Cinnamon Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 1.68 Billion |
| Market Size (2029) | USD 2.35 Billion |
| CAGR (2024 - 2029) | 7.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Cinnamon Market Analysis
The Cinnamon Market size is estimated at USD 1.68 billion in 2024, and is expected to reach USD 2.35 billion by 2029, growing at a CAGR of 7% during the forecast period (2024-2029).
- Cinnamon, derived from the bark of trees belonging to Cinnamomum, is globally recognized as a key flavoring agent across diverse cuisines. Consumers are increasingly looking for a combination of nutrition and taste in every food product, which is in line with the growing preference for good health without compromising the taste of food products. This further fuels the demand for good food ingredients, including spices like cinnamon, which are the major ingredients that impart flavor and taste to food products. Cinnamon is known for its sweet taste, which enhances the taste and flavor of food products.
- Additionally, cinnamon has been known to possess several beneficial properties that aid in the treatment and prevention of several medical conditions. As a result, it is applicable in different industries, including food and beverages, pharmaceuticals, and cosmetics. It possesses healthy properties, such as antioxidants that fight against free radicals and prevent damage to cells. The consumption of cinnamon is gaining significance as various studies have proved its capability to lower blood glucose levels in type-II diabetic patients. Pharmaceutical companies are focusing on developing cinnamon-based formulations as cinnamon has anti-bacterial, anti-fungal, anti-inflammatory, and anti-carcinogenic properties. Manufacturers are focusing on developing innovative products to cater to the growing demand for cinnamon worldwide.
- The demand for cinnamon is also increasing in the poultry industry. Rising consumer awareness of health and food safety concerns and increased bacterial resistance to synthetic antibiotics have led to a ban on the use of antibiotic growth promotors (AGPs) in the poultry industry. The poultry industry has been forced to seek safe alternatives to AGPs and develop sustainable feed management strategies to enhance the intestinal health and growth performance of poultry. In recent years, cinnamon has gained much attention as a natural product with several health benefits to poultry. The essential oils present in cinnamon carry anti-microbial, anti-inflammatory, antioxidant, hypocholesterolemic, and anti-fungal properties and the ability to stimulate digestive enzymes in the gut.
Cinnamon Market Trends
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.
Cinnamon Market News
- July 2024: The Sri Lankan government established a Department for Cinnamon Development to boost the cultivation, production, and export of cinnamon. The government announced that this new department aims to assist cinnamon producers, suppliers, and exporters while enhancing the quality and variety of cinnamon products through value addition.
- March 2023: The Indonesian government recently launched the Indonesia Spice Up the World (ISUTW) program. This program aims to increase investments in spices and herbs and boost exports, with a focus on processing industries. In addition to cinnamon, four other spices are being prioritized: turmeric, nutmeg, pepper, and vanilla.
- May 2022: The Center for Rural Economy Development (CRED), through the BioTrade project supported by the Swiss State Secretariat for Economic Affairs (SECO), started an initiative in Yen Bai province on 'Sustainable Cinnamon Development' to update the market demands and trends for international sustainable certifications, and discuss the orientations for sustainable cinnamon development in the long term.
Cinnamon Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Robust Market Sentiments for Spices and Condiments
4.2.2 Increasing Use of Cinnamon as a Flavoring Agent
4.2.3 Health and Dietary Benefits Associated with Cinnamon Consumption
4.3 Market Restraints
4.3.1 Fluctuating Prices of Cinnamon on Account of Factors Affecting its Harvest
4.3.2 Damage Caused by a Vast Range of Insect Pests
4.4 Value Chain Analysis
4.4.1 Value Chain Overview
4.4.2 Price Markups in the Value Chain
4.4.3 Value Chain Stakeholders
5. MARKET SEGMENTATION
5.1 Geography (Production Analysis by Volume, Consumption Analysis by Volume and Value, Import Market Analysis by Volume and Value, Export Market Analysis by Volume and Value, and Price Trend Analysis)
5.1.1 North America
5.1.1.1 United States
5.1.1.2 Mexico
5.1.1.3 Canada
5.1.2 Europe
5.1.2.1 Spain
5.1.2.2 France
5.1.2.3 United Kingdom
5.1.2.4 Russia
5.1.3 Asia-Pacific
5.1.3.1 Sri Lanka
5.1.3.2 China
5.1.3.3 India
5.1.3.4 Indonesia
5.1.4 South America
5.1.4.1 Brazil
5.1.4.2 Argentina
5.1.5 Africa
5.1.5.1 South Africa
5.1.5.2 Madagascar
5.1.5.3 Comoros
6. MARKET OPPORTUNITIES AND FUTURE TRENDS
Cinnamon Industry Segmentation
Cinnamon is a spice procured from the bark of a tropical tree. As a culinary ingredient, it can be used both as a whole stick or as a powdered spice.
The cinnamon market is segmented by geography (North America, Europe, Asia-Pacific, South America, and Africa). The study includes the production (volume), consumption (value and volume), and trade in terms of import (value and volume), export (value and volume), and price trend analysis. The report offers market estimations and forecasts in value (USD) and volume (metric tons) for the abovementioned segments.
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Cinnamon Market Research FAQs
How big is the Cinnamon Market?
The Cinnamon Market size is expected to reach USD 1.68 billion in 2024 and grow at a CAGR of 7% to reach USD 2.35 billion by 2029.
What is the current Cinnamon Market size?
In 2024, the Cinnamon Market size is expected to reach USD 1.68 billion.
Which is the fastest growing region in Cinnamon Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Cinnamon Market?
In 2024, the Asia Pacific accounts for the largest market share in Cinnamon Market.
What years does this Cinnamon Market cover, and what was the market size in 2023?
In 2023, the Cinnamon Market size was estimated at USD 1.56 billion. The report covers the Cinnamon Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Cinnamon Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key challenges faced by Cinnamon producers in emerging economies?
The key challenges faced by Cinnamon producers in emerging economies are a) Fragmentation b) Limited processing facilities, & fluctuating export prices
What are the key challenges faced by Cinnamon producers in emerging economies?
The key challenges faced by Cinnamon producers in emerging economies are a) Fragmentation b) Limited processing facilities, & fluctuating export prices
Cinnamon Industry Report
The cinnamon market is experiencing robust growth due to its versatile applications in food and beverage, pharmaceutical, and cosmetics sectors, fueled by consumer demand for natural and healthy ingredients. Innovations in cinnamon production, particularly with varieties like Cassia and Ceylon cinnamon, are meeting consumer needs for products with health benefits such as blood sugar regulation and anti-inflammatory properties. The expansion of distribution channels and a rise in consumer awareness about the benefits of cinnamon are key drivers for market expansion. Furthermore, the shift towards organic and eco-friendly cinnamon products is opening new avenues for growth in key markets like North America, Asia-Pacific, and Europe. The competitive global cinnamon landscape necessitates ongoing innovation and market analysis to capture emerging opportunities and cater to consumer preferences, as highlighted by Mordor Intelligence™ industry reports which project continued market expansion. Get a sample of this industry analysis as a free report PDF download.
