Wholesale cinnamon sticks are highly valuable, and may be used for a variety of applications. Among export commodities, wholesale cinnamon sticks is a developing and potential market. As a wholesale buyer, it is essential to understand the characteristics of this versatile spice. This post will provide you with detailed information about features and reputable suppliers of cinnamon sticks wholesale.
Table of contents
General description of wholesale cinnamon sticks
The number of wholesale cinnamon sticks providers is steadily expanding. Many of them are known to spice providers as well as organizations, and others are new to the wholesale cinnamon sticks sector.
Definitions of wholesale cinnamon sticks
Wholesale cinnamon sticks is a wholesale operation that involves selling huge numbers of a single commodity, in this case, cinnamon sticks. Wholesale cinnamon stick orders are typical because of huge volumes and commercial manufacturers will convert cinnamon sticks into other final products.
Because of the precise production process required to assure the appearance and quality of cinnamon sticks, wholesale cinnamon sticks are fairly expensive items. Cinnamon bark is scraped off the tree and shaved off the outer silk layer to eliminate fungus, mosses, and parasitic algae before being dried and stored. The drying step must be properly followed since it is during this time that the cinnamon stick curls elegantly and maintains as much essential oil as possible.
Categories of wholesale cinnamon sticks
There are at least four main commercial varieties of wholesale cinnamon sticks on the global market, however, two of them are the most frequently listed and also have regular export data.
- Ceylon cinnamon is called after the former British name for Sri Lanka; it is generally referred to as “genuine” cinnamon by the indigenous people and was a familiar tree throughout the indigenous people’s early years. This famous spice is manufactured from the dried inner bark of the Cinnamomum verum plant. Ceylon cinnamon comes from just one place in the globe, and it takes many hours of precise effort to produce. Even the best employees can only produce a few kilos each day. Wholesale cinnamon sticks from Ceylon can cost as much as $8,000 USD per tonne.
- Cassia cinnamon is derived from the Cinnamomum cassia tree. It is native to Southeast Asia, notably Vietnam, and has a spicier, more bitter flavor than Ceylon cinnamon. Cassia cinnamon also has more volatile oils than Ceylon cinnamon. Cinnamaldehyde, which gives cinnamon its strong taste, accounts for approximately 95% of its essential oil. Because of its popularity, wholesale cinnamon sticks from cinnamon cassia are easier to locate and less expensive. The wholesale price of cinnamon sticks is around $6000 per tonne.
Features of wholesale cinnamon sticks
Wholesale cinnamon sticks are typically cinnamon made with the following characteristics:
- Cinnamon sticks are curled, tiny, 1.5-2cm in diameter, resembling a chopstick, and 15-20cm long. The price fluctuates according to humidity, volatile oil, and roll extent.
- This cinnamon has a rich red color, a woody stripe form, and a powerful flavor that is often considered spicy. So, cassia is frequently used in savory recipes, particularly beef or poultry meals, as well as spices and pickles.
- Cinnamon bark has long been recognized as one of the herbs that aid in the treatment of tooth decay and foul breath. Aids in the reduction of bad cholesterol, the prevention of cancer, the reduction of inflammation, the improvement of memory, and so on.
Wholesale cinnamon sticks import and export market
The import and export market for spice items is continually expanding. Buy cinnamon sticks in bulk are likewise among the items with a fast-expanding supply and target import markets. So here are some major cinnamon exporters that you should know. According to FAO data, the three nations producing the most wholesale cinnamon sticks in the world in 2020 will be Indonesia, China, and Vietnam.
- Indonesia was leading the world in cinnamon production in 2020, with 91,242 tonnes and exports worth $151.3 million, accounting for 14.9% of the market. Indonesia has been exporting wholesale cinnamon sticks to nations such as the US, India, Southeast Asia, Western, and the Middle East since 2019. Besides, Indonesia’s export of wholesale cinnamon sticks and output have reduced in order to concentrate on submitting to the domestic market.
