Vanilla market in Papua New Guinea

Earlier Report Observations

The vanilla market volume in Papua New Guinea expanded from 261 metric tons in 2018 to 393 metric tons in 2023, despite annual fluctuations. This growth was primarily driven by changes in export volumes, influenced by regulatory challenges and market access initiatives.

In 2019, vanilla buyers faced difficulties due to the lack of price regulations, leading to a reduction in official exports and leaving more vanilla available domestically. By 2021, the Market Development Facility's focus on high-grade vanilla strengthened export capabilities, temporarily drawing supply away from the local market. A sharp drop in official exports occurred in 2023, as an estimated 50% to 95% of vanilla was informally traded across the border to Indonesia, significantly increasing the measured domestic market volume.

Throughout the period, regulatory efforts such as the proposed review of the Spice Industry Act and recommendations to adopt CODEX standards aimed to improve quality and formalize trade. Recent government-funded revival programs and inter-cropping systems introduced in 2024 targeted production increases and sustainability.

Production vanilla in Papua New Guinea

In kind, 2017-2020, t

From 2017 to 2020, Papua New Guinea ranked as the world's fourth-largest producer of vanilla.

Top producers of vanilla, 2017-2020

World map of production of vanilla, 2017-2020

Papua New Guinea's vanilla production grew for the third year in a row. In 2020, the country produced 507.4 tonnes of vanilla, a slight increase of 0.7% compared to 2019. Over the 2017-2020 period, production rose by 4%, with an average annual growth rate of 1.3%.

Annual dynamics of production in Papua New Guinea in kind, 2017-2020, t

Exports vanilla from Papua New Guinea

Exports in kind, t

Vanilla exports from Papua New Guinea fell for the second consecutive year. In 2020, exports totaled 185.4 tonnes, down 3.7% from 2019. Between 2017 and 2020, exports dropped by 20.1%, which translates to an annualized decline of 7.2%. The highest export volume was recorded in 2018 at 238.1 tonnes. The largest decrease occurred in 2019, with a 19.1% drop, while the biggest increase was in 2018, at 2.6%.

Annual dynamics of product's exports from Papua New Guinea in kind, 2017-2020, t

Between 2017 and 2020, Indonesia, the United States, and Australia were the top destinations for Papua New Guinea's vanilla exports by volume. Indonesia accounted for 51.9% of exports, the United States for 10.7%, and Australia for 9.3%. Together, these three countries made up 71.9% of total export flows.

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

World map of product's exports from Papua New Guinea in kind, 2017-2020

Exports in value, K $ US

The value of vanilla exports from Papua New Guinea declined for the second year in a row. In 2020, exports were valued at 20 006 thousand US dollars, a sharp decrease of 47.7% compared to 2019. From 2017 to 2020, export value fell by 33.3%, with an annualized rate of decline of 12.6%. The peak value was in 2018 at 46 031 thousand US dollars, which also saw the largest increase of 53.5%.

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

From 2017 to 2020, Indonesia, the United States, and Germany led as the main buyers of Papua New Guinea's vanilla by value. Indonesia represented 24.3% of export value, the United States 18.8%, and Germany 15.1%. Combined, these three countries accounted for 58.1% of total export value.

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

World map of product's exports from Papua New Guinea in value, 2017-2020

Imports vanilla to Papua New Guinea

Imports in kind, t

The data shows irregular changes, reflecting a volatile market. Imports peaked in 2017 and hit their lowest point in 2018, with a 32-fold difference between these years. In 2020, Papua New Guinea imported about 0.1 tonnes of vanilla, an 87.9% decrease from the previous year. The minimum volume was recorded in 2018 at 0.1 tonnes. The largest decline occurred in 2018 with a 96.8% drop, while the biggest increase was in 2019, at 1 540.5%.

Annual dynamics of product's imports to Papua New Guinea in kind, 2017-2020, t

Between 2017 and 2020, Australia was the dominant source for vanilla imports by volume, holding an 80.6% share of total flows. The remaining imports were spread across other markets.

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

World map of product's imports to Papua New Guinea in kind, 2017-2020

Imports in value, K $ US

Papua New Guinea's vanilla imports decreased for the third consecutive year. In 2020, imports totaled 4 thousand US dollars, a steep 80.1% drop from the year before. Over the 2017-2020 period, imports fell by 96.9%, with an average annual decline of 68.6%.

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

From 2017 to 2020, Australia dominated the import structure by value, accounting for 73.8% of total flows. Other destinations contributed relatively small shares.

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

World map of product's imports to Papua New Guinea in value, 2017-2020