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4 facts successful businessmen know about wholesale cinnamon sticks

Wholesale cinnamon sticks is a popular spice that is used for many purposes in our daily life and is also considered a very potential industry. In this writing, we will give you all the most useful information about wholesale cinnamon sticks, which will help you not only understand it better but also get so many surprising and helpful suggestions.

Wholesale cinnamon sticks: Principal information and its features

A company or a businessman that wants to wholesale cinnamon sticks must understand what they are as well as their characteristics.

What exactly are wholesale cinnamon sticks

Wholesale cinnamon sticks mean cinnamon sticks that are bought and sold in large batches.

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Wholesale cinnamon sticks

Major wholesalers of cinnamon sticks are usually companies, exporters, distributors, or sometimes bulk buyers who come from restaurants and local shops. Compared to retailing, customers will enjoy a lower price and possibly more discounts when they wholesale cinnamon sticks.

Features of wholesale cinnamon sticks

Wholesale cinnamon sticks are one of the seven common products of the cinnamon tree.

  • Cinnamon sticks are made from cinnamon inner barks, the smoothest part that contains the highest essential oil content. Workers must be careful to make sure the barks are intact and the skin has an ideal thickness.
  • At first, all the barks of the tree are collected. Then, the big pieces are used to make cinnamon powder, only the small pieces or the narrow branch tips are chosen to make wholesale cinnamon sticks. After its rough outer layer is scraped off, the inner bark dries naturally and curls into sticks, normally from 1 to 2 centimeters in diameter and 15 to 20 centimeters (can up to 30-40 centimeters) in length.
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Specifications of wholesale cinnamon sticks

  • A standard batch of cinnamon sticks does not exceed 12% in moisture. However, in reality, this figure can reach 13 or 13.5%. Its essential oil percentage ranges from 2 to 4%.
  • The most common varieties of wholesale cinnamon sticks are Cassia and Ceylon, with the majority of the market being taken over by Cassia. The former is more popular commercially due to its affordable price. Cassia cinnamon sticks originate from Vietnam, China, and Indonesia. Meanwhile, the latter is more expensive – its price may exceed $10,000 per ton – and is much rarer. Most of the world’s Ceylon wholesale cinnamon sticks come from Sri Lanka, whose producing capacity is still low. The manufacturing process is mainly manual and cultivation areas are scattered. With these conditions, Sri Lanka’s Ceylon supply is scarce, causing its price to rise.

Major suppliers of wholesale cinnamon sticks

Four Asian countries dominated the world’s cinnamon exports in 2020, namely Vietnam, Sri Lanka, China, and Indonesia. They made up over 86% of the world’s export value. In terms of cinnamon production capacity, Indonesia ranked first, followed by China and Vietnam, while Sri Lanka ranked fourth.

Vietnam: The current best wholesale cinnamon sticks supplier

Vietnam is currently the world’s biggest supplier of wholesale cinnamon sticks. In 2020, the total value of exported cinnamon products in Vietnam is $235 million. Cinnamon sticks are also the key export products of the country.

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Vietnamese cinnamon sticks

  • Vietnamese wholesale cinnamon sticks are a favorite of consumers worldwide due to their strong yet pleasant taste.
  • They are usually high in cinnamaldehyde, which is the organic compound that determines the odor and flavor of cinnamon. Therefore, they are considered to be stronger and more intense in flavor compared to cinnamon sticks from China and Indonesia, as well as their Ceylon counterparts.
  • Vietnamese cinnamon has a more notable sweet sensation, which is preferred by customers over the bitter taste of Chinese cinnamon.
  • Their bright color is another bonus for Vietnamese wholesale cinnamon sticks, although the longer they are stored, the darker their color will become.
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Features of Vietnamese wholesale cinnamon sticks

In Vietnam, wholesale cinnamon sticks are cultivated and processed in mountainous areas, such as Yen Bai, Quang Ninh, Quang Nam, and Quang Ngai. These provinces have suitable soil and weather for cinnamon trees to grow. Also, the government has made substantial efforts to promote the export of cinnamon, by providing farmers with the necessary equipment and training on cultivation techniques. From poor people who used to have little competence and resources, these local people now are well-trained to become professionals in processing and manufacturing wholesale cinnamon sticks.

Major clients of Vietnamese wholesale cinnamon sticks are India, the United States, and Bangladesh. Vietnamese cinnamon is preferred for its spicy, pungent taste and beautiful color. It is most commonly used as a condiment and as a medicine too.

