Project report for Vanila Extract

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Vanilla extract provides an aesthetic taste and aroma to the food. It has wide-ranging applications in the food and beverage industry, food service restaurants, and many catering services in India. It is considered as a symbol of the elite and is therefore preferred by different sections of the people. It is also useful in baking and brewing. It is consumable by people of various age groups. The changing customer patterns of consumption of food is the major factor driving this market. The different flavors and their mouth-watering aroma are the prominent reasons for its market hold.

Vanilla extract is a solution made by macerating and percolating vanilla pods in a solution of ethanol and water. It is considered an essential ingredient in many Western desserts, especially baked goods like cakes, cookies, brownies, and cupcakes, as well as custards, ice creams, and puddings. Although its primary flavor compound is vanillin, pure vanilla extract contains several hundred additional flavor compounds, which are responsible for its complex, deep flavor. By contrast, artificial vanilla flavor is solely made up of artificially-derived vanillin, which is frequently made from a by-product of the wood pulp industry.

Market potential & Strategy

The usage of vanilla extract in various foodservice restaurants has facilitated its growth. Although there are many substitutes like maple syrup, citrus zest, etc. that are causing a restraint to its growth, still vanilla extract is incomparable and is consumed by a large number of the population because of its salient features. The increase in the disposable income of people, changing patterns of taste, and more demands of varieties in the food products are the major drivers increasing the market hold of the vanilla extract market. Vanilla extract accounts for the major share in total market as vanilla extract is widely used for flavoring dairy products and in food industry. Vanilla extracts mainly consist of vanillin, which is flavorful constituent of vanilla pods. Vanillin adds the flavor to foods, beverages, pharmaceuticals and cosmetics. Owing to the increasing demand for vanilla in pharmaceutical industry due to its anti-oxidant and anti-carcinogenic properties, vanilla beans and extracts market is growing exponentially. Vanilla powder has highest share in the global vanilla beans and extracts market and growing at moderate rate. Vanilla powder is mostly used as a substitute for vanilla extract and recently is being used widely as flavoring agent in food industry, pharmaceutical industry and cosmetic industry. Bakery and dairy industry are widely using vanilla powder instead of vanilla extract as the prices of vanilla extract are raising due to scarcity of vanilla in the international market and high cost of extracting vanillin form vanilla pods. High demand of vanilla powder in the dairy, food and pharmaceutical industry is driving the market of vanilla beans and extract.

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