The very high prices of vanilla over the past few years have stimulated interest in this small-holder crop. Naturally, this has led to an increase in plantings in the traditional supply areas and in new origins. However, the subsequent sharp fall in demand, and the simultaneous collapse of prices, from over $500/kg to under $50/kg, has left the sector in turmoil; euphoria
among producers has been replaced by gloom, with no clear position on current and future trends in demand and prices. This review will look at how the present state of the market has arisen and how the future might lie. The current situation has to be seen within the context of longer term historical movements in supply, demand and prices.