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Summary and extracts

1 Market overview

1.1 Definition and scope of study

Vanilla is the fruit of the Vanillaplanifolia orchid, commonly known as the vanilla plant, found in the undergrowth of tropical rainforests. It takes the form of a pod with an aromatic fragrance and flavor. The transformation from an odorless fruit to a richly aromatic spice requires a long and methodical process called "preparation".

The vanilla industry is divided into :

  • The upstream part, which consists ofharvesting the vanilla trees and collecting the fruit. This is carried out by tropical countries, in particular Madagascar , which accounts for almost half the world's production.
  • The primary downstream part, which involves transforming the fruit into a spice through a methodical process known as "preparation". This sometimes takes place directly on the production site, but is often carried out by Western multinationals.
  • The secondary downstream part, which refers to the production of finished products (pods, powder, paste, natural flavoring, artificial flavoring, syrup or sugar) distributed to end consumers, most of whom are to be found in developed countries.

Vanilla is mainly used in patisserie, but also as a perfume in cosmetology or in the manufacture of candles, beauty products, medical care or air fresheners, for example.

The United States, France and Germany account for around 80% of the global vanilla trade, and are the main players in the downstream part of the value chain. By 2022, production will be divided between Madagascar, which will dominate the market, Indonesia and Mexico, with 40%, 26% and 9% of world production respectively.

Apart from French Polynesia and Reunion Island, where vanilla is grown, the French market focuses on the import, preparation and sale of vanilla. France is a European leader in the vanilla trade, accounting for 24.5% of the world's vanilla imports, some of which it re-exports.

The market is relatively concentrated in terms of producing countries, but natural vanilla production is now facing competition from synthetic vanilla, a segment that is gaining in importance due to its insensitivity to climatic conditions and its very low price.

Consumption patterns are varied, and vanilla flavoring is particularly appreciated in desserts and beauty products. Nevertheless, the trend is towards sustainable consumption. So, while artificial vanilla is gaining ground, some areas using vanilla remain faithful to natural, supporting the development of more sustainable sources of supply with "organic" or "fair trade" products, for example.

1.2 An extremely volatile global market

World vanilla production World, **** - ****, tonnes FAOSTAT

In ****, world vanilla production was estimated at **** tonnes, recovering after several years of steady decline. In fact, global vanilla production fell by almost **% in **** compared with ****, mainly due to the decline in exploitable land in the main producing countries, as well as several seasons ...

1.3 Vanilla, a product mainly imported into France

While a small proportion of the vanilla consumed in France comes from overseas territories such as Réunion and Martinique, the majority is imported. In ****, France imported *,*** tonnes of vanilla, with an estimated total value of *** million euros.

French vanilla imports and exports France, ****-****, in millions of euros French ...

2 Demand analysis

2.1 Strong demand for vanilla in France

France consumes an average of *** tonnes of vanilla a year, making it the world's second-largest vanilla consumer, after the United States. Most of the vanilla consumed in France is imported, notably from Madagascar. As can be seen from the following graph, France is the second largest market for Madagascan vanilla (***). [***]

Export ...

2.2 France's vanilla-consuming industries are booming

Vanilla, in its raw, pulverized or ground form, is used in a wide variety of ways. It is used on a large scale in France:

By the food industry, in particular industrial chocolate makers (***). By the cosmetics industry, notably during the industrial processes involved in the production of perfumes and other ...

2.3 Vanilla, a product prized by French consumers in its various forms

Vanilla is considered the favorite spice of the French, who consume it in many different forms. Vanilla is marketed in a variety of forms, from natural vanilla beans to synthetic vanillin molecules.

Vanilla ice cream is one of the most popular flavors consumed by the French. In recent years, the ice ...

2.4 French consumers are increasingly sensitive to the composition of their products and the origin of their ingredients

Consumers are increasingly wary of the cosmetics and food industries, and are paying more and more attention to product quality and the sustainability of the value chain.the Yuka start-up responds to consumers' need for transparency by, for example, enabling cosmetics and food products to be scanned and classified according to ...

