Vanilla trends: Sustainable sourcing, price challenges and plant-based applications

03 Nov 2021 --- After years of being hailed “queen of flavors,” vanilla is still going strong as a classic and versatile ingredient in categories spanning confectionery, bakery, beverages, desserts, ice cream and more. The sector is prone to some sourcing challenges and price fluctuations. However, the ingredient’s long-established popularity drives companies to ramp up the sustainable sourcing of the dominant flavor force, which has room to grow.

FoodIngredientsFirst talks to several suppliers about some of the latest trends in vanilla and how sustainable sourcing – in line with planetary health trends – is vital.

Popular applications
Kévin Bangratz, marketing researcher at Prova, says the categories using vanilla extracts that are expanding the most are snacks, spreads, sports nutrition and baby food, especially baby snacks.

Sports nutrition products are also “moving upmarket.”

“We observe a shift toward natural and plant-based proteins. These products are increasingly using flavors to mask the unpleasant off notes of certain proteins, such as pea protein. They also use more natural vanilla flavors and extracts,” he tells FoodIngredientsFirst. 

Next to cocoa and coffee, vanilla is the crop that gets the most attention from consumers regarding sustainability and transparency.“Plant-based applications are a great opportunity for vanilla. The rise of plant-based ice creams and yogurts are also among the market segments that are increasingly using vanilla extracts. In the US, a fast-growing category is plant-based creamers, which are often flavored with French Vanilla,” he notes.

Gaelle Dami, global marketing communication director, Symrise flavor division, says that popular applications stay in favor, like ice cream, dairy, and plant-protein-based (non-dairy) as the growth driver this year.

“We expect to see more of this next year,” she tells FoodIngredientsFirst. 

While Givaudan is seeing that vanilla is one of the main flavors for the whole Sweet Goods & Dairy category and is also becoming one of the main flavors in dairy alternatives. 

“Every new plant-based range has a vanilla variety because of its balancing and rounding capabilities,” says Tim Ebert, product manager Sweet Goods & Dairy, Taste & Wellbeing Europe, at Givaudan.

“From a consumer perspective, vanilla triggers indulgent and comforting memories, which help to attract consumers to new categories, such as chickpea yogurt or soy dessert,” he explains.

“In Europe, the trend toward more natural flavors and ingredients continues to grow. As consumer awareness of personal well-being increases, we see that consumers are looking for natural flavors or vanilla extracts.”

In addition, Givaudan also sees an increasing number of products and brands trying to create either an emotional connection or wellness connection with their consumers. 

“Our research shows that vanilla conveys the perception of “well-being and relaxation.” In addition, we see more and more vanilla used outside its traditional role of bringing great taste and indulgence,” he tells FoodIngredientsFirst.

Familiar flavors
Demand for vanilla soared in popularity throughout the global pandemic as home baking surged. Plus, vanilla found its way into shoppers’ carts in the form of cookies, snacks and ice cream, as many consumers sought comfort in familiar flavors, explains Hélène Moeller, vice president, global product marketing, flavors, ADM.

“This boom for vanilla beans, extract and paste has not yet subsided,” she tells FoodIngredientsFirst.

“On top of that, we are also seeing trending combinations that include vanilla, continuing the momentum for the ingredient and demonstrating that a traditional flavor like vanilla still has an important role in the flavor arena.”Gaelle Dami, global marketing communication director, Symrise flavor division.

“Furthermore, vanilla stands well on its own and as a supporting component with other flavors, including blends and interesting new notes. For instance, new sparkling waters and protein shakes on the market are featuring vanilla with citrus notes, such as blood orange, grapefruit and lemon. Plus, warming spices like ginger, cardamom and garam masala pair with vanilla for intriguing dessert options or adventurous savory dishes,” she explains. 

Additionally, with consumer interest in plant-based offerings still on the rise, versatile ingredients like vanilla are needed to balance out flavor. 

“Specifically, plant-based dairy alternatives created with oat, almond, pea, coconut and cashew may include vanilla to soften potential off notes. As such, vanilla is in particularly high demand with these product developers as a necessary ingredient in the dairy alternative space to create consumer-preferred products,” Moeller adds. 