Indonesia: One of the most long-standing cinnamon producing country

FAOSTAT indicated that in 2019, Indonesia stood as the largest cinnamon producer. The country yielded more than 91,000 tons of cinnamon products, including wholesale cinnamon sticks. Indonesian cinnamon is described to have a bitter and “astringent” taste.

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Indonesian wholesale cinnamon sticks

Apart from favorable factors concerning its soil and weather, Indonesia has historic and close trade cooperation with the USA, as stated by an article at the 4th Padang International Conference on Education, Economics, Business, and Accounting (PICEEBA-2 2019). This special relation helps them attain a big client and thus helps increase their export value of wholesale cinnamon sticks to almost $150 million.

The United States, Vietnam, and the Netherlands are the biggest clients of Indonesian cinnamon. It is commonly used as a spice and as a remedy for various health conditions.

China: Potential market for wholesale cinnamon sticks

China Mainland followed Indonesia to become the second-biggest producer of wholesale cinnamon sticks, having churned out more than 70,000 tons in 2019.

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Chinese wholesale cinnamon sticks

However, China’s export value is low, at around $160 million, as most of its cinnamon supply is dedicated to domestic use. Chinese cinnamon also has rather limited popularity in international markets due to its bitter taste with a strong bite.

China cinnamon sticks are exported mainly to Vietnam, Bangladesh, the UAE, and Saudi Arabia. These countries like the bitter and spicy taste of Chinese cinnamon in their various dishes.

Sri Lanka: Exclusive supplier of Ceylon wholesale cinnamon sticks

Sri Lanka was the fourth of reliable wholesale cinnamon sticks suppliers, its production quantity was almost 25,000 tons. Due to Ceylon’s high price – from $6,000 to over $10,000 per ton, Sri Lanka’s cinnamon export value was boosted significantly to reach $206 million in 2020.

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Sri Lanka wholesale cinnamon sticks

The country’s clients mostly are from America, such as the USA, Mexico, and Guatemala, accounting for almost 60 percent of its exports. Consumers in these regions favor Ceylon wholesale cinnamon sticks for the sweet and soft cinnamon taste that it adds to food and drinks.

Deciding factors of wholesale cinnamon sticks price

Wholesale cinnamon sticks can see changes in their price. They are possibly caused by the following elements:

Specifications of wholesale cinnamon sticks

There are many specs that decide the price of wholesale cinnamon sticks. The following are some of the most common:

  • Oil content: Is the percentage of cinnamon oil there are in wholesale cinnamon sticks. Usually, the higher the oil content, the better the quality of cinnamon sticks, as well as the higher the price. Normal cinnamon sticks have around 0.5 – 1% of this essential oil which makes up its pungent smell and flavor.
  • Moisture: The less moist wholesale cinnamon sticks are, the better they get. Standard moisture of this product is 12%, but it is really hard to reach that so it usually falls at about 12.5 – 13%.

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  • Harvest time: Just like most other agriculture products, cinnamon has its own appropriate time for harvesting. Therefore, the time you decide to buy cinnamon sticks might have great affection on its price also. This is because, in the main crop of this product, wholesale cinnamon sticks tend to have the best quality as well as quantity so the price will rise. 
  • Physical appearance: Clearly the more good-looking cinnamon sticks are, the higher the price they will have. Some of the specifications are: roll degree (usually about 80%), length (wholesale cinnamon sticks are normally about 10 – 20cm in length)…

Abundant supply of wholesale cinnamon sticks

According to UNData, from 2010 to 2018, global cinnamon production increased steadily by 60%. This figure is expected to continue rising in the upcoming years. Specifically, from 2019 to 2024, the compound annual growth rate of the global cinnamon market shall be at 2.21%.

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Supply volume of wholesale cinnamon sticks

As a result, we can safely conclude that cinnamon supplies will remain plentiful, which can guarantee stable prices and smooth trading operations.

Ever-rising demand of wholesale cinnamon sticks

The year 2019 witnessed an almost 30% growth in the global cinnamon import value. As consumers become increasingly aware of the health benefits associated with wholesale cinnamon sticks, the cinnamon market will continue to expand. 

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Demand of wholesale cinnamon sticks

Grand View Research estimated that by 2025, it will be valued at $1.9M. This continuous development of the market means the price of cinnamon will steadily increase, as consumers are willing to pay more for this beneficial product.

Logistic charges for exporting/importing wholesale cinnamon sticks

Logistics charges have a remarkable influence on wholesale cinnamon production cost and price.

