Global Vanillin Market - Growth, Trends, and Forecast (2018 - 2023)
The global Vanillin market is anticipated to register a CAGR of 8.4%, during the forecast period, 2018- 2023. Natural vanillin is used as a major ingredient in food and flavor industry. Vanillin is the major flavor constituent of vanilla, but is produced through various biotechnological processes, which continue to be developed. Vanilla flavor is also in a stringent competition phase with the other flavor, but still holds a strong position as one of the most popular flavor ingredients.
Food & Beverage Industry Growth Expected to Drive the Vanillin Market
Vanillin is used in food & beverages, to enhance sweetness in food products, such as chocolates, biscuits, candy, ice-creams, and cakes. The growing demand for these food products, across the globe, is expected to boost the demand for vanillin. Further, the developing interest for vanillin in the bakery & confectionery industry and the extensive use as a flavoring agent are some of the factors projected to fuel the growth of global vanillin market.
Vanillin can either be produced naturally or chemically synthesized. The synthetic vanillin market covers over 97% of the overall demand. The global synthetic vanillin market size was over USD 26,780 thousand in 2015. The natural vanillin, derived from orchid pods, represented less than 1% of the overall industry size and was over 60 tons, in 2015. The rising consciousness about health and regulatory norms, among consumers, to discourage synthetic products are anticipated to accelerate the bio-vanillin market growth. However, the stringent government laws and environmental concerns, regarding the production of vanillin, through chemical methods, may hamper market growth.
Pharmaceuticals - High Potential Segment
There are two types of vanillin, namely ethyl and methyl. Ethyl vanillin is expensive and stronger than methyl vanillin. Further, the methyl vanillin has a mild flavor of vanilla planifolia, thus, used in vanilla flavored foods. This vanillin type serves as an important flavoring agent in the food industry for items such as ice-creams, chocolates, and beverages. Further, to accommodate the high demand for vanillin, in the food and beverage industry, chemical synthesis process is used.
The food & beverages segment led the application category. The application is prone to upsurge as the food industry require flavor for different purposes, like new product development, to add new product offering, and to change the quintessence of existing item. Apart from its application in the food industry, Vanillin is also used in the pharmaceutical industry. Vanillin has the ability to mask the bitter taste in medicines which will also play a significant role in increasing its penetration in the pharmaceutical sector. The fragrance industry is expected to be the second largest application segment. It is majorly used in perfumes.
Asia-Pacific Leading at the Regional Front
The global vanillin market is segmented into North America, South America, Europe, Asia-Pacific, and Africa. In 2016, emerging regions, like Asia-Pacific dominated the global vanillin market regarding market revenue. Moreover, Asia-Pacific is expected to expand at a substantial growth. Europe held the second largest share, followed by North America, owing to the increasing chemical and pharmaceutical units in the region. In addition, Brazil is expected to witness significant gains in vanillin market share, registering a CAGR of 9%. The Middle East, led by confectionaries and ice cream industry growth in GCC region, is expected to witness an above-average industry gain.