Entering the European market for vanilla extract

Documentation

European buyers of vanilla extract expect their suppliers to provide good product and company documentation. Well-structured and organised documentation helps to prove that you meet their requirements and quality specifications. That is a great advantage when trying to enter the European market. It also makes you look well-prepared and easy to do business with.

The three most common documents requested by European buyers are:

• Safety data sheet (SDS) – Includes a product description, its classification details and information about transport and environmental hazards and safety measures;
• Technical data sheet (TDS) – Includes an allergen declaration, a chemical and microbiological analysis and information about the product’s composition and application;
• Certificate of analysis (CoA) – Includes pre-shipment sample approval and certificates of compliance. 

As an example of how to provide documentation, O&3 offers a downloadable folder on its website. This contains detailed documents that make it much easier for buyers to determine the quality, traceability and regulatory compliance of the company’s products. More and more buyers want this kind of information before they contact suppliers. You can stand out by making it easily available online.

What additional requirements and certifications do many buyers expect?

Beyond the legal requirements, many European buyers have their own additional standards. You can become more competitive by meeting these expectations. They most often cover certification, packaging and terms of payment and delivery.

Certification

Many buyers will only work with suppliers who can prove that their vanilla extract meets recognised food safety and quality standards. You need to show that you have a certified food-safety management system based on the EU’s HACCP principles. This is required under Regulation (EU) 852/2004 (food hygiene).

Common certifications include:

• ISO 22000 – Food safety management system covering all stages of the food chain;
• ISO 9001:2015 – Quality management system with a focus on consistent quality and continuous improvement;
• FSSC 22000 – Food-safety system certification based on ISO 22000, tailored for food manufacturers;
• SA 8000 – Social accountability standard that demonstrates fair and ethical treatment of workers;
• BRCGS – Certification covering the full processing chain, including extraction, drying, milling, packaging and mixing.

Figure 2: Common food safety certifications for vanilla extract

Source: ProFound, 2025

Packaging

Poor packaging causes a product’s quality to decline during transport. That can easily lead to rejected orders and lost business. To preserve quality, use food-grade packaging materials and follow these best practices:

• Non-reactive containers – Use aluminium, lined or lacquered steel containers that do not react with vanilla extract. Avoid reactive materials, because they can harm flavour and quality;
• Headspace filling – Replace the oxygen in the container’s headspace with an inert gas such as carbon dioxide or nitrogen. Exposure to oxygen can degrade the extract over time;
• Clean packaging – Always use sterilised or food-safe packaging to avoid contamination.

The EU’s Circular Economy Action Plan and European Green Deal aim to reduce waste and improve recyclability. Buyers are looking for environmentally responsible packaging more often. So use recycled and/or recyclable materials where possible, and highlight your sustainable packaging in your marketing materials. That can be a strong selling point for European buyers.

Figure 3: Examples of common packaging for vanilla extract

Source: ProFound, 2025

Payment terms

As an exporter, you need to offer terms that are acceptable to European buyers. But you also have to protect yourself. Before agreeing to anything, look at the risks of different payment options. And consider how reliable your buyer is, the size of the order and your own cash-flow needs.

One of the safest payment methods for both parties is a letter of credit (LC). This involves a neutral third party, usually a bank, which guarantees payment as long as you meet the agreed delivery terms. There are several types of LC. For new trading relationships, a standby LC is the best choice because it offers strong security for both parties, especially if they have little trading history.

Delivery terms

Before agreeing on delivery terms with European buyers, carefully consider when you can deliver the order, its volume and its cost. Failure to meet agreed delivery terms could end your trading relationship.

Table 1: Key factors influencing the type of freight chosen, with tips for exporters

Source: ProFound, 2025

What are the requirements for niche markets?

Niche-market certifications are optional, but they can give you a competitive advantage. They include organic, environmental and social certifications, as well as religious ones like Halal and Kosher.

Organic certification

Demand for organic products is rising steadily across Europe. The organic vanilla market was valued at €370 million in 2023 and is projected to reach €860 million by 2030 – an annual growth rate of 15.06%. This growth is being driven by food applications and by the increasing use of vanilla in cosmetics and personal care. More and more consumers in that segment prefer chemical-free, sustainably sourced ingredients.

However, one supplier we consulted for this study reports that organic demand is declining due to strict and unrealistic certification requirements. The complexity and cost of maintaining organic certification can be restrictive, especially for small-scale producers.

