Vanillin Market by End-user, Type, and Geography - Forecast and Analysis 2023-2027

Vanillin Market Forecast 2023-2027

The vanillin market is estimated to grow by USD 427.69 million at a CAGR of 11.08% between 2022 and 2027. Market expansion hinges on various factors, such as rising disposable incomes, surging demand from the confectionery sector, and the escalating preference for ethyl. Vanilla, a universally recognized flavor, enjoys heightened demand, but its natural production capacity remains constrained. As a result, synthetic production, notably ethyl vanillin derived from catechol, emerges as the predominant solution in the market. Ethyl vanillin distinguishes itself with potent flavoring and fragrance characteristics, surpassing alternative options. Nonetheless, the market faces hurdles like the detrimental impacts of synthetic food additives, vanillin adulteration, and vanillin's tendency to cause discoloration. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the market growth analysis report includes historic market data from 2017 to 2021. 

What will be the size of the Market During the Forecast Period?

To learn more about this report, Download Report Sample

Market Segmentation

This market trends and analysis report extensively covers market segmentation by end-user (food and beverages, fragrances, and pharmaceuticals), type (natural vanillin and synthetic vanillin), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the market growth analysis report includes historic market data from 2017 to 2021.

By End-user

The market share by the food and beverages segment will be significant during the forecast period. Vanillin is used in food and beverages as a flavoring agent. It is commonly used in sweets, desserts, cakes, chocolates, instant noodles, and biscuits. 

Get a glance at the market contribution of various segments Request a PDF Sample

The food and beverages segment was valued at USD 257.56 million in 2017 and continued to grow until 2021. Owing to its strong milky flavor vanillin is used as an edible spice. It is often added to food products during the dry stage when sugar and flour are mixed. It is incorporated into fatty ingredients to obtain better results during topping and creaming. In addition, it is used in manufacturing chocolates in powdered form. Moreover, due to the rise in its usage companies operating in the market are also offering new vanillin products for food and beverage applications. The introduction of such new products in the market is anticipated to drive the growth of the food and beverage segment. Therefore, these factors will boost the growth of the segment during the forecast period. 

By Region

For more insights on the market share of various regions Request PDF Sample now!

APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The food and beverage industry, including bakery products, confectioneries, ice cream, chocolates, and alcoholic beverages, is a significant consumer of vanillin in the APAC region. Natural vanillin, an aroma ingredient in high demand, is suitable for various flavor applications, such as chocolate, strawberry, and caramel, while maintaining all-natural labeling. The food flavors market growth in APAC is driven by the increasing demand for processed foods in countries like India, China, Vietnam, and Japan.

The vanillin market caters to various industries, such as the fragrance industry for aromatherapy, toiletries, incense sticks, and candles; the pharmaceutical industry for REACH and NIOSH compliance; and the industrial sector for pesticides, economic opportunity in ready-to-eat foods, and processed foods. Bio-based and synthetic vanillin are used in various applications, including aromatic candles, essential oils, sweet-flavored perfumes, organic perfumes, deodorants, and ferulic acid, eugenol, and other food additives. The vanillin market also serves industries like the chocolate industry, perfume industry, metal plating industry, lubricants industry, and insecticides industry. Penn State research focuses on milk-based beverages and ice cream industry, while the vanillin market also caters to fruit creams.The growth of the food flavors market in APAC is primarily attributed to the growing demand for processed foods in the region, particularly in countries such as India, China, Vietnam, and Japan. Furthermore, the increasing number of working professionals and the growing number of nuclear families has also raised the demand for processed foods in the region. Such factors cumulatively contributed to the growth of the processed foods industry in APAC and increased the adoption of artificial flavors. 

Market Dynamics and Customer Landscape

The market is experiencing significant growth driven by its versatile applications across various industries. Vanillin is extensively used in personal care products, toothpaste, medicines, room and car fresheners, aromatherapy, cosmetics, toiletries, and artificial sweeteners, among others. Its presence in non-alcoholic beverages, chocolates, and confectioneries enhances flavor profiles, contributing to the expansion of the food and beverage industry. Additionally, vanillin is a key component in perfumes, metal plating, and anti-foaming agents, further broadening its market reach. With increasing consumer demand for organic and healthy lifestyle products, the trend towards natural ingredients like vanillin is on the rise. However, regulatory bodies' scrutiny due to concerns about eye irritation, skin sensitivity, and acute toxicity may pose challenges to market growth. Nonetheless, advancements in production methods and sustainable sourcing practices are expected to drive innovation and growth in the market. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The surge in the demand for ethyl marks a significant driver for the market. Vanilla, a globally renowned flavor, witnesses heightened popularity, yet its natural production remains limited. Consequently, synthetic production, particularly ethyl vanillin derived from catechol, dominates the market. Ethyl vanillin boasts potent flavoring and fragrance attributes, surpassing alternatives. Despite its costly production process, its strong sweet notes and enhanced potency make it a preferred choice.

