Vanillin Market Overview
The Vanillin Market size is estimated to reach $813.7 million by 2027 and is poised to grow at a CAGR of 6.2% over the forecast period of 2022-2027. Vanillin is the next alternative for the commonly used flavoring agents ingredient, vanilla. Vanillin is an organic compound, and most importantly a phenolic aldehyde. It is extracted from the wood pulp and is being extensively used as a close substitute owing to a reduced production cost. Vanilla is extracted from the vanilla beans; however, vanillin is synthetic and is produced by using petrochemicals and other by-products from the paper industry. Additionally, 15% of the world’s overall production of vanillin comes from lignin. Interestingly, manufacturers are now using the said method or product to extract vanillin. Manufacturers using paper would need wood’s cellulose, after which the only useful component is kraft lignin. The oxidation process deeply allows the extraction of vanillin. Moreover, manufacturers claim that the process could deeply lower the carbon footprints as compared to the petrochemical’s counterparts. The robust growth in the end-use industries such as food & beverages, fragrances, cosmetics, and even pharmaceuticals are some of the factors driving the Vanillin Industry forward in the projected period of 2022-2027.
Report Coverage
The report: “Vanillin Market Forecast (2022-2027)", by Industry ARC covers an in-depth
analysis of the following segments of the Vanillin Market.
By Type- Synthetic and Bio-Based.
By End-User- Food & Beverages, Pharmaceuticals, Cosmetics,
and Others.
By
Geography- North America (U.S., Canada, Mexico), Europe (Germany,
United Kingdom (U.K.), France, Italy, Spain, Russia, and Rest of Europe), Asia
Pacific (China, Japan India, South Korea, Australia, and New Zealand, and Rest
of Asia Pacific), South America (Brazil, Argentina, and Rest of South America),
and Rest of the World (the Middle East, and Africa).
Key Takeaways
- Geographically, Asia-Pacific held a dominant market share in the year 2021. It is owing to the presence of robust manufacturing capabilities, which facilitate the overall end-user industries such as those listed above. Moreover, westernization and premiumization trends have given the much-needed push for using such ingredients. Additionally, Asia-Pacific is expected to offer lucrative growth opportunities to the marketers owing to the growing preference to outsource the processing/manufacturing aspects to the region owing to cost advantages and trade benefits.
- The robust growth in the end-use industries such as food & beverages, fragrances, cosmetics, and even pharmaceuticals are some of the factors driving the Vanillin Market. However, health-related aspects and unsustainable production practices are some of the factors impeding market growth.
- A detailed analysis of strengths, weaknesses, opportunities,
and threats will be provided in the Vanillin Market Report.
Vanillin Market- Geography (%) for 2021.
Vanillin Market Segmentation Analysis - By Type
The vanillin market based on type can be further segmented
into synthetic and bio-based. Synthetic held a dominant market share in the
year 2021. Synthetic vanillin is produced from vanilla beans, but still follows
the process of synthesis, primarily the method includes petrochemical raw
material- guaiacol. Guaiacol’s advantage is its cost-beneficial aspect. A 25 MG
product would only cost $147, however, other methods such as wood or
bio-based would require long processing times, which in turn would make the
end-product cost higher.
However, Bio-Based vanillin is estimated to be the
fastest-growing, with a CAGR of 6.7% over the forecast period of 2022-2027. It
is owing to the recent announcements being made by the market leaders to change
the product output, as the consumers are now preferring ingredients that would
negatively impact the environment. Bio vanillin has the potential to be one of
the major elements in customized flavor offerings, as it offers a pure vanilla
taste and an enhanced mouthfeel when used in food products. Owing to such
factors, the segment is positioned favorably.
Vanillin Market Segmentation Analysis - By End-Users
The vanillin market based on end-users can be further
segmented into Food & Beverages,
Pharmaceuticals, Cosmetics, and Others. Food and Beverages held a dominant
market share in the year 2021. Predominantly, the demand has been created by
the bakery and confectionery sub-segment as it heavily utilizes the ingredient
as it enhances the overall taste- and smell of the product and the said are
two most important factors for industrial growth. Bakery consumers in the
latest survey report revealed that 89% of the consumers said the smell of
bakery items make them happy and delighted, while around 63% of the consumers
said that it evoked happy memories.
