In 2022, North America held the largest share of the global vanilla extract market in 2022. North America is one of the prominent regions for the vanilla extracts market due to its increasing demand among various industries such as food & beverages, pharmaceuticals, and cosmetics & personal care. The demand for vanilla extracts is high in the food & beverage industry, majorly for bakery and ice cream preparation. The high living standard of consumers in the region propels the demand for a premium range of ice creams containing natural ingredients. Vanilla extracts act as a natural flavoring agent. Moreover, manufacturers are combining vanilla with other flavors for innovation purposes. For instance, vanilla combines well with citrus, bringing a mellow sweetness to refreshing, bright, and tangy notes that are majorly used in bakery products, desserts, and beverages. Further, vanilla combined with other spices such as cinnamon, nutmeg, or cardamom can add richness and depth to certain savory dishes. Thus, the demand for vanilla extract as a vital flavoring agent is increasing across the region. These factors drive the vanilla extract market growth across North America.
Rising Adoption of Vanilla Extract in Personal Care Bolsters Vanilla Extract Market Growth
Vanilla has extensive usage in the personal care & cosmetic industry. As vanilla is high in antioxidants, which neutralize free radicals and help repair skin damage, it is highly utilized in cosmetics and skincare products. With the growing awareness about its anti-inflammatory and antiaging properties, the use of vanilla has increased in various skincare products such as moisturizers, antiaging lotions, sunscreens, and face masks. Awareness regarding health and skin care has increased significantly among people in recent years. Due to increased disposable income, consumers are willing to spend a tremendous amount on skincare products that make their skin appear healthy and radiant. People also spend extensively on personal care products as they are conscious about their appearance in social settings. Increasing pressure to look good in an image-focused society and rising expenditure on beauty products fuel the growth of the personal care industry across the world. Thus, the growing personal care industry across the world propels the vanilla extract market growth.
Vanilla Extract Market: Segmental Overview
Based on application, the vanilla extract market is segmented into food & beverages, personal care, and others. The food & beverage segment held the largest market share in 2022. The market for the food & beverage segment is subsegmented into bakery & confectionery, dairy & frozen desserts, beverages, sweet & savory snacks, and others. Vanilla extract gives distinctive flavor and aroma to various bakery products. The growing bakery & confectionery industry across the world boosts the demand for vanilla extract. The smooth, delicate character of vanilla blends incredibly well with the rich and creamy indulgence of dairy products. Ice cream is one of the highly preferred frozen desserts across the world. Also, the on-the-go snacking trend boosts the demand for packaged snacks. Consumption of ready-to-eat snacks at picnics, informal gatherings, and parties has become a trend; thus, the demand for vanilla extract as a flavor is rising among snack manufacturing companies. All these factors boost the market growth for the food & beverage segment.
Impact of COVID-19 Pandemic on Vanilla Extract Market
The COVID-19 pandemic adversely impacted the economies and industries due to the disruption of global supply chains, shortage of raw materials and laborers, and shutdown of manufacturing units, leading to a huge slump in product manufacturing and distribution activities. Disrupted logistic supply chains led to a pause in international exports and imports. These factors negatively impacted the vanilla extract market during the pandemic.
In 2021, governments of various countries such as the US, China, India, the UK, and France revoked many restrictions and permitted businesses to operate at full capacity. This helped application industries to overcome the demand and supply gaps. Also, the awareness and inclination toward sustainable protein sources increased, favoring the growth of the vanilla extract market.
Vanilla Extract Market: Competitive Landscape
Eurovanille, Prova SAS, Tharakan and Co, HE Stringer Flavours Ltd, Natural Vanilla Pty Ltd, Kerry Group Plc, Archer-Daniels-Midland Co, Virginia Dare Extract Co Inc, Lochhead Manufacturing Co, and Synergy Flavors Inc. are among the key players operating in the vanilla extract market. They are focusing on providing high-quality products to fulfill customer demand. These players are involved in strategic development initiatives such as product development, merger & acquisition, and partnership, thus, they possess competitive position in the global market.