As the demand for cinnamon continues to rise, the bulk cinnamon market presents lucrative opportunities for traders worldwide. This article explores the potential of this growing market, discussing the global market size, the price of cinnamon in bulk, and top suppliers that you should not ignore.
Table of contents
Overview of cinnamon in bulk market
In this section, individuals and businesses interested in trading cinnamon in bulk will be given the most fundamental but extremely essential information about this potential market.
The definition of cinnamon in bulk
In simple words, trading cinnamon in bulk is the activity of selling and buying cinnamon products in large quantities. The demand for wholesale cinnamon has been constantly surging, which is really tempting to ambitious wholesalers in the world.
Main products and characteristics
Dozens of cinnamon-related products might give inexperienced merchants a headache when choosing the most popular and suitable one to trade. These 7 types of cinnamon in the chart below are the most common and widely accepted in the global market.
| Length | Moisture | Essential Oil | |
| Tube cinnamon | 30 – 45 cm | 12% | 2 – 5% |
| Stick cinnamon | 15 – 20 cm | 12% | 2 – 4% |
| Cigarette cinnamon | 8 – 10 cm | 12% | 2 – 4% |
| Split cinnamon | 15 – 25 cm | 12% | 1.5 – 2% |
| Broken cinnamon | _ | 12% | 1- 4% |
| Cinnamon powder | _ | _ | _ |
| Cinnamon oil | _ | _ | 80 – 95% |
Those quality standards, in some cases, can be flexible due to the demand for custom-made products of buyers.
In the world market, the most purchased type of cinnamon is cassia cinnamon, also known as Chinese cinnamon. Cassia cinnamon is less expensive than Ceylon cinnamon and has a stronger flavor, so it is widely used in food production, especially in the food industry in Asia and Europe.
Ceylon cinnamon (or Sri Lankan cinnamon) is of better quality, has a milder flavor, is widely used in premium food products, and is often sold at a higher price of cinnamon in bulk in the international market. However, more cassia is purchased and consumed than Ceylon cinnamon in the global market. According to a report by UN Comtrade, Cassia remains the most exported cinnamon in the world, accounting for about 90% of the total value of cinnamon exports in 2020.
Wholesale price of cinnamon in bulk
The price of cinnamon in bulk varies depending on their specifications, namely length, essential oil value, or rolled rate, ranging from $3,000 to around $7,000 per ton. For example, cinnamon products containing a higher value of oil such as a tube or stick cinnamon (from 2 to 5 percent) will be more costly than some others, like broken or spit cinnamon. The average cinnamon wholesale price is from $4000 to nearly $7000 per ton.
In the meanwhile, with a bit lower content of essential oil (from 1.5 – 4%), the prices of broken and split cinnamon are cheaper, typically below $3000. Due to the noticeable differences among prices, wholesalers need to carefully choose their target customers and products.
Main importers of cinnamon in bulk in the world
The demand for cinnamon in bulk is significant, and several countries serve as major importers of cinnamon worldwide. In a report of the Observatory of Economic Complexity (OEC), in 2019, the world’s imported worth of cinnamon was $748M. At the same time, the USA became the biggest importer of cinnamon in bulk with more than $124M of cinnamon import value. India followed the USA and became the runner-up with $90M worth of imported cinnamon.
In addition, the countries within the European Union collectively import a significant amount of cinnamon. Germany, the Netherlands, France, and the United Kingdom are among the major importers within the EU.
Cassia is reported to be the most common cinnamon variety and the high-quality cinnamon wholesale thanks to its affordable price. Besides Cassia cinnamon, Ceylon is the second-popular one. It experiences tremendous demand from Europeans due to its distinct mild and earthy flavor.
Top suppliers of cinnamon in bulk in the world
Most of the world’s cinnamon is produced and distributed from Asian countries, whose climate and soil foster the development of cinnamon trees. The four large cinnamon exporters are Vietnam, Sri Lanka, China, and Indonesia.
Due to favorable climate and soil, Asian countries are hotspots for the production and distribution of cinnamon. Among them, Indonesia, Vietnam, China, and Sri Lanka are the 4 major cinnamon exporters in the world.
Vietnam is one of the largest cassia cinnamon in bulk exporter
In 2019, Vietnam experienced the position as the largest cinnamon exporter with $175M worth of wholesale cinnamon sent abroad, making up for nearly a quarter of the global export value.
