Indonesia supplies the most cinnamon in the world, responsible for roughly 40.0 percent of global output, followed by China, Vietnam, and Sri Lanka. What makes cinnamon from Indonesia unique? How does Indonesia gain this rank ? Here are the answers you’ve been looking for.
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A brief introduction about cinnamon from Indonesia
Cinnamon from Indonesia has many special features and this seems to be one of the reasons behind the success of Indonesia in production. Here is a brief overview of Indonesia cinnamon.
Types and characteristics of cinnamon from Indonesia
In the whole world, there is an abundance of cinnamon species, nevertheless, simply speaking, the two main types are Cassia Cinnamon and Ceylon Cinnamon. Cinnamon from Indonesia is Cassia Cinnamon with a scientific name – Cinnamomum burmannii, which is widely known as Indonesian cinnamon, Padang cassia, Batavia cassia, or korintje. Twelve of the 54 cinnamon species documented in the world are reported in Indonesia, however, most Indonesia cinnamon are Cassia species.
- Cinnamomum burmannii is an evergreen shrub with scented bark and smooth, angular branches that blooms up to 7 meters tall. The round, glossy green leaves are 10 cm (3.9 in) long and 3–4 cm (1.2–1.6 in) broad. Early in the summer, little yellow flowers bloom, yielding a dark drupe.
- Cinnamomum burmannii is a Southeast Asian and Indonesian native spice. It’s mostly found in West Sumatra and western Jambi provinces, with the Kerinci zone, in particular, being noted for generating higher essential-oil crops.
- In comparison to other cinnamons, Indonesian cinnamon has a strong taste. The finest phrases to describe Indonesian cinnamon are crisp and delicately sweet taste with undertones of spice and a little sour bite.
The total production of cinnamon from Indonesia
Between 2016 and 2020, the total production of cinnamon from Indonesia is relatively stable. 2017 and 2016 are the years having the highest and lowest overall output respectively because in 2016, the demand for cinnamon on the global scale started to increase and the booming was shown obviously in 2017.
The wholesale price of cinnamon from Indonesia
Over time, the Indonesian cinnamon price tends to increase. From July to December 2021, the wholesale price of cinnamon in Indonesia changed dramatically. Hence, it’s impossible to anticipate the price of cinnamon in the next months, especially because the epidemic is still emerging over the country.
However, even at its lowest point on December 6th, the Indonesian cinnamon wholesale prices reached $5.89/kg, which is not too low when compared to the world average. This is also a solid assurance of financial gains for wholesalers who intend to enter the market of cinnamon from Indonesia.
In 2022, as per the latest information of Selina Wamucii, the wholesale Indonesian cinnamon price is roughly between US$ 3.64 and US$ 3.42 per kilogram.
Places providing cinnamon in Indonesia
When it comes to cinnamon from Indonesia, in the domestic distribution section, the majority of Indonesian cinnamon comes from Kerinci, Jambi, located on an island of Sumatra, Indonesia. Subsequently, it was distributed between two provinces which is West Sumatra and Jambi. Above all, Kerinci is Indonesia’s, if not the world’s, cinnamon producing hub. Its cinnamon output accounts for around two-thirds of all cinnamon produced worldwide. In here, they provide a lot of cinnamon in bulk products for traders in the globe.
The main importers of cinnamon from Indonesia
In regards to overseas dissemination, in general, the United States and the European area is a big importer of cinnamon from Indonesia, with the United Kingdom, Italy, and Belgium importing the most Ceylon cinnamon. Cassia Cinnamon from Indonesia is used by over 70% of North Americans on a daily basis. According to an OCE-The Observatory of Economic Complexity research from 2019, the top destinations for cinnamon from Indonesia are the United States ($73.3 million), the Netherlands ($9.3 million), Vietnam ($6.67 million), Brazil ($6.13 million), and finally, Thailand ($4.73 million). Cinnamon Indonesia emerged in roughly 100 nations around the world in 2019, as per OEC.
Comparison between cinnamon from Indonesia and ones from other countries
Each cinnamon from different cinnamon producing countries has its own special characteristics. The comparison below will highlight these differences.
