Vanillin Market Report

Vanillin Market Analysis, By End-use (Food & Beverage, Fragrance, Pharmaceutical), By Region (North America, Europe, Asia Pacific, Central & South America, MEA), And Segment Forecasts, 2014 - 2025

Published: May 2017  |  90 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-836-7

Industry Insights

The global vanillin market size was estimated at USD 395.2 million in 2016. Globally, rising demand from various end-use industries to enhance the flavor and aroma of the product is expected to be a key growth factor. It is one the key ingredient used extensively in food & beverage industry.

It is widely used as the flavoring agent in various products in the food industry such as bakery products, confectioneries, ice cream, chocolates, and alcoholic beverages. In addition, it is also used in pharmaceutical industry, to mask unpleasant taste in livestock fodder or medicines. Vanillin also acts as an intermediate during the manufacturing of certain agrochemicals and pharmaceuticals.

                 U.S. vanillin market revenue by end-use, 2014 - 2025 (USD Million)

U.S. vanillin market

The robust growth in various end-use industries such as food & beverage, fragrance, cosmetics, and pharmaceutical across different geographies is one of the important factor encouraging the growth of this market. The rising food & beverage industry will remain a key element due to its ability to add flavor and taste in various food products. Moreover, it constitutes low-calorie contents and numerous antioxidants. The global population is shifting their consumption pattern towards wholesome ingredients owing to rising awareness of organic food and healthy lifestyle.

However, the workers operating in the vicinity of production process may have health concerns. Primarily due to these concerns, various regulatory bodies such as REACH, Code of Federal Regulations, and NIOSH have imposed regulations to avoid worker’s health issues and usage of synthetic product over a certain 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. 

Vanillin is widely consumed in Asia Pacific and European region with the presence of major food & beverage consumer countries such as China, India, and Germany. Increasing population, coupled with rising income levels is anticipated to propel the market growth over the forecast period.

Type Insights

Synthetic vanillin emerged as the leading type segment and was estimated for 99.14% of the global volume share in 2016. The high price of bio-based product is fueling the demand for synthetic one over the forecast period. Synthetic vanillin can be produced from petrochemicals, unlike real vanilla extract. However, growing health concerns are expected to hinder demand for synthetic vanillin over the forecast period.

Bio-based vanillin is projected to be an emerging type segment over the forecast period. Rising awareness regarding healthy and natural ingredient functional foods without synthetic preservative and the artificial additives is another key factor likely to encourage the demand for bio-based products. Moreover, key players are spending more on R&D activities regarding a new process to manufacture low-cost bio-vanillin products. For instance, major players are manufacturing bio-based vanillin products by processing microbial fermentation of ferulic acid and eugenol. 

End-use Insights

The food & beverage industry plays a key role in the expansion of economic opportunity, as it is essential to human life and health. The food & beverage industry has been experiencing a change in the consumption pattern on account of rising disposable income and changing food consumption pattern of the population due to a hectic lifestyle. Superior economic growth coupled with growing demand for ready-to-eat and processed foods is boosting the use of vanillin in this industry.

Fragrance industry is another significant application segment in the global market. It is used as a key aroma ingredient in making various fragrance products and perfumeries such as aromatic candles, essential oils, sweet flavored perfumes, organic perfumes, and deodorants. In addition, increasing consumer demand for the use of aromatherapy products, toiletry, and car fresheners is expected to boost the demand in the future. There are numerous uses of vanillin as an intermediate chemical as well as an additive in the pharmaceutical sector. It is used for tablet masking, minimizing bitter taste in medicines, oral medicine processing, topical medicated lotions and other pharmaceutical products.

Regional Insights

The Asia Pacific and Europe regions are anticipated to be major markets over the forecast years, driven by the rising demand from the various end-use industries. The increasing demand is attributed to the presence of major countries such as China, India, Japan, and Germany. The food & beverage industry in these countries has been experiencing significant growth, which in turn is increasing the demand for vanillin over the past few years.

                                 Global vanillin market, by region, 2016 (%)

        Global vanillin market

The food & beverage segment in Asia Pacific held a prominent share fueling the demand which is mainly driven by diversity regarding demographics, consumption pattern, dietary preferences and increasing income levels. Asia Pacific was leading market and accounted for 39.7% of the total revenue in 2016. In light of emerging economies such as China, India, and Japan which is expected to drive the growth of the food & beverage industry in this region. Furthermore, diverse consumer tastes, population expansion, and extensive foreign investments are some of the socio-economic factors supporting market growth.

Asia Pacific was followed by Europe, accounting for 27.33% of the total revenue in 2016. In terms of volume, Europe was estimated at 5,341.1 tons in 2016 and is projected to grow at the rate of 6.2% between 2017 and 2025. Growing health awareness and demand about food products are expected to be the key driving factors in this region. Substantial investments in research & development to manufacture products with good aroma are also contributing to the growth.

Competitive Insights

The global market is highly competitive and relatively integrated, with the presence of top companies accounting for the major share in 2016. Key participants 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., and Comax Flavors.

Continuous research & development activities are carried out by the major players to produce cost efficient products. Furthermore, product innovations and new product developments are expected to be a key parameter to sustain the competitive market, with strategies such as acquisitions, capacity expansion, and partnerships.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation                                    

Volume in tons, revenue in USD Million and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S., Germany, UK, France, China, India, Japan, Brazil

Report coverage        

Revenue forecast, competitive landscape, growth factors and trends

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Segments covered in the report

This report forecasts revenue and volume growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global vanillin market on the basis of end-use and region:

  • End-Use Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2025)

    • Food & Beverage

    • Fragrances

    • Pharmaceuticals

  • Regional Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

    • Europe

      • Germany

      • UK

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa 

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