- China was previously assumed to have brought wholesale cinnamon sticks to the globe, and it is also the source of a cinnamon Cassia variation. As a result, China is a country that manufactures, exports, and wholesales cinnamon sticks. Cinnamon from China is frequently trafficked in India, Vietnam, West Asia, and the Middle East. China’s cinnamon production in 2020, with 72,531 tonnes and exports worth $292.9 million, accounting for 28.9% of the market share.
- Vietnam: America, South Asia, and East Asia are Vietnam’s primary wholesale cinnamon stick export destinations, accounting for 23.5 % ($238.1M) of overall cinnamon exports. Meanwhile, Vietnam’s cinnamon production for 2020 is estimated to be 31,429 tonnes. There is a lot of reputable Vietnamese cinnamon suppliers in this country.
The impacts influencing the price of wholesale cinnamon sticks volatility
Although it is a price-stable commodity that is not susceptible to seasonal fluctuations, wholesale cinnamon sticks do have price discrepancies from time to time. The market elements are the ones that have a direct impact on the price of buying cinnamon sticks in bulk. The reason why are cinnamon sticks so expensive depending on many factors that you can consider.
High demand of wholesale cinnamon sticks
Global demand for spices, including wholesale cinnamon sticks, cinnamon oil has increased in recent years. Cinnamon sticks have also seen a considerable increase in use in the pharmaceutical and cosmetics sectors in recent years.
- Before, Cassia cinnamon sticks were shipped to India and Taiwan. Cassia is presently being purchased by the rest of the globe as a consequence of its high-quality cinnamon and low price.
- Over the last three years, there has been a significant increase in exports to more than 80 nations for wholesale cinnamon sticks. For example, the United States, European Union countries, and the Middle East. People are substituting wholesale cinnamon sticks cinnamon from Vietnam for Cassia Vera AA from Indonesia. Ceylon cinnamon from Sri Lanka is also losing market share as a result of this.
As previously said, the most significant benefit of Cinnamon Stick in Vietnam (cassia vera AA) is its oil content. This is around 6%, which is twice as high as the original cassia from Indonesia and China. However, the cost is far lower. The price of cinnamon in Vietnam is half that of Ceylon Cinnamon in Sri Lanka. As a result, during the last three years, the demand for Vietnamese cinnamon has skyrocketed in comparison to the rest of the globe. Thus, the price of broken cinnamon in Vietnam has risen dramatically from $880 – $1530/ton in prior years to $2000 – $2500/ton, with other high-grade cinnamon costs like wholesale cinnamon sticks increasing even more.
Supply affects the wholesale cinnamon sticks price
There are two varieties of commercial wholesale cinnamon sticks on the market: Cassia and Ceylon, which have a significant price differential for a variety of reasons. The major reasons are because the Ceylon manufacturing method takes more time and expertise, and availability is limited.
- Although Sri Lanka’s Ceylon cinnamon output in 2020 is 22,910 tonnes, the total export value is $216.4 million, the export volume of Ceylon cinnamon in the world market accounts for only 21.3 % of the market share.
- According to Grand View Research, Inc., the global cinnamon market is estimated to reach USD 1.9 billion by 2025, rising at a 13.8 percent CAGR over the forecast period.
It can be observed that the supply of wholesale cinnamon sticks will continue to rise over the following five years. It is unsurprising that the need for wholesale cinnamon sticks is expanding on a daily basis, and the cinnamon-producing area will be enlarged to fulfill the demand. As a result, if supply and demand remain balanced from year to year, the cinnamon wholesale price will not fluctuate too much.
Currency fluctuations affect cinnamon sticks wholesale price
- A weaker domestic currency encourages exports while increasing the cost of imports; conversely, a strong domestic currency discourages wholesale cinnamon sticks exports while decreasing the cost of imports.
- The foreign currency exchange rate is one of the elements that decide which importers have more purchasing power towards which exporters are more, particularly in the Cassia cinnamon export industry. In contrast to Ceylon cinnamon, cassia cinnamon has a very competitive market since several nations manufacture this type of wholesale cinnamon sticks, giving the target market additional options, and pricing is always a consideration in business.
