The wholesale cinnamon market is becoming more extremely potential than ever and bringing many benefits for businesses and traders. This article will provide you detailed information about wholesale cinnamon tips and give you more information on the wholesale prices of cinnamon.
Table of contents
The potential of wholesale cinnamon
We need to comprehend the current state of the global cinnamon market in order to comprehend what wholesale cinnamon is.
- The current situation of cinnamon consumption in the world: Cinnamon is widely used in various industries as cosmetics, food, and pharmaceuticals so the demand is quite significant. Indonesia remains the largest cinnamon-consuming country worldwide, accounting for 26% of the total volume. In addition, Indonesia consumed twice as much cinnamon as India, the country with the second-highest consumption. With a 12% share of global consumption, the United States came in third.
- The situation of cinnamon consumption in the future: The market for wholesale cinnamon is expected to develop at an annual compound growth rate of 2.6% between 2022 and 2027 as a result of the world’s demand for cinnamon growing more quickly than its supply, which has been the case since 2016.
- Profit will be achieved while wholesale cinnamon: Since the wholesale price of imported cinnamon is lower than the retail price, the wholesaler can make 4-5 times the wholesale price when selling to small businesses and 20–30 times the profit for large factories as they require labor to provide a large quantity of cinnamon for production.
Wholesale cinnamon brings more benefits to wholesalers
Cinnamon may be purchased in bulk and is quite profitable. More interest is saved by buying bulk cinnamon than by doing it at retail prices. Since there is always more demand for cinnamon’s use and applications than what can be created in a timely manner, you won’t have to worry about inventory when buying bulk cinnamon.
For wholesalers who want to wholesale cinnamon in raw
The following are the advantages and disadvantages of buying raw cinnamon wholesale you need to know.
Advantages of using raw to wholesale cinnamon
These are the advantages of wholesaling raw cinnamon that you need to know.
- Wholesalers can wholesale cinnamon in raw at a low price than the processed type because the raw cinnamon has not been processed, wholesalers do not have to pay for the processing stages. The profit of wholesaling raw cinnamon is not as high as processed cinnamon, but it can be sold with a large quantity, for a larger market. So it will bring more profit and if there is retail or buying and selling or buying to produce finished products, they will also bring high profits.
- The tax for raw cinnamon is always cheaper than processed cinnamon. Therefore, raw buyers will not have to pay too much import tax.
- But compared to processed, raw cinnamon is easier to see with the naked eye, so poor quality is rarely encountered. Wholesalers may come across subpar raw cinnamon because it is grown in infertile land, so cinnamon does not guarantee the best quality.
Disadvantages of using raw to wholesale cinnamon
Besides the advantages, using raw to wholesale cinnamon also has the following disadvantages
- If wholesalers want to produce products from raw cinnamon by themselves, they will have to spend more on hiring labor, and production machines.
- Wholesalers need to pay attention to the preservation stage because if not stored carefully, raw cinnamon is susceptible to mold which affects its quality. Cinnamon wholesalers need to pay attention to preserving the cinnamon bark’s temperature, keeping it dry in storage, and avoiding direct sunlight when transporting it when purchasing.
- With raw cinnamon, it is difficult to preserve to prevent breakage (especially with split cinnamon) but processed cinnamon is easier to store.
So these reasons can bring some drawbacks for business when using raw to buy cinnamon in bulk.
For wholesalers who want to wholesale cinnamon in processed
The following are the advantages and disadvantages of buying processed cinnamon wholesale you need to know.
Advantages of using processed to wholesale cinnamon
- There are advantages of wholesaling processed cinnamon you need to know.
- Widely used in different industries, processed cinnamon always brings great profit to wholesalers.
- Because processed cinnamon is used a lot, supply more than demand and wholesalers will not worry about the backlog.
- Easier to store than the raw form because of the packaging with oil samples.
Disadvantages of using processed to wholesale cinnamon
Besides the advantages, wholesale processed cinnamon also has the following disadvantages
- Wholesalers will have a hard time finding a processing plant and supplier with the best quality processed cinnamon that is qualified for wholesale cinnamon.
- The cost is higher when buying raw cinnamon because when trading in processed type, the trader has to bear additional costs of production process, wrapping, and safety checks charges and import and export tax.
- Processed cinnamon is easily mixed with odorous impurities that do not guarantee the best product quality. At that time, the buyer will easily be able to buy fake goods with the same amount of money as the real samples, but not be able to use the product with good quality compared to the money spent.
