Bio Vanillin Market Analysis and Growth 2025
Increasing consumer preference towards natural ingredients in food and beverages and in personal care products is a major factor driving growth of the market. Bio vanillin is natural substitute to synthetic vanillin as it contains low calories and various antioxidants. Rising awareness, regarding these factors, is propelling demand for bio vanillin over synthetic vanillin, thereby aiding in growth of the market. Furthermore, production of bio vanillin through biotechnological processes involves reduced emission of greenhouse gasses and lesser amount of toxic by-products, as compared to synthetically produced vanillin. Thus, increasing environmental concerns is anticipated to fuel growth of the global bio vanillin market during the forecast period. However, high production cost of bio vanillin as compare to synthesized vanillin by chemical processes, is a major factor adversely affecting growth of the market.
Among the end-use industries, food and beverages segment dominated the global bio vanillin market in 2017. This is majorly attributed to growing demand for high quality, environment friendly, and natural flavoring ingredients in various food and beverages products including ice cream, chocolates, and cakes.
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In terms of revenue, Europe dominated the global market for bio vanillin in 2017. Rising awareness regarding adverse effects of consuming artificial flavoring ingredients such as carvacrol, is fuelling demand for natural flavoring agents in food and beverages, thus, supporting growth of bio vanillin market. Carvacrol is an artificial flavoring ingredient and is associated with circulatory and respiratory depression coupled with cardiac failure. According to the United States Food and Drug Administration (USFDA), artificial flavors and artificial food colors (AFC), have potential to increase learning disabilities and behavior disorders. Moreover, key players are focusing on promoting use of natural extracts and flavors for the production of healthy food and drink products by showcasing their products through various international trade shows such as Ingredients Russia. This in turn is expected to boost the bio vanillin market growth. Ingredients Russia is a leading trade exhibition on food additives. The trade exhibition takes place annually in Moscow, which reflects the development trends in food and beverages industry and promotes innovative high-tech products in domestic and international market.
Asia Pacific is expected to be fastest growing region during the forecast period. This is majorly attributed to steady growth of the food and beverages industry in emerging economies such as India and China. According to the data provided by India Brand Equity Foundation (IBEF), in 2016, the food processing industry in India contributed 14% to the GDP of the country and according to the Department of Industrial Policies and Promotion (DIPP), India received around USD$ 7.54 billion worth of Foreign Direct Investment through the food processing sector during 2000 to 2017. Furthermore, according to the UNFPA, one in four people in Asia Pacific region will be over 60 years old by 2050 and the total geriatric population (aged over 60) is anticipated to reach up to 1.3 billion people by 2050. The steadily rising geriatric population in the region is fuelling the growth of pharmaceutical industry which in turn, is expected to support growth of bio vanillin market. As, bio vanillin is extensively used in the pharmaceutical industry as a flavoring agent in medicines to eliminate the foul taste and odor and is also used as a key intermediate in the processing of therapeutic drugs, used in the cancer treatment.
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Key Players and Business Strategies
Major players operating in the bio vanillin market include Solvay S.A., Apple Flavors & Fragrances Group Co. Ltd., International Flavors & Fragrances Inc., Evolva Holding S.A., Omega Ingredients Ltd., Givaudan S.A., Camlin Fine Sciences Ltd., Comax Manufacturing Corporation, Watkins Incorporated, and Borregaard LignoTech AB.
Strategic collaborations, mergers and acquisitions, and product innovation are the key strategies adopted by major players operating in the bio vanillin market to retain their market share. For instance, in December 2013, Solvay S.A. announced to double its natural vanillin production capacity in Melle, France. The capacity extension was done majorly to cater to growing demand for natural ingredients and to enhance the capacity of its food and fragrances segment.
Bio Vanillin Market Taxonomy
Based on the end-use Industry, bio vanillin market is segmented into:Food and beverages,Pharmaceuticals,Chemicals,Fragrances,Personal care,Detergents,Others
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