The Situation at a Glance

The global flavor industry is experiencing an unprecedented price surge on synthetic vanillin and ethyl-vanillin — two of the most widely used aroma compounds in food and beverage — from Chinese suppliers. Driven by raw material scarcity and pricing pressures, recent US trade action amplified this as the US Department of Commerce imposed duties of 190.2% and 42.1% respectively, on artificial vanillin and ethyl vanillin from China.

China remains the dominant global producer of synthetic vanillin and ethyl-vanillin, but these changes have ripple effects far beyond its borders. Prices of materials from the US and India have jumped 50-100% due to increased market pressure impacting everything from bakery to confectionery and functional nutrition on a global scale.

Why This Matters to You

Synthetic vanillin is known for its rich, creamy vanilla note, while ethyl vanillin imparts a more intense vanilla flavor with a slightly woody, sweet edge. These compounds are often used in combination to create appealing and balanced vanilla flavors.

What you may not know is that synthetic vanillin and ethyl vanillin play pivotal roles in the creation of many other flavor tonalities, such as chocolate, cream-based fruit flavors, root beer, maple, caramel, banana, cola and strawberry, to name a few. The compounds also play key roles in taste modulation for nutritional products by helping mask off-notes, enhancing sweetness and improving overall flavor perception.

Due to the price increase, manufacturers may look to reformulation or replacement of synthetic vanillin and ethyl vanillin in their products.

Key takeaways are:

The ratio of synthetic vanillin is different in every formula.

Reformulation will require flavorist development to adjust the concentration of these compounds in your product to remain cost-effective. This may require the use of alternative flavoring solutions, such as blends with other complementary flavoring agents, to maintain product consistency.

Ethyl vanillin is often used as a replacement for synthetic vanillin cost-savings, but it is also experiencing the same price surges.

Your Strategic Options

Collaboration on Reformulation

Identify products in your portfolio that rely most heavily on synthetic vanillin and/or ethyl vanillin that may need adjusted concentration or explore alternative flavoring solutions. During this process, your flavor supplier should test and refine flavor formulas with you to ensure consistency and saving on cost without compromising quality.

Evaluate Alternatives

Ask your flavor supplier about the origins of the synthetic vanillin used in your products. While duties were imposed on synthetic vanillin from China-based suppliers, the impact is global as demand rises.  Alternative sourcing regions like India and the US – where costs were already higher than in China – have continued to experience price increases due to heightened market demand.

Replacement options include natural vanillin, bio-derived vanillin, and pure vanilla extract. Talk to your flavor supplier to learn more about these alternatives for your products.

Consider Clean Label Repositioning

Bio-vanillin and clean label formulations are growing fast – projected to hit $365 million by 2030. In a recent survey, 89% of consumers told us they would be willing to pay more for pure vanilla extract on the label, recognizing its importance to be used as a natural ingredient, according to Synergy Flavors consumer research.

With consumer support, using natural flavors and pure vanilla extract may allow you to charge a premium and justify the investment in reformulation.

Stay Informed

As trade action continues to unfold, we’ll keep you updated as specifics are available.

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