The global vanillin market is experiencing significant growth due to the scarcity of natural vanilla, which is a luxury crop and a key ingredient in various industries. The demand for vanillin is high in sectors such as food, drinks, and medicines including clarified butter, anti-inflammatory medications, gout medications, and arthritis medications. The production of vanilla beans, the primary source of natural vanillin, is affected by environmental issues, pests and diseases, labor shortages, and climate change. Madagascar, the largest producer, faced lower production in 2022 due to weak flowering and low-quality beans. To address the supply gap, technological developments in the vanillin industry include biotechnological approaches using altered yeast strains and enzymatic synthesis. Renewable feedstocks such as sugar and agricultural waste are being explored for sustainable production. Green chemistry and manufacturing processes aim to minimize waste, energy use, and toxic byproducts. Governmental requirements and customer desires for natural ingredients are driving the market towards substitute sources like lignin and polymers. Circular economy concepts are also gaining importance in the vanillin industry.

Notably, its cost-effectiveness and superior solubility render it indispensable across various applications in foods and beverages, ranging from cheeses and butter to chocolate and coffee flavors. Thus, the escalating demand for ethyl vanillin drives substantial growth prospects in the global vanillin market.

Significant Market Trend

The emerging use of vanillin as a remedy for psoriasis is an emerging trend in the market. Traditionally, vanillin has been used in a wide variety of applications. One of the recent uses of vanillin is in the prevention/cure for psoriatic skin inflammation. Psoriasis is a skin disorder that results in red rashes all over the elbows, knees, and other places. Clinical researchers have shown that vanillin works positively against psoriatic skin inflammations.

The global vanillin market is experiencing significant demand due to its usage in various sectors, including food, drinks, medicines, and clarified butter. However, the natural source of vanillin, vanilla orchids, accounts for only a small percentage of production. The majority of vanillin is synthesized using guaiacol, a petroleum-derived precursor, and tree lignin. With increasing consumer preference for natural ingredients and environmental concerns, researchers are exploring biotechnological approaches to produce vanillin sustainably. These include the use of altered yeast strains, renewable feedstock such as sugar and agricultural waste, and enzymatic synthesis. The health advantages of vanillin, including its anti-inflammatory, gout, allergy, and arthritis medication properties, further boost demand. Technological developments in green chemistry and manufacturing processes aim to reduce waste, energy use, and toxic byproducts. Governmental requirements and customer desires for sustainable production from natural resources are driving innovation in this field. However, challenges such as pests and diseases, labor shortages, climate change, and the limited availability of vanilla beans pose obstacles to the industry's growth. Substitute sources, such as lignin and polymers, and circular economy concepts are being explored to address these challenges.

Several studies have been conducted to find the effect of vanillin on psoriasis. For instance, according to a group of researchers from China Medical University Hospital in Taichung, the effect of vanillin on imiquimod-induced psoriatic skin inflammation in mice showed that it significantly improved imiquimod-induced histopathological changes in the skin in mice.  Hence, this will impact the market growth and trends positive during the forecast period. 

Major Market Challenge

Discoloration properties are a major challenge impeding market expansion. One of the major obstacles that manufacturers, especially soap makers face is the discoloration of products due to their use. Further, manufacturers are focusing more on the production of fragrance oil that is vanillin-free. For soap makers, the use of fragrances that reduces the chances of soap discoloration drastically.

