The main difference between the two is in how it is made. The other difference is in the imitation vanilla flavor. To be considered "pure" vanilla extract, it must be made using real vanilla beans, vodka, and water. On the other hand, imitation vanilla extract can add additional "imitation" flavors (such as synthetic vanillin) to achieve the vanilla flavor. Since pure vanilla extract contains real vanilla beans, it has a higher price point than imitation vanilla extract.