There is quite a big difference between vanilla extract and vanilla essence. The flavour of the vanilla is taken up by the liquid ingredients and makes the vanilla extract that we … Unlike the natural extract derived from the seed pods of the vanilla plant, the essence is made of synthetic compounds. Most of the time, it is made with fresh ingredients, without the use of additional artificial flavouring. Using vanilla essence in place of vanilla extract should not affect the structure of your final product. However, it may produce noticeable differences in flavor. Our answer. In essence, vanilla paste is a mix between vanilla extract and vanilla powder. Vanilla extract is usually a natural product made by soaking vanilla pods in a mixture of ethyl alcohol and water. You can use the paste in these easy recipes: peppermint ice cream; pineapple ice cream Vanilla bean paste is an excellent alternative for both vanilla essence and extract. The extract has a stronger flavor than the essence. It can also be used in place of vanilla extract. If you require one tablespoon of extract, replace it with two tablespoons of essence.