If you’re an avid baker, you’ve probably noticed that vanilla has become increasingly expensive over the past few years, but did you know that it is worth more by weight than silver? In 2013, one kilogram of natural vanilla cost only $20.
Five years later, this price sky-rocketed to over $600 for the same amount ($300 per pound).
Vanilla is the second most expensive spice in the world, after saffron, and below you will find out exactly why.
Types of Vanilla
As with most other natural produce, vanilla beans have varying flavor profiles depending on where they are grown. This is due to soil and climate differences as well as the unique methods used in each region for curing and drying the beans. The four main types of vanilla beans are:
#1. Madagascar
Also known as Bourbon vanilla, Madagascar vanilla beans are grown on the Indian Ocean islands of Madagascar, Comoros, and Réunion formerly called Île Bourbon (where Bourbon Vanilla gets its name).
Madagascar or Bourbon vanilla is the most popular type. It is thin, with a distinct creamy vanilla flavor. These beans pair well with apples, fish, ice cream, peaches, melon, pears, and strawberries.
#2. Mexican Vanilla
Mexican vanilla beans have a high reputation since the spice originated in this area. They are thicker than other varieties with a woody fragrance and a smooth depth of flavor. Mexican varieties are ideal in recipes where vanilla is the star of the show such as baked goods, cheesecake, custard, crème brulee, and ice cream.
#3. Tahitian
Tahitian beans are the most expensive type. They are wide, flat, and contain less vanillin than the other varieties. The bean has a floral, fruity aroma with undertones of cherry-chocolate, licorice, and caramel. Tahitian vanilla is often used in commercial perfume products.
#4. Ugandan
Ugandan vanilla beans are rarer than other types featuring an earthy aroma with hints of milk chocolate. Similar to Madagascar vanilla, the flavor is bold due to high levels of vanillin. Ugandan vanilla is slightly sweeter with a milk chocolate undertone, perfect to pair with dishes that also contain chocolate.
Reason 1: Centralization of Vanilla Bean Growth
Around 80 percent of the world’s vanilla bean supply is generated in one place, that being on the island of Madagascar. Amazingly 70% of Madagascar’s people are reliant on this spice for their income.
The centralization of vanilla growth in one place, however, means that any economic, climate, or export difficulties taking place in the small area around Madagascar will affect most of the world’s supply, making it very volatile with little backup.
If something as widely available as table salt for example is no longer available in one area or country, it is easily and quickly obtainable from elsewhere. However, if Malagasy vanilla production is interrupted, sourcing the spice elsewhere is not such a simple feat. Although vanilla is native to Mexico, deforestation has sadly reduced its natural habitat.
Reason 2: Labor-intensive and Lengthy Growing Process
Vanilla is an incredibly labor-intensive crop to grow. The cultivation process of the orchids from which the bean is harvested is manually driven from start to finish. The vines are hand-planted, hand-harvested, and hand-cured.
In addition, their flowers only bloom on one day of the year on which each individual orchid needs to be hand-pollinated to produce beans. After harvesting, the pods take several months to cure. The full production process takes three to four years.
Due to this lengthy process, it is impossible for farmers to respond to immediate changes in market demand. With a rigid supply and alternating demand, price fluctuations are inevitable. This leads us to the next reason why vanilla is so expensive…
Reason 3: Historical Supply and Demand Fluctuations
Cheaper artificial vanilla dominated the market during the 1980s and farmers reduced production since it was not as profitable. As large companies jumped on the ‘all-natural’ trend around 2011, the demand for real vanilla increased again.
It has, however, taken time for the spice farmers to get back in the business of vanilla farming and increase production. In addition, not all of them wanted to restart this intricate cultivation process.
Reason 4: Theft
Since there is such a high demand for vanilla beans they are a target for theft. After working relentlessly to cultivate their crops some farmers are subject to having their bean crops stolen. As the stolen beans are integrated into the supply chain they are mixed with legally purchased beans which makes it difficult for buyers to determine which are which.
To prevent theft, farmers started picking vanilla beans before they were ripe. Unripe beans result in a slightly lower quality product.