To market your vanilla extract as organic in Europe, you must comply with EU organic regulations and obtain a certificate of inspection (COI). Without this document, your product cannot be sold as organic. Resources like the IFOAM website can guide you through the process.

Figure 4: EU Organic logo

Source: European Commision, 2025

Environmental and social certification

Consumer demand for environmentally friendly products is increasing across Europe. Buyers now want ethically sourced and sustainably produced ingredients, so meeting environmental and social standards has become necessary to secure market access and to keep your competitive advantage.

As organic status becomes harder to get, alternatives like Rainforest Alliance and Fair for Life certification are expected to rise in popularity. The standards below recognise a commitment to sustainable vanilla production:

• Agriculture Biologique (AB) – Organic farming certification. Vanilla is grown without pesticides or synthetic fertilisers. Held by many suppliers to France, which is the biggest EU importer of vanilla extracts.
• FLOCERT – Independent verification of fair-trade practices, including fair wages, safe working conditions and equitable trading relationships.
• Fairtrade – Verifies that farmers receive fair prices, and also promotes sustainable livelihoods, safe working conditions and environmental responsibility.
• Rainforest Alliance – Verifies compliance with strict standards for environmental protection, social equity and economic viability. Requires advance payments to farmers, unlike either fair-trade or organic certifications.
• Fair for Life – Certification of fair trade and responsible supply chains, ensuring transparency, traceability and ethical sourcing practices.

Figure 5: Most common social and environmental sustainability standards for vanilla

Source: ProFound, 2025

Another relevant scheme is the UNCTAD BioTrade Initiative, which encourages the realisation of biotrade principles. They promote sustainable, biodiversity-based value chains and fair benefit-sharing. However, certification can be costly for small-scale producers. You need to look at whether you have a good business case for this option. This could be through confirmed buyer demand or access to premium niche markets where certification justifies higher prices.

Halal and Kosher certification

Demand for Halal-certified products is growing in Europe, especially in mainstream retail. Halal certification reassures buyers that your vanilla extract meets Islamic dietary requirements and is produced without cross-contamination from non-permissible sources. When seeking halal status, work with established bodies like HCE (Halal Certification Europe). It has an international client base.

Kosher certification proves that your vanilla extract meets Jewish dietary requirements, including their sourcing, processing and handling rules.

Figure 6: Halal and Kosher certification logos

Source: ProFound, 2025

2. Through what channels can you reach the European market for vanilla extract?

Most vanilla extract enters Europe through importers/wholesalers, flavour manufacturers or agents. Importers handle sourcing, compliance and distribution. More and more flavour manufacturers are investing in direct partnerships with suppliers, sustainability and processing capacity. For you as an exporter, the most effective entry channel is through importers and wholesalers who can offer market access, logistics and established customer networks.

How is the end market segmented?

Vanilla extract is a key flavouring ingredient in many food segments. They include dairy products, bakery goods, retail foods and food service, and also beverages. Demand is particularly high in the dairy industry, especially from ice-cream makers. 

Ice-cream sales have grown 7% over the past five years, with new products up 3%. Major vanilla users include Danone, Barry Callebaut, Unilever, Nestlé and Coca-Cola (which uses around 10% of world production). For ice-cream makers, flavour remains the most important selling point to consumers. However, other factors are increasing in importance: lactose-free options, low-sugar formulations, clear ingredient labels and ethical sourcing.

Different types of vanilla extract enter the European market to meet different industry needs:

• Oleoresin – Concentrated extract for industrial food production;
• Infusion – Alcohol-based extract for retail and food service;
• Absolute – Highly concentrated form for premium applications.

These extract types vary in their concentration and processing methods, which allows suppliers to target different market segments. Buyers choose a type of extract based on their specific product requirements and price points. The graph below shows the export value chain for vanilla extract on its journey to the European market.

Through what channels does vanilla extract reach the end market?

Figure 7: Export value chain for vanilla extract

Source: ProFound, 2025

Importers/wholesalers

For exporters from developing countries, importers and wholesalers are the main route into the European vanilla extract market. They typically handle a wide range of natural ingredients. These are sourced globally, imported and stored, before being sold on to food processors and manufacturers. Importers and wholesalers also oversee product quality and regulatory compliance.

