Vanilla market in Latin America and the Caribbean

Earlier Report Observations

From 2018 to 2020, the vanilla market in Latin America and the Caribbean expanded significantly, with volume rising from 333 thousand tons to 471 thousand tons. This growth was primarily driven by increasing demand from the food, beverage, and pharmaceutical industries, which consumed more vanilla for various products. Additionally, in Mexico, a key producer, widespread artificial pollination led to overproduction, boosting available supply and supporting market volume despite the onset of the COVID-19 pandemic, which initially dampened demand in some sectors.

After peaking in 2020, the market entered a period of contraction, falling to 353 thousand tons by 2023. Production challenges became prominent, as fungal infections and persistent drought in Mexican growing regions reduced harvests and affected quality. Global supply chain disruptions and volatility in availability further constrained trade flows, while shifting consumer preferences toward organic and natural vanilla began reshaping demand patterns within the region.

Throughout the period, the market was influenced by the broader trend toward natural ingredients, with major food companies like Nestlé and General Mills incorporating vanilla into their products. Although regulatory changes were not highlighted, the combination of agricultural constraints and evolving demand fundamentals defined the market's trajectory from growth to decline.

Production vanilla in Latin America and the Caribbean

In kind, 2017-2020, t

Top producers of vanilla, 2017-2020

World map of production of vanilla, 2017-2020

Vanilla production in Latin America and the Caribbean grew for the second year in a row. In 2020, the region produced 588.7 t of vanilla, marking a 12.8% increase from the previous year. Looking at the period from 2017 to 2020, production rose by 14.3%, which translates to an average annual growth rate of 4.6%. The lowest production level was recorded in 2018 at 494.7 t, with the largest decline that year being 3.9%.

Annual dynamics of production in Latin America and the Caribbean in kind, 2017-2020, t

In value, 2017-2020, K $ US

Following a two-year decline, vanilla production in Latin America and the Caribbean rebounded. In 2020, the output was valued at 1 691 K $ US, representing a significant year-on-year increase of 30.5%. Over the 2017-2020 period, production grew by 5.4%, averaging an annualized rate of 1.8%. The minimum value occurred in 2019 at 1 295 K $ US, while the largest drop was in 2018 at 15.9%.

Annual dynamics of production in Latin America and the Caribbean in value, 2017-2020, K $ US

Exports vanilla from Latin America and the Caribbean

Exports in kind, t

Vanilla exports from Latin America and the Caribbean fell for the third consecutive year. In 2020, export volume reached 177.6 t, showing a substantial decrease of 17.3% compared to 2019. From 2017 to 2020, exports declined by 38.7%, with an average annual reduction rate of 15.1%.

Annual dynamics of product's exports from Latin America and the Caribbean in kind, 2017-2020, t

Between 2017 and 2020, the United States, Canada, and Spain were the primary markets for vanilla exports in kind. The United States accounted for 59.5% of exports, Canada for 2.7%, and Spain for 2.1%. Together, these three countries made up 64.3% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Latin America and the Caribbean in kind, 2017-2020

Exports in value, K $ US

Vanilla exports from Latin America and the Caribbean continued to decline for the third year in a row. In 2020, exports totaled 510 K $ US, down by 4.3% from the previous year. Over the 2017-2020 period, exports decreased by 43.5%, averaging an annualized decline of 17.3%.

Annual dynamics of product's exports from Latin America and the Caribbean in value, 2017-2020, K $ US

From 2017 to 2020, the United States, Japan, and Spain consistently served as the main destinations for vanilla exports in value terms. The United States represented 57.2% of exports, Japan 5.1%, and Spain 3.6%. Combined, these three countries accounted for 65.9% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Latin America and the Caribbean in value, 2017-2020

Imports vanilla to Latin America and the Caribbean

Imports in kind, t

Vanilla imports into Latin America and the Caribbean dropped for the third consecutive year. In 2020, import volume stood at 59.4 t, a decrease of 13.1% compared to the previous year. Over the 2017-2020 period, imports fell by 37.4%, with a compound annual growth rate (CAGR) of -14.5%.

Annual dynamics of product's imports to Latin America and the Caribbean in kind, 2017-2020, t

During 2017-2020, the United States, France, and Spain were the largest suppliers of vanilla to Latin America and the Caribbean in kind, though they did not dominate the market. The United States contributed 30.9% of imports, France 1.5%, and Spain 1.1%. Together, these three countries represented 33.5% of total imports, with many smaller partners also involved.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Latin America and the Caribbean in kind, 2017-2020

Imports in value, K $ US

The market for vanilla imports in Latin America and the Caribbean experienced notable fluctuations over the period. Imports reached their lowest point in 2020 at 1 049 K $ US, down by 57.6% from the previous year. The peak occurred in 2018 at 5 621 K $ US, with the largest increase that year being 377.6%. Overall, imports in 2020 were 5.4 times lower than in 2018.

Annual dynamics of product's imports to Latin America and the Caribbean in value, 2017-2020, K $ US

From 2017 to 2020, France, the United States, and Papua New Guinea consistently remained the main sources for vanilla imports in value terms. France accounted for 56.0% of imports, the United States for 12.9%, and Papua New Guinea for 8.4%. Together, these three countries made up 77.3% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Latin America and the Caribbean in value, 2017-2020