This article was first published on Ambrosus - Medium
The outlook of the vanilla industry:
Last time we focused on the industry of coffee and its hurdles. In this blog post, we are going to focus on the industry of vanilla and its different challenges. This exotic flavour comes to life through sweat and intense labour. During the years the authenticity and transparency have been a challenge for the industry. A report by Zion Market Research says that the global vanilla market will reach over 735 million dollars by 2026. According to the report, the global vanilla market accounted for 510 million dollars in 2018 and is expected to reach around 735 million dollars by 2026, at a CAGR of 4.7% between 2019 and 2026. There are multiple reasons for this exponential growth. One of them being that Vanilla is one of the most widely used flavouring agents in the food industry. Let’s dive in and investigate what this means for traceability and sustainability.
Importance of transparent and fair supply-chain:
Intrinsically the vanilla and vanilla bean industry has a complex supply chain that is vulnerable to a range of social, environmental and economic issues. On top of that, there are issues of pricing and quality, consumers and farmers who are concerned about poverty and child labour and the traceability of all the above are very difficult to guarantee. Because of global demand for natural products, the aforementioned issues also expand to the vanilla industry.. For illustration in 2010, there was an abundance in vanilla which resulted in a significant price drop. Responding to lower prices farmers in Madagascar (which is where more than 85% of vanilla beans are cultivated) farmers started to give less attention to the vanilla cultivation. Come back today and the opposite is occurring: the demand, coupled with the smaller-than-average vanilla crop last year in ...
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Ambrosus - Medium