Vanillin Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The global vanillin market is projected to grow at a CAGR of 5.6% during the forecast period (2020 - 2025).

• Vanillin market’s growth is driven by its diversified applications in end-user industries, ranging from food and beverage to pharmaceuticals.
• Owing to the ongoing trend of natural ingredients, the market has seen a rise in demand for natural vanillin. Major players in the end-user segment such as Nestle and General Mills announced that they would be using natural colors and flavorings in their products.
• Furthermore, measures are being taken by various associations and companies in order to regularize the cultivation of vanilla beans. These factors are expected to aid the vanillin market’s growth, globally.
• The major market players are heavily investing in R&D, primarily to improve the production yield of vanilla, which is used in extracting vanillin. The global vanillin market is highly fragmented and competitive. Some of the key players in the global vanillin market are Solvay SA, Evolva Holding SA, Camlin fine Sciences, Lesaffre (Ennloys), and Prinova Group LLC.
• As the COVID-19 the global market has seen a rapid surge in the ongoing trend for products developed with natural ingredients. This has created a strong growth opportunity for the natural vanillin segment across the globe, primarily for application in functional food and beverages.

Scope of the Report

Vanillin is considered one of the most popular compounds in the world and is essential for the food and beverage industry. By type, the market is divided into natural vanillin and synthetic vanillin and based on application, the market is segmented into food, beverage, pharmaceutical, and other applications. Vanillin is extensively used as a flavoring agent, in the beverage manufacturing industry. Synthetic vanillin dominates the market, as a flavoring agent in beverages, due to the low availability of natural vanilla and comparatively lower cost. Due to the rising demand for natural vanillin, particularly in developed countries, companies like Solvay introduced natural vanillin to the US market for bakery, confectionery, beverage, and other food manufacturers.

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Key Market Trends

Deficient Vanilla Production Driving Synthetic Market

World production of natural vanilla is low as compared to the demand from across the globe. Less than 1% of vanilla flavor comes from actual vanilla orchids. With demand on the upswing, trade in the coveted flavor is out of balance. The supply of vanilla beans in the world is low as compared to the demand it has across various end-user industries. With few producing countries and the high demand for vanilla, it is subject to volatile price development. A shortage in 2017 caused rising prices of vanilla, with prices dropping by a third again in 2019. Moreover, the production of natural vanilla from vanilla beans is extremely labor-intensive. Due to the high cost of vanilla beans, flavor/fragrance companies have long used chemistry to develop a cheaper, chemically synthesized vanillin. Food makers are confronting skyrocketing costs for natural vanilla, reformulation challenges, complicated labeling laws, and difficult regulations regarding the natural label.

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