Thanks to its multiple health benefits and practical applications, the demand for cinnamon in bulk is growing rapidly around the world. As a result, trading cinnamon in bulk is an ideal option for businesses that are looking to increase their profit margin.
See more: Cinnamon suppliers – secrets to find and work with reputable ones
Cinnamon in bulk and its characteristics
Trading cinnamon in bulk is an attractive option for wholesalers. In this section, businesses and individuals who are interested in this product will be introduced to its basic information and an overview of the current market.
Defining cinnamon in bulk
Trading cinnamon in bulk is understood as buying and selling cinnamon products in large volumes. Due to the wide variety of applications as a flavoring component and as a remedy for many health conditions, the demand for cinnamon is surging and calls for interested wholesalers who wish to expand their businesses. To demonstrate, data from Grand View Research forecast that the global cinnamon industry will experience a Compound Annual Growth Rate (CAGR) of 14% from 2019 to 2025.
Different types of products when trading cinnamon in bulk
When wholesaling cinnamon, cinnamon in bulk traders can encounter a variety of cinnamon-related products. The 7 most common ones are:
- Tube cinnamon: When drying, the inner bark of the cinnamon tree will curl into a tube that is 40 to 45 centimeters in length.
- Stick cinnamon: Stick cinnamon is smaller with a diameter of from 1.5 to 2 centimeters and a length of 15 to 20 centimeters.
- Cigarette cinnamon: Cigarette cinnamon is usually 8 to 10 centimeters in length.
- Split cinnamon: Split cinnamon is cut into smaller, equal pieces, before being dried and packed in carton boxes.
- Broken cinnamon: These are broken pieces collected during the process of harvesting cinnamon.
- Cinnamon powder: Cinnamon powder is made by grounding cinnamon barks.
- Cinnamon essential oil: Essential oil is distilled from the leaf, root, and barks of the cinnamon tree.
Ranging from $3,000 to almost $7,000 per ton, the prices for different types of cinnamon products depend on their specifications, such as curl, length, oil content, and whether the skin is removed. For instance, tube, stick, and cigarette cinnamon have higher percentages of oil, ranging from 2 to 5%. Their prices are also higher, typically from over $4000 to almost $7000 per tonne.
Meanwhile, split and broken cinnamon are lower in essential oil content, from 1.5% to 4%, thus their prices are cheaper, remaining below $3000. These are important details to guide wholesalers when they look for a specific product for their target customers and budget.
Major importers of cinnamon in bulk around the world
Trading cinnamon in bulk is a thriving market with enormous demand. According to statistics from the Observatory of Economic Complexity (OEC), in 2019, the world imported $748M worth of cinnamon. The USA stood as the biggest importer of cinnamon in bulk, having bought more than $124M worth of cinnamon products, representing over 16% of the global import value. The USA was followed by India, whose value of importing cinnamon in bulk reached over $90M.
Cassia cinnamon is the most common variety due to its reasonable price, so it accounts for most of the above countries’ commercial imports. Apart from Cassia, Ceylon cinnamon has been experiencing higher demand in European countries thanks to consumers’ growing awareness of the health benefits associated with this product.
Biggest producers and suppliers of cinnamon in bulk
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.
Vietnam – The biggest exporter of cinnamon in bulk in 2019
According to the Observatory of Economic Complexity, in 2019, Vietnam sent $175M worth of cinnamon in bulk abroad, accounting for almost a quarter of the world’s total export value. The country stood as the largest cinnamon exporter.
The reason for the significant popularity of Vietnamese cinnamon lies in how its flavor generally is preferred by customers worldwide. Comparing Vietnamese cinnamon against Chinese and Indonesian reveals a difference in their tastes and flavors. Vietnamese Cassia has a high amount of cinnamaldehyde, which creates its beloved signature fragrant and intense flavor. Meanwhile, Indonesian cinnamon comes with a milder taste and the Chinese one is not too common internationally due to its bitter flavor.
Viet Nam has a suitable tropical climate and soil characteristics that help cinnamon trees grow well. Furthermore, the government and international organizations have taken action to provide farmers and manufacturers of cinnamon in bulk with sustainable agricultural techniques and cultivation knowledge. 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 cinnamon in bulk.