Behind the impressive popularity of Vietnamese cinnamon is its distinct flavor, which is preferred by the majority of worldwide customers. Vietnamese cinnamon has a different taste, compared to Chinese and Indonesian. Cinnamon from Vietnam contains a high level of cinnamaldehyde, which really boosts the aromatic fragrant and strong flavor. Meanwhile, Indonesian cinnamon tastes lighter and is more bitter when it comes to the Chinese type.
Sri Lanka is the major ceylon cinnamon in bulk provider
Almost exclusively cultivating the prestigious Ceylon cinnamon, Sri Lanka stood as the second-biggest exporter of cinnamon, recording $163M of export value in 2019. The main customers of Sri Lanka’s cinnamon are Mexico, countries in the EU, and the US. Due to the scarcity of Ceylon, the price of it is much more expensive than the Cassia, ranging from $6,000 to $10,000 per ton. This “extravagant’’ price helps to multiply the export value of Sri Lanka and makes it one of the leading cinnamon exporters in the world.
Indonesia is the big bulk cinnamon exporter
Making up for one-fifth of the global cinnamon export value, in 2019, Indonesia was the fourth-largest cinnamon exporter with $149M worth of cinnamon. It is due to favorable natural conditions and a close connection between the two nations in terms of wholesale cinnamon to the US, which is a giant in importing cinnamon in bulk. This information is recognized in OEC – a reliable website collecting and assessing agricultural products’ data.
Elements factoring in the price of cinnamon in bulk
It is a must for wholesalers to keep in mind the factors driving the price of wholesale cinnamon.
- Abundant supply
The output of cinnamon was recorded to rise by 1.7% on average each year (according to IndexBox’s report from 2007 to 2016). This increased rate remained stable without remarkable fluctuations. Between 2019 and 2020, in a report of the World’s Top Exports, there was a surge of exported wholesale cinnamon volume, about +34.8%. Thanks to that superabundant supply source, the trading activities of cinnamon in bulk are streamlined and the price range of cinnamon is maintained stable.
- Huge demand
According to OEC, wholesale cinnamon’s global import value in 2019 was $748M, experiencing an increase of 30% compared to $587M of the previous year. The demand for trading cinnamon in bulk stays steady through the years due to its various applications in healthcare, cooking, and huge economic potential. This does wonders for wholesale traders because buyers willingly accept a higher price range of cinnamon against other spices.
- Various governmental policies
In this century, the price of wholesale cinnamon has gradually decreased thanks to the increase in the number of bilateral and multilateral agreements, which boost commercial activities by removing tariffs. For instance, the Eu – Vietnam Free Trade Agreement (EVFTA) took effect, which helped to eliminate 99% of all tariffs. As a result, Vietnamese agricultural products are able to penetrate into the EU’s market much easier than before, including cinnamon in bulk.
- The Covid-19 pandemic
The trading of cinnamon in bulk in the last 3 years was disrupted by the outbreak of the Covid-19 pandemic. As a giant importer of wholesale cinnamon, China had experienced a remarkable decrease in its demand for this product. Besides, successive quarantines and lockdowns also delayed trading activities, causing cinnamon prices to decrease.
Top repeatable companies supplying cinnamon in bulk
The list below is really helpful for those struggling to find high-quality and trustworthy cinnamon exporters that come from Vietnam, China, and Indonesia.
Hanoi Cinnamon is the leading cinnamon in bulk factory in Vietnam
If you are searching for a prestigious producer as well as a reputable cinnamon factory of Vietnamese cinnamon in bulk, Hanoi Cinnamon is an excellent choice for you. With more than 23 years of experience in trading cinnamon in large quantities, the company is given all the credit to provide the best Vietnamese Cassia cinnamon with professional customer service.
Rempah Sari is the reliable cinnamon supplier in Indonesia
This Indonesian company is no longer a strange name to the majority of cinnamon wholesalers. Rempah Sari is famous for its extremely wide range of cinnamon in bulk products and the distinct milder Indonesian Cassia cinnamon.
Jining Sunagro Trade is the giant cinnamon provider from China
Jining Sunagro has successively become a giant in exporting cinnamon in China thanks to its firm guarantee for the quality of its products. Cinnamon in bulk of this company is proved by ETI, GRASP, and SGS.
Conclusion
The article has delivered the most important and basic knowledge about trading cinnamon in bulk. If you need to know more information, please visit us through:
- Website: hncinnamon.com
- Email: hanoicinnamon1@gmail.com
- Phone (Whatsapp): +84 961 504 190
