Industry Insights
China vanillin market size was estimated at USD 67.4 million in 2017 and is expected to witness high demand from various end-use industries, such as food and beverage and pharmaceuticals. Vanillin is used as a flavoring agent in food and beverages. It is also used in medicines to cover unpleasant taste. Growing awareness and inclination of consumers towards healthy lifestyle has also added to the product demand as it has antioxidants and low calorie content.
China vanillin market revenue, by end-use, 2014 - 2025 (USD Million)
Vanillin is used as a flavoring ingredient and process intermediate in many end-use industries, such as fragrances, food and beverage, and pharmaceuticals. Rapid growth of these application sectors in China is projected to fuel the market demand in the region over the forecast period. Vanillin imparts a sweet flavor to the finished food products such as bakery products, alcoholic beverages, dietary supplements, and dairy products. In addition, it is also used as plant growth promoting agent and fungicide.
The bakery and confectionery sectors in China are expanding rapidly, which will boost the market demand in the region. Vanillin is used in many cosmetics and fragrances products. Thus, increasing demand for cosmetics and fragrances in the region will also add to the market growth. In addition, strong presence of prominent industry participants, such as Solvay, in the region is also likely to spur the China vanillin market expansion.
Besides, China accounts for about two-fifth of the global product supply, which is also responsible for the market growth. On the other hand, rising health concerns associated with the consumption of synthetic vanillin, such as nausea and headache, can have a negative impact on the market growth. However, continuous R&D in the production of natural vanillin made from sustainable source is anticipated to support the market growth.
Segmentation by Type
• Synthetic
• Bio-based
Although the synthetic vanillin is the leading product segment, the bio-based vanillin segment will expand at the fastest CAGR over the forecast period. This growth is attributed to the constantly rising demand for natural products as a result of increasing health consciousness among consumers. Thus, demand from application areas, such as food and beverage, are expected to play a vital role in the growth of bio-based vanillin.
Segmentation by End-use
• Food and Beverage
• Fragrances
• Pharmaceuticals
Food and beverage segment accounted for a major share in the China vanillin market in 2017. Vanillin is extensively used in food processing as a flavoring agent to enhance the aroma of products. It offers antioxidant compounds, which also boosts its demand in food and beverages. The fragrances segment is another key application area for vanillin. Increasing demand for beauty and personal care products along with the growing usage of aromatic products will fuel the segment growth.
Competitive Landscape
The China vanillin market is concentrated in nature and is marked by the presence of well-established companies that are integrated across the value chain. Market competition is likely to intensify in the next few years with an expected growth in product demand, especially from the food and beverage and fragrances sectors.
Thus, most of the companies are focusing on strengthening their regional presence while increasing the production capacity, especially of bio-based products. Some of the key companies in the market include Camlin Fine Sciences Ltd.; Solvay S.A.; International Flavors and Fragrances, Inc.; Evolva Holding S.A.; Ennolys; and Apple Flavor & Fragrance Group Co. Ltd.