Processed cinnamon are often selected by wholesalers to import because of the great demand, do not worry about the backlog and are easier to store than raw cinnamon.
Countries that serve as wholesale cinnamon exporters
The four nations with the greatest production of cinnamon as wholesale cinnamon exporters are Indonesia, China, Vietnam, and Sri Lanka. Because the soil and climate in these countries make it easy for cinnamon to grow and bring the best quality to wholesalers. Indonesia cinnamon suppliers produce 89000 tons of spice annually, China 82000 tons, Vietnam comes in third with 41000 tons, and Sri Lanka produces 24,000 tons.
The wholesale cinnamon in Viet Nam
If you want to buy bulk cinnamon, Vietnam, which exports the most cinnamon globally, is the best option for wholesale cinnamon.
- Vietnam is second in the world in exporting cinnamon, just after China. The main wholesalers of Vietnamese cinnamon are Europe, the US because the organic nature and taste of Vietnamese cinnamon are very popular. In addition, Vietnamese cinnamon exporters are also exported to India and China (accounting for about 80% of Vietnam’s cinnamon exports) for further processing and export again. Vietnamese cinnamon is grown and produced 100% in Vietnam unlike the Chinese who buys it from other countries and sells it to other parties. Viet Nam can provide a large output of cinnamon. The average yield of cinnamon is from 70 to 80 thousand tons/per year. Because Viet Nam possesses 2000000 hectares of cinnamon forest and is constantly growing to accommodate the demands of the industry.
- Vietnam has also long been a source of cinnamon production and export for supply to wholesalers because the soil and temperature of Vietnam are ideal for cinnamon trees to grow, and the amount of cinnamon produced is sufficient to meet huge export requests. A total of 22000 tons of raw cinnamon and 600 tons of pure cinnamon are produced annually. Moreover, cinnamon in Vietnam is also supported by state policies, so it is easy for wholesalers to buy if they want to wholesale cinnamon directly in Vietnam.
- Vietnam, a growing country, offers trustworthy, high-quality cinnamon processing plants that can import, export, and distribute to both other nations and businessmen. It can also meet the need for both raw and processed cinnamon in wholesale quantities. Viet Nam also has large-scale plants for processing raw cinnamon, smaller factories with annual outputs of 300–800 kg, and factories for processing cinnamon with up to 200 distilleries for the essential oil.
- Vietnam has a stable production process, there are processing factories, and trading companies know about the export production process, so the process of trading cinnamon is very convenient. Viet Nam also has large-scale plants for processing raw cinnamon, smaller factories with annual outputs of 300–800 kg, and factories for processing cinnamon with up to 200 distilleries for the essential oil. The main producers usually focus on cinnamon growing material areas (Yen Bai, Lao Cai, Lang Son, ..)
The wholesale cinnamon in Sri Lanka
The best global cinnamon is reputed to come from Sri Lanka.
- Sri Lanka produces 10% of the cinnamon used worldwide with 25,000 hectares set out for cinnamon cultivation.
- Ceylon cinnamon is the only variety of raw cinnamon that Sri Lanka provides in large quantities, and it is highly expensive.
However, the extent of cinnamon farming in this nation has steadily shrunk over time, so when you wholesale cinnamon while importing Ceylon cinnamon from Sri Lanka, consider the variety you choose and the funding source.
The wholesale cinnamon in China
With a production of 82000 tons per year, China is the third country in the world for wholesaling cinnamon.
- China ranks third in the world for wholesale sales of cinnamon. With the largest world population, local supplies of cinnamon might not be enough to fulfill demand at home.
- Numerous nations, like Vietnam and Indonesia, cultivate cinnamon, and China is able to import it from those nations as well. Finding a wholesale cinnamon provider who can accommodate your particular requirements is crucial when searching for one.
Wholesale cinnamon in Indonesia
With an annual production of 89000 tons, Indonesia is the world’s largest producer of cinnamon.
- Most of the Cassia form of cinnamon, which is used in popular spices and medicines, is cultivated in Indonesia. The price of wholesale cinnamon in Indonesia has increased significantly as a result of the sudden increase in demand during the Covid epidemic.
- However, compared to the worldwide average, the wholesale price of cinnamon has been stable up until now. This will also be a trustworthy supply of cinnamon for wholesalers that want to enter the Indonesian market.
