Cinnamon powder wholesale has become widely appreciated due to its positive influences on consumers’ health. It has established an excellent reputation as a highly profitable product.
- 1 An overview of cinnamon powder wholesale
- 2 Largest suppliers of cinnamon powder wholesale
- 3 Factors causing changes in the price of cinnamon powder wholesale
- 4 Top providers of cinnamon powder wholesale
- 5 Conclusion
An overview of cinnamon powder wholesale
The popularity of cinnamon powder wholesale is increasing rapidly, signaling an emerging trend in spice exports. Many traders and businesses are keen on learning more about this product and how its current market is like.
Defining cinnamon powder wholesale
Cinnamon powder wholesale is the act of buying large amounts of cinnamon powder – one of the seven main cinnamon products – to redistribute to shop-owners and retailers. Cinnamon powder wholesale is made from the inner bark of the cinnamon tree, which is washed, dried, and ground to form a fine powder. Afterward, workers use mesh to remove bigger cinnamon bits and admixture, minimizing the product’s grittiness.
Cinnamon powder wholesale is a popular flavoring component, bringing an appealing flavor to various dishes. More notably, it has long been known for having powerful medicinal properties that are greatly beneficial for our health. As a result, the global demand for cinnamon powder wholesale has increased rapidly. Grand View Research predicts that the global cinnamon industry will grow substantially with a Compound Annual Growth Rate (CAGR) of roughly 14% in the 2019-2025 period.
Varieties of cinnamon powder wholesale
Currently, in the market, the two most prevalent varieties of cinnamon powder are Cassia and Ceylon. They differ in their tastes, colors, and distributing countries.
- Ceylon cinnamon originates from Cinnamomum verum, a plant mostly found in Sri Lanka. Its color is lighter than Cassia with a milder, sweeter taste and a bright citrus note. Being almost exclusively supplied by Sri Lanka, the source of Ceylon cassia cinnamon powder wholesale is rather limited. Therefore, it is much rarer and the price for a tonne of Ceylon cinnamon is also higher – from $6,000 to $10,000.
- Cassia cinnamon is made from the evergreen tree named Cinnamomum cassia. Cassia cinnamon powder wholesale is stronger and hotter in taste. Its color is darker – usually brown or reddish-brown. This product is cultivated, processed, and exported by various countries, with the major ones being Indonesia, Vietnam, and China. Due to the playfulness in its resources, Cassina cinnamon powder wholesale is much more easily found in the market and the price is lower as well – from $5217 to $6522 per tonne.
Main importers of cinnamon powder wholesale
The demand for cinnamon powder wholesale, as well as many other cinnamon products, is rising. Within almost 10 years, from 2010 to 2019, the global cinnamon export values increased by nearly three times, from $258M to $748M. In 2019, the USA became the largest cinnamon importer with an import value of over $124M, accounting for 16% of the world’s total figure. It was followed by India, whose figure slightly surpassed $90M.
Cassia cinnamon powder wholesale is the main commercially imported product for these countries due to its plentiful supply and affordable price. Besides, Ceylon is also experiencing a gradual increase in consumer demand, as more people are interested in its health benefits, especially in Europe and Southern America.
Largest suppliers of cinnamon powder wholesale
Most cinnamon powder wholesale on the market comes from Asian countries. These regions have the ideal moist, well-drained soil and climate for cinnamon trees to grow healthily. In 2020, the top 3 cinnamon exporters, in terms of output, were Indonesia, Vietnam, China, and Sri Lanka.
In 2020, Indonesia had the largest cinnamon output – more than 91,000 tonnes. A key reason why exporting cinnamon powder wholesale is a strength of Indonesia is the country’s close trade relations with the USA. Having such an enormous consumer market helps enhance Indonesia’s export value considerable, as a research paper submitted at the 4th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2019) pointed out that the USA’s GDP growth and cinnamon price have a positive influence on Indonesia’s cinnamon exports.
While this is indeed a considerable benefit, it also means that Indonesia can suffer if the demand of US customers decreases. Therefore, many experts advise that the country should seek to export cinnamon powder wholesale to other markets, instead of depending solely on the US.
China stood as the second-biggest supplier of cinnamon powder wholesale and other products. In 2020, it yielded more than 72,000 tonnes. However, its export value is rather small – in 2019, it represented only less than 7% of the global figure. This is because a large proportion of Chinese cinnamon is diverted to domestic use.
Chinese cinnamon is known to be more bitter compared to Vietnamese and Indonesian ones. It is cultivated in managed farms located in Guanxi, Guangdong, Fujian, and Yunnan.
