Brand View Insights reviews price and promotional trends taking place in different categories. This report provides a closer look at the increase in prices across the Vanilla category.
The Changing Price of Vanilla
The price of Vanilla is forecast to significantly increase following concerns of a shortage in the commodity.
The combination of poor harvests in two of the world’s main producing countries and opportunists stockpiling supplies is already causing a surge on the commodity markets.
Wholesale prices have risen by around 20% in the last two months – an increase that will hit thousands of food and drink manufactures. Experts believe the price is likely to climb further still.
But what has happened in-store?
Brand View has tracked data from 750 Vanilla lines sold across a range of categories and have seen prices on the rise – up from 6% last year and up 8% compared to two years ago.
Vanilla Prices are on the Rise
With overall food costs increasing, it’s perhaps unsurprising that prices are up, but how do Vanilla lines compare against the overall category? Brand View has indexed the price change in these categories over the last year. The Vanilla lines have increased at around one percentage point more than that of the overall categories – with a more significant change since the beginning of 2012.
Which categories have been driving this change?
Whilst all categories have seen a price increase, not all are being driven by Vanilla lines. For example, the Spices category has seen an overall increase in price over the last year; however, this is due to other spices increasing more significantly than Vanilla. Vanilla products have seen a greater price increase than the market average in Chilled Desserts, Yogurt Drinks, Cookies and Ice Cream.
Whilst we have seen some increases over the last year, the real impact will occur when costs hit further along the supply chain; suppliers may still be using existing stocks. In other categories, such as Cocoa, the impact in store was significantly after the change in cost of the raw material. Given that the change in Vanilla Essence and Vanilla pods is currently negligible, we believe we will see bigger price increases across these sectors once these lines see further price increases.