Vanilla prices are on the rise. What's to blame? Culprits include the extremely labor-intensive methods needed to grow and harvest this popular spice, increased demand, and extreme weather conditions in the area where it is grown.
Vanilla Prices Are Skyrocketing! We Found Out Why.
Updated on Nov. 01, 2023
Though some may say vanilla is boring (these recipes will change your mind), the market for vanilla is anything but. Over the past year, vanilla prices have skyrocketed. Only five years ago, vanilla could be found for $10 per kilo. Recently, at over $500 per kilo, vanilla was trading at a price higher than silver, making it quite a precious commodity. Long story short, your favorite vanilla bean ice cream and vanilla wafer cookies are about to get more expensive to make. But why?
Growing vanilla requires a lot of work
Vanilla beans, which are the seeds of a tropical vine orchid plant, are not an easy crop to grow. Originally native to Mexico and parts of South America, the tropical vine orchid was introduced to Madagascar by the French in the nineteenth century. Today, 80% of the vanilla crop is grown in Madagascar. Once planted, it can take up to four years to reach maturity. In its native Mexican habitat, the plant is pollinated naturally by birds and insects. However, those pollinators don’t exist in Madagascar. Instead, the plants must be pollinated by hand. And as it happens, even pollinating the plants by hand isn’t an easy task, given that the plants only bloom for one day each year. Psst! Bees are a big deal. Here are 8 ways you can help save bees today.
Nine months after the plants are pollinated, the green beans are hand-picked at the height of their ripeness. (Some farmers, nervous about having their beans stolen, have taken to picking the beans early, leading to a less flavorful product.) The process is far from complete, however. Months of blanching, sweating and drying still await, before the vanilla beans can hit the market.
Historically, Madagascar vanilla bean farmers received little payment for their crop, meaning the incredible effort it took to grow and harvest the beans was hardly worth the payoff. As a result, many farmers stopped growing vanilla beans altogether, leading to a major decrease in supply.
Increased demand
In the past, manufacturers have dealt with high vanilla prices or decreased supply by replacing real vanilla with a synthetic alternative called vanillin (learn more about the difference here). This aromatic chemical compound is commonly derived from wood pulp. Taste-wise, you would be hard-pressed to discern artificial vanilla from the real deal in most recipes. However, in recent years, consumers have become more food label-conscious and have begun to demand natural ingredients. As a result, major manufacturers, including Nestlé and Hershey’s, have pledged to change from artificial flavorings to natural ingredients in their food products. In simple economic terms, this increased demand, combined with a decreased supply, has led to a historic rise in vanilla bean prices. Even the spent vanilla market has seen an increase in price. Some companies use spent vanilla beans to add vanilla bean specks to their products. Doing so allows the manufacturers to add “vanilla beans” to the ingredients list, even if the vanilla flavor itself comes from artificial ingredients.
Mother Nature stepped in
A pair of cyclones laid a major blow to the 2017 vanilla bean crop in Madagascar. As a result of these extreme weather events, the vanilla bean crop was almost entirely wiped out. As a result, vanilla prices leaped to over $600 per kilo. The price per kilogram of vanilla beans has been averaging between $500-600 per kilo ever since, and it doesn’t appear that the vanilla price will be going down anytime soon.
The bottom line
Farmers in Madagascar harvest their vanilla bean crops in June. Only time will tell whether this year’s crop will be a boom or a bust. But in the meantime, next time you’re in the grocery store, we’d suggest putting a few extra bottles of vanilla extract in your cart just in case. Or you can pick up some vanilla beans and make your own vanilla extract at home.
Try these stunning vanilla recipes.
Fruit TartIt's well worth the effort to whip up this creamy fruit tart bursting with juicy berries. A friend gave me the recipe, and it always receives rave reviews at gatherings. —Susan Terzakis, Andover, Massachusetts
Blueberry BreadThis blueberry bread recipe is a simple quick bread you'll look forward to making when fresh blueberries are in season.
Vanilla Bean FizzA homemade vanilla bean syrup from our home economists fabulously flavors Champagne. The bubbly beverage is ideal for holidays throughout the year.
