Bio Vanillin Market Analysis, By Application (Food & Beverage, Fragrance, Pharmaceuticals) And Segment Forecasts To 2024

Report Overview

The global bio vanillin market size to be valued at USD 227.7 million by 2024 and is expected to grow at a compound annual growth rate (CAGR) of 6.8% during the forecast period. Positive outlook towards the food & beverage industry in the emerging marketplaces such as China, India, Vietnam, and Malaysia in light of new product launches by early adoption of biotechnologically derived vanillin is expected to promote industry growth over the forecast period. The increase of the food & beverage industry will remain a vital factor for this market on account of its capability to add taste and flavor to various food products. An increasing trend among consumers to maintain a healthy lifestyle will ultimately lead to increasing penetration of bio vanillin in the food industry. This factor is expected to propel expansion of the product over the forecast period.

Growing support from food authorities in the U.S. (FDA) and Europe, which have recognized ingredients derived from microbial fermentation as a naturally derived product, will provide the necessary boost for expansion in the near future.

The product also caters to the underserved markets such as perfumes, luxury or premium food products. The fragrances and flavors segment is expected to remain critical for the product owing to its superior aroma properties which are supposed to help in propelling expansion in the cosmetics sector. Gaining popularity of natural ingredients derived personal care formulations will have a significant influence on propelling demand.

Increasing consumer acceptance of the product on account of superb fragrance properties offered by it, without having any side effects on the health of consumers is expected to promote bio vanillin industry growth in the near future.

Bio Vanillin Market Trends

The cosmetic industry is evolving as consumers prefer natural cosmetics over chemical products. Vanillin is a popular ingredient in cosmetics and personal care products because it imparts a pleasant fragrance to the product. Additionally, it adds an aroma with warm floral notes to a variety of end products which is an important factor driving the demand for bio vanillin and its products. Additionally, the Westernization of food eating habits has increased the popularity of bio vanillin food products. Consumers are looking for experimental and innovative food options because the market has a wide variety of food such as barbeques and regional cuisines. The rising popularity of cross-cultural food is also boosting the demand for bio vanillin.

Consumers are becoming more health-conscious and aware of the health risks associated with artificial food ingredients. The implementation of stringent labelling regulations around the world is supporting the growth of the global market. Moreover, rising concerns about allergies caused by added substances necessitate that manufacturer adheres to labelling regulations and include recognizable ingredients on tags that consumers understand to ensure label transparency. Such manufacturers increasingly prefer bio vanillin over synthetic alternatives and is driving the growth of the market.

Due to climate fluctuations, the poor availability of vanilla pods is one of the important factors to create a restrain in the growth of the bio vanillin market. The increasing popularity and rising demand for bio vanillin are anticipated to be hampered by the market's scarcity. The higher cost of raw materials affect the price of the finished product, acting as a restraint. Concerns regarding these effects are also expected to limit the market growth during the forecast period.

Application Insights

Food & beverages were the largest application accounting for 65.4% of the total volume in 2015. Growing demand for food products with a sweet aftertaste coupled with increasing penetration of flavors in juices is expected to result in the expansion of bio vanillin over the forecast period.

Fragrances were the second largest segment of the market valued at USD 30.9 million in 2015. Consumer acceptance towards biotechnologically derived fragrances has been a critical factor for manufacturers to increase research and development efforts towards producing bio vanillin based fragrances.

Regional Insights

Asia Pacific bio vanillin demand exceeded 60 tons in 2015, dominating the global market. Emerging markets such as India, China, Malaysia, Vietnam and Indonesia are expected to play a significant role in the development of the industry over the forecast period as a result of the rising need of flavors from the bakery and confectionery sector.

Europe and North America will remain key markets for the product and witness stable volume growth over the forecast at a CAGR of 7.2% and 5.3%, respectively. Strong regulatory support is expected to be a critical factor for propelling growth. In these regions, bio vanillin is positioned as a premium product fragment element in drinks, fragrances, and foods which will be responsible for increasing expansion.

Key Companies & Market Share Insights

The industry comprises a few key players with significant production capacities and extensive market coverage. International Flavors & Fragrances., Solvay S.A, Ennloys, Apple Flavor & Fragrance Group Co Ltd. and Evolva Holding are expected to influence the industry on account of a strong presence in application segments coupled with substantial infrastructure for biotechnology research and development.

New product launches coupled with the establishment of strategic partnerships to develop new technologies are expected to be key features of the market. In February 2013, International Flavors & Fragrances partnered with Evolva Holding for the production of biotechnology-based vanillin. In March 2016, Evolva Holding announced that they are expected to increase their production capacity which would help them in establishing a strong global business presence.

Several flavors and fragrances ingredients manufacturers such as Firmenich, Givaudan, and International Flavors & Fragrances are entering into partnerships with synthetic biotechnology companies to develop microbial cell technology which would be a new manufacturing platform for the purpose of biosynthesis of various high-value fragrance or flavor molecules. This is expected to be a significant development over the forecast period.

Recent Development

• In January 2023, Solvay announced the production of Rhovanil vanillin, the first ISCC Plus certified mass balance vanillin. The product aimed to meet customer demand with enhanced sustainability and minimal impact on the environment in the food and fragrances markets.  

• In May 2022, Solvay invested in Suanfarma to boost the natural vanillin growth. The alliance aimed to expand capabilities to develop natural ingredients for food, flavors & fragrances markets.

Bio Vanillin Market Report Scope

Global Bio Vanillin Market Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends and opportunities in each of the sub-segments from 2013 to 2024. For the purpose of this study, Grand View Research has segmented the bio vanillin market on the basis of end-use and region.

• Application Outlook (Volume, Tons; Revenue, USD Million, 2013 - 2024)

  • Food & beverage

  • Fragrance

  • Pharmaceuticals

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2013 - 2024)

  • North America

    • U.S.

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa (MEA)