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Logistic charges of wholesale cinnamon sticks

  • Great news for India, the world’s top importer of wholesale cinnamon sticks: From 26/10/2021, Vietnam Maritime Corporation (VIMC) has officially established a direct transport route connecting Vietnam, Malaysia and India. That saves traders 10 days of shipping time and a huge money of sea freight if buying wholesale cinnamon sticks from Vietnamese suppliers (according to vnexpress.net). Now, it only takes about 10-25 days of total delivery time from Vietnam to India. This is to say, the logistic charge between Vietnam and India is also declining. It used to be charged at least $3400 per 40ft container but now it is only about $2700. Therefore, for Indian customers, if you want to import cinnamon sticks from Vietnam, you should not miss this chance to get the cheapest price.
  • However, in the last 2 years, the other 2 main markets for wholesale cinnamon sticks, the US, and the EU are terribly devastated by the Covid-19 pandemic. Since 10/2021, the freight rate for each 40-feet container has jumped many times. This situation has forced lots of importers to leave the field.

Although 2021 is a bad year for international economics, including the wholesale cinnamon sticks industry, it is just considered a short-term crisis. In the upcoming years, seeing great potentials of this market, more and more logistics routes will be established to encourage trading between suppliers and retailers.

Government policies applied to wholesale cinnamon sticks

By signing bilateral and multilateral agreements, governments will reduce legal barriers and tariffs on their imports, leading to a lower wholesaling price. 

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Government policies

For instance, in August 2020, the EU – Vietnam Free Trade Agreement (EVFTA) took effect and eliminated 99% of tariffs, making it easier and cheaper for wholesale cinnamon sticks to be imported into the EU.

Facts about wholesale cinnamon sticks that only experts know

Market price of wholesale cinnamon sticks

Cassia wholesale cinnamon sticks

The price for wholesale cinnamon sticks varies among nations or suppliers. 

  • Vietnam and China are now the cheapest providers of this substance, with prices around $5800 per MT. This is due to the plentiful supply and low logistic costs. Vietnamese cinnamon bark is continuously in demand in the global market due to their low wholesale cinnamon prices and high product quality. For example, here is the price of different cinnamon products from K-Agriculture, the best agriculture supplier in Vietnam:
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K-Agriculture’s price of wholesale cinnamon sticks

However, according to an FAO analysis, cinnamon demand is increasing at a rate of 8-12 percent each year, which is faster than supply. Cinnamon prices have been steadily rising since 2016 due to a supply and demand imbalance. As a result, if there is no effective official support policy or suitable crop development plans, Vietnam’s wholesale cinnamon sticks’ price might continue rising in the next few years.

  • Indonesian cinnamon sticks pricing is usually a major problem, as the country is known for its industrial cinnamon operations as well as high-quality Cassia cinnamon. Tridge data is used to illustrate trends in Indonesian wholesale cinnamon prices in the second half of 2021.
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Indonesian wholesale cinnamon sticks price

From July to December 2021, the wholesale price of cinnamon in Indonesia fluctuated dramatically. As a result, it’s difficult to forecast the price of wholesale cinnamon sticks in the next months, especially because the pandemic is still raging over the country. However, according to Tridge, the price of wholesale cinnamon sticks in Indonesia could drop significantly in the near future. This is due to the high shipping costs, which drive key importers to cut their imports of Indonesian cinnamon, resulting in an oversupply in the domestic market and price declines.

Ceylon wholesale cinnamon sticks

Sri Lanka is the “one and only” supplier of Ceylon wholesale cinnamon sticks, which helps to boost its reputation and Ceylon cinnamon’s price in the market.

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Sri Lanka wholesale cinnamon sticks price

The price of cinnamon sticks in Sri Lanka is “very high.” Alba is one of the most costly Ceylon cinnamon kinds, selling for $16.65/kg at the end of December 2021. In Indonesia and Vietnam, the price is roughly three times that of the Cassia variety. Despite its “exorbitant” price, Ceylon wholesale cinnamon sticks remain popular in Mexico and many European countries because of their gentler, woodier flavor.

Although the pricing is a little high, it has been consistent over time. One of the competitive elements that draws spice sellers into the industry is this feature.

How to find prestigious wholesale cinnamon sticks suppliers

Nowadays, approaching cinnamon sticks suppliers is like a piece of cake. The list below will show traders several effective ways to do that.

