It’s forecasted that the future recession will impact vanilla beans global trade in 2023. The data from past recession in 2019 shows that vanilla bean wasn’t resistant to the decreased price and valuation in the global trade during the recession. It’s reported that at the end of 2019, vanilla beans in bulk global valuation was at USD 104.11M, a sharp decline compared to 2018 at USD 510M.
As the global recession prediction looms is predicted to happen in 2023, vanilla suppliers and importer countries are at stake. This article is a wrap-up of the predictions for the vanilla market in 2023. You’ll further discover:
An Overview of the 2019 Vanilla Beans Global Market
If there’s a recession, prices of commodities tend to decline, including the global price of vanilla beans in bulk. It’s reported that the 2019 vanilla bean bulk price at USD 450 per 2.2 lbs. A sharp decline compared to bulk vanilla beans price in 2018 at USD 600 per 2.2 lbs.
The total global production of vanilla beans was reported to remain stable within the range of 2015-2019, never below 7.22K m/t or passing 7.34K m/t. However, the mix-up of the remaining 2018 and the total 2019 caused vanilla bean suppliers to overstock, significantly dropped the vanilla beans in bulk prices, and failed to level up the vanilla beans in bulk demand as the impact of the 2019 recession. Furthermore, it’s reported that vanilla beans in bulk exports experienced a decrease of -17.4% from 2019 to 2020.
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The Prediction of the 2023 Global Vanilla Beans Market
Based on what happened in the 2019 global vanilla bean market, it’s highly possible that the sharp decline of vanilla beans in bulk prices in 2019 may be repeated in the 2023 recession. As of today’s Indonesian Planifolia vanilla beans in the bulk price reported at USD 200 per 2.2 lbs, the price decrease is expected to be below that. If the bulk vanilla beans production is expected to remain stable, without enough demand, the supply will become overstock and decrease the prices.
Equally important, other factors might play a role in decreasing the demand for vanilla beans in bulk. The high number of unemployment is the primary cause of people’s low purchasing power, which decreases the demand.
Ways to Prepare for Recession Impacts in Purchasing Bulk Vanilla Beans
The warning of the 2023 recession has been announced a lot since this year, alerting people to prepare for the impacts. As it’s a prediction of future economic conditions, it’s wise to save more on your bulk ingredients purchase.
Without a doubt, supplying from a direct-trade vanilla supplier is a wise move in dealing with recession impacts for food manufacturers or business owners. Essence Food & Beverage, LLC source, package, and distribute Indonesian Planifolia vanilla beans directly from our single estate plantations in Java island, Indonesia.
Buy more, save more. Essence Food & Beverage, LLC offers the most competitive prices for your bulk vanilla beans and other spices in a bulk purchase. Order through our secure online store or request an Indonesian vanilla beans bulk estimate today here.