Vanillin Market | Size, Share, and Forecast [2021-2031]
The vanillin market size is projected to reach US$ 1.7 billion by 2031 from US$ 1.2 billion in 2023. The market is expected to register a CAGR of 5% in 2023–2031. Rising trend of self-care routine is propelling the demand for natural vanillin as a key ingredient in aromatherapy oils and luxury candles. This in turn is likely to remain key vanillin market trends.
Vanillin Market Analysis
Nowadays, consumers are highly concerned about the ingredients used in their food products. They are paying more attention toward the food labels. Transparency, ethical sourcing of ingredients, and 100% natural content are vital in consumers’ everyday purchases. Also, rising awareness of the harmful impacts of chemical and synthetic ingredients on overall health is driving the demand for all-natural ingredients. Consumers are also ready to pay more for clean-label and certified organic products. Therefore, convenience food and beverage manufacturers focus on including all-natural and organic ingredients in their products. This factor significantly drives the demand for vanillin extracted from natural vanilla pods.
With the rise of self-care trends, consumers are investing in luxury candles and aromatherapy oils. Self-care has become critical as consumers focus on their overall physical as well as mental well-being. The aroma of vanilla is proven to alleviate anxiety due to its soothing and sedative effects. It also has a calming effect, helping people to reduce depression and anxiety. The high antioxidant content of natural vanillin helps to get glowing and healthy skin. The demand for 100% natural vanilla extracts and vanillin is increasing in the personal care industry. Moreover, the demand for vanillin is also rising in scented candles, aroma diffusers, etc. This factor is bolstering the vanillin market growth.
Over the past few years, there is rising influence of celebrities on the lifestyle of common people. Due to growing penetration of social media and rising number of smartphone users, people have high accessibility to a number of products endorsed by celebrities. People try to imitate the lifestyle of celebrities. This factor is boosting various personal care products demand. Vanillin is one of the widely used ingredients in various personal care products such as moisturizers, lotions, scrubs, and sheet masks. This factor is thereby driving the vanillin market.
Vanillin Market Overview
Vanillin is the main aromatic compound found naturally in vanilla beans. Vanillin can also be produced synthetically from petrochemicals such as eugenol and guaiacol which are derived from crude oil. Vanillin is also manufactured from lignin waste and through bio-based processes. Thus, vanillin is the major byproduct of lignin production. Naturally extracted vanillin is very expensive. Synthetic vanillin is cheaper and easily available than natural vanillin. Therefore, majority of the food and beverage, pharmaceuticals and nutraceuticals, and personal care products manufacturers use synthetic vanillin in their products to reduce their overall production costs. However, with growing interest in 100% natural, clean, and organic products, demand for natural vanillin is expected to increase over the coming years. Vanillin is an extensively used flavoring ingredient in various food and beverages, usually bakery and confectionery, dairy and frozen desserts, RTD beverages, etc. due to its indulging aroma and flavor. This factor is significantly driving the global vanillin market growth.
Strategic Insights
Vanillin Market Drivers and Opportunities
Rising Inclination Towards Natural and Organic Food Products to Favor Market
Over the past few years, there has been a significant shift in the consumption patterns of people across the globe. The demand for instant and ready-to-eat convenience products has increased drastically due to the hectic lifestyle of people. People spend half their time in offices, leading to a lack of physical activity and health issues such as obesity. Therefore, people are shifting toward healthy, low-calorie, and 100% natural food products. Consumers perceive natural and organic products to be healthier than conventional products. Therefore, the demand for all-natural and certified organic products is increasing tremendously. Consumers increasingly prefer brands that claim the utilization of 100% natural ingredients. They tend to be loyal to those brands that use natural food additives in their products. This factor significantly drives the demand for natural flavoring ingredients including natural vanillin. Thus, the rising demand for natural vanillin in the food & beverage industry due to shifting consumer preferences is driving the vanillin market growth.