Comparison cinnamon from Indonesia, China, and Vietnam
Each cinnamon variety from each nation has its own set of advantages and disadvantages; nevertheless, cinnamon from Indonesia seemed to have some unique possibilities for future development.
- Despite having the highest overall output in the cinnamon category, Indonesia’s export volume was comparatively small. As a result, the question is where all of these go, especially in the wake of the Covid-19 outbreak’s logistical standstill. Hence, cinnamon wholesalers, suppliers, and exporters may utilize this opportunity to tap into the country’s vast resources.
- Cinnamon from Indonesia had a reasonable price of around 3 USD per kilogram and a robust flavor in tandem.
Thanks to the strong advantage of production, plus with the two pros mentioned before, Indonesia is predicted to become the most appealing cinnamon source in the whole world. These are also points that all wholesalers, exporters, and suppliers should notice when making a decision which cinnamon from the previous four nations to be using.
On the other hand, there will be some challenges that cinnamon Indonesia needs to meet.
- The cons of cinnamon from Indonesia with a humble figure, the export volume is around 151 million, which is also the bottom of the chart in this category.
- According to a 2019 report of OEC, cinnamon in Indonesia had $149 million in total production.
- Indonesia’s major exporting competitors in the cinnamon field were Vietnam ($175 million), Sri Lanka ($163 million), and China ($156 million) respectively. Especially, OEC emphasized a downward trend of net trade cinnamon with Vietnam, where the figure fell by 2.92 million.
Attention when using cinnamon from Indonesia
When using, pay much attention to dosage because cinnamon from Indonesia (Cassia Cinnamon) contains coumarin, a chemical that can harm the liver or lead it to fail completely. Only Ceylon Cinnamon has low Coumarin levels, whereas all other Cinnamon cultivars have high Coumarin levels. Recommended by The Food and Agriculture Organization (FAO), 1–6 grams of cinnamon per day, or 0.5–2 teaspoons, is usually sufficient.
Why does Indonesia become the world’s leading cinnamon producer
The reasons behind the success of cinnamon from Indonesia are based on factors including supply, demand, government policy, and its own country’s strength.
Supplying factor of cinnamon from Indonesia
In 2020, Indonesia’s total production volume of cinnamon amounted to 41.08 percent of the global cinnamon share market. This country provides different types of cinnamon products such as: split cinnamon, tube cinnamon,… Why does Indonesian cinnamon have such a high number?
- The first benefit is based on geography. Because Indonesia is located in Asia-Pacific, the world’s most active and promising region, it enjoys one of the most important geographic strengths. The Asia-Pacific region is regarded as a gateway for global trading. In the worldwide cinnamon market, Asia-Pacific has grown to become the dominating area, accounting for 57% of the global figures as per the record of 2018. As a country in the region, Indonesia can enjoy almost the strengths of the area.
- Next in order, it is about climate. The climate of Indonesia is mostly warm and humid, with rainfall prevailing primarily in low-lying areas and lower temperatures in highland zones, whereas cinnamon plants thrive in a warm, wet environment. Therefore, this is one of the best places on the planet for growing cinnamon.
Demanding factor of cinnamon from Indonesia
Considerable demand has been seen in view of the fact that cinnamon in Indonesia is favored both at home and abroad, especially in overseas countries.
- Cassia Cinnamon is used in approximately 70% of North America, especially, they are mostly sourced from Indonesia.
In European countries, people pay more attention to spice blends, spice mixes, and their sourcing due to the popularity of meat alternatives trend. - The worldwide cinnamon industry has been bolstered by the rising demand for spices as a flavoring component in a variety of culinary items.
- Other factors propelling the cinnamon market include expanding potential in the medicinal, and cosmetic industries.
As a result, the market’s revenue contribution is forecast to expand considerably over the forecast period and the global cinnamon market is likely to be driven by global demand for cinnamon.
Above all, Indonesia’s product diversity, organic products, and reliable supply sources make it perfectly compatible with global demand.
