The vanilla market - France

The global vanilla market has undergone significant fluctuations and changes, with Madagascar remaining the dominant producer, contributing around 80% of the world's supply. Despite challenges such as volatility in production volumes impacted by climate events (e.g., Cyclone Enawo destroying 30% of Madagascar's cultivation) and a highly concentrated market structure with significant market power held by large industrial groups over small producers, the demand for vanilla remains strong. Vanilla is a highly valued spice in various industries, particularly in pastry making, manufacturing of perfumes, and cosmetics. In the years leading up to 2020, there was a notable shift in consumer preferences with a rising interest in product composition and sustainability. This was evidenced by apps like Yuka gaining popularity for providing transparency about the health implications of food and cosmetic products. The structure of the vanilla market sees a fragmented value chain with many smaller actors between growers and exporters. French consumers have been the second-largest consumers of vanilla globally, after the United States, with France holding a significant share of vanilla imports from Madagascar. The French market is characterized by a preference for natural vanilla and a growing consumption pattern across various sectors such as agri-food and cosmetics. Regulatory frameworks have been established at both the European and national levels, governing the use of vanilla flavorings and specifying the conditions under which the name "Vanilla" can be used. The market also faces competition from synthetic vanilla, which is considerably cheaper than natural vanilla. Despite a drop in prices and the impact of the Covid-19 pandemic predicted to reinforce this trend, the interest in natural vanilla and sustainable sourcing remains, with some estates loyal to natural varieties and an incline toward "organic" or "fair trade" label products.

France's Growing Appetite for Vanilla Amidst Fluctuating Global Dynamics

In France, the allure of vanilla remains strong, with the average consumption reaching fascinating levels, as individuals partake in approximately 5.6 grams of vanilla annually, showcasing its position as the country's most preferred flavor. This demand significantly outstrips the consumption rates of other leading countries, such as the United States, Indonesia, and Mexico. The majority of France's vanilla needs are met through imports, primarily from Madagascar, a country that singularly supplies between 75 and 80 percent of French vanilla imports, amounting to a staggering value of nearly 180 million euros. France sits as the world's second-largest importer of vanilla, capturing roughly between 15 and 20 percent of the global market share. Historically, Madagascar has been critical to fulfilling the French appetite for vanilla, cornering a quarter of its export destinations, just trailing behind the United States. Notably, France not only imports but also re-exports a portion of imported vanilla to other nations, particularly within the European Union, as well as to America and the United Kingdom, thereby playing a significant role in the international vanilla trade. The French market is characterized by rapid growth in sectors that traditionally consume vanilla. The agri-food industry, comprising industrial chocolate makers, dairy product manufacturers, and industrial ice cream makers, continues to drive the demand. Furthermore, the cosmetics industry is notable for integrating vanilla into the production of perfumes and personal care products. In addition to these industries, French consumers themselves, either individually or through artisanal producers like pastry and chocolate makers, contribute significantly to the consumption of vanilla in its various forms, ranging from natural vanilla beans to synthetic vanilin molecules. Despite the wealth of vanilla varieties available worldwide, French consumers demonstrate a strong preference for Bourbon Vanilla, which accounts for roughly three-quarters of the country's vanilla consumption. This preference underscores the significance of product quality and the transparency of ingredient sourcing in consumer choices. Surveys reveal that French consumers are increasingly cognizant of the makeup of their products, with a majority actively investigating the ingredients and compositions of their beauty and food products before making a purchase. Overall, France's market for vanilla illustrates a complex interplay of cultural preference, industry demands, and global supply chains. With the consistent emphases on product quality, transparency, and sustainable supply chains, the French market for vanilla stands poised to continue its growth in the face of an ever-evolving global landscape and consumer awareness.

Dominant Forces and Niche Players in the Global Vanilla Industry

The vanilla market exhibits a multifaceted landscape, featuring a range of actors from smallholder farmers to multinational corporations. Each plays a pivotal role in the chain of production, processing, distribution, and utilization of this precious spice. Here's a closer look at these diverse market participants.

Vanilla Production and Export

At the core of vanilla production are the 80,000 small-scale producers in Madagascar, which harbors the lion's share of global vanilla cultivation. These producers are the backbone of the industry, dedicating their expertise to cultivate the vanilla orchids and painstakingly pollinate them by hand. In the export domain, the Group of Vanilla Exporters in Madagascar (GEVM) stands out, coordinating efforts to navigate the intricate global market. Similarly, Mavany enters the scene as another significant exporter, contributing to the flow of vanilla from Madagascar's rich plantations to the world stage.

Vanilla Processing and Distribution

• Transitioning from export to the processing and distribution phase, companies like Mane and Eurovanille take center stage.
• Mane, a seasoned player with an impressive heritage in flavor and fragrance solutions, extends its reach beyond vanilla into a broad array of aromatic compounds.
• Eurovanille, on its side, specializes in processing the raw product into a more refined form ready for culinary and industrial uses.
• Nielsen-Massey has carved its niche as a purveyor of premium vanilla products, catering to discerning customers who seek top-quality flavorings. With a rich legacy in craftsmanship, Nielsen-Massey balances tradition with innovation.
• Aust, although smaller in scale, plays a critical role in ensuring the distribution of vanilla products, maintaining quality and authenticity throughout its offerings.
• Vanipro might be a lesser-known name compared to its counterparts but is no less important in the value chain, contributing to the intricate network that brings vanilla from the growers to the global market.

Marketing of Vanilla

On the broader marketing front, giants like McCormick, Danone, and Unilever are significant users and distributors of vanilla in various forms.

McCormick is a heavyweight in spices and condiments, infusing vanilla into a myriad of products across its vast food portfolio. Danone applies its expertise in dairy to seamlessly incorporate vanilla into yogurts, beverages, and other health-focused treats, while Unilever, with its expansive reach in food and personal care, utilizes vanilla to enchant consumers with flavored foods and fragranced cosmetics. 

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 06/07/2023

Summary and extracts

List of charts

• World vanilla production
• Main vanilla producers
• French vanilla imports and exports
• Vanilla importing countries
• Breakdown of French exports of unground and pulverized vanilla by country
• Breakdown of French exports of crushed or ground vanilla
• Export destinations for Madagascar vanilla
• Change in the volume of vanilla produced by Madagascar
• Variations in the price of vanilla
• The world's most expensive spices
• Les principaux critères lors de l'achat de glaces en supermarché
• Les critères de choix pour le parfum des glaces
• Sales by agricultural segment, including exports
• Sales index for agri-food sub-segments - Domestic and export markets
• Cosmetics sales by category
• Ventes de produits alimentaires biologiques par famille de produits
• Points to bear in mind when buying food products
• Percentage of consumers using natural and organic beauty products
• Buying beauty products guided by transparency