The global vanilla market is expected to be worth $240.6 million by 2028, growing at a CAGR of 4.6% between the years of 2018-2028.
According to a Transparency Market Research report, the growth of the market is driven by strong growth in Asia Pacific (APAC) regions and vanilla’s use as a flavor for bakery, dairy, beverage and other applications. The APAC region accounts for more than 21% of the total global vanilla market and is expected to grow at an accelerated rate of 6% CAGR. India has also emerged as a producer in the southern states of Tamil Nadu, Andhra Pradesh, Karnataka and Kerala. Additionally, European markets are expected to see robust growth due to its use in confectionery, biscuit, cookie, cake and pastry products.
Related: Labeling Vanilla Flavorings and Vanilla-Flavored Foods in the U.S.
Due to its wide appeal, vanilla is seeing demand growth in food, beverage, cosmetic and pharmaceutical markets. Madagascar accounts for more then 70% of vanilla's production accounting for more than 70% of the vanilla market, followed by Mexico and Tahiti. Extracts are the most popular form, which is created through transuding chopped vanilla in ethyl and water for two days before being filtered and stored. Despite the figures reported in the market's growth, high demand, environmental changes and lack of resources in farming communities continue to keep vanilla prices high.