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Vanilla Extract Market Size, Share & COVID-19 Impact Analysis, By Source (Madagascar Vanilla, Mexican Vanilla, Indonesian Vanilla, and Others), By Application (Food & Beverages, Cosmetics, and Pharmaceuticals), and Regional Forecast, 2022-2029

Region : Global | Format: PDF | Report ID: FBI100210



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The global vanilla extract market size was valued at USD 5.26 billion in 2021. The market is projected to grow from USD 4.94 billion in 2022 to USD 6.29 billion by 2029, exhibiting a CAGR of 3.52% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with vanilla extract experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -18.23% in 2020 as compared to 2019. 


Spread of COVID-19 Across Globe Restricted Market Growth

The COVID-19 pandemic restricted the supply of all commodities globally mainly in Q2 2020, which caused disruptions in the supply chain and resulted in many products not being able to reach the end-users. This has further resulted in less supply of ingredients and finished products, impacting the overall ingredients market including the vanilla extract market, which recorded below-average growth in 2020.

Since the COVID-19 pandemic, more people are cooking at home, which led to an increase in food & beverage sales. Despite increased demand and sales, the COVID-19 pandemic caused a halt in many commercial vanilla bean productions in Madagascar, Indonesia, Mexico, China, Turkey, and Uganda. With obstacles in the transport system, businesses experienced short-term operational difficulties due to supply chain constraints and lack of location accessibility due to the COVID-19 pandemic. Although the market started responding after the initial few months, the export of vanilla beans took longer to be back to normal levels.


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The trend of Using Plant-based Ingredients Supporting the Market Growth

Current consumer demands and international regulations have prompted the cosmetic industry to seek out new active ingredients from renewable natural sources to produce safe and sustainable products. Such extracts are not only environmentally sustainable but also provide an unlimited source of new active ingredients.

Vanilla extracts are very expensive as well as one of the most popular natural ingredients in the cosmetics industry. The high cost and popularity of vanilla extracts are mainly due to alcohol content and vanilla’s aromatic properties that can be beneficial in manufacturing perfumes & fragrances and many other beneficial properties such as anti-inflammatory, antibacterial, and antioxidant properties. Today, the cosmetics industry includes extracts for different mixtures of their individual ingredients as active ingredients or preservatives in different product lines such as moisturizers, creams, and lotions, skin care cosmetics, conditioners, face masks or anti-dandruff preparations in hair products, lipstick or perfume in perfumery. This trend of using plant-based natural ingredients in the cosmetics industry will provide lucrative opportunities for the vanilla extract market growth during the forecast period.


Prospering Food & Beverage Industry to Benefit the Market

In the food industry, vanilla is mainly used in ice cream preparation. The proliferation of fast food chains worldwide is driving ice cream consumption as the fast food industry is one of the major consumers of ice cream. Increasing consumer disposable income, rising living standards, and enhancing consumer purchasing power are leading due to increases in per capita consumption in emerging regions such as India and China.

Moreover, the demand for gourmet and premium ice cream has increased significantly due to increased health awareness among consumers due to its superior quality, provenance, delicate taste, exotic ingredients, and ethical origin. In addition, rapid urbanization has led to the expansion of modern retail formats, such as department stores, hypermarkets, supermarkets, and convenience stores, contributing to an increase in global ice cream sales.

These factors are boosting the market growth and are expected to remain the same during the forecast period.


Geopolitical Conflicts in Vanilla Growing Regions Obstruct Market Growth

Madagascar is the leading vanilla growing region in the world with more than 50% of the global vanilla production taking place in Madagascar. Madagascar has been politically unstable for a long period of time. This political instability has a short-term impact on the availability of vanilla beans; however, the product is always available in the market. Moreover, the prices do not remain the same all the time due to changing political parties, internal conflicts, and import-export policy changes. Thus, the socio-political impact makes it difficult for the manufacturers to fix vanilla bean prices.