To shorten supply chains, European buyers often establish direct partnerships with vanilla producers. This ensures full traceability from source to final product, which is increasingly important for quality control and ethical sourcing. For example, the French specialist importer Eurovanille sources vanilla beans directly from producing countries. It has now built its own processing facility in India in order to control quality from harvest to processing. In Europe, it processes beans into extracts, powders and pastes for food manufacturers, bakeries, chocolate-makers and chefs.

Eurovanille also invests in: 

• Sustainability initiatives – Member of the Sustainable Vanilla Initiative (SVI) and so playing an active role in the promotion of sustainable sourcing practices;
• Research and development – Participated in a genome study with leading researchers, published in May 2022. That demonstrates its technical engagement with the vanilla supply chain;
• Agricultural innovation – Maintains a 1,000 m² experimental greenhouse in France and conducts agronomic research to help planters grow more productive and disease-resistant vanilla varieties.

This example shows how European buyers are evolving beyond basic importing. They now invest in traceability, direct sourcing and innovation. Partnering with companies like Eurovanille gives you access to both industrial and high-end artisan markets.

Other notable companies include: 

• Oleador – Infused vanilla oil in organic and conventional formats.
• Nielsen Massey – Vanilla extracts, pastes and powders from Madagascar, Mexico and Tahiti.
• Vanille B.V. – Gourmet bourbon beans from Madagascar, Papua New Guinea, Uganda and Tahiti. Short supply chains ensure competitive prices.
• Tradin Organic – Organic vanilla powder with Fairtrade certification for chocolate, ice cream, bakery goods and sweets.
• Bidah Chaumel – Natural ingredients in various formats, with organic certification.
• Natural Vanilla Store Europe – Sells vanilla through online platforms, in both small and large quantities.
• Carlo Sessa – Vanilla extract from Mexico and beans from Madagascar.

Flavour manufacturers/processors

European flavour manufacturers focus on custom formulations for the food and beverage industry. Symrise, one of the largest, reflects the current shift toward direct partnership approaches. On Madagascar, it has opened a sustainability office in the Sava region, an extraction facility and agro-innovation centre in Benavony and a curing facility in Antalala.

Since 2006, Symrise has established direct partnerships with 7,000 farmers. These directly benefit over 30,000 people. The company has also distributed more than 452,000 seeds and trees for reforestation since 2018. This trend toward direct partnerships creates opportunities for exporters to explore different market entry routes.

Other flavour and fragrance manufacturers include European Flavours and Fragrances Group, Elixarome, A&B Flavors, Givaudan, Doehler and MANE.

Agents/brokers

An export agent handles export activities on your behalf, usually for a commission. You can find agents in developing countries and in Europe, although European companies rarely use them. Use directories like Europages or GlobalTrade.net to find an agent, or contact your local chamber of commerce for referrals.

What is the most interesting channel for you?

For you as an exporter of vanilla extract, importers and wholesalers are the most promising channel. This is because they have a deep knowledge of European food and drink markets. They have established relationships with a wide range of customers and a good understanding of local regulations and requirements. Importers and wholesalers also have storage facilities and established logistics networks.

This infrastructure is valuable for small and medium-sized exporters new to the European market, who may lack resources to create their own distribution networks. As the market moves toward more direct partnerships, building strong relationships with these intermediaries can help you get direct sourcing opportunities in the future.

3. What competition do you face on the European vanilla extract market?

You face competition on three levels: producing countries, exporting companies and synthetic alternatives. Madagascar is the largest producing country, but faces volatility. Indonesia, Uganda and Sri Lanka are now emerging as alternatives. And synthetic vanillin remains a cost-effective competitor for mass-market applications.

This analysis examines two key product categories: crushed or ground vanilla (HS code 090550) and vanilla oleoresin (HS code 13021905). These represent different levels of value addition. Ground vanilla reveals basic processing capacity, while oleoresin demonstrates advanced extraction capabilities. Together, they provide a complete picture of each country’s competitive position in the supply of vanilla extract to Europe.

Source: ITC Trade Map, 2025

Table 2. Exports of vanilla (crushed or ground) to Europe, 2020-2024

Source: ITC Trade Map, 2025

Source: ITC Trade Map, 2025

Table 3: Exports of vanilla oleoresin to Europe, 2020-2024

*No exports recorded in 2020, so percentage change cannot be calculated.

Source: ITC Trade Map, 2025

Which countries are you competing with?

Madagascar dominates the supply of vanilla, but prices can be . Indonesia is expanding rapidly, and Uganda and Sri Lanka are emerging as smaller alternatives that offer quality, sustainability and stable sourcing options.