Trade agreements and policies of government
Trade agreements and government rules have had a significant impact on wholesale cinnamon sticks since wholesale cinnamon sticks are always agricultural items for bulk import demands.
- Due to the covid-19 outbreak, foreign exports will have a rough phase in 2020. However, certain wholesale cinnamon sticks exporters have seen a boost in export value as a result of international trade agreements and favorable local government initiatives.
- For instance: Vietnam’s wholesale cinnamon sticks value climbed somewhat from $136M to $175M between 2018 and 2019, while EVPTA was not signed. Despite the fact that the Covid-19 pandemic is still in its early stages, wholesale cinnamon sticks exports would reach a value of $238 million by 2020. This growth is being stimulated by a tax reduction scheme that eliminates 99 % of tariffs.
- Cinnamon exports are becoming easier and more accessible thanks to international trade agreements and domestic initiatives that encourage exports. Cinnamon prices are not overly taxed, and providers have several potentials to expand into new markets.
Working process with wholesale cinnamon sticks providers
The working procedure with wholesale cinnamon sticks suppliers involves 5 or more phases to secure the advantages for suppliers and consumers in terms of product quality, negotiable values, and delivery.
- Step 1: Contact cinnamon sticks wholesalers
Contact information may be located on the company’s website, which the seller always places at the bottom of the page but is still plainly visible. Because firms want purchasers to see contact information, they may press partners to make a purchase.
- Step 2: Negotiate with sellers about prices and contracts
Wholesale cinnamon sticks are items exchanged in big quantities, thus the two parties must agree on pricing, quantity, packing, and shipping before trading to ensure the lowest risk for both sides. Before proceeding to the next phase, the aforementioned must be explicitly indicated on the contract and authorized by all partners.
- Step 3: Check the sample from a wholesaler
Wholesale cinnamon stick samples are available for all orders, but the buyer is responsible for the courier fee (DHL Express). And, based on the company’s policy and region, the shipping cost may vary; typically, it will be approximately $20.
- Step 4: Prepare and package cinnamon
The processing period for large orders of bulk cinnamon sticks is 1-2 weeks after payment is received. Shipping to the client’s door is also available upon request.
- Step 5: Make the payment and get the order delivered
All purchases of wholesale cinnamon sticks will be processed for dispatch once full payment is received through PayPal, Credit Card, Bank Transfer, L/C, etc. Large orders, on the other hand, may qualify for discounts and the greatest pricing.
The reputable wholesale cinnamon sticks companies
If you’re still looking for where to buy cinnamon sticks in bulk, this part is just for you. All of the recommended businesses specialize in bulk cinnamon stick exports, which are situated in the world’s primary cinnamon-producing region.
Hanoi Cinnamon
Hanoi Cinnamon sells high-quality agricultural products to overseas markets such as wholesale cinnamon sticks, star anise, pepper, rice, and so on. Hanoi Cinnamon was founded in 1996 with the tagline “Quality is King,” emphasizing the company’s shared purpose of providing the highest quality products to its clients.
You may reach them at the following addresses:
- Phone: +84961504190 (Whatsapp Available)
- Website: hncinnamon.com
- Email: hanoicinnamon1@gmail.com
AGRIM
AGRIM is now involved in the acquisition, processing, trading, and delivery of a variety of agricultural goods such as wholesale cinnamon sticks. AGRIM has a commercial basis in Singapore, Indonesia, and India, and its major products include desiccated coconut and cassia from North Sumatera, as well as spices from Medan and Surabaya, Indonesia.
Yulin Huaou
Yulin Huaou Trade Co., Ltd specializes in the trading of cinnamon and other spices in China. They can provide a variety of cinnamon products, such as cinnamon powder in bulk, cinnamon broken, wholesale cinnamon sticks, and so on. Yulin Huaou Company is located in Guangxi Province, a well-known township for Chinese cinnamon.