The vanilla supply chain is disintegrated with a very huge number of small farmers involved in the process. The vines usually grow in remote locations from where the farmers gather the beans. Collectors who buy the beans sell them to exporters. Moreover, the process of cultivation of vanilla is very complex and the farmers engage in different extents of efforts to cultivate the vanilla depending on market prices. For instance, if the prices of the beans fall to very low levels, farmers lose motivation to cultivate them next season, and this further impacts the production and availability of vanilla beans. Thus, the complex production process coupled with geopolitical issues in the region obstructs the market growth leading to fluctuating prices. The fluctuation in prices of vanilla pods further impacts vanilla extract production and consumption leading to a shift toward its substitutes or replacement.


By Source Analysis

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Madagascar Segment Holds Major Market Share Attributed to High Yield and High Demand

On the basis of source, the market is segmented into Madagascar vanilla, Mexican vanilla, Indonesian vanilla, and others. Madagascar vanilla beans are grown in Madagascar and are considered to be the best of their kind for quality vanilla beans in the spice industry. Plenty of rainfall and fertile soil makes the optimal conditions for the cultivation of vanilla plants. With more than 50% of the global vanilla production taking place in Madagascar, demand for specially cultivated vanilla pods is very high from the food as well as cosmetics and pharmaceutical industries.

Vanilla was first cultivated and harvested in Mexico. The vanilla bean cultivated and originated from Mexico is known as Mexican vanilla. Demand for Mexican vanilla is mainly from North America and Latin American countries as they get lower tariffs on vanilla imported from the neighboring country. Although vanilla was first cultivated in Mexico, it is now the third-highest producer of vanilla beans. Indonesia remains the second highest producer of vanilla beans and its demand from Asia Pacific is high compared to other types of vanilla beans.

By Application Analysis

Food & Beverages Segment Holds Major Share Owing to Wide Applications of Vanilla Extracts in Various Food Products

Vanilla beans and extract are used mainly in the food & beverages industry in different forms. Its use can be seen as flavoring and taste enhancers in candy, ice cream, pastry, dairy products, chocolate, bakery items such as biscuits, baking mixes, cookies, waffles, muffins, cakes, and beverages such as soft drinks, coffee drinks; confectionery, sauces, and baby formulas. Owing to such a wide range of applications, the food & beverages segment is expected to be the dominant as well as the fastest growing segment over the forecast period.

In the cosmetics industry, vanilla is used for its anti-inflammatory, antibacterial, and antioxidant properties. It is mainly used in lip care, skin care, hair care, and body care products. In the pharmaceuticals industry, the demand for vanilla extract is increasing since the last few years owing to an increase in the number of medicines produced each year and demand for vanilla as taste enhancers.


Asia Pacific Vanilla Extract Market Size, 2021 (USD Billion)

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Asia Pacific holds the major vanilla extract market share owing to the presence of huge food & beverages manufacturers in China and India as well as the presence of a large number of pharmaceutical manufacturer companies in Asia Pacific. India and China are the leading countries in terms of population; and hence, consumption of food & beverages is very high in these two countries. Resultantly, demand for different types of vanilla extract is very high from the food & beverages industry. Moreover, India is a hub for pharmaceutical production and exports a large share of its production to the global market; hence, the demand for vanilla extracts from manufacturing units is high. Such factors are expected to hold the market position of Asia Pacific region high during the forecast period.

Europe is the second largest market. This is mainly due to the presence of a few of the world’s largest food companies as well as cosmetic products manufacturing companies. Europe is known as the cosmetic hub of the world with many leading cosmetic companies of the globe having their headquarters in the EU region. With such diverse demand, Europe is expected to grow with steady growth over the next few years.

In North America, the U.S. and Canada are the largest markets. The demand is mainly observed from food & beverages as well as pharmaceutical industries. Consumers in the U.S. are always aware of the new foods that are launched in the market and are always seeking various new flavors in packaged foods; hence, the demand for vanilla as a vital flavoring agent is increasing.