  • Internet: Almost every wholesale cinnamon sticks supplier has an online website nowadays. All you have to do is to search “cinnamon oil suppliers near me” on Google, social media or e-commerce platforms such as Alibaba, Amazon, etc.
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Ways to find cinnamon supplier

  • Agricultural fairs: Each year, there are hundreds of agricultural fairs taking place in different countries. That’s the chance for retailers to approach thousands of cinnamon sticks suppliers and brokers in just a few days. Unfortunately, the Covid-19 pandemic has stopped this activity, so you need to wait for the upcoming years.
  • Embassies: Local embassies are also a place to find out information about wholesale cinnamon sticks suppliers. Suppliers recommended by embassies are often trustworthy, however, the range of suppliers searched through this channel is not diverse.

How to spot reliable wholesale cinnamon sticks suppliers/factories

Reliable cinnamon suppliers have the features below:

  • Clear profiles: Suppliers must have transparent contact numbers and addresses pinned at their websites. Before starting to work with any suppliers, buyers need to know their office locations and check their validity on the map.
  • Inevitable qualifications: To meet the requirements of exporting, every wholesale cinnamon sticks supplier needs to get licenses and certifications to prove product quality, such as ISO standards.
  • Good history records: Working with reputable cinnamon oil suppliers can make retailers rest assured and reduce scam potential.
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Wholesale cinnamon sticks suppliers do’s and don’ts

Accordingly, these are a few characteristics of an unreliable or scam cinnamon suppliers:

  • Incredibly low price: Scam wholesale cinnamon sticks suppliers tend to entice naive customers by fake discount programs or low prices if buying in bulk. A wise retailer should check the price pinned at many different websites to have an overall picture of the market.
  • Early payment requirements: unreliable suppliers always urge buyers to pay in advance without sending any legal documents about goods transportation. This situation is quite popular but lots of inexperienced retailers can’t notice this.
  • Unclear information: If there is no address or contact number of suppliers on their websites, that is definitely a scam. Every supplier wants retailers to contact them, so there is no reason to hide their profiles.

Having acknowledged this, next time when you look for a prestigious wholesale cinnamon sticks supplier, remember to be careful, credibility and trust must be the number one priority.

How to work with wholesale cinnamon sticks suppliers

Normally, there are 5 steps to go through:

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How to work with wholesale cinnamon sticks suppliers

  • Step 1: The purchaser first sends a Letter of Intent (LOI) to the distributor to state his/her requirements. .
  • Step 2: The distributor answers to LOI by creating an FCO. Two sides will discuss how to reach a final FCO.
  • Step 3: Wholesale cinnamon sticks suppliers and buyers will discuss payment methods, prices and the requirements of packaging. Sellers can send samples to buyers and buyers can in person pay a visit to sellers’ companies to verify seller’s information.
  • Step 4: Distributors prepare exporting goods, loading it on ships and sending a bill of loading to buyers to complete the payment. Both sides take the responsibility for the state of cargo delivery.
  • Step 5: When goods arrive at the port of discharge, sellers need to check the goods’ quality and quantity. If everything is ok, wholesale cinnamon sticks suppliers will give customers after-sales service so that they will repeat the order next time.

Top 3 wholesale cinnamon sticks suppliers in the world from different regions

Indonesia: Rempah Sari

Established all the way back in 1964, Rempah Sari takes pride in its reputation as the most prominent cinnamon exporter in Indonesia. It started focusing on Cassia products a few years ago. The quality of its wholesale cinnamon sticks is recognized by clients worldwide.

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Wholesale cinnamon sticks supplier in Indonesia

The United States, Vietnam, and the Netherlands are the biggest clients of Indonesian cinnamon. It is commonly used as a spice and as a remedy for various health conditions.

Vietnam: K-Agriculture

K-Agriculture was founded in 1996 and since then, it has become one of the most widely recognized brands in wholesaling and exporting cinnamon products. Its wholesale cinnamon sticks follow clearly defined quality standards and are traded at a competitive price. The company’s motto is “Quality is King”, which demonstrates its focus on the satisfaction of its clients and the excellence of its services.

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The best Vietnamese cinnamon supplier

Phone: +84855 555 837 (Available on Whatsapp)

Email: info@k-agriculture.com

China: Jining Sunagro Trade

In recent years, Jining Sunagro Trade Co., Ltd. has developed from a small business to a major company that cultivates, processes, and exports agricultural products. Its supply of cinnamon sticks is certified by ETI, SGS, and GRASP.

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Chinese wholesale cinnamon sticks supplier

These wholesale cinnamon sticks exporters are well-known for their professionalism and success in the field. Therefore, they are highly reliable partners for you and your business.

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