Global Vanilla Market to Reach 10.4K Tonnes by 2025
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According to market research conducted by IndexBox, global consumption of vanilla amounted to X tonnes in 2015, standing approx. at the 2014 level. One year before there was a fall by X% caused by the reduction of vanilla production in Indonesia; from 2007 to 2013, vanilla consumption fluctuated slightly. Significant consumption growth in terms of the vanilla market is not currently forecast. According to projections, the growth will be steady, at +X%, which is expected to lead the market volume to X thousand tonnes by the end of 2025. A number of factors, including the impact of poor weather conditions on production figures, and price speculation, can both result in considerable market fluctuations.
The countries with the largest production of vanilla in absolute volumes were Madagascar, followed by Indonesia, Papua New Guinea and Mexico. The most notable growth rate in vanilla production among the main producing countries from 2007 to 2015 was attained by Madagascar (+X% per year), while the other three global leaders experienced negative paces of growth. From them, Mexico (-X%) and Indonesia (-X%) illustrated the lowest annual growth rates from 2007 to 2015.
Due to the long and labourious cultivation process, vanilla is the second most expensive spice in the world after saffron. It takes three years to ripen and mature before it bears any fruit and each plant needs to be pollinated by hand. Vulnerable to disease and natural disasters, vanilla thrives in a warm tropical climate, and is cultivated in such countries as Madagascar, Mexico, Indonesia and China. Strict climatic requirements coupled with frailty of the spice make the global vanilla market one of the most volatile in the world.
In the meantime, the market may be also influenced by synthetic vanilla that is now widely used as a vanilla substitute in the lion's share of products. Regardless inferior quality and taste, synthetic vanilla has been experiencing a rising demand recently, being less expensive than the natural spice. This trend entailed falling prices on the natural market. Nevertheless, the rising health awareness and desire of consumers to avoid chemicals and eat organic and natural food has activated a debate over "natural vs. synthetic" that is yet to determine future market dynamics.
The price increases for vanilla are caused by shortfalls in supply on those occasions when the crop yield is poor; speculation can also influence the producers' intention to grow vanilla or to switch to cultivating and producing other crops. The regions where the vanilla crops are cultivated are often subject to poor and unfavourable weather conditions and disasters, which in turn can result in uneven crop yields. These factors put a substantial risk on forecast vanilla consumption in the medium term.
Do you want to know more about the global vanilla market? Get the latest trends and insight from our report. It includes a wide range of statistics on
- vanilla market share
- vanilla prices
- vanilla industry
- vanilla sales
- vanilla market forecast
- vanilla price forecast
- key vanilla producers
Source: IndexBox AI Platform
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