Vanillin Market Intelligence

Report Coverage

  1. Market Analysis
  2. Global Flavor and Fragrance Market – Overview
  3. Market Dynamics
  4. Flavor & Fragrance Industry Structure

Production Size

Global Production Size/ Capacity

$29.5 billion


6-7 percent

China's trade volume

65 percent

Table of Contents

  1. Executive Summary
  2. Global Fragrance Market
  3. Market Dynamics of Top Fragrances (Agro-based)
  4. Sourcing Strategies for CPG Companies
  1. Market Analysis
  2. Global Flavor and Fragrance Market – Overview
  3. Market Dynamics
  4. Flavor & Fragrance Industry Structure
  1. Vanillin Market Analysis
  2. Value Chain Analysis
  3. Production Trends
  4. Price Analysis
  5. End-use Industry Analysis
  6. Global Trade Dynamics
  7. Cost Structure Analysis
  1. Industry Analysis
  2. Porter’s Five Forces Analysis
  3. Innovations/Technology Trends
  1. Procurement Insights
  2. Procurement Strategy – Best Practices

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Vanillin Global Market Outlook:

Market Size (2019) Approx. $29.5 billion (expected to grow at a CAGR of 6–7 percent from 2017 to 2022)

Industry Trends (2019)

  • Developing drought/pest/disease resistant, and high-yield potential varieties, regarding natural fragrances (especially mint)
  • Utilizing novel synthetic technologies to develop cost-effective production and processing (especially mint, vanillin, turpentine).

Porter's Analysis on Vanillin

Supplier Power

  • Suppliers to fragrance houses have low power, as this industry is fragmented
  • Increase in regulation cost, coupled with erratic supplies of natural ingredients, involves huge cost in mechanizing and accumulating inventory, which will eventually reduce the profit margins of fragrance houses

Barriers to New Entrants

  • Technical capabilities and access to raw materials are the key risks for new entrants in the fragrance industry
  • Complying several government regulations on safety and sustainability also prevents new entrants to sustain in the market in long term

Intensity of Rivalry

  • Fragrance industry is highly consolidated with the top 10 fragrance houses hold around 80 percent of the total supply
  • High competition, coupled with maturing markets, is intensifying the rivalry
  • Suppliers are attempting to achieve competitive advantage through technological innovation

Threat of Substitutes

  • Switching cost will be very high, as most fragrances are formulae patented by FMCG clients
  • As the personal care fragrance industry is highly dominated by synthetic ingredients, threat of substitution from natural products is very low

Buyer Power

  • Consumer companies have to completely depend on unique fragrances manufactured by fragrance houses
  • Quality and sustained supplies remain the key factors, which reduces switching between suppliers

Vanillin Frequently Asked Questions

  1. What is the revenue size of the global vanillin market?
  2. Beroe’s market study reveals that the global vanillin market secured revenues worth around $29.5 Bn in 2019, with the figure likely to balloon at a 6–7% CAGR during 2017-2022.
  1. What are the prominent trends impacting the global vanillin market?
  2. Manufacturers are investing their resources in developing pest/drought/disease resistant and high-value potential variants of natural fragrances, mainly mint. Moreover, they are leveraging innovative synthetic solutions to ensure cost-efficient manufacturing and processing of vanillin and turpentine.
  1. Why are new entrants facing difficulties in competing against other market players?
  2. Market entrants find insufficient technical expertise and raw material access as massive hurdles to entering the vanillin market competitive landscape. In addition, a stringent regulatory framework on sustainability and safety weakens their foothold in the marketplace over the long run.
  1. What factors are hindering the global vanillin market growth?
  2. Rising compliance costs and irregular production of natural ingredients come with high costs of mechanizing and accumulating the inventory, thus hitting the bottom lines of vanillin producers.
  1. How intense is the competition among vanillin market players globally?
  2. The global vanillin market is significantly consolidated, with leading ten fragrance houses capturing nearly 80% of the overall production. Besides, the presence of maturing markets is influencing participants to bet on tech-driven innovations to gain a competitive advantage.
  1. Why are buyers hesitant in switching vanillin suppliers?
  2. Buyers totally rely on distinct fragrances developed by vanillin producers with patented formulae. With quality and sustained supplies as the deciding factors, the switching rate of buyers consequently scales down.

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