Adams Flavors, Foods & Ingredients, LLC
In the year 2022, the market attained a volume of 27,180.29 tonnes, experiencing a growth of 4.0% (2019-2022).
The Food and Beverages segment is leading the Market by Application in 2022 there by, achieving a market value of $3.5 billion by 2030.
The North America region dominated the Market by Region in 2022 there by, achieving a market value of $2.1 billion by 2030, growing at a CAGR of 4.1 % during the forecast period.
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