Market Trends of Cinnamon Industry
Increasing Use of Cinnamon as a Flavoring Agent Driving the Market
Increasing demand for cinnamon in various food products as a flavoring element for various savory cuisines and beverages, bakeries, confectionery, and other products worldwide is driving the market. Furthermore, cinnamon bark is primarily used as a spice in cooking to enhance the taste and flavoring of dishes in restaurants. As a result, cinnamon is commonly found in baked goods, milk, and rice puddings. It is also used in fruit sweets and chocolate dishes, especially pear and apple desserts.
Moreover, key players in the market are taking initiatives to boost the market's growth. For instance, in April 2022, Krispy Kreme released the Cinnamon Milk Glazed Collection, which included three new flavors: Cinnamon Milk Glazed Doughnut, Cinnamon Milk Glazed Doughnut with Cream Cheese, and Cinnamon Milk Glazed Doughnut with Dulce de Leche.
Furthermore, the demand for cinnamon is increasing in countries like Vietnam, Saudi Arabia, the United States, Iraq, and Turkey. According to the ITC Trade Map, in 2023, the top exporters of cinnamon were China, Vietnam, Sri Lanka, Indonesia, and the Netherlands. Thus, the increase in market demand is encouraging cinnamon exports worldwide. China is the largest exporter and second-largest producer of cinnamon worldwide. The major countries that import cinnamon from China include Vietnam, Bangladesh, Pakistan, Saudi Arabia, and the United Arab Emirates.
Asia-Pacific Dominating the Cinnamon Market
Asia-Pacific is the world's leading producer of cinnamon, with China alone accounting for nearly 40.6% of the total global output. In 2022, China was the biggest cinnamon producer globally, with a production of 90,398.8 metric tons. Vietnam, Indonesia, and Sri Lanka followed with production amounting to about 53,224.56 metric tons, 51,667 metric tons, and 23,764 metric tons, respectively.
In India, there is a focus on increasing production by initiating a few projects. For instance, in September 2021, the CSIR's Institute of Himalayan Bioresource Technology (IHBT) introduced cinnamon cultivation in Himachal Pradesh, India, on a pilot basis. This will be launched on a commercial scale if the pilot project is successful. This could eventually cut down India's import of cinnamon, which amounts to a whopping INR 909 crore (USD 111.2 million) per annum.
There has also been a significant rise in the adoption of cinnamon in the pharmaceutical and cosmetics industries in recent years. This increase in market demand is boosting cinnamon production in major producing countries, such as Indonesia, China, and Sri Lanka. The major importers of cinnamon are the United States, India, Mexico, and Bangladesh.
Furthermore, consumers have been motivated by the "go organic" trend to incorporate more organic foods in their diets. Cinnamon growers are also affected by this movement. Thus, food producers increasingly focus on health-conscious customers and request organic cinnamon from their suppliers. Organic cinnamon cultivation and use have expanded because of this. This is another reason expected to drive the growth of the Asia-Pacific cinnamon market during the forecast period.