Country strength factor of cinnamon from Indonesia
In economic terms, following the first recession in two decades in 2020, Indonesia, Southeast Asia’s largest economy, has returned with a growth rate of 3.69 percent in 2021. According to figures presented by the Indonesian government on Monday (February 7, 2022), the country’s GDP would climb by 3.6 percent in 2021, rebounding from a 2.07 percent loss in 2020. With a robust rebound from the domestic economy, cinnamon from Indonesia can benefit from the domestic economy’s growth.
Government policy of cinnamon from Indonesia
This is yet another crucial aspect of cinnamon production. Cinnamon production and exports can benefit from fewer legal hurdles, taxes, and tariffs if a government prioritizes cinnamon exports and actively supports them via privileges and trade agreements.
- Transportation for cinnamon from Indonesia: Because agricultural products are transported via a waterway, sea, or ocean, the security situation at sea and at the destination port has a direct impact on delivery time. Pirates, terrible weather, or lousy customs might all be to blame… The logistical costs will rise as a result of all of this.
- Indonesia cinnamon is in compliance with CIF (cost, insurance, and freight) is an international shipping agreement that specifies the charges that a seller must pay to cover the expenses, insurance, and freight of a buyer’s purchase once it is in transport.
Top company supplying cinnamon from Indonesia
If you are looking for the top trustworthy suppliers for cinnamon from Indonesia, here is a list of recommended companies including REMPAH SARI; Cassia Co-op, and TRIPPER.
REMPAH SARI
In terms of cinnamon from Indonesia, Rempah Sari is one of Indonesia’s largest notable companies. It was founded in 1964 and initially traded in a variety of commodities including clove, coffee, nutmeg, essential oils, and Cassia cinnamon. A few years ago, this company specialized in the Cassia Indonesia cinnamon market and has become one of the largest cassia exporters from Indonesia, with an annual export capacity of 2.500 – 3.500 tons. This firm produces all grades of cassia, and its quality has been generally approved by the global market thus far.
Cassia Co-op
Cassia Co-op is the first cinnamon processing and exporting enterprise to establish itself in Kerinci, the center of cinnamon from Indonesia. Cassia Co-op was built on the premise of SUSTAINABILITY, with the goal of exporting cinnamon goods and patchouli oil from Indonesia while eliminating intermediaries from the supply chain. As a result, farmers and end-users are being linked in order to increase transparency and interdependence. In Sumatra, Indonesia, Cassia Co-op is creating a fair and efficient supply chain while also having a long-term positive impact. This company has gained an Organic Certificate for Indonesia cinnamon as well as the world’s first Rainforest Alliance CertifiedTM cinnamon, therefore, the quality of this company’s products is guaranteed.
TRIPPER
When it comes to cinnamon from Indonesia, TRIPPER Incorporation is regarded as one of the leading cassia cinnamon exporters. TRIPPER, which was formed in 1992, developed a unique cinnamon milling factory in East Jakarta in 2000 and a new extract processing facility in Bali in 2001. In addition, in 2011, this firm opened a new Cinnamon plant in Cibitung, Indonesia. TRIPPER has achieved its first organic certifications for cinnamon, including CU814779, USDA Organic, and others. With the goal of becoming a strategic partner for customers spices, and other natural ingredients direct from origin, this company promises to provide clean, safe, and traceable sweet spices and other natural ingredients in accordance with international quality assurance standards, such as ISO 22000:2005, using non-GMO spices and no harmful chemicals, pesticides, or irradiation.
In a nutshell, this piece has told the story and revealed the comprehensive truth about cinnamon from Indonesia, the country with the highest cinnamon output in the world. As a result, we may consider the cinnamon industry to be one of the most promising in the world right now, particularly Indonesia cinnamon with unique characteristics. Besides, if you are interested in the cinnamon world market, Vietnam is also an ideal destination. Therefore, please do not ignore this company if you want to buy cinnamon in bulk.
VIET AGRI CINNAMON FACTORY – a Vietnamese cinnamon suppliers
Contact:
Phone: +84961504190 (Whatsapp Available)
Website: vietnamesecinnamon84.com
