Vanilla market in Melanesia

Earlier Report Observations

From 2018 to 2020, the vanilla market size in Melanesia grew from 265.7 tonnes to 323.9 tonnes. This increase was primarily due to a steady decline in exports, which fell from 238.2 tonnes to 185.9 tonnes, making more vanilla available domestically. In 2018, a global vanilla shortage led to high prices, encouraging local farmers to focus on quality and production, with initiatives like the Highlands Vanilla Project training over 1,780 growers.

In 2021, the market size dropped to 281.7 tonnes, a 13% decrease, as exports rose to 223.9 tonnes. This shift coincided with a drastic price collapse, where street prices for vanilla fell from over K1,000 per kg in 2018 to between K65 and K100 per kg. The lack of quality control and market linkages likely prompted higher export volumes as farmers sought to sell their crops, reducing domestic supply.

Market size recovered to 291.5 tonnes in 2022 and then surged to 398.1 tonnes in 2023, a 36.6% annual increase. The sharp rise in 2023 was largely driven by a ban on illegal vanilla trading at the Papua New Guinea-Indonesia border, implemented to halt an estimated K50 million in foreign exchange losses. This border ban drastically cut exports to 101.6 tonnes, significantly boosting domestic availability, while support programs like EU-Streit PNG provided training and resources to stabilize production.

Production vanilla in Melanesia

In kind, 2017-2020, t

Top producers of vanilla, 2017-2020

World map of production of vanilla, 2017-2020

Vanilla production in Melanesia has increased for the third year in a row. In 2020, the region produced 507.4 tonnes of vanilla, marking a 0.7% rise compared to the previous year. Looking at the period from 2017 to 2020, production grew by 4%, with an average annual growth rate of 1.3%.

Annual dynamics of production in Melanesia in kind, 2017-2020, t

Exports vanilla from Melanesia

Exports in kind, t

Cross-border shipments of vanilla from Melanesia have declined for the second consecutive year. In 2020, exports totaled 185.9 tonnes, down 4.3% from 2019. Between 2017 and 2020, exports fell by 19.9%, which translates to an annualized decrease of 7.1%. The highest export volume was recorded in 2018 at 238.2 tonnes. In 2019, exports saw the largest decline of 18.4%, while 2018 experienced the biggest increase of 2.6%.

Annual dynamics of product's exports from Melanesia in kind, 2017-2020, t

From 2017 to 2020, Indonesia, the United States, and Australia were the main markets for Melanesia's vanilla exports by volume. Indonesia accounted for 51.8% of exports, the United States for 10.7%, and Australia for 9.2%. Together, these three countries represented 71.7% of total export flows.

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

World map of product's exports from Melanesia in kind, 2017-2020

Exports in value, K $ US

The value of vanilla exports from Melanesia has dropped for the second year in a row. In 2020, exports reached 20 061 thousand US dollars, a 47.6% decrease from 2019. Over the period from 2017 to 2020, export value fell by 33.4%, with an annualized decline of 12.7%. The peak value was in 2018 at 46 116 thousand US dollars, which also saw the largest increase of 53.2%.

Annual dynamics of product's exports from Melanesia in value, 2017-2020, K $ US

Between 2017 and 2020, Indonesia, the United States, and Germany remained the top markets for Melanesia's vanilla exports by value. Indonesia held a 24.2% share, the United States 18.8%, and Germany 15.0%. Collectively, these three countries made up 58.0% of total export value.

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

World map of product's exports from Melanesia in value, 2017-2020

Imports vanilla to Melanesia

Imports in kind, t

Vanilla imports into Melanesia have decreased for the third consecutive year. In 2020, the region imported 2.5 tonnes of vanilla, reflecting a 34.1% drop compared to 2019. From 2017 to 2020, imports fell by 57%, with an average annual decline of 24.5%.

Annual dynamics of product's imports to Melanesia in kind, 2017-2020, t

From 2017 to 2020, Australia, New Zealand, and France were the leading sources of vanilla imports into Melanesia by volume. Australia contributed 39.5% of imports, New Zealand 20.0%, and France 18.3%. Together, these three countries accounted for 77.8% of total import flows.

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

World map of product's imports to Melanesia in kind, 2017-2020

Imports in value, K $ US

Vanilla imports into Melanesia have declined for the third year running. In 2020, imports amounted to 49 thousand US dollars, down 18.7% from 2019. Between 2017 and 2020, import value decreased by 64.3%, equating to an annualized reduction of 29.1%.

Annual dynamics of product's imports to Melanesia in value, 2017-2020, K $ US

Throughout 2017 to 2020, Australia, France, and Vietnam were the key partners for Melanesia's vanilla imports by value. Australia represented 41.2% of imports, France 18.9%, and Vietnam 8.5%. Combined, these three countries made up 68.6% of total import value.

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

World map of product's imports to Melanesia in value, 2017-2020