Summary
Vanilla bean is widely used to flavor drinks, ice cream, and desserts in the food and beverage business. Vanilla consumption prevents coughs, colds, respiratory infections, diarrhea, and vomiting, which boosts demand for the vanilla market during the predicted period. Due to shifting customer behavior and industry trends for food flavorings, food manufacturers are being pressured to discontinue utilizing artificial additives in their products. Furthermore, major food companies including Kellogg's, Cargill, Nestle, Macdonald's, and Kraft have vowed to remove artificial ingredients and flavors from their product formulae, demonstrating that natural flavors have a bright future.
Increasing vanilla bean production would become a favorable market scenario for the vanilla bean market. Moreover, vanilla is currently one of the most demanded flavors in the food & beverage industry. Therefore, to meet this demand, increasing the production of vanilla beans is necessary. The global vanilla market size was valued at USD 2,854.99 million in 2021. It is projected to reach USD 4,701.91 million by 2030, growing at a CAGR of 5.7% during the forecast period (2022–2030).
Lies in the fact that the majority of ‘vanilla taste’ is in fact synthetic. And the majority of synthetic vanillin is produced from petrochemical raw materials.
Challenge
Natural vanilla bean production is labour-intensive and time-consuming and the crop is only grown in a few regions. The supply of natural vanilla beans is insufficient to meet the demand for vanilla. Producing natural vanilla for the food and beverage industry is a time- and labour-intensive process. Pollinating and harvesting the beans is largely conducted by hand in tropical climates increasingly impacted by climate change.
What makes Indonesia the Leading Vanilla Bean Market in terms of Market Share?
Indonesia vanilla bean market thrives at a CAGR of 5.2% between 2023 and 2033, while it is anticipated to hold a value of US$ 464.2 million by 2033. The growth is attributed to the higher vanilla production. Indonesian vanilla is famous for its unique smokiness and woody aroma. Furthermore, the country is the second leading producer of vanilla. The extending sales channel with high exports and the availability of eCommerce platforms are garnering market growth.
Solution
Instead of growing vanilla as usual in the tropics, we plan to cultivate vanilla plants in climate-controlled greenhouses in Indonesia. In doing so, we reduce the common risks associated with conventional agricultural production and more protected from pests and moss. Greenhouse controlled cultivation allows higher annual yields. Whereas in the wild, vanilla flowers bloom once a year – with each flower requiring hand pollination within 12 hours of opening – the green house solution allows for a 'much shorter cycle'. We can do three or four seasons every two years, because our growth cycle is shorter. In our greenhouses we can do more manipulations and really control the crop.
The major players in the market are : Frontier Co-op, MacTaggart’s Brand, McCormick & Company, Nielsen-Massey Vanilla Markets, Touton, Amadeus, Agro Products and Agencies, Boston Vanilla Market Bean Company, Tharakan and Company, Vanilla Market Food Company, Symrise AG, and Givaudan SA.
Vanilla Market, By Geography : North America, Europe, Asia Pacific, Rest of the world.
Distribution Channel, Vanilla Bean Market is segmented as: Direct, Online Retailer, Specialty Store, Supermaret/Hypermarket, Wholesaler
Budget
Funding will be used to build, scale-up growing facilities, seedling production, and business development efforts.
Long term Impact
Better quality for a lower price.
We see the potential to convert the 10% of customers' synthetic vanillin to natural. This means growing roughly 2 times as much vanilla as currently grown.
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