3 Market structure

3.1 A complex value chain

Source: ****

The global vanilla value chain is complex, involving many different players of varying sizes. While production is mainly carried out by small-scale producers in poor countries (***), numerous specialized companies are positioned between small-scale producers and exporters, to ensure the import of vanilla beans and their distribution. Companies specializing in the ...

3.2 Largely traditional production methods

Vanilla production is concentrated in countries with little or very little development, such as Madagascar, which accounts for **.*% of the world's vanilla production but ranks ***ᵉ in terms of HDI [***]. These countries are characterized by archaic production methods, as well as high exposure to climatic hazards, which reinforces the fluctuation in volumes ...

3.3 An unbalanced value chain

The fragmentation of the value chain, as well as the large number of intermediaries, gives major industrial groups significant market power, to the detriment of small-scale producers. According to the study Recipe for Change, the need for improved livelihoods of vanilla farmers in Madagascar, more than **,*** small-scale producers make their living ...

4 Offer analysis

4.1 Highly diversified production

There are over *** varieties of vanilla in the world. Nevertheless, three varieties of natural vanilla are commonly marketed, each distinguished by its characteristics and place of origin:

Vanilla planifoliavanilla planifolia: the most widespread variety on the market today, it is produced in Madagascar, Indonesia and Mexico. It is considered by many ...

4.2 An exponential rise in vanilla prices called into question

Vanilla is considered the most expensive spice in the world, behind saffron. Indeed, a kilogram of vanilla costs between €*** and €*,***, far behind saffron, which generally sells for around €**,*** a kilogram, but well ahead of other spices such as cumin, pepper and others, whose price per kilogram is often less than €***.

The ...

5 Regulations

5.1 Some regulatory points applicable to food flavorings

Flavors are subject to regulatory harmonization at European level under regulation CE/****/****. Regulation (***) no. ****/**** lays down the conditions for the use of flavorings. This regulation also specifies the prohibited flavors and substances, the maximum doses that can be used for certain flavors, and the labeling rules applicable at European level. [***]. Food ...

5.2 A regulatory framework specific to vanilla

A precise regulatory framework applies to vanilla at European level. Regulation (***) governing flavors and certain food ingredients considers vanilla to be a basic material with food status, and lists the various traditional treatments used to develop the aroma of the bean.

In France, the vanilla appellation is governed by a decree ...

6 Positioning the players

6.1 A fragmented market

  • Unilever Groupe
  • Eurovanille
  • Symrise
  • Danone Groupe
  • Nestlé Groupe
  • Vanille Labelle Odhoris
  • Le Comptoir Colonial
  • Naturex (Givaudan)
  • Vanille de Madagascar
  • Touton
  • CPVD Foulon
  • Laline Saveurs
  • Produits G. Vernier
  • ADC Séléction
  • Prova

List of charts presented in this market study

  • World vanilla production
  • Main vanilla producers
  • Main vanilla exporters, by value
  • French vanilla imports and exports
  • Vanilla importing countries
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Latest news

