Archive · 13 Nov 2025
Global Vanilla Prices Plummet Amidst Oversupply and Stagnant Demand
Imagine everyone started planting a lot of vanilla plants because the price was super high a few years ago.
Now, there's so much vanilla that nobody can sell it all, even though people still like to eat it.
So, the price has dropped a lot, like a toy that everyone has too many of.
In places like Madagascar, which grows the most vanilla, there's a huge amount of it.
Some countries still have lots of it stored up, and farmers are thinking about growing other things that sell for more money.
Because there's too much vanilla and not enough people buying it all, the price is very low right now.
Global vanilla prices have dropped significantly, currently ranging between $60-70 per kg, down from a peak of $600 per kg.
A surge in supply, particularly from Madagascar, coupled with stagnant global demand, has led to the price slump.
Farmers increased vanilla cultivation during periods of high prices, resulting in an oversupply that has saturated the market.
Countries like Indonesia are holding significant inventories, while Uganda is seeing farmers shift to more profitable crops due to low prices.
The market outlook is bearish in the short to medium term, with a persistent imbalance between production and demand impacting stakeholders.
India's vanilla production is minor, primarily serving domestic consumption, with confectionery companies holding large inventories purchased at lower costs.
- Who
- Vanilla farmers and processing companies, particularly in Madagascar and Indonesia
- What
- A significant slump in global vanilla prices due to oversupply and stagnant demand.
- When
- Currently, with prices at historic lows compared to a peak in 2016-2021.
- Where
- Globally, with major impacts on producing regions like Madagascar and Indonesia, and affecting markets like India.
- Why
- Increased cultivation driven by previous high prices has led to record supply, while global demand has not kept pace. Political turmoil in Madagascar has also disrupted exports.
- Current Global Price Range
- $60-70 per kg
- Peak Global Price (2016-2021)
- $600 per kg
- Current Indian Price Range
- ₹600-700 per kg
- Peak Indian Price (2016-2021)
- ₹5,000 per kg
- Major Producing Regions
- Madagascar, Indonesia, Uganda
- Indian Annual Production
- 15-20 tonnes