Farmers also started marking their vanilla crops allowing buyers to identify which farm the spice came from.
Reason 5: Climate Challenges
The past few years have seen Madagascar island ravaged by multiple storms that have wrecked thousands of plants. Cyclones are common on the island but climate change is increasing the frequency and intensity of the storms.
If severe storms were to destroy the crops, it would take two to three years for new plants to produce beans. This is a big risk for farmers to take with no guarantee that more storms won’t cause damage over that period. With such climate challenges, supply could continue to drop which drives prices up further.
Why is Mexican vanilla so much cheaper?
Artificial vanilla extract dominates the market in Mexico, even though they do grow real beans. The artificial product is more easily manufactured and cheaper to produce. It is also available all year round, unlike the real thing which has a short harvesting season.
Does the type of vanilla bean affect the flavor?
Yes, it does. The type of vanilla bean used as well as how it is processed will affect how your dish will taste. In general, Mexican beans create a more full-bodied flavor while Tahitian beans give a more fruity flavor. The Madagascar variety has a sweet and creamy flavor that pairs well with chocolate and berries, whereas African beans have milder undertones that make them suitable for puddings, custards, and some desserts.
When did vanilla extract become so expensive?
In 2015, large food and beverage corporations started removing artificial ingredients from their products and replacing them with natural components. The demand for pure vanilla skyrocketed, triggering a price increase.
How do you make your own vanilla extract?
7 ounces of real vanilla beans (around 60 beans) or 2 teaspoons of instant vanilla powder , 1 cup Vodka or Brandy, and 2 cups of Water.
Remove the white, papery skins from the beans.Though many recipes suggest peeling them, I find it easier to just leave the skins on as a filter. The result will be a thick and luscious extract that will be great for baking. Place all ingredients in a sealable container such as a mason jar and shake vigorously to mix well.
Why is vanilla so expensive in 2020?
Artificial vanilla is cheaper to produce than real vanilla which means that its price will drop. As more people switch over to the pure taste of vanilla, its demand will also increase. As the demand grows, vanilla farmers will be able to produce more and thus reduce the price.
Vanilla is especially expensive in 2019 because of its unique characteristics and growing process that only happens in Madagascar. The spice can only grow in certain climate conditions and takes an incredibly long time to produce.
What are ways to cut down on your use of it?
If you can’t afford it, try baking your own cake or cookies instead of purchasing an expensive dessert. Don’t be afraid to experiment with different substitutes like cinnamon or nutmeg. It’s not hard to roast a nut and make it into a substitute but do watch out not to overcook it—and don’t forget how much flavor and warmth that whole thin shell of skin adds to the flavor profile.
Why is vanilla now so expensive?
Vanilla is reserved for baking and a few desserts but has become an essential part of most recipes. Food companies are making it more expensive to make due to the demand. The more people that use and love vanilla in their dishes, the more they will be willing to pay for it.
Why is vanilla so expensive nowadays?
It’s not because more people like it though. Rather, it’s because food companies want a way to make money by creating artificial products that can be substituted with real vanilla, which are currently more expensive than the real stuff due to the growing demand for it.
Why has the price of vanilla extract gone up so high?
The answer to this is relatively simple: because more people are using it. In the past, the vanilla extract was only used once in a baking recipe. Now, it’s used to flavor many different things: morning pancakes, cupcakes, cookies, brownies, and other desserts and baked goods. You can make your own by combining almond oil with vanilla (you can also add extracts).
Why is vanilla so expensive now?
For several reasons, the price is going up drastically. Not only do people love the spice better than you think – but there’s also an increase in demand for products that are sweetened with natural or artificial vanilla extract that is found in a bakery item or added as an ingredient of baked goods.
Vanilla is an extremely popular flavoring, from home-baked desserts and cakes to store-bought cookies, ice cream, and drinks. In recent years the price of this spice has increased enormously. The price hike was triggered by a number of factors, including complex pollination, extreme weather, theft, and an increase in demand for natural rather than artificial ingredients. All these factors combined were a recipe for price increases resulting in vanilla taking its place as the second most expensive spice in the world.
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