Madagascar dominates the global vanilla market

In 2024, the value of oleoresin exports from Madagascar fell to €13.97 million (-36.4% since 2020). But their volume rose to 95.6 tonnes (+48%). Ground vanilla exports totalled €6.96 million from 131.9 tonnes – a 47.4% decline in value decline despite a 50% growth in volume.

This price volatility is a result of policy changes. The government’s $250/kg minimum export price was lifted in 2023, under international pressure. That caused prices to plummet below $20/kg for lower grades. Swings like this affect farmers’ behaviour. During times of oversupply, they leave high-quality beans on the vines longer in order to increase their vanillin content and so maximise returns.

Sustainability initiatives are reshaping Madagascar’s vanilla trade. ADM’s joint venture with local co-operative Sahanala has created SAVAN, the country’s first farmer-owned exporter. It supports over 4,000 smallholders with education, medical care and food security programmes.

Indonesia has emerged as Madagascar’s main challenger in oleoresin production

Vanilla oleoresin exports from Indonesia increased in value from €11,636 in 2020 to €10.35 million in 2024 (+88,874%). And their volumes reached 9.9 tonnes (+4,459%). Ground vanilla sales were worth €447,000 from 4.19 tonnes – a 54.1% growth in value despite a 32.9% decline in volume. This data highlights Indonesia’s growing role as a crucial player for European buyers who want to diversify their sourcing.

However, Indonesia faces quality challenges. Suppliers struggle with pesticide residues, heavy metals and microbiological contamination that exceed EU standards. Its sustainability certification is also lagging behind the market trend. Indonesia exported only 9 tonnes of certified organic/Rainforest Alliance vanilla in 2023. The Indonesian National Standard (SNI) regulates vanilla quality by setting standards for colour, aroma, oil content and contamination levels. Audits are performed by accredited bodies like SGS.

Despite current limitations, Indonesia’s growing production capacity and government quality initiatives make it an increasingly important alternative source for European importers.

Uganda has positioned itself as a significant African vanilla producer

In 2024, Uganda’s exports of vanilla oleoresin reached €19,803 by value and 0.4 tonnes by volume. This followed shipments totalling 751 kg in 2022. Exports of ground vanilla were worth €398,000 in 2024, nearly 20 times more than in 2020 (€20,000).

Uganda’s competitive advantage lies in its dual cropping seasons. These produce a more stable year-round supply than Madagascar’s single harvest. That reliability appeals to buyers who are looking for consistent sourcing. 

Growing conditions in Uganda are also very well-suited to vanilla. Because of this, it produces beans with some of the highest natural vanillin content in the world. Niell Coetzee, a vanilla producer and exporter interviewed for this study, says that he works directly with registered co-operatives and more than 1,000 farmers. They receive organic and good agriculture practices (GAP) training, support with certification and crop estimation services to strengthen traceability and consistency.

Uganda’s industry is also diversifying through local value addition. Processors have begun experimenting with the production of vanilla extract using locally sourced alcohol. That creates a distinct Ugandan flavour profile, different from Madagascan and Indonesian extracts.

However, Uganda faces the same price volatility as all source countries. Some farmers shift between growing vanilla, coffee and cocoa, depending on market cycles. The Association of Vanilla Exporters of Uganda (VANEX), established in 2005, co-ordinates industry standards and policy development. Despite current market challenges, Uganda’s bourbon vanilla is gaining recognition for its high-vanillin flavour and consistent quality. In that it is supported by a growing commitment to traceability and responsible sourcing.

Sri Lanka is emerging as a small but promising producer 

Exports of vanilla oleoresin from Sri Lanka were very modest in 2024, at just €60 (0.001 tonnes). But exports of ground vanilla rose in value from €4,000 in 2020 to €121,000 in 2024 (+606,235%). Their volume reached 0.84 tonnes (+84,300%). Although actual values and volumes remain small, their rates of growth position Sri Lanka as an alternative source that is worth monitoring.

Highland areas like Kandy, Matale and Nuwara Eliya offer suitable conditions to grow vanilla. Government support through the Export Development Board includes farmer training and the supply of planting material. The Sustainable Land Management initiative targets women in the Central Highlands, promoting vanilla as a sustainable way to generate income.