However, Cosmetics is
estimated to be the fastest-growing, with a CAGR of 6.8% over the forecast
period of 2022-2027. It is owing to the robust need and growth of using natural
ingredients in making the said items, such as fragrances. The growth of
bio-based vanillin has further allowed the industry to use vanillin smell and propagate
and fulfill sustainable climate practices.
Vanillin Market Segmentation Analysis - By Geography
The vanillin market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Asia-Pacific held a dominant market share of 37% in the year 2021 as compared to its other counterparts. It is owing to the robust demand from the end-use industries, such as food and beverages and cosmetics. Various manufacturing pertaining activities are now being transferred to Asia-Pacific as the overall cost can be bought significantly down.
Furthermore, the region is estimated to offer lucrative growth opportunities to marketers. For example, China has been a leading exporter of vanillin, and the demand within the country is also growing owing to a diverted method of production. China exported close to $123,375 in 2016 and has grown up to $209,658 in 2020, which roughly translates to a growth of 70%, and the said country has been the leading factor for such exponential growth. Owing to such reasons, the projected period of 2022-2027 would prove out beneficial for Asia-Pacific.
Vanillin Market Drivers
A rising inclination towards sustainable practices has readily aided the market growth
Lignin, as a source, has been gaining immense market traction over the years. Currently, around the globe, 15% of the entire production of vanillin takes place from lignin. Lignin is a left-over of the wood chemicals, post extraction of cellulose for paper making. Up until recently, oxidation processes allow the extraction of lignin, which too at a reduced carbon footprint. Interestingly, all the paper that is made has a peculiar smell, which is a result of vanillin combination with cellulose. Manufacturers are now compelled by societies or consumers to follow practices that are sustainable and provide no-ill effects on the environment. Additionally, Paris Climate Accord has been signed by a majority of countries which further fuels the practices of sustenance. Moreover, packaging paper and paperboard industries have been growing, which in turn would use the wood’s cellulose thereby allowing the extraction of vanillin from the wood. In 2020, the production of packaging paper and paperboard and of household and sanitary papers grew by 3% to reach 303.6 million tons.
The growing end-users application demand has benefitted the consumption of vanillin as an ingredient
Vanillin has been a popular fragrance ingredient for use in
various aromatic products and various other personal care industries. Moreover,
vanillin has been growing its use in food and beverages industries, especially
the bakery and confectionary sub-segment. Furthermore, “green cosmetics” have
been a trend that has allowed the use of such ingredients as a fragrance. Brands
such as L’Oréal and P&Gs have readily accepted such trends and introduced
products that are sustainable. The cosmetic industry is worth $200 billion and
is growing at an average rate of 5.5%-6% YoY. Bio-Vanillin has been gaining
traction owing to such factors. Bio vanillin is utilized by taking rice-bran as
a feedstock, which is then converted into ferulic acids, thereby being fermented
using yeast to produce bio-vanillin. Owing to such practices and methods, the industry
is favored positively.
Vanillin Market Challenges
Health-related aspects and unsustainable production practices are some of the factors impeding market growth
Health governing factors have been an impeding factor for
the overall market growth, particularly the synthetic segment of vanillin. Regulatory
bodies such as REACH, and NIOSH have imposed several guidelines which compels
the manufacturers to provide an environment where the synthetic production doesn’t
exceed the guarded limit. REACH has described regulations about classification,
labeling, and packaging of these products according to hazard class such as eye
irritation, skin sensitivity, acute toxicity, aquatic chronic disease, and
acute aquatic toxicity. Additionally, the primary aspect of obtaining
vanillin is through petrochemical raw material known as guaiacol. The petrochemical industry has been under scrutiny for a long time, and the restrictions are growing
owing to them being the prime responder of greenhouse gases that contribute to
global warming. The increase has continued in 2021, for global warming. The
global mean temperature for 2021 (based on data from January to September) was
about 1.09°C above the 1850-1900 average.
Vanillin Market Competitive Landscape
Product launches, mergers and acquisitions, joint ventures,
and geographical expansions are key strategies adopted by players in this market. Vanillin top 10 companies include:
- Apple Flavor & Fragrance Group Co Ltd.,
- Camlin Fine Sciences Ltd.,
- De Monchy Aromatics,
- International Flavors & Fragrances,
- Ennloys,
- Evolva Holding,
- Advanced Biotech,
- Omega Ingredients Ltd.,
- Comax Flavors.