Increasing Sustainability Concerns to Provide Massive Growth Opportunities to Develop Bio-based Vanillin
With rising awareness about sustainability, the demand for biovanillin is also increasing. Biovanillin is made from microorganisms using fermentation technology with precursors such as ferulic acid, isoeugenol, and eugenol. These precursors can be obtained synthetically or from natural agro-based materials. For instance, Borregaard offers biovanillin from renewable raw materials such as Norway spruce. Their biovanillin products are PEFC-certified (Programme for the Endorsement of Forest Certification). The Norway spruce is sourced from sustainably managed forests. Thus, such products are expected to provide competitive advantage to the company opening new opportunities in the vanillin market over the next few years.
Vanillin Market Report Segmentation Analysis
Key segments that contributed to the derivation of the Vanillin Market analysis are type, application, and geography.
- Based on type, the vanillin market is divided into natural and synthetic. The synthetic segment held a larger market share in 2023. Synthetic vanillin is obtained from petrochemicals such as such as eugenol and guaiacol which are derived from crude oil. It is very cheap compared to natural vanillin and is easily available. Natural vanilla is the second-most expensive spice in the world, after saffron. Its production is highly limited specific countries including Madagascar, Mexico, Indonesia, Uganda, Tonga, among others. Vanilla cultivation is a complex process as the crop requires very specific climate to grow. This factor creates high price volatility in the natural vanilla industry making vanilla highly expensive. Therefore, majority of the industries prefer synthetic vanillin to ensure easy procurement of raw materials and low production costs. This factor drives the growth of the synthetic vanillin segment in the global vanillin market.
- Based on application, the vanillin market is segmented into food & beverages, pharmaceuticals & nutraceuticals, personal care, and others. The food & beverages segment held a larger market share in 2023. The food and beverages segment is expected to hold a significant share of the vanillin market. Vanilla is one of the widely used flavor in the food and beverages industry. Bakery products such as cakes, cookies, biscuits, pastries, and breads are often flavored with vanilla due to its sweet and spicy flavor and aroma. Children are fond of vanilla flavored confections and ice creams. The love of vanilla as a flavor is not restricted to certain age group. It is a highly popular flavor among older population as well. Thus, the high popularity of vanilla flavor among people of all age groups is driving the demand for vanillin in the food and beverages industry across the globe.
Vanillin Market Share Analysis by Geography
The geographic scope of the Vanillin Market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. The Asia Pacific vanillin market held the largest market share in 2023. Asia Pacific is one of the significantly growing markets for vanillin owing to the presence of a potential customer base, low manufacturing costs, cheap skilled labor, and rising demand for vanilla-flavored food products such as cakes, confectionery, RTD beverages, cookies, ice-creams, etc. Moreover, the region's rapidly growing personal care industry also provides significant growth potential to the vanillin market, as vanillin has a wide range of applications in personal care products. Vanillin has calming, soothing, and antioxidant properties making it one of the desirable ingredients in moisturizers and lotions. Also, the unique aroma of vanillin is driving its demand in the fragrances industry. Various manufacturers of mists, perfumes, and fragrances are launching products with vanillin as a primary aroma. For instance, Plum Goodness, a India-based cosmetics and personal care company, provides body mists with sweet and spicy vanilla. The availability of such products and rising popularity of vanilla are bolstering the vanillin market growth across Asia Pacific.
Vanillin Market Report Scope
Vanillin Market News and Recent Developments
The Vanillin Market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for speech and language disorders and strategies:
- Solvay expanded its line of natural vanillin flavors for the food and beverage industry with the launch of Rhovanil Natural Delica, Alta, and Sublima. The company aims to address the rising demand for healthier, safer, and natural vanillin products with the launch of its brand-new ingredients. (Source: Solvay, Press Release/Company Website/Newsletter, 2022)
- Evolva signed a multi-year agreement with a contract manufacturing organization (CMO) partner for the supply of vanillin to consumers across the flavors and fragrances industry. (Source: Evolva, Press Release/Company Website/Newsletter, 2023)
Vanillin Market Report Coverage and Deliverables
The “Vanillin Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
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Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
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Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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