North America Vanilla (B2B) Market, By Vanilla Type (Madagascar, Mexican, Synthetic Origin, India, Indonesian, Tahitian, Tonga, Papua New Guinea, Ugandan and Others), Vanilla Origin (Natural and Synthetic), Grade (Grade A (30% Moisture), Grade B (20% Moisture) and Others), Form (Liquid, Powder and Paste), End-Use (Food, Beverages, Personal Care & Cosmetic, Pharmaceuticals, Household/Retail and Others) Distribution Channel (Wholesale and Online), Industry Trends and Forecast to 2029
Market Analysis and Insights
The North America vanilla (B2B) market is gaining significant growth due to the growing food & beverage industry and the rise in demand for bakery products. The increase in demand for different types of confectionary products is also boosting the growth of the North America vanilla (B2B) market. However, stringent government regulations associated with synthetic vanilla is expected to restrain the market growth of vanilla market during the forecast period.
Data Bridge Market Research analyses that the North America vanilla (B2B) market will grow at a CAGR of 4.8% during the forecast period of 2022 to 2029.
2022 to 2029
2020 (Customizable to 2019- 2015)
Revenue in USD Million, Volume in Tons, Pricing in USD
By Vanilla Type (Madagascar, Mexican, Synthetic Origin, India, Indonesian, Tahitian, Tonga, Papua New Guinea, Ugandan and Others), Vanilla Origin (Natural and Synthetic), Grade (Grade A (30% Moisture), Grade B (20% Moisture) and Others), Form (Liquid, Powder and Paste), End-Use (Food, Beverages, Personal Care & Cosmetic, Pharmaceuticals, Household/Retail and Others) Distribution Channel (Wholesale and Online)
U.S., Canada, and Mexico
Market Players Covered
Boston Vanilla Bean Company, Nielsen-Massey Vanillas, Inc., McCormick & Company, Inc., Prova, SYNERGY, IFFinc, Kerry, Takasago International Corporation, Aust & Hachmann (Canada) Ltd/Ltée, ADM, Madagascar Vanilla Company LLC, VanillaPura and Firmenich SA
Vanilla is a spice derived from the orchids of the genus vanilla. It is widely cultivated in various regions across the world. Moreover, Madagascar, Mexico, and Indonesia are leading in the production of vanilla beans. Vanilla flavor is extracted from the vanilla beans, named natural vanilla extract in the market. However, the demand for vanilla flavor is rising promptly among consumers, leading the vanilla processor to produce synthetic vanilla extract from renewable resource. The vanilla beans are classified into grade A, grade B, and others based on the quality.
Similarly, vanilla is segmented into various forms such as liquid, powder, and paste. The vanilla beans, and extracts are widely used in bakery, confectionery, and dairy based products. In addition, vanilla has extensive pharmaceutical, and personal care products applications.
North America Vanilla (B2B) Market Dynamics
Growing demand for vanilla in the food & beverage industry
The demand for vanilla in the food & beverage industries is growing rapidly. Vanilla extract is an important flavouring agent in the food and beverage processing industry. In the food industry, vanilla is added to various food applications, including dairy-based products, bakery products, processed foods, chocolate & confectionery, and others, to enhance its flavours and taste. Thus, the increase in demand for vanilla powder, paste, and liquid in the food industry is expected to drive growth in the market.
Meanwhile, vanilla extracts play an important role in reducing bitterness and enhancing the product's flavour in the chocolate industry. In addition, vanilla will mask the taste variation in chocolate caused by cocoa bran. Hence, the increase in demand for vanilla in the chocolate industry is propelling the growth of vanilla in the market.
Growing demand for vanilla in the pharmaceutical, and personal care industry
In recent years, the demand for fragrance-based cosmetic and personal care products has been increasing among customers across the globe. Hence, the rise in the need for vanilla-added cosmetic products is impelling the growth of vanilla in the market. Besides fragrance, vanilla has a particular functional property that enables the repair of skin damage.
For instance, vanilla is naturally rich in antioxidants, which help neutralize the free radicals and reduce skin damage. Due to its functional property, vanilla liquids, powders, and pastes are largely used in cosmetic products. Thus, the increasing usage of vanilla in the cosmetic industry will drive growth in the market. Moreover, the Madagascar vanilla has extensive application in personal care products such as lotion, anti-aging creams, and lip balm enriched with vitamin B, which is responsible for healthy skin. Thus, cosmetic manufacturers are adding vanilla into their products.
Hence, the growing demand for Madagascar vanilla in personal care product will propel the market growth.
Rising demand for synthetic vanilla extracts
Although the low production of vanilla beans reduces the production of natural vanilla extracts in the market. To encounter the demand, the vanilla extracts manufacturers are focused on producing synthetic vanilla extract. This further creates an opportunity for vanilla extract producers to expand their value in the global market. As a result of rising consumer preference for vanilla-flavored food products, the food industry demands more synthetic vanilla extract in the market.
In recent years, immense interest has been grown among chemical industries due to the viable opportunity to substitute synthetic vanilla products with renewable resources. According to U.S. regulation, the derivation of vanilla extract from renewable sources can be labeled as natural. Thus, the manufacturers emphasize producing vanilla extract using the biotechnological method.
- Fluctuating price of raw materials
The demand for vanilla flavors is increasing among industries and customers across the globe. However, the demand for vanilla exceeds the supply of vanilla in the market.