Vietnam had the third-highest cinnamon production of more than 31,000 tonnes. In contrast to China, Vietnam is a highly competitive cinnamon exporter. In 2019, according to OEC, it was the biggest one, representing almost a quarter of the world’s cinnamon exports. Vietnam’s position also proves that more and more consumers around the world welcome its cinnamon powder wholesale. It contains a higher level of cinnamaldehyde, hence having a stronger, more intense cinnamon aroma. Its taste is also milder compared to the strong bite of Chinese cinnamon
Vietnam has several considerable advantages as a provider of cinnamon powder wholesale. First of all, the country’s soil is rich and well-draining, which is favorable for cinnamon trees to develop. Second, the Vietnamese government places great emphasis on exporting agricultural products, including cinnamon powder. Its support is realized in the form of financial, technical, and legal assistance, such as training sessions on sustainable agricultural practices, finance packages, and signing trade agreements to support farmers and agricultural exporters.
Sri Lanka contributes to about 80% of the world’s supply of cinnamon powder wholesale. Its production capacity is limited, at almost 23,000 tonnes. This low figure can be explained by the lack of standardization in Sri Lanka’s cinnamon production. Most of the manufacturing process is still done manually and the growing areas are scattered. The country’s cinnamon variety is Ceylon, which is rarer and much more expensive than Cassia. A tonne of this product is usually from $6,000 to $10,000.
Factors causing changes in the price of cinnamon powder wholesale
Traders and wholesalers should be aware of socio-economic and natural elements that make cinnamon powder wholesale decrease or increase in its price.
- Supply: World’s Top Exports stated that from 2019 to 2020, the export volume of cinnamon products increased significantly by almost 35%. Therefore, we can expect the supply of cinnamon powder wholesale to be abundant and steady, stabilizing its price range.
- Demand: The year 2019 saw a 30% increase in the world’s cinnamon import value, from $748M to $587M. This impressive growth proves that cinnamon powder wholesale is a sustainable choice for consumers and the demand for it will continue to grow. As a result, wholesalers can benefit substantially from trading this product.
- Unexpected incidents: Traders must be aware of the many undesirable events that will disrupt transportation and shipments. For instance, the Covid-19 pandemic caused China’s cinnamon powder wholesale demand to decrease strongly, as it hinders economic development and negatively impacts people’s lives. Also, because of the pandemic, many countries chose to close their borders, thus delaying logistic activities.
- Facility and equipment for storing: Cinnamon powder wholesale may require specific machines and infrastructure to maintain its standard moisture and temperature. Sterilizing and packaging will also certainly account for its final wholesale price.
- Governmental policies: Governments can provide important endorsement for the production and export of cinnamon powder wholesale with financial policies and trade agreements. For example, thanks to the EU-Vietnam Free Trade Agreement signed in August 2020, Vietnamese cinnamon can be sold to European countries at a lower price, as 99% of tariffs are eliminated.
Apparently, when trading cinnamon powder wholesale, businesses must be mindful of how the price is likely to change and the cause of that fluctuation. This knowledge helps them adjust their plans accordingly and avoid losing money.
Top providers of cinnamon powder wholesale
If a business is interested in reselling and distributing cinnamon powder wholesale, they can check out this short yet useful list of three prestigious cinnamon exporters in Indonesia, Vietnam, and China.
K-Agriculture (Viet Nam)
Established in 1996, K-Agriculture has gradually built its excellent reputation as a leading cinnamon powder factory in exporting cinnamon powder wholesale. The company is famous for its dedicated supporting staff and highly experienced managers. Its cinnamon products are high-quality at a competitive price.
If you are interested in cooperating with K-Agriculture, you can reach out to them via:
- Phone: +84855555837 (Available on Whatsapp)
- Email: firstname.lastname@example.org
Rempah Sari (Indonesia)
Rempah Sari is a widely known Indonesian cinnamon exporter. The company’s focal product is Cassia cinnamon. Apart from cinnamon powder wholesale, Rempah Sari offers a wide range of options, whose quality is praised by international customers.
Jining Sunagro Trade (China)
Jining Sunagro Trade is a large Chinese cinnamon provider. Its batches of cinnamon powder wholesale are approved by ETI, SGS, and GRASP. These evaluations are applied to the entire manufacturing process, from planting, harvesting, to processing and packaging.
Cinnamon powder wholesale is indeed a prevalent product with growing demand. When a company chooses to trade it, not only have they chosen a product with sustainable economic value, but they will also enjoy various privileges provided by governments of major cinnamon-growing countries.