Vanilla Vanilla imports continued to rise in 1997, increasing 44 percent in volume but only 1 percent in value over 1996 levels. Imports from Madagascar increased by 83 percent in 1997. As a result of this large increase in volume, however, prices declined. Imports of vanilla from Indonesia held steady in 1997. The trend toward natural flavoring in food products continues to keep demand for vanilla beans steady.
Ice cream is the largest user of natural vanilla, accounting for nearly half of demand.
Most vanilla flavoring used in baking, confectionery, or frozen desserts uses vanillin, a synthetic substitute for vanilla. Vanilla is the spice that has suffered the greatest competition from cheaper synthetics over the years. The market for synthetics is likely to remain strong because of low and stable prices as well as reliability of supply and quantity. Cinnamon Indonesia continues to dominate the US cinnamon market, supplying 90 percent of total import volume in 1997. In 1997, US imports of cinnamon increased 4 percent in volume, but decreased 11 percent in value.