- Alfrebro LLC
Recent Developments
- In March 2020, Swiss Biotech Company- Evolva has entered into an agreement with International Flavors and Fragrances. The objective is to develop and expand the commercialization of vanillin. Under the terms of the new agreement, IFF will expand the commercialization of the product and Evolva will be responsible for further developing vanillin. Evolva will receive payments for the product manufactured and sold, contributing to reaching cash breakeven by 2023.
- In December 2019, SOLVAY has doubled its production capacity of Rhovanil Natural CW Vanillin capacity. The company is trying to satisfy the growing demand for true-to-nature products. The production capacities have been growing, and now the company plans to achieve 120 metric tons. The product offers the advantages of Non-GMO derived from a unique bio-conversion process from natural ferulic acid. It is compliant with the European natural flavoring Regulation (EC) No 1334/2008 and can be labeled as Natural flavoring or Natural Vanillin
- In September 2019, Borregard has planned on increasing the wood-based vanillin production capacities. The project has been in work and was bound to get completed in the first half of 2021 at a cost of no less than NOK 130 million. The expansion would translate into delivering 250 newtons of annually sustainable bio-based vanillin. Lastly, the company would discontinue the practices of synthetic ethyl vanillin by the end of 2020.
Relevant Titles
Natural
Fragrance Ingredients Market- Forecast (2022-2027)
Report Code- FBR 0114
Vanilla
Bean Market- Forecast (2022-2027)
Report Code- FBR 57169
For more Food and Beverage Market reports, please click here
LIST OF TABLES
1.Global Vanillin Market:Type Estimate Trend Analysis Market 2023-2030 ($M)1.1 Synthetic Market 2023-2030 ($M) - Global Industry Research
1.2 Bio-Based Market 2023-2030 ($M) - Global Industry Research
2.Global Vanillin Market:End Use Estimate Trend Analysis Market 2023-2030 ($M)
2.1 Food Beverage Market 2023-2030 ($M) - Global Industry Research
2.2 Fragrance Market 2023-2030 ($M) - Global Industry Research
2.3 Pharmaceutical Market 2023-2030 ($M) - Global Industry Research
3.Global Vanillin Market:Type Estimate Trend Analysis Market 2023-2030 (Volume/Units)
3.1 Synthetic Market 2023-2030 (Volume/Units) - Global Industry Research
3.2 Bio-Based Market 2023-2030 (Volume/Units) - Global Industry Research
4.Global Vanillin Market:End Use Estimate Trend Analysis Market 2023-2030 (Volume/Units)
4.1 Food Beverage Market 2023-2030 (Volume/Units) - Global Industry Research
4.2 Fragrance Market 2023-2030 (Volume/Units) - Global Industry Research
4.3 Pharmaceutical Market 2023-2030 (Volume/Units) - Global Industry Research
5.North America Vanillin Market:Type Estimate Trend Analysis Market 2023-2030 ($M)
5.1 Synthetic Market 2023-2030 ($M) - Regional Industry Research
5.2 Bio-Based Market 2023-2030 ($M) - Regional Industry Research
6.North America Vanillin Market:End Use Estimate Trend Analysis Market 2023-2030 ($M)
6.1 Food Beverage Market 2023-2030 ($M) - Regional Industry Research
6.2 Fragrance Market 2023-2030 ($M) - Regional Industry Research
6.3 Pharmaceutical Market 2023-2030 ($M) - Regional Industry Research
7.South America Vanillin Market:Type Estimate Trend Analysis Market 2023-2030 ($M)
7.1 Synthetic Market 2023-2030 ($M) - Regional Industry Research
7.2 Bio-Based Market 2023-2030 ($M) - Regional Industry Research
8.South America Vanillin Market:End Use Estimate Trend Analysis Market 2023-2030 ($M)
8.1 Food Beverage Market 2023-2030 ($M) - Regional Industry Research
8.2 Fragrance Market 2023-2030 ($M) - Regional Industry Research
8.3 Pharmaceutical Market 2023-2030 ($M) - Regional Industry Research
