Market Trends of Cinnamon Industry
This section covers the major market trends shaping the Cinnamon Market according to our research experts:
Increasing Use of Cinnamon as a Flavouring Agent
Increasing demand for cinnamon in various food products as a flavoring element in various savory cuisines and beverages, bakeries, confectionery, and others around the world are driving reasons. 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 pears and apple desserts.
Moreover, key players in the market are taking initiatives, which is boosting the market's growth. For instance, in April 2022, Krispy Kreme Releases Cinnamon Milk Glazed Collection which includes 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, Turkey, etc. According to the ITC Trade Map, in 2021 the top exporters of Cinnamon were China, Vietnam, Srilanka, Indonesia, and the Netherlands. Thus, the increase in market demand is encouraging cinnamon export around the globe. China is the largest exporter and second-largest producer of cinnamon in the world. The major countries that import cinnamon from China are Vietnam, Bangladesh, Pakistan, Saudi Arabia, and the United Arab Emirates, among others. Hence, the increase in cinnamon in various food products as a flavoring element will drive the market in the coming year.
Asia-Pacific Leads the Cinnamon Market
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.
In India, there is a focus on increased 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 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 (USD 111.2 million) per annum.
There has been an increasing demand for spices, including cinnamon, globally in recent years. 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 powering the growth of the Asia Pacific cinnamon market during the forecast period.