Sustainable vanilla 
Next to cocoa and coffee, vanilla is the crop that gets the most attention from consumers regarding sustainability and transparency, stresses Ebert. 

“Many consumers know that Madagascar is the main growing region for vanilla beans, and prices are often compared to those of silver and gold,” he continues. “Combined with an increased awareness of farming practices, origin and climate change, consumers have developed the tendency to prefer sustainable and transparent products.”

This was evidenced recently when Innova Market Insights crowned “Shared Planet” as its Top Ten Trend for 2022.

Responsible sourcing, traceability, and transparency is a vital part of the vanilla supply chain. Givaudan has long demonstrated leadership in this regard, being the first in the flavors and fragrances industry to publish a responsible sourcing policy and form a joint venture with an NGO in Madagascar to contribute to the future of the communities where it sources vanilla.

Madagascar networks 
“We work closely with farmers in Madagascar and support Madagascar communities with food security, education, health and hygiene and quality standards,” notes Ebert.

He also references the recent launch of Givaudan’s Sourcing4Good program, aligned with the Givaudan Purpose, “Creating for happier, healthier lives with love for nature.” This program provides transparency across supply chains, not only for vanilla but for all products Givaudan sources.

Prova echoes these sentiments, paying high regard to sustainable sourcing and transparency. 

The company has been working on sustainability concerning vanilla in Madagascar since 2012 and has a long-term vision of sustainability.

“It is our duty, as importers, to be aware of production conditions and ensure the long-term stable supply of high-quality vanilla that has to be produced in an environmentally, socially and economically sustainable way so that all actors that are part of the value chain can benefit, starting with producers and improving their overall livelihood,” explains Anne-Aurélie Duval - CSR operations manager at Prova.

The main challenges faced in the past years have been price volatility, falling quality and opaque traceability, she says. 

Caring for farmers
“In order to address those, Prova has developed new sustainable partnerships on the ground this year, confirming our commitment and will to contribute positively to the industry, supporting local communities and adapting social actions to their tangible needs.”

Prova has been working on sustainability concerning vanilla in Madagascar since 2012.“We make it our priority to develop Prova’s sustainable product portfolio, as our ambition is to source 50% of our raw materials sustainably by 2030. We are committed to working with all the stakeholders in the supply and value chains, our suppliers, clients and partners to reach this goal,” she continues. 

“Although sustainability has a cost, consumers are ready to pay if it means having access to information on the way products were sourced, their origin, etc., through authentic storytelling around ingredients.”

Symrise’s take on sustainability is no different, heralding transparency as the number 1 priority for consumers, in general, and even more so in vanilla.  

“People care for the planet, for the resources, and for the people who grow the beans. Delivering transparent vanilla to consumers forms an ethical requirement for people (consumers and the farmers) and for the planet,” Dami at Symrise says.

“Symrise will continue to strengthen its strong partnerships with farmers, with colleagues in Madagascar, working directly on the ground, in the region of SAVA in Madagascar without intermediaries. This represents our best guarantee of full transparency. Moving forward, we will also continue our programs (in education, research, agronomy, training on good agricultural practices and providing access to other crops like ginger). This can help people sustain a living income throughout the year – that covers times beyond the vanilla campaign,” she explains.

Digital traceability
ADM is also continually identifying new ways to elevate transparency and sustainability in its vanilla sourcing efforts. It also works directly with farmers for a responsibly sourced vanilla supply. 

“With nearly 80% of the world’s vanilla sourced from Madagascar, we have focused our efforts to support the complex growing community there,” Moeller continues.

“This year, using our digitally traceable supply chain, we launched our FairTrade Madagascar Vanilla Extract under our Rodelle brand, demonstrating ADM’s continued commitment to growers. Additionally, we recently opened a new vanilla curing facility in Antsohihy, Madagascar, 

to meet increased consumer demand for “farm-to-table” ingredients.”

ADM’s joint venture with Sahanala provides extraordinary transparency and traceability while producing exceptional vanilla. Through Savan, we have pioneered a large-scale digitally traceable supply. Moreover, Savan fosters leadership and education amongst the farmers, strengthening their local communities.”

“Consumer awareness of the connections between the food system and the environment is accelerating and they are making purchasing decisions based on their values,” she says.

By Gaynor Selby