Although it is generally accepted that vanilla was domesticated in Mesoamerica and subsequently spread to the Old World in the 16th century, in 2019, researchers published a paper stating that vanillin residue had been discovered inside jars within a tomb in Israel dating to the 2nd millennium BCE, suggesting the possible cultivation of an unidentified, Old World-endemic Vanilla species in Canaan since the Middle Bronze Age. Traces of vanillin were also found in wine jars in Jerusalem, which were used by the Judahite elite before the city was destroyed in 586 BCE.
Vanilla beans, called tlilxochitl, were discovered and cultivated as a flavoring for beverages by native Mesoamerican peoples, most famously the Totonacs of modern-day Veracruz, Mexico. Since at least the early 15th century, the Aztecs used vanilla as a flavoring for chocolate in drinks called xocohotl.
Vanillin was first isolated as a relatively pure substance in 1858 by Théodore Nicolas Gobley, who obtained it by evaporating a vanilla extract to dryness and recrystallizing the resulting solids from hot water. In 1874, the German scientists Ferdinand Tiemann and Wilhelm Haarmann deduced its chemical structure, at the same time finding a synthesis for vanillin from coniferin, a glucoside of isoeugenol found in pine bark. Tiemann and Haarmann founded a company Haarmann and Reimer (now part of Symrise) and started the first industrial production of vanillin using their process (now known as the Reimer–Tiemann reaction) in Holzminden, Germany. In 1876, Karl Reimer synthesized vanillin (2) from guaiacol (1).
By the late 19th century, semisynthetic vanillin derived from the eugenol found in clove oil was commercially available.
Synthetic vanillin became significantly more available in the 1930s, when production from clove oil was supplanted by production from the lignin-containing waste produced by the sulfite pulping process for preparing wood pulp for the paper industry.  By 1981, a single pulp and paper mill in Thorold, Ontario, supplied 60% of the world market for synthetic vanillin.  However, subsequent developments in the wood pulp industry have made its lignin wastes less attractive as a raw material for vanillin synthesis.  Today, approximately 15% of the world's production of vanillin is still made from lignin wastes, while approximately 85% synthesized in a two-step process from the petrochemical precursors guaiacol and glyoxylic acid.
Beginning in 2000, Rhodia began marketing biosynthetic vanillin prepared by the action of microorganisms on ferulic acid extracted from rice bran.  At USD$700/kg, this product, sold under the trademarked name Rhovanil Natural, is not cost-competitive with petrochemical vanillin, which sells for around US$15/kg. However, unlike vanillin synthesized from lignin or guaiacol, it can be labeled as a natural flavoring.