- Based on the NPR report, the rising demand for Madagascar vanilla bean increased the product's price by ten times in 2017 compared to previous years. Hence, the increasing price of Madagascar beans will decrease the growth in the market as the customers are sensitive to price
Similarly, the customers are looking for clean label products and demand natural, and organic products. Therefore, the companies produce vanilla extracts from a natural source to satisfy the customers. Despite that, less raw material availability leads the manufacturers to sell their products at a higher cost. As a result of elevated prices, the demand for vanilla will decline and obstruct the global market's growth.
- Availability of substitute products
Vanilla is the most common flavor among consumers, although the availability of alternative flavors in the market is a major challenge for the growth of vanilla in the market. Maple syrup, almond extract, citrus zest, and others are the substituent flavors available in the market. Maple syrup is a substitute for vanilla extracts which offers a pleasant aroma, and vanilla's mellow flavors.
Maple syrup is ideal for preparing pancakes, cookies, roasted vegetables, and other food applications.
As it is cost-effective, the consumers opt for maple syrup as an alternative to vanilla flavor. Hence, the increasing demand for maple syrup will decline the growth of vanilla in the market. Consequently, almond extract is also used as an alternative source of vanilla extract. Moreover, almond extract is significantly more potent than vanilla flavor. This extract is widely added to baked goods and other desserts to enhance its flavor and taste. Therefore, the rising demand for almond extract in the bakery industry will obstruct the growth of vanilla in the market.
Post COVID-19 Impact North America Vanilla (B2B) Market
Post COVID-19, the demand for vanilla is increased in North America region due to change in buying pattern of consumers and gradual shift towards to increasing the demand of variety of flavored products among various end users such as food & beverages and others. Due to the discontinuation of many strict mandates and restrains manufactures and producers are able to fulfil the demand for vanilla in the North America region.
The increased demand for different flavored food items enables manufacturers to launch various organic and synthetic vanilla, which has helped the market grow.
- In October 2020, Firmenich SA, a leading privately-owned perfume and taste company signed a partnership with authentic products, a leading producer in Madagascar and a founding member of Group's Naturals Together. This partnership strengthens the responsible source of vanilla in the market. In addition, the companies offer agricultural training facilities to teenagers from Madagascar and create a unique opportunity for vanilla-growing families to improve their livelihoods.
- In January 2020, ADM acquired Yerbalatina Phytoactives, a leading manufacturer of plant-based extracts and ingredients. This acquisition will expand ADM's business in Brazil and strengthen its position in the health & wellness market.
- In June 2019, Solvay introduced a new vanilla solution under the brand name vanifolia and vanifolia bean. The new products have offered a natural substituent for vanilla extract which is cost-effective. Hence, vanifolia and vanifolia bean has met the customer’s expectation for authentic taste and consistent quality
North America Vanilla (B2B) Market Scope
The North America vanilla (B2B) market is segmented into six notable segments based on vanilla type, grade, vanilla origin, form, end-use and distribution channel. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to make strategic decisions to identify core market applications.
- Synthetic Origin
- Papua New Guinea
On the basis of vanilla type, the North America vanilla (B2B) market is segmented into Madagascar, Mexican, Synthetic origin, India, Indonesian, Tahitian, Tonga, Papua New Guinea, Ugandan and others.
On the basis of form, the North America vanilla (B2B) market is segmented into liquid, powder and paste.
On the basis of vanilla origin, the North America vanilla (B2B) market is segmented into natural and synthetic.
- Grade A (30% Moisture)
- Grade B (20% Moisture)
On the basis of grade, the North America vanilla (B2B) market is segmented into grade A (30% moisture), grade B (20% moisture) and others.
- Personal Care & Cosmetic
On the basis of end-use, the North America vanilla (B2B) market is segmented into food, beverages, personal care & cosmetic, pharmaceuticals, household/retail and others.
On the basis of distribution channel, the North America vanilla (B2B) market is segmented into wholesale and online.
North America Vanilla (B2B) Markets Regional Analysis/Insights
The North America vanilla (B2B) markets analyzed and market size insights and trends are provided based on as referenced above.
The countries covered in the North America vanilla (B2B) markets report are U.S., Canada and Mexico.
U.S. dominates the North America vanilla (B2B) marketing terms of market share and market revenue and will continue to flourish its dominance during the forecast period. This is due to growing demand for vanilla in various industries in North America such as food, beverages, personal care, and others.
The country section of the report also provides individual market impacting factors and changes in regulations in the market that impact the current and future trends of the market. Data points, such as new and replacement sales, country demographics, disease epidemiology, and import-export tariffs, are some of the major pointers used to forecast the market scenario for individual countries. In addition, the presence and availability of brands and their challenges faced due to high competition from local and domestic brands, and the impact of sales channels are considered while providing forecast analysis of the country data.
Competitive Landscape and Global Vanilla Market Share Analysis
The North America vanilla (B2B) market competitive landscape provides details by the competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Asia-Pacific presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points provided are only related to the companies' focus on market.
Some of the key market players are, Boston Vanilla Bean Company, Nielsen-Massey Vanillas, Inc., McCormick & Company, Inc., Prova, SYNERGY, IFFinc, Kerry, Takasago International Corporation, Aust & Hachmann (Canada) Ltd/Ltée, ADM, Madagascar Vanilla Company LLC, VanillaPura, and Firmenich SA.
Data collection and base year analysis are done using data collection modules with large sample sizes. The market data is analyzed and estimated using market statistical and coherent models. In addition, market share analysis and key trend analysis are the major success factors in the market report. The key research methodology used by DBMR research team is data triangulation which involves data mining, analysis of the impact of data variables on the market, and primary (industry expert) validation. Apart from this, data models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide, Company Positioning Grid, Company Market Share Analysis, Standards of Measurement, North America Vs Regional and Vendor Share Analysis. Please request analyst call in case of further inquiry.
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