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South America and the Middle East & Africa regions are home to a few of the developing economies in the world such as Brazil, South Africa, the UAE, Saudi Arabia, and Nigeria. Expansion of the food & beverages industry in these countries is a potential opportunity for the players in the market to strengthen their market position in these regions. Developing economies always try to attract multinational companies to invest in their country to promote their country as well as to create employment in the nation. With the presence of such economies and with positive hopes of the growth of food & beverages, cosmetics, and pharmaceutical industries, these regions are expected to contribute considerably during the forecast period.


The market is consolidated with global vanilla production concentrated in limited countries. To counter the production scenario, market players are expanding their market reach in key vanilla-producing countries and are competing with each other to strengthen their market reach. Firmenich, one of the world’s largest privately-held perfume and flavor companies, entered into a partnership with ‘Authentic Products and ‘NaturalsTogether’, one of the leading producers of vanilla in Madagascar. This partnership is expected to further strengthen its responsible sourcing of vanilla in Madagascar.



  • August 2021: Vanilla Bean Kings expanded by building a new facility for its operations in the Western Meadows Industrial Park. This will help the company to expand in Hartford, Boston, U.S.

  • January 2021: Blue Pacific Flavours, the U.S.-based company introduced sustainable vanilla extract, Kilimanjaro Vanilla. Through this new launch, the company has met consumer demand for natural, clean-label, and sustainably produced products. 

  • October 2020: Solvay introduced new vanilla solutions under the brands Vanifolia and Vanifolia Bean. Firmenich, the world’s largest privately-owned perfume and taste company, entered into a partnership with Authentic Products, one of the largest producers and exporters of vanilla beans in Madagascar. Through this partnership, Firmenich strengthened its raw material sourcing.

  • February 2019: McCormick & Co. Inc., one of the leading producers of vanilla, partnered with Buzzfeed on a new line of seasoning blends. The company also launched a new "Flavor Maker" app to drive growth by attracting younger generations of consumers.

  • September 2018: Bell Flavors & Fragrances, a prominent supplier of botanical extracts, ingredients, and flavors launched a new range of natural vanilla flavor solutions. The new product has a rich taste and is highly customizable.


An Infographic Representation of Vanilla Extracts Market

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The research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading application areas of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation:



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD Billion)


By Source

  • Madagascar Vanilla

  • Mexican Vanilla

  • Indonesian Vanilla

  • Others

By Application

  • Food & Beverages

  • Cosmetics

  • Pharmaceuticals

By Geography

  • North America (By Source, Application, and Country)

    • U.S. (By Application)

    • Canada (By Application)

    • Mexico (By Application)

  • Europe (By Source, Application, and Country)

    • France (By Application)

    • Spain (By Application)

    • U.K. (By Application)

    • Italy (By Application)

    • Germany (By Application)

    • Rest of Europe (By Application)

  • Asia Pacific (By Source, Application, and Country)

    • China (By Application)

    • India (By Application)

    • Japan (By Application)

    • Australia (By Application)

    • Rest of Asia Pacific (By Application)

  • South America (By Source, Application, and Country)

    • Argentina (By Application)

    • Brazil (By Application)

    • Rest of South America (By Application)

  • Middle East and Africa (By Source, Application, and Country)

    • UAE (By Application)

    • South Africa (By Application)

    • Rest of the Middle East & Africa (By Application)


Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 5.26 billion in 2021 and is projected to reach USD 6.29 billion by 2029.

The market will exhibit steady growth, registering a CAGR of 3.52% in the forecast period (2022-2029).

By source, Madagascar vanilla segment is expected to be the leading segment in this market during the forecast period.

Rapid expansion of the food & beverages industry is the key factor driving the market.

Adams Extract, C.F. Sauer Company, and McCormick & Company are the key players.

Asia Pacific dominated the market share in 2021.

The rise in adoption of natural plant-based extracts in the cosmetics industry is expected to drive its growth.

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