Pure vanilla extract market size has been expanding at a healthy pace over the recent past. While market growth will be on an upward trend in the near future, a new study projects a promising 6% CAGR for it during 2019-2029.
The colour, taste and flavour of pure vanilla extract is highly dependent on the quality of raw material, i.e., vanilla beans. Ingredient suppliers are putting in more efforts to ensure that curing of green vanilla beans is carried out as per the predefined standards of vanilla extract manufacturers. This has a major impact on improving the quality of vanilla beans that would further facilitate production of high-quality and authentic pure vanilla extract. As a result of efforts taken by ingredient suppliers towards maintaining the quality of vanilla beans, the demand for high-quality pure vanilla extract continues to rise. These insights are based on a report on Pure Vanilla Extract Market by Persistence Market Research.
Key takeaways - Pure vanilla extract market study
Madagascar is the leading producer of vanilla beans, fulfilling 80% of the world’s demand for vanilla beans. It is also the leading exporter of vanilla beans across the globe as Madagascar Bourbon vanilla is widely used for the production of pure vanilla extract.
North America and Europe account for more than 60% of market share in the global pure vanilla extract market, owing to the increasing demand for pure vanilla over synthetic one in the regions.
Being a much-loved flavour, vanilla has numerous applications in experimental food products, innovative beverages, and even in nutraceutical supplements as a flavouring agent. For instance, Honey Twigs, a gourmet honey manufacturer recently launched a 100% pure vanilla-flavoured honey. This is made from natural vanilla and premium unadulterated honey.
The increasing demand for pure vanilla extract across the globe has forced manufacturers to look for new vanilla beans-supplying countries. Some of the newly emerging vanilla bean producers include countries like Hawaii, Cook Island, Comoros, Tanzania and Florida.
The trend of confectionery gifting is rising, fueling the growth of retail market. Vanilla remains among the most favourite flavours, enhancing the overall taste of products. Additionally, as a result of growing consumers’ willingness to pay a premium for authentic ingredients, manufacturers of pure vanilla extract would see an influx of opportunities in innovative food and beverage applications. Effective product positioning will be crucial.
Manufacturers aim to develop diverse portfolio
Manufacturers of pure vanilla extract are opting for various marketing strategies that are helping them position their products better. Pure vanilla extract manufacturers are focussing on scalable and differentiated innovations, which is the best way to distinguish their brands from other competitors. For instance, McCormick & Company is introducing products for every type of cooking occasion, from gourmet and premium to value-priced vanilla extract.
Alcohol-free products are an emerging trend in various established markets worldwide. The pure vanilla extract market has also felt the impact of this trend. Manufacturers are expanding their product portfolios by offering non-alcoholic pure vanilla extract.
For instance, Singing Dog Vanilla Company introduced a non-alcoholic pure vanilla extract containing glycerin. This pure vanilla extract contains no alcohol, no sugar, and is also gluten-free.