Prices of wholesale cinnamon in the world
Prices of cinnamon in the world’s largest countries:
Based on the above data table, we can see that the wholesale cinnamon prices between countries have quite large differences. China has the lowest cinnamon wholesale prices after Indonesia even though China is the second largest exporter of cinnamon in the world because China’s cinnamon is bought from other countries and sold to suppliers.
The wholesale price of Vietnam is the highest even though it is the third largest exporter of cinnamon in the world because Vietnam has good soil conditions, when it is suitable for cinnamon trees to produce high-quality products, the output is large enough to serve export service for large orders. In addition, Vietnam knows how to apply modern production and processing technology to ensure export standards, and 100% of exported cinnamon is produced in Vietnam. The obvious price difference here is probably due to the cost of labor or depending on the type of cinnamons and the quality of the cinnamons of the countries where the exchange rate has such a pronounced difference. In addition, they also provide many types of products such as: tube cinnamon, cinnamon bark,…
Main factors to affect the prices of wholesale cinnamon
The final price is affected by many factors such as demand, production costs as well as the policies of countries, so the price will be different.
- Law of supply and demand: The prices of wholesale cinnamon will vary depending on the season. For example, when countries with high cultivation of cinnamon areas such as Vietnam and Indonesia, in the bumper season, there will usually be a stable supply, and the price will not change much, ensuring the quantity and quality to the wholesalers and vice versa. If the demand suddenly increases but the supply is not enough, the price will also increase many times compared to normal.
- Political situation: When faced with a political situation, that country can hardly export cinnamon, from the supply to the production and transportation stages, there are difficulties, so the price of wholesale cinnamon will increase.
- Tax: Depending on the regulations of each country, the tax of the price of wholesale cinnamon will be different and the item price also has a big difference. Currently, the policies of importing and exporting countries have helped stabilize the wholesale cinnamon price of cinnamon, cut unnecessary costs, and facilitate traders to buy cinnamon at a more reasonable price. For example, Vietnam has international trade agreements, the export tax price will be cheaper than other countries and the price of cinnamon is also based on the moisture content and essential oil content in it.
Tips for wholesale cinnamon
The following will give some tips for wholesalers should know before entering wholesale cinnamon.
Wholesalers will have to choose a reputable wholesale cinnamon source with the best quality
Wholesaler before working with suppliers, please check whether the supplier has reputable registration information to supply goods to wholesalers, or documents and information related to suppliers and wholesalers must ask if the supplier is willing to let the wholesaler directly test samples or make a video call to preview the quality of their goods.
How to deal wholesale cinnamon prices with suppliers
The wholesale market is not the same as the retail market. From the price to the conditions are different. force wholesalers to ask the supplier directly. At first, the supplier will certainly offer a higher price than the wholesale price listed by them, of course, the wholesaler will not be able to find the wholesale price listed on the internet because each supplier has different prices so wholesalers must ask the supplier directly.
Tips: After filtering out a list of suppliers that meet your needs, choose the one you are least satisfied with and contact to get a price deal. Because you don’t like this supplier and don’t expect much from them, you tend to be harsh when dealing with or negotiating prices.
Wholesale cinnamon delivery time, shipping method and payment
- Delivery time for wholesale cinnamon: Once wholesalers settle on a price agreed on, don’t forget to inquire about delivery times. For example, if the supplier said that it takes 5-7 days to deliver the goods, please make them commit to ensuring delivery on time. And it may be necessary to have a written commitment signed by both parties to help you deal with problems that arise if the supplier does not follow through on the commitment.
- Shipping method: Make a clear agreement with the supplier on the shipping method. Basically, wholesalers must know the implementation process, so that wholesalers have enough goods for their business to not miss out on retail customers and the quality of cinnamon is guaranteed to be the best.
- In the case of dealing with foreign suppliers, find out more about tariffs or foreign exchange rates. Goods transported by plane or ship, customs clearance. Each place will have different regulations and procedures, please find out and prepare in advance. There are some cases where it is not possible to get enough documents to receive the goods and suffer from continued storage, if some imported items such as food will not be able to wait too long, the storage will lead to damage.
- Wholesale cinnamon payment: There are many forms of shipping as well as payment. Who will bear the shipping fee, pay the goods in cash or transfer. If you are asked for a partial deposit or 100% upfront payment, make sure you have your receipts, documents… to be able to prove the transaction. Usually you only need to deposit 20-50% of the cost to reduce the risk of placing an order, so try to deal with a low deposit to increase your benefits.