Sri Lanka ranks second in exporting cinnamon in bulk
Sri Lanka follows Vietnam to become the second-largest cinnamon exporter, with an export value of $163M. Its clients mostly come from America: Mexico, the USA, Peru, etc. Sri Lanka’s major product is Ceylon cinnamon, which is significantly more expensive than its Cassia counterpart – costing from about $6,000 to more than $10,000 per ton. The high price of Ceylon boosted Sri Lanka’s exports value and helped it become the second major exporter of cinnamon.
China is the third-largest exporter of cinnamon in bulk
China, in 2019, made up more than 20% of the global cinnamon export value. The taste of Chinese Cassia cinnamon is more bitter compared to the one of Vietnam. In China, large areas of cinnamon trees are present in Guanxi, Yunnan, Guangdong, and Fujian. The cultivation and manufacturing of cinnamon in China are standardized by an experienced workforce in managed farms.
Indonesia becomes the fourth major exporter of cinnamon in bulk
In 2019, Indonesia represented almost one-fifth of the world’s cinnamon export, valued at $149M. Besides environmental favorable factors, Indonesia has a close connection in terms of exporting cinnamon in bulk with the US, which considerably assists their export value. This is proven in an article presented at the 4th Padang International Conference on Education, Economics, Business, and Accounting (PICEEBA-2 2019).
Elements that affect the price of trading cinnamon in bulk
Wholesalers should pay attention to the following factors that can cause changes in the price of cinnamon:
- Supply of cinnamon in bulk: A report published by IndexBox pointed out that from 2007 to 2016, the output volume of cinnamon increased on average by +1.7% each year. This increase was quite stable with minor fluctuations. From 2019 to 2020, on a global scale, the volume of exported cinnamon in bulk surged by 34.8%, according to World’s Top Exports. It is apparent that large cinnamon exporters have extremely abundant supplies, which streamlined trading activities and maintain a steady price range.
- Demand for cinnamon bulk: In 2019, the world’s total import value of cinnamon in bulk stood at $748M, a growth of almost 30% against the previous year’s $587M. Because this product has various applications, the demand for it is steady. This may be beneficial for wholesalers because consumers are willing to pay a higher price for a product they truly need.
- Unexpected incidents: There are many unfavorable events that disrupt the trading of cinnamon in bulk. One striking example is the Covid-19 pandemic, which started in early 2020. China, a major importer of cinnamon in bulk, saw a notable decline in its cinnamon demand because of the pandemic’s effects on people’s lives and the economy. Additionally, lockdown restrictions delayed exporting and importing activities, causing a decrease in cinnamon prices.
- Shipment and storage standards of cinnamon in bulk: The infrastructure and technologies needed to maintain important indexes such as moisture and temperature, as well as to ventilate and sterilize the products, will certainly add to the price of purchasing cinnamon in bulk.
- Governmental policies applied to cinnamon in bulk: Bilateral and multilateral trade agreements promote commercial activities among countries and eliminate barriers such as tariffs. Therefore, cinnamon in bulk can be traded more cheaply. For example, in early August 2020, the EU – Vietnam Free Trade Agreement (EVFTA) started to take effect, in which 99% of all tariffs will be removed. This has paved the way for increased export of many agricultural products of Vietnam at a lower price into the EU, including cinnamon in bulk.
Top providers of cinnamon in bulk
If you are interested in purchasing cinnamon in bulk, here is a list of three reputable exporters from Indonesia, Viet Nam, and China – who dominate the global cinnamon market.
K-Agriculture (Viet Nam)
K-Agriculture is based in Ha Noi, Viet Nam, and was founded in 1996. The company has extensive experience in wholesaling and exporting cinnamon in bulk. The quality of its supplies is guaranteed to be the finest and at a reasonable price. Its motto is “Quality is King”, which emphasizes its focus on the customer’s satisfaction with its services.
Phone: +84855 555 837 (Available on Whatsapp)
Rempah Sari (Indonesia)
Rempah Sari is a well-known exporter of Indonesian cinnamon in bulk. The company started specializing in cassia exporting a few years ago and its product range is wide. Its quality is recognized by international markets.
Jining Sunagro Trade (China)
Jining Sunagro Trade is a famous exporter based in China. Its cinnamon in bulk is certified by SGS, ETI, and GRASP. These assessments are applied to all steps of its manufacturing process.