Vanilla flavoring is primarily synthesized from petrochemicals rather than actual vanilla orchids, which account for less than 1% of production. However, consumer demand for natural foods has increased demand for natural vanilla flavors. The production of natural vanilla is very small and declining, while demand is rising, creating an imbalance. Flavor companies are trying to find more sources of natural vanilla and boost production volumes and quality to meet the needs of food companies facing higher costs and challenges in reformulating products with only natural vanilla flavors.

1. The Problem with Vanilla
Now Solvay, commercialized a pure petrochemical route in the 1970s. In recent years, of the
roughly 18,000 metric tons of vanilla flavor produced annually, about 85% is vanillin
synthesized from the petrochemical precursor guaiacol. Most of the rest is from lignin.
But the traditional vanilla bean is starting to enjoy a renaissance, thanks to consumer demand
for all-natural foods and beverages. Last year, a string of giant food companies, including
General Mills, Hershey’s, Kellogg’s, and Nestlé, vowed to eliminate artificial flavors and other
additives from many foods sold in the U.S.
There is a problem, however: World production of natural vanilla is tiny and has been falling
in recent years. Less than 1% of vanilla flavor comes from actual vanilla orchids. With demand
on the upswing, trade in the coveted flavor is out of balance.
Flavor companies are working feverishly to find additional sources of natural vanillin and
launch initiatives to boost the quality and quantity of bean-derived vanilla. Suppliers such as
Symrise, International Flavors & Fragrances (IFF), Solvay, and Borregaard are using their
expertise along the full spectrum of natural to synthetic to help food makers arrive at the best
vanilla flavor for each product.
Food makers, meanwhile, are confronting skyrocketing costs for natural vanilla, reformulation
challenges, complicated labeling laws, and difficult questions about what is “natural.”
Although consumer disdain for artificial ingredients has been building for years, credit—or
blame—for last year’s wave of “all natural” announcements goes to Nestlé, which in February
2015 was the first major brand to announce plans to eliminate artificial additives from
chocolate candy sold in the U.S. The announcement upended the mass-market chocolate
industry practice of adding synthetic vanillin to counter the bitterness of cocoa.