Natural Vanillin Market

Natural vanillin, with its origins deeply rooted in the vanilla orchid plant, is a flavoring superstar renowned for its delicate and delightful notes of creaminess, sweetness, and floral aroma, making it a beloved ingredient in the food and beverage industry. It can be sourced by extracting it from vanilla beans or by synthesizing it from lignin found in wood pulp, offering a versatile and sustainable solution for a wide range of product applications, including baked goods, confectionery, and beverages.

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Current trends in the natural vanillin market:

• The demand for natural and clean label ingredients is driving the growth of the natural vanillin market.
• The rising popularity of plant-based and vegan diets is increasing the demand for natural vanillin.
• Natural vanillin is used as a key ingredient in fragrances and personal care products.
• Food manufacturers are increasingly using natural vanillin in their products as a replacement for synthetic vanillin.
• The use of natural vanillin is in line with the global trend towards sustainable and responsible production practices.

Natural Vanillin Market Dynamics

Demand for cost-effective and sustainable products

The demand for natural vanilla flavors is rising as consumers are highly preferred to plant-based and naturally flavored foods. Natural vanillin is the chemical compound of vanilla that is used as a flavoring agent in all applications. Natural vanillin is extracted from vanilla beans, which is more expensive. To meet consumer demand, manufacturers are producing natural vanillin through cost-effective and sustainable methods such as ferulic acid synthesis and eugenol synthesis, and other sources. Natural vanillin, which is extracted from vanilla beans unable to meet the growing demands of the food and beverage industry. Because vanilla can be grown in only specific climatic conditions and labor extensive (needs hand pollination).

Due to the scarcity and cost of natural vanilla extract, the commercial production of vanillin molecules began by utilizing natural compounds such as rice bran, wood, and clove. For instance, Borregaard offers cost-effective and sustainable vanillin products through wood-based vanillin for different applications such as bakery, caramel, chocolate, and dairy products. Oamic ingredients USA produces natural vanillin through eugenol synthesis derived from sustainably sourced clove oil. It is specially developed through innovative technology to meet the cost-effectiveness and sustainable standards of ex-clove vanillin.

The rising inclination for natural flavors and fragrances in premium products

The growing trend of premiumization will contribute to the growing consumer demand for natural vanillin. Premium products are expected to witness high demand globally in the coming years. Factors contributing to the growing inclination of customers toward premium products include the rising disposable income of people and the growing health consciousness of consumers. In European countries, there is a growing demand for vanilla extract in food & beverages and cosmetics & pharmaceutical products. Increasing consumer demand for organic and natural ingredients in food & beverages on the European market.

France has the second-largest organic food & beverage market in Europe due to the growing demand for healthier and natural food & beverage products. With the increasing risk of toxic and other harmful ingredients used in personal care products, consumers have started preferring bio-based products, especially in the developed countries of Europe and North America. In addition, skin sensitiveness and environmental impact caused as a result of the use of non-synthetic ingredients have increased the demand for natural fragrance ingredients in personal care products. The growing health hazards associated with the use of synthetic products have also encouraged consumers to pay more for less toxic and environmental-friendly products. Consumers are also ready to pay premium amounts for products with natural ingredients. This trend has led fragrance manufacturers to develop naturally sourced products to increase their profit margins.

High cost of raw materials

Vanillin is one of the ingredients which has a wide range of applications including food, beverages, pharmaceuticals, and personal care. Vanillin is largely used in beverages by producers to cut the use of sugar and other artificial sweeteners in their products. According to research by Penn State, adding vanilla to milk-based beverages can reduce the sugar requirement by 30-50%. Vanilla is rare, and the second most expensive spice, due to the extensive labor required to grow the vanilla seed pods.

The overall growing cycle of vanilla pods requires pollination, which is done manually, the workers use a stick to move the pollen-coated part of the flower, called the anther, towards the female part, called the stigma. It takes 600 hand-pollinated blossoms to produce 1 kg of cured beans. Unripe beans are sold at local markets to collectors and curers who then sort, blanch, steam, and dry the beans in the sun. They are then sorted again, dried in the shade, and fermented. The beans are continually evaluated on their aroma and quality. The demand for vanillin has surged with its prices because vanilla vines take years to mature, and natural supplies are insufficient. Extreme weather and exporters who hoard inventory and speculate on further rises have also kept prices high. Furthermore, natural vanillin is used as food ingredients which are also some of the most tested and regulated products in the world. The need for testing and regulatory compliance increases the cost of the R&D process.

Rising end-use application.

There is a rising global demand for new, improved, and application-specific food ingredients in the food industry. New product launches and technological innovations are key strategies adopted by the leading market players in the natural-vanillin market.  For instance, Solvay has added three new natural flavor ingredients “Rhovanil Natural Delica, Alta, and Sublima to the lineup of Rhovanil Natural CW, one of its signature products. With these new solutions, the Group will help the food & beverage industries meet rising customer demands for healthier, safer, tastier, and more natural products, as well as cost-effectively make the conversion to natural.

Rhovanil Natural Delica, Alta, and Sublima are based on Rhovanil Natural CW, the industry standard for natural vanillin demands. Ferulic acid, a naturally occurring substance found in rice bran, is converted into vanillin by this process. For manufacturers of food & beverages around the world, this non-GMO natural vanillin flavor ensures quality and value by balancing taste performance and cost-in-use.

