Vanilla market in Indonesia

Earlier Report Observations

Indonesian vanilla production and market volume declined significantly from 2018 to 2020, primarily due to persistent challenges in cultivation conditions and inadequate post-harvest processing, such as improper drying, which compromised bean quality and limited output. A recovery in farming practices and the adoption of better post-harvest technology began to reverse this trend by 2020, setting the stage for a rebound.

Production and market size expanded sharply in 2021, fueled by the entry of new players like village cooperatives initiating exports to Japan and developing value-added products such as extracts and pastes. However, a subsequent contraction in cultivated area led to another production drop in 2022, despite record-high global prices and strong export demand driven by Indonesia's competitive advantage in key markets like the United States and ASEAN.

Throughout the period, the market was supported by active government promotion and farmer training programs aimed at improving quality and export acceleration. High international prices and growing demand for Indonesian vanilla, coupled with the emergence of domestic value-added product lines, helped stabilize production and market volume by 2023.

Production vanilla in Indonesia

In kind, 2018-2021, t

Indonesia was the world's second-largest producer of vanilla from 2018 to 2021.

Top producers of vanilla, 2018-2021

World map of production of vanilla, 2018-2021

Following a two-year decline, vanilla production in Indonesia rebounded in 2021, reaching 1,957 tonnes. This represented a significant year-on-year increase of 38.6%. Over the entire 2018-2021 period, production grew by 4.5%, averaging an annual growth rate of 1.5%. The lowest production level was recorded in 2020 at 1,412 tonnes, while the steepest decline occurred in 2019, when production fell by 22.0%.

Annual dynamics of production in Indonesia in kind, 2018-2021, t

Exports vanilla from Indonesia

Exports in kind, t

After two consecutive years of growth, Indonesia's vanilla exports declined in 2021, totaling 345.7 tonnes. This marked a gradual decrease of 4.1% compared to the previous year. However, over the 2018-2021 period, exports increased substantially by 72.6%, with a compound annual growth rate of 20.0%. The peak export volume was recorded in 2020 at 360.6 tonnes, which also saw the largest annual increase of 38.4%.

Annual dynamics of product's exports from Indonesia in kind, 2018-2021, t

From 2018 to 2021, the United States remained Indonesia's primary export market for vanilla, accounting for 70.1% of total exports by volume. The remaining exports were distributed among other countries.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Indonesia in kind, 2018-2021

Exports in value, K $ US

Indonesia's vanilla exports in value terms declined for the third consecutive year in 2021, reaching $39,930 thousand. This represented a steep drop of 33.7% compared to the previous year. Over the 2018-2021 period, export value decreased by 46.1%, with a compound annual decline rate of 18.6%.

Annual dynamics of product's exports from Indonesia in value, 2018-2021, K $ US

From 2018 to 2021, the United States, Germany, and Canada were the principal buyers of Indonesian vanilla in value terms. The United States accounted for 67.1% of export value, Germany for 9.0%, and Canada for 6.5%. Together, these three markets represented 82.7% of Indonesia's total vanilla export value during this period.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Indonesia in value, 2018-2021

Imports vanilla to Indonesia

Imports in kind, t

The data shows irregular changes in Indonesia's vanilla imports, indicating a volatile market environment. The lowest import volume was recorded in 2019 at 104.4 tonnes, while the highest was in 2021 at 302.7 tonnes, representing a peak-to-trough ratio of 2.9 times. In 2021, imports increased robustly by 21.6% compared to 2020. The largest decline occurred in 2019, when imports fell by 27.5%, while the largest increase was recorded in 2020, with a surge of 138.5%.

Annual dynamics of product's imports to Indonesia in kind, 2018-2021, t

From 2018 to 2021, Papua New Guinea consistently served as the main source of vanilla imports to Indonesia, accounting for 94.5% of total import volume.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Indonesia in kind, 2018-2021

Imports in value, K $ US

The data reveals irregular changes in Indonesia's vanilla import values, reflecting a volatile market environment. The lowest import value was recorded in 2019 at $5,116 thousand, while the highest was in 2020 at $21,135 thousand, representing a 4.1-fold gap between these years. In 2021, import value contracted sharply by 25.2% to $15,816 thousand compared to the previous year. The largest decline occurred in 2019, with a drop of 56.8%, while the largest increase was recorded in 2020, with a dramatic rise of 313.1%.

Annual dynamics of product's imports to Indonesia in value, 2018-2021, K $ US

From 2018 to 2021, Papua New Guinea dominated Indonesia's vanilla imports in value terms, accounting for 91.3% of total import value.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Indonesia in value, 2018-2021