While Sri Lanka cannot rival major producers in volume, it is carving out a niche in gourmet markets by emphasising that it supplies high-quality, sustainably grown vanilla. This positioning appeals to European buyers who are looking for premium products with strong traceability, quality and sustainability credentials.

What companies are you competing with?

Vanilla exports from Madagascar, Indonesia, Uganda and Sri Lanka are driven by certified exporters, farmer co-operatives and increased investment in traceability and sustainability. Many suppliers now process beans into powders and extracts, in line with Europe’s demand for ethical sourcing.

Madagascar

La Saveur Vanille became a direct global exporter in 2021. It offers vanilla powder and extracts, with an emphasis on traceability. Sahanala is a farmer-owned co-operative that works in partnership with ADM through SAVAN. It sources organic, fair-trade vanilla from thousands of smallholders. Ramanandraibe Export partnered with Takasagoin 2013 to open an extraction plant in Tamatave. Sambirano Aromatic exports vanilla extracts and oleoresin with Fairtrade certification.

Indonesia

INDOVANILIwas established in 2017. It supplies bourbon and Tahitian vanilla to US, European and Asian markets. UD. Sumber Lancar has been part of Indonesia’s vanilla trading heritage since 1976. It sources across Java, Bali and Sulawesi. PT. Gudang Vanili Indonesia began trading in 2020 as an integrated operation. Alfa Vanilla, established in 2021, publicly shares CoAs for both Tahitian and planifolia vanilla.

Sri Lanka

Verger Naturals (Pvt) Ltd specialises in premium Vanilla planifolia absolutes and CO2 extracts. It holds FSSC 22000, EU Organic, Fair for Life, Sedex, USDA Organic and Rainforest Alliance certifications. Natural Vanilla (Pvt) Ltd was a pioneer in Sri Lanka’s vanilla sector. It now has over 20 years’ experience and a network of more than 3,000 farmers. Sanmik Food Pvt Ltd and Dilmah Ceylon Tea Company promote ‘Ceylon vanilla’ through their existing global networks.

Uganda

Esco Uganda Ltd. is one of Uganda’s largest certified organic exporters of vanilla. It works with thousands of smallholders. Enimiro, founded in about 2019, operates a vertically integrated supply chain serving 3,000 farmers with impact-investment funding. Ndali Vanilla (Ndali Estate) produces ‘vanilla with a heart’ at a Fairtrade organic farm. Natural Extracts Industries (U) Ltd processes vanilla into extracts and flavour ingredients under the Viva Vanilla brand.

What products are you competing with?

Your main competition comes from vanillin. This is a synthetic alternative that replicates vanilla’s characteristic flavour at a fraction of the cost. Natural vanilla extract contains over 200 flavour compounds, which together create a rich, complex profile. Vanillin is a single molecule that delivers a simpler, more direct vanilla taste.

Table 4: Main differences between vanilla and vanillin

Source: Avid Organics, 2025

4. What are the prices of vanilla extract on the European market?

The European vanilla extract market is highly instable. Prices are influenced by production cycles, limited sources of supply and growing demand for natural, organic and sustainably sourced products. Understanding these factors will help you position your product competitively, and to manage risks.

Key factors influencing vanilla prices:

• Limited supply – Vanilla cultivation is labour-intensive. The crop requires hand pollination and years before fruiting. Climate events in Madagascar can cause major price swings. Uganda offers greater stability with similar flavour profiles, because it has two harvests each year.
• Demand for natural and organic – European buyers pay premiums for organic-certified vanilla. However, some regions struggle with limited certification options. In Madagascar, ECOCERT dominates the certification market despite the existence of other accreditation bodies.
• Price volatility – Vanilla prices fluctuate sharply. When prices reached €600-€750/kg in 2017, demand for synthetic vanillin surged. Prices are sensitive to harvest sizes, climate shocks and speculation.
• Sustainability premiums – Certifications like organic, fair trade, Rainforest Alliance, Sustainable Vanilla and Agriculture Biologique command 10-30% higher prices.
• Quality and origin – Bourbon vanilla from Madagascar fetches the highest prices due to its long curing and labour-intensive production processes. Tahitian vanilla from Papua New Guinea achieves medium-high prices. Vanilla from Uganda and Indonesia is more affordable.

Table 5: Retail and bulk vanilla extract prices in the European market

Source: ProFound, 2025

ProFound – Advisers in Development carried out this study on behalf of CBI. 

Please review our market information disclaimer.