Cinnamon is an important spice commodity that is grown mainly in Vietnam, China, Indonesia and Sri Lanka.
Cinnamon has many applications from being commonly used as a spice to food flavoring, medicine, and even in livestock, poultry and as fertilizers.
In 2023, Vietnam exported nearly 90,000 tons of cinnamon with a total export turnover of more than US$260 million, an increase of 14.6% in output but a fall of 10.7% in value compared to 2022. This has made Vietnam the world’s largest exporter of cinnamon. Vietnam’s major export markets in 2023 were India, the US and Bangladesh. Cinnamon is considered as a commodity with low export value, as such it is not a profitable business for many small farmers but could be lucrative for the industrial players.
The world’s demand for spices remains high, not only in the food industry, but also due to its wide applications in the pharmaceutical, cosmetic, and functional food industries. Vietnam has dozens of companies investing in modern cinnamon processing lines, producing ground cinnamon and cinnamon powder which can fully meet both local and overseas market demand.
Despite being a leading cinnamon producer, Vietnam also imports a small quantity of cinnamon from neighbouring countries like Indonesia and China. According to preliminary statistics released by the Vietnam Pepper and Spice Association (VPSA), the country’s cinnamon imports for the first 7 months of 2024 reached 2,979 tons with a turnover value of US$7.1 million, representing a significant drop of 75.2% compared to the same period last year. Imports from Indonesia and China reached 1,299 tons and 1,242 tons respectively in the same period.
