When the current vanilla crisis accelerated in 2017, the combination of factors created what we called the perfect storm. Now nearly two years later, it’s clear that the vanilla market continues to be challenged. Food and beverage companies are navigating supply concerns, fluctuating pricing and shifting quality. All this at the same time that vanilla flavors continue to be the most widely used flavor family in the industry. While the situation has improved for 2019, the outlook for 2020 reveals that this may just be a brief lull in a much bigger storm — the eye of the storm, so to speak.
Let’s take a look at the vanilla market, with an eye towards current options and opportunities to secure long-term solutions.
Consumers are drawn to vanilla and find safety and security in their vanilla choices across the food and beverage market — not to mention the pull of indulgence and nostalgia inherent with vanilla consumption. Consumer Product manufacturers have been working hard to manage taste and price within their finished products. Many have changed the formulation of the products to reduce the reliance on pure vanilla extract. This means the demand of vanilla extract has softened slightly compared to the peak demand in 2017. Label compliance and regulatory alignment often still leads to use of vanilla extract. Vanilla remains a critical element needed in the product developer’s tool box.
Vanilla Growing Cycle is Finicky
Vanilla Supply Chain has Many Layers
Unbalanced Supply and Demand
Don’t lose momentum. Build for the future. Vanilla is challenged in the short AND long-term. Our technical expertise and collaborative approach allows you to build replacer tools and plans for the fluctuating vanilla market today and tomorrow.
Count on side-by-side collaboration, and solutions that are label friendly, cost effective and protect the taste your consumers are expecting in your products. We have sustainable, price-stable solutions for your clean label products.
With a true taste solutions partner, this storm is no match for you. Avoid long-term risk, and secure your future growth.