Lack of inconsistency in labeling regulations

Due to strong customer demand, clean and clear labels have evolved from trends to industry standards across the food & beverage market. Customers choose products with all-natural, well-known, straightforward ingredients that are simple to understand. They also want transparency regarding the methods utilized to source and prepare ingredients, as well as their origins. Growing worries about allergies brought on by additional compounds make this need even more important. Hence, the market for natural flavors such as vanilla or vanillin is legally compelled to go by the guidelines established by various regulatory standards. International bodies such as the National Food Safety and Quality Service (SENASA), Canadian Food Inspection Agency (CFIA), US Food and Drug Administration (FDA), World Health Organization (WHO and the Committee on the Environment, Public Health, and Food Safety (EU) among others. These organizations have control over the use of different chemicals and materials used in food processing, directly or indirectly. When deciding whether a flavor is natural, most international organizations take the US's or the EU's lead. The regulatory requirements in the US and the EU are comparable, yet they can differ significantly. For instance, what might be regarded as natural in the United States might not be in Europe which can affect market growth.

North America: Natural Vanillin Market Snapshot

North America dominated the natural vanillin market in 2021, and the market is projected to grow with a CAGR of 8.1% during the forecast period (2022-2027)

North America accounted for the largest share of the global natural vanillin market, with 36.4% in 2021, and is projected to grow at a CAGR of 8.1% during the forecast period. The growth in the region is attributed to increasing demand for clean-label food products and high purchasing power. The US imports major portions of natural vanillin in the global market accounting for 18% of the total share. This is due to the presence of leading food processing companies and the high consumption of natural vanillin.  In addition, According to FAO, in 2021, Mexico is the third leading producer of vanilla beans throughout the world. Almost 70% of vanilla beans produced in Mexico are exported to other countries, where they are processed further into a vanilla extract and other by-products.

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A few of the natural vanillin companies in the US include Sensient Technologies Corporation, Prova, McCormick & Company, Inc. IFF, Aurochemicals, Advanced Biotech, Nielsen-Massey, and Comax Flavors.

Key Market Players

The key players in the natural vanillin market include Givaudan (Switzerland), Firmenich SA (Switzerland), Symrise (Germany), Kerry Group plc (Ireland), Solvay (Belgium), International Flavors and Fragrances (US), Sensient Technologies Corporation (US), McCormick & Company, Inc. (US), Mane (France), and Lesaffre (France).

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Scope of the Report

This research report categorizes the natural vanillin market, based on source, application, and region.

Target Audience

• Natural vanillin manufacturers
• Natural vanillin distributors
• Academicians and research organizations
• Processed food manufacturers.
• Ready-to-eat meal manufacturers.
• Pharmaceutical manufacturers
• Cosmetics and personal care manufacturers

Report Scope:

Natural Vanillin Market:

By Source

• Vanilla Bean Extract
• Eugenol Synthesis
• Ferulic acid Synthesis
• Other Sources

By Application

• Food & Beverages
  • Bakery & Confectionery
    • Bread
    • Mixes
    • Others (Snack bars, Cereals)
  • Beverages
    • Dairy alternatives
    • Flavored milk
    • RTD Beverages
    • Other beverages
  • Dairy
    • Ice Cream
    • Yogurt
    • Creamers
    • Other dairy products
  • Other Food & Beverage Products
• Pharmaceuticals
• Cosmetics & Personal Care

By Region:

• North America
• Europe
• Asia Pacific
• Rest of the World (RoW)

Recent Developments

• In December 2022, Mane opened its innovation center in Hyderabad with an investment of Euro 3 million (USD 3.5 million) to explore various categories of flavors and taste end applications. This is strategically located in one of India’s fastest-growing metro cities and is well connected to other parts of the country.
• In November 2022, Mane opened its new manufacturing facility in Dahej, Gujarat, with an investment of Euro 20 million (USD 23.8 million) to meet the growing demand for flavors and fragrances in India and across the Asia Pacific region.
• In September 2022, Solvay launched three new flavor ingredients: Rhovanil Natural Delica, Alta, and Sublima, to expand the natural vanillin portfolio for the food & beverage industries. This product launch aims to meet the growing consumer demand for healthier, safer, and tastier natural products.
• In September 2022, Axxence Aromatic GmbH collaborated with Wageningen Plant Research, the Dutch research institute, to drive research in natural flavor substances. Customers use these substances to develop natural flavors for the food & beverage industry and natural fragrances for the perfume and cosmetics industry.
• In May 2022, Solvay collaborated with Suanfarma’s Cipan manufacturing site located in Lisbon, Portugal, to develop natural ingredients, such as natural vanillin and Rhovanil Natural CW, for the food, flavor, and fragrance industries.
• In August 2021, Oamic Ingredients USA a subsidiary of Oamic Biotech Co., Ltd. launched “Ex-clove vanillin,” which is produced by fermentation from eugenol synthesis (Ex-clove). This product is launched to meet the customers looking for environmentally friendly produced products.
• In December 2020, McCormick & Company, Inc. acquired FONA International, LLC, a manufacturer of clean and natural flavors that provides solutions for various applications, such as food, beverage, and nutritional markets. This acquisition expands flavor growth and strengthens its leadership in clean and natural flavors.
• In October 2020, Firmenich SA partnered with Authentic Products, a producer and exporter of vanilla beans in Madagascar, to strengthen the sourcing of vanilla. This partnership aims to provide employment opportunities to the youth and improve their livelihoods.
• In March 2020, International Flavors and Fragrances collaborated with Evolva, a Swiss biotech company, to develop and expand the commercialization of vanillin. This collaboration commits to supporting the increasing consumer demand for health and the environment.
• In January 2020, Solvay launched Rhovanil Natural to meet the increasing consumer demand for natural ingredients and healthier products.
• In February 2019, McCormick & Company, Inc. collaborated with IBM Research to develop an AI application for flavor and food product development. This collaboration aims to start a new era of flavor innovation by using AI for product composition.

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