Prova invests to develop vanilla extraction and flavorings - 24/05/2024
  • one of the world's leading producers of "brown" flavors
  • Specialized in vanilla, cocoa and coffee extraction
  • family-owned company with 375 employees
  • 110 million euros in sales by 2023
  • 50 million investment program to accelerate development in France and abroad.
  • 75% of sales abroad
  • ten distribution subsidiaries worldwide
  • opening of a factory in Bangkok
At the bedside of the sick, Danone invests in protein drinks at Steenvoorde - 22/05/2024
  • The adult medical nutrition market is estimated at several billion euros worldwide.
  • - Danone is number one in Europe and number two worldwide in the medical nutrition sector.
  • - Blédina's Steenvoorde plant will manufacture protein-enriched drinks under the Fortimel brand
  • - The total investment for this project is 70 million euros
  • - Danone currently operates seven plants worldwide in the medical nutrition sector, including five in Europe.
  • - Sales of Danone's specialized nutrition division are expected to reach 8.5 billion in 2023
  • - Danone has invested in Turkey and Poland to increase its production capacity in medical nutrition, and has acquired Functional Formularies in the United States.
Danone bets more than ever on medical nutrition - 21/05/2024
  • Investment of 70 million euros in a new production line dedicated to medical nutrition at the Blédina plant in Steenvorde.
  • Danone's specialized nutrition division, including medical nutrition, generated sales of 8.3 billion euros in 2023.
  • Growth of 6.7% for this division in 2023.
  • Acquisition of Promedica in Poland, specialized in home enteral tube feeding.
  • Acquisition of US-based Functional Formularies, with sales of around 27 million euros, specializing in biological tube-feeding formulas.
  • Investment of 100 million euros in a new international R&D center in Saclay, to be inaugurated in February 2023.
Danone opens a second plant for plant-based products in France - 12/02/2024
  • Danone inaugurates a new plant dedicated to the manufacture of dairy alternatives in France
  • Danone has completely converted its Villecomtal-sur-Arros yogurt plant in the Gers department into a unit dedicated to Alpro-brand plant-based beverages. 43 million euros of investment
  • Production, mainly of oat juice cartons, is 90% destined for Europe.
  • Danone now has four milk-alternative production units in Europe. Two in France, at Issenheim and Villecomtal in the Gers region, one in Sweden, at Lunnarp, and the fourth at Wevelgem in Belgium.
  • Vegetable-based products have become "a strategic focus" for the world's number one in ultra-fresh products.
  • Danone took the t turn in 2017 with the $12.5 billion acquisition of US group WhiteWave.
  • In France, ultra-fresh products are deeply rooted in diets.
  • Plant milk accounts for just 4% of the traditional dairy products market by volume and 7.4% by value.
  • The plant-based milk market is worth 165 million euros, according to FranceAgriMer.
  • More than 6 out of ten people in France in the 18-24 age bracket eat plant-based products several times a week, according to lDanone
  • Many dairy groups, including Triballat, Nestlé and Bel, have chosen to develop plant-based ranges.
  • Retail chains are present under their own brands (MDD).
Nestlé sells its Natur baby food products to FNB - 06/02/2024
  • nestlé is the world's number one food company.
  • FNB is a French investment fund specializing in small and medium-sized food companies.
  • Nestlé is in exclusive negotiations with FNB to sell its baby food business in France.
  • The products concerned are NaturNes baby food jars, Babicao and Babivanille infant powders, and the P'tit yogurt range.
  • These products are produced at the Arches plant.
  • Worldwide sales of Nestlé infant formulas rose by more than 10%.
Nestlé France sells its baby food products to Mousline - 02/02/2024
  • Nestlé is in exclusive negotiations with French investment fund FnB for the sale of its baby food business.
  • The ranges concerned are soups, purées, desserts and breakfast powders under the NaturNes, Babicao, Babivanille brands and the P'tit franchise.
  • Infant milks, the bulk of the portfolio - with Laboratoires Guigoz and Nestlé Nidal - remain within the Nestlé France fold.
  • The infant nutrition products targeted by this sale are produced in a factory in the Vosges region of France, which employs 230 people.
  • FnB, the potential buyer, specializes in supporting French SMEs in the food industry.
  • The infant food market in France shrank by 6% in volume last year due to the drop in the birth rate, with a sharper decline in milks than in diversification foods.
  • Nestlé has 14 factories in France.

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Unilever Groupe
Eurovanille
Symrise
Danone Groupe
Nestlé Groupe
Vanille Labelle Odhoris
Le Comptoir Colonial
Naturex (Givaudan)
Vanille de Madagascar
Touton
CPVD Foulon
Laline Saveurs

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