9.Europe Vanillin Market:Type Estimate Trend Analysis Market 2023-2030 ($M)
9.1 Synthetic Market 2023-2030 ($M) - Regional Industry Research
9.2 Bio-Based Market 2023-2030 ($M) - Regional Industry Research
10.Europe Vanillin Market:End Use Estimate Trend Analysis Market 2023-2030 ($M)
10.1 Food Beverage Market 2023-2030 ($M) - Regional Industry Research
10.2 Fragrance Market 2023-2030 ($M) - Regional Industry Research
10.3 Pharmaceutical Market 2023-2030 ($M) - Regional Industry Research
11.APAC Vanillin Market:Type Estimate Trend Analysis Market 2023-2030 ($M)
11.1 Synthetic Market 2023-2030 ($M) - Regional Industry Research
11.2 Bio-Based Market 2023-2030 ($M) - Regional Industry Research
12.APAC Vanillin Market:End Use Estimate Trend Analysis Market 2023-2030 ($M)
12.1 Food Beverage Market 2023-2030 ($M) - Regional Industry Research
12.2 Fragrance Market 2023-2030 ($M) - Regional Industry Research
12.3 Pharmaceutical Market 2023-2030 ($M) - Regional Industry Research
13.MENA Vanillin Market:Type Estimate Trend Analysis Market 2023-2030 ($M)
13.1 Synthetic Market 2023-2030 ($M) - Regional Industry Research
13.2 Bio-Based Market 2023-2030 ($M) - Regional Industry Research
14.MENA Vanillin Market:End Use Estimate Trend Analysis Market 2023-2030 ($M)
14.1 Food Beverage Market 2023-2030 ($M) - Regional Industry Research
14.2 Fragrance Market 2023-2030 ($M) - Regional Industry Research
14.3 Pharmaceutical Market 2023-2030 ($M) - Regional Industry Research
LIST OF FIGURES
1.US Vanillin Market Revenue, 2023-2030 ($M)2.Canada Vanillin Market Revenue, 2023-2030 ($M)
3.Mexico Vanillin Market Revenue, 2023-2030 ($M)
4.Brazil Vanillin Market Revenue, 2023-2030 ($M)
5.Argentina Vanillin Market Revenue, 2023-2030 ($M)
6.Peru Vanillin Market Revenue, 2023-2030 ($M)
7.Colombia Vanillin Market Revenue, 2023-2030 ($M)
8.Chile Vanillin Market Revenue, 2023-2030 ($M)
9.Rest of South America Vanillin Market Revenue, 2023-2030 ($M)
10.UK Vanillin Market Revenue, 2023-2030 ($M)
11.Germany Vanillin Market Revenue, 2023-2030 ($M)
12.France Vanillin Market Revenue, 2023-2030 ($M)
13.Italy Vanillin Market Revenue, 2023-2030 ($M)
14.Spain Vanillin Market Revenue, 2023-2030 ($M)
15.Rest of Europe Vanillin Market Revenue, 2023-2030 ($M)
16.China Vanillin Market Revenue, 2023-2030 ($M)
17.India Vanillin Market Revenue, 2023-2030 ($M)
18.Japan Vanillin Market Revenue, 2023-2030 ($M)
19.South Korea Vanillin Market Revenue, 2023-2030 ($M)
20.South Africa Vanillin Market Revenue, 2023-2030 ($M)
21.North America Vanillin By Application
22.South America Vanillin By Application
23.Europe Vanillin By Application
24.APAC Vanillin By Application
25.MENA Vanillin By Application
26.Camlin Fine Science Ltd, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.International Flavor Fragrance Inc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.Solvay S.A, Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.Ennloys, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.Evolva Holding Sa, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Apple Flavor Fragrance Group Co Ltd, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Advanced Biotech, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.De Monchy Aromatics, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Omega Ingredient Ltd, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Comax Flavor, Sales /Revenue, 2015-2018 ($Mn/$Bn)
36.Alfrebro, Llc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
37.Axxence Aromatic Gmbh, Sales /Revenue, 2015-2018 ($Mn/$Bn)
38.Borregaard Lignotech Ab, Sales /Revenue, 2015-2018 ($Mn/$Bn)
39.Jiaxing Zhonghua Chemical Co , Ltd, Sales /Revenue, 2015-2018 ($Mn/$Bn)
40.Aurochemicals, Sales /Revenue, 2015-2018 ($Mn/$Bn)