the vanilla market | France

1.1 Definition and scope of the study

Vanilla designates the fruit of the orchid Vanilla planifolia commonly called vanilla, which is found in the undergrowth of tropical rainforests. It comes in the form of a pod that has an aromatic fragrance and flavor. The transformation from an odorless fruit to a richly aromatic spice requires a long and methodical process called the "preparation".

The vanilla industry is divided into :

• The part in upstream which consists of the vanilla farming and fruit recovery. This activity is performed by tropical countries, in particular Madagascar, which accounts for about 80% of world production.
• The part in primary output, which includes the transformation of the fruit into a spice through a methodical process called "preparation". It 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 (pod, powder, paste, natural flavor, artificial flavor, syrup or sugar) distributed to final consumers who are mainly in developed countries.

Vanilla is mainly used in pastry making 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 about 80% of the global vanilla trade between them and are the main players in the downstream part of the value chain. In contrast, the Madagascar provides the bulk of the world's vanilla supply, some of it upstream. For the past 10 years, world production has been around 2500 tons per year.

Apart from French Polynesia and Reunion Island, which grow it, the French market focuses on the import, preparation and sale of vanilla. The France is a European leader in the vanilla trade and represents 14% of world imports of vanilla, which it partly re-exports.

The market is relatively concentrated in terms of producing countries, but natural vanilla production is now facing competition from synthetic vanilla. This segment is growing due to its insensitivity to weather conditions and its very low price.

While vanilla prices have exploded in recent years, however, the year 2020 seems to herald a fall in prices and the global Covid-19 pandemic is expected to reinforce this trend. Finally, while artificial vanilla is gaining ground, some vanilla-using estates remain faithful to natural vanilla, thus supporting the development of more sustainable sources of supply with "organic" or "fair trade" products, for example.