Cinnamon Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Cinnamon Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The cinnamon market is anticipated to witness a CAGR of 2.6% over the forecast period (2022-2027).

The COVID-19 measures affected cinnamon exports, especially in China and India. India closed its borders completely, making it impossible to export cinnamon. China, a major importer of Indian spices, including cinnamon, experienced a sharp decline in demand due to the COVID-19 outbreak. This caused a disturbance in the market performance. Due to lockdown restrictions, exports and imports staggered across the world. Though there is an increase in demand for cinnamon, due to restrictions, the market supply and demand are not able to correlate positively.

Indonesia is the world's leading producer of cinnamon, accounting for 41.0% of the overall global output, followed by China, Vietnam, and Sri Lanka. In recent years, there has been an increasing demand for spices, including cinnamon, globally due to the increasing adoption of cinnamon in the pharmaceutical and cosmetics industries.

China is the largest exporter and second-largest producer of cinnamon in the world. The main cinnamon-producing regions in China are a few southeastern Chinese provinces, such as Guangdong and Guangxi, and from other managed cultured landscapes. The major countries that import cinnamon from China are Vietnam, Bangladesh, Pakistan, Saudi Arabia, and the United Arab Emirates, among others. The demand for Chinese cinnamon (Cinnamomum cassia) is increasing in countries like Vietnam, Iraq, and Turkey. Its cinnamon exports represent 28.4% of the world’s cinnamon exports, and it ranks 1st among the cinnamon exporters in the world. In 2020, the country exported 86,549 metric ton of cinnamon, with Vietnam being the top importer with 49.2%. Additionally, there has been a significant rise in the adoption of cinnamon in the pharmaceutical and cosmetics industries in recent years. This increase in market demand is encouraging cinnamon production in major producing countries like China.

Asia-Pacific is the world's leading producer of cinnamon, with Indonesia alone accounting for nearly 41.0% of the total global output. In 2020, Indonesia was the biggest cinnamon producer, with a production of 91,242.0 metric ton. China, Vietnam, and Sri Lanka followed with about 72,531, 31,429, and 22,910 metric ton of production, respectively.

Further, the CSIR’s Institute of Himalayan Bioresource Technology (IHBT) introduced cinnamon cultivation in Himachal Pradesh, India, on a pilot basis in 2021. This would further be launched on a commercial scale if the pilot project becomes successful. This could eventually cut down India’s import of cinnamon, which amounts to a whopping INR 909 crore per annum.

In recent years, there has been an increasing demand for spices, including cinnamon, globally. There has also been a significant rise in the adoption of cinnamon in the pharmaceutical and cosmetics industries in recent years. This increase in the market demand is boosting cinnamon production in major producing countries, such as Indonesia, China, and Sri Lanka. The major importers of cinnamon are United States, India, Mexico, and Bangladesh.

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