The market is experiencing significant growth due to increasing consumer awareness and preference for natural food additives. Natural vanillin, derived from biotechnological approaches using altered yeast strains or renewable feedstocks like sugar or agricultural waste, is gaining popularity. This shift is driven by concerns over the long-term health effects of synthetic ingredients found in chemically synthesized vanillin, such as those used in anti-inflammatory medications, gout medications, allergy medications, and arthritis medications. The food, drinks, and medicines industries are responding to these customer desires by adopting sustainable production methods, utilizing natural resources, and addressing environmental issues. Technological developments, including enzymatic synthesis and green chemistry, are improving manufacturing processes and reducing waste, energy use, and toxic byproducts. Governmental requirements and circular economy concepts are also influencing the market, with a focus on substitute sources like lignin and polymers, and addressing challenges such as pests and diseases, labor shortages, and climate change.

Some of the products that suffer discoloration are shampoos, conditioners, and lotions. Products that are more alkaline in nature, such as bath bombs, cold-processed soaps, and pour-and-melt soaps, are less likely to witness discoloration. Further, this is also known to display an adverse effect on surfactant products such as body washes, shampoos, and bubble bath items. The addition in these products is known to reduce clarity and viscosity substantially. Therefore, these factors will hinder the expansion rate of the market during the forecast period. 

Customer Landscape

The market research and growth report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market growth and forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Advanced Biotech - The key offerings of the company products which has the odor characteristics of vanilla.

The market research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Apple Flavor and Fragrance Group Co. Ltd.
• Aurochemicals
• Axxence Aromatic GmbH
• BASF SE
• Borregaard ASA
• BRENNTAG SE
• Camlin Fine Sciences Ltd.
• Comax MFG Corp.
• De Monchy Aromatics Ltd.
• Evolva Holding AG
• Jiaxing Zhonghua Chemical Co. Ltd.
• Lesaffre and Cie
• Liaoning Shixing Pharmaceutical and Chemical Co. Ltd.
• Merck KGaA
• Omega Ingredients Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market forecasting report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-user Outlook
  • Food and beverages
  • Fragrances
  • Pharmaceuticals

• Type Outlook
  • Natural vanillin
  • Synthetic vanillin

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The market is driven by its wide application in flavor and aroma enhancement in various products such as bakery products, ice cream, organic food, and cleaning products. It is used as a key ingredient in livestock fodder and as a chemical intermediate in the production of fine chemicals and bio-based process intermediates. Vanillin is also used in drugs, environment-friendly perfumes, natural perfumes, skin-friendly deodorants, and aromatic products. It finds application in room fresheners, cosmetics, and toiletries, including incense sticks and candles. The market is also influenced by the demand for fragrance products driven by healthy and natural ingredients in response to health concerns related to synthetic preservatives.

The market plays a crucial role in the cosmetics industry and toiletries application segment, serving as an inactive excipient. It is also used in the production of pesticides and aromatherapy products. Vanillin adds a unique flavor to aromatic candles and is used in the production of essential oils and sweet-flavored perfumes, including organic perfumes. Its applications extend to oral medicine processing and topical medicated lotions, providing a solution for tablet masking due to its bitter taste. Vanillin is also utilized in ready-to-eat foods and functional foods, catering to the demands of individuals with a hectic lifestyle. Additionally, it finds application in perfumeries, and its production aligns with the initiatives of pharma manufacturers to use more natural ingredients over petrochemicals. The market serves the toiletry industry, providing a key ingredient for products like ferulic acid, eugenol, and real vanilla extract.

Industry  Scope
Report Coverage	Details
Page number	164
Base year	2022
Historic period	2017 - 2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 11.08%
Market growth 2023-2027	USD 427.69 million
Market structure	USD Fragmented
YoY growth 2022-2023(%)	9.68
Regional analysis	APAC, Europe, North America, Middle East and Africa, and South America
Performing market contribution	APAC at 43%
Key countries	US, Canada, China, Germany, and France
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Advanced Biotech, Apple Flavor and Fragrance Group Co. Ltd., Aurochemicals, Axxence Aromatic GmbH, BASF SE, Borregaard ASA, BRENNTAG SE, Camlin Fine Sciences Ltd., Comax MFG Corp., De Monchy Aromatics Ltd., Evolva Holding AG, Jiaxing Zhonghua Chemical Co. Ltd., Lesaffre and Cie, Liaoning Shixing Pharmaceutical and Chemical Co. Ltd., Merck KGaA, Omega Ingredients Ltd., Solvay SA, Viachem Inc., Vigon International Inc., and TANOBIO
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Request PDF sample

What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and changes in consumer behavior
• Growth of the industry across APAC, Europe, North America, Middle East and Africa, and South America
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

We can help! Our analysts can customize this report to meet your requirements. Get in touch