Vanilla & Cinnamon-Kissed Apple LatkesLatkes are crispy fried pancakes, often made with potatoes. But this sweet version with apples, orange juice, cinnamon and vanilla falls in the dessert realm. —Candy McMenamin, Lexington, South Carolina
Vanilla CheesecakeTo me, there is nothing better than a simple, elegant cheesecake where the vanilla takes center stage. And when I'm feeling decadent, I'll add the rich chocolate ganache topping. —Ellen Riley, Murfreesboro, Tennessee
Vanilla Citrus CiderMy mom used to make cider for the holidays, so I based my citrus-vanilla variation on her recipe. I think it hits the spot! The longer the cider simmers, the stronger the flavors will be.—Kristin Weglarz, Bremerton, Washington
Vanilla FrostingLight, sweet and perfectly airy, this easy homemade vanilla frosting recipe makes a delicious topping for cakes, cupcakes, desserts and sweet breads.
Vanilla Ice Cream RecipeOur vanilla ice cream recipe is perfect for those who have never made ice cream in their life, as well as ice cream aficionados looking for a go-to, tried-and-true recipe to keep in their back pocket.
Vanilla WafersThis easy recipe for vanilla wafers creates buttery cookies that are equally chewy and crispy. Our seven-ingredient recipe yields more than three dozen cookies in only 35 minutes.
Meringue CookiesThese sweet little swirls are light as can be. They're all you need after a big, special dinner. —Jenni Sharp, Milwaukee, Wisconsin
Hot Chocolate with MarshmallowsThis hot chocolate with marshmallows recipe isn't your average cup of hot cocoa. Melted marshmallows make this the fluffiest, frothiest, coziest cocoa you'll ever sip.
Vanilla CakeOur Test Kitchen created our best vanilla cake recipe yet. It's tender, moist and packed with rich vanilla flavor—a must for any special occasion.
Cream Puff DessertIndividual cream puffs are a lot of work, but this cream puff dessert delivers the same flavors and textures in a simpler format. Your guests will think you've gone all out!
Homemade Vanilla ExtractHomemade vanilla is fun to give in decorative bottles with attractive labels. Share it with special friends who like to cook or bake. —Becky Jo Smith, Kettle Falls, Washington
Frozen YogurtLooking for a sweet treat that is a bit better for you? Our Test Kitchen shows you how to make frozen yogurt with an ice cream maker right at home.
Pear-Stuffed French Vanilla ToastMy handyman, who is originally from Nicaragua, shared this classic breakfast dish his mother used to prepare. He says he makes it frequently for his children and they clean their plates! —Gail Borczyk, Boca Raton, Florida
Angel Food CakeThis top-rated angel food cake recipe is a light and airy dessert everyone loves. It's heavenly served with berries or other fresh fruit and a dollop of homemade whipped cream.
Vanilla Bean CupcakesMy son loves these vanilla bean cupcakes! Flecks of vanilla bean in the moist, tender cupcakes give them special-occasion status. —Alysha Braun, St. Catharines, Ontario
Almond-Vanilla Yogurt ParfaitsI’m a night-shift nurse. When I get home, I make a crunchy parfait with yogurt for a protein boost before heading off to a good day’s sleep. —Meredith Brazinski, Neptune, New Jersey
Elegant White Chocolate MousseThis Elegant White Chocolate Mousse is the ideal decadent finish to a lighter summer dinner. It is buttery and sweet, with strong notes of vanilla and a silky smooth texture, making it nearly impossible to put down. It’s also a busy cook’s dream recipe, as it comes together quickly and with only a handful of ingredients, all for a deliciously impressive result.
Fudge-Filled Vanilla CakeFor my husband’s birthday cake, I used white chocolate pudding mix as part of the cake’s topping. Guests rated this fluffy cake excellent. —Linnea Ledgister, Wausau, Wisconsin
Coffee CreamerThis homemade coffee creamer recipe turns four ingredients into a delightfully vanilla-forward creamer for coffee. Don't worry if you're not into vanilla flavors; you can customize the creamer with any flavors you crave!
