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Cinnamon sticks in bulk: A promising industry

Recent years have seen a remarkable increase in the application of plant-based products in treatment and cooking, which lifts the market of cinnamon sticks in bulk to become a star in this field. That means, it is prime time for traders to start their wholesale cinnamon sticks business.

Cinnamon sticks in bulk: Very first things to know

The very first step of getting to know the trading in bulk of any product is to understand its key products, their unique features and prices.

Key products

In terms of trading in bulk, there are two main types of stick cinnamon, which are Cassia stick cinnamon and Ceylon stick cinnamon.

  • Cassia stick cinnamon: Cassia stick cinnamon is produced by Cinnamomum Cassia evergreens’ bark being cleaned and dried until reaching a certain level of rolled rate. Woodsy, warm, and intense are the most precise words to describe its aromas, while spiciness and sweetness are typical features of its taste. The purchasing of cinnamon sticks in bulk is mainly enjoyed in Asian countries and nations in the Middle East thanks to its much stronger and more transparent scent and reasonable price.
  • Ceylon stick cinnamon: The Ceylon type is produced from Ceylon Cinnamon trees by the same method. Its scent is described to be milder and more pleasant than the other, which makes it popular in Western countries.
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Key products

Wholesale prices

The price of cinnamon sticks in bulk differs from type to type. Cassia stick cinnamon’s price ranges from $2,500 to $5000 per ton, while the Ceylon ones can be up to $50,000 per ton.

The main reason lies in the Ceylon stick cinnamon’s small quantity. Ceylon cinnamon stick in bulk is almost exclusively cultivated in Sri Lanka, where cinnamon cultivation areas are small and decentralized, going along with a prominent manual manufacturing process.

Those factors lead to the scarcity of cinnamon, which pushes the price of Ceylon cinnamon stick in bulk much higher than its counterpart – the Cassia type. In contrast, the Cassia one is widely cultivated in Asian countries, which ensures the quantity stability of the cinnamon.

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Wholesale prices

The popularity of cinnamon sticks in bulk

The top 3 most trustworthy cinnamon exporters, including stick cinnamon, are Indonesia, Vietnam and Sri Lanka.

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Prestigious wholesale cinnamon sticks exporters

In 2019, Vietnam experienced the 1st rank in exporting cinnamon, especially wholesale cinnamon sticks, followed by Indonesia and Sri Lanka. There are some spectrums of reasons leading to the popularity of cinnamon sticks in bulk in those markets.

  • Favorable natural conditions: Cinnamon is a tough plant, which is tolerant to a wide range of climate and soils. However, it is able to grow at its best in tropical and subtropical climates with 20 – 30 Celsius as the ideal temperature. Cinnamon evergreens often grow well in regions where the precipitation rate ranges from 2000 – 4000 mm/year and the most favorable rate is 2000 – 3000 mm/year. Those factors are perfectly satisfied by the climates in Indonesia, Vietnam and Sri Lanka, whose temperatures in cinnamon cultivation areas are 20 – 29 Celsius and precipitation rate is 1600 – 2500 mm.
  • Large growing areas and production capacity: According to the official Agricultural Research Institute in Vietnam, the total areas of cinnamon cultivation in the nation are 150,000 ha, in which, Yen Bai province makes up for around 50%, with 76,000 ha.

Besides, two other nations Indonesia and Sri Lanka also spare a really large amount of land to cultivate and manufacture cinnamon products to meet the huge global demand of buying cinnamon sticks in bulk.

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Cinnamon sticks in bulk

Factors influencing the price of cinnamon sticks in bulk

The wholesale price of the stick cinnamon is affected under many spectrums of reasons. Below are 4 of them, which are the most remarkable ones.

Abundant supply

According to a report of FAO, total cinnamon production in Vietnam in 2019 reached 41,408 tons, accounting for 17% global yield. The majority of that is for export purposes, including exporting cinnamon sticks in bulk to some major markets such as India or the Middle East.

In the meanwhile, Sri Lanka is a primary supply of Ceylon cinnamon, especially stick cinnamon with 85% of which is used for exporting to big consumer countries such as the US and Mexico.

Due to the excellent quality but much scarcer quantity, the price of Ceylon cinnamon is more expensive than the Cassia one.

Huge demand

According to trustworthy statistics of OEC, there are top cinnamon importers in the world.

  • The top largest consumer markets for cinnamon commodities, including stick cinnamon, are the US and Mexico with 16.6% and 9.61% of global imports value in 2019, respectively.
  • Mexico is a giant in importing cinnamon products, especially when it comes to purchasing cinnamon sticks in bulk. In a report of OEC, in 2019, the cinnamon import value in this nation is $71.9M. There is an important fact that Mexico almost consumes only Ceylon cinnamon from Sri Lanka due to its long ancient tradition from Spain, where the Ceylon cinnamon trees were adopted among other types. The latest ITC World Trade Data in 2019, Mexico made up for 40.9% of Sri Lanka’s cinnamon exports.
  • In addition, in a report of the Vietnamese Agricultural Institute, the global demand for products of cinnamon, including the trading of cinnamon sticks in bulk, has increased 8 -12 % more than the increased speed of the global supply.

This mismatch between supply and demand has forced the price of cinnamon to escalate since 2016. This reality is predicted to encourage the manufacturers and the governments to invest in widen cinnamon production capacity.

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Abundant supply & Huge demand

Governmental policies

Supportive government policies have made the road for the booming of the cinnamon industry, especially activities of trading cinnamon sticks in bulk.

  • After carefully assessing the global demand for cinnamon and the potential it can bring to Vietnam, cinnamon is officially added into a brand-new support program of IDH in the period of 2021 – 2030. This decision will definitely do wonders for the sustainable development of the Vietnamese cinnamon sector in the future.
  • In Indonesia, a new 13-million-dollar project has been carried out by NCBA CLUSA and funded by the US Department of Agriculture (USDA) in the course of 5 years since 2019 to promote the national spice industry, including cinnamon, black peppers, and vanilla. The project has a direct impact on the development of trading cinnamon sticks in bulk due to its 2 typical objectives. The first one is to multiply the productivity and efficiency of Indonesian spice value chains by increasing farmers’ and entities’ manufacturing capacities. The other is to promote spice trades among Indonesia and other nations such as the US, etc by meeting more international standards of cinnamon quality and increasing crop diversity.

Those governmental policies will definitely promote the cultivation and trading of cinnamon sticks in bulk, as well as favor customers by giving them much cheaper prices.

Logistics charges

Charges of logistics in trading cinnamon in bulk, especially in terms of overseas activities are always the top concern to traders. The information of logistics charges needs to be updated regularly because it can be easily affected by the fluctuations of economic, social, and political events.

  • According to vnexpress.net, since 10/2021, a direct transportation route to connect Vietnam, India, and Malaysia is officially opened, which is considered to save stick cinnamon traders 10 days of delivery time and an enormous amount of sea freight if purchasing cinnamon sticks in bulk from Vietnam.
  • However, in the last 2 years, the main markets for wholesale stick cinnamon, the US, and the EU are terribly devastated by the Covid-19 pandemic. That has negatively influenced the demand for cinnamon products.
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Governmental policies & Logistics charges

It is true that 2020 and 2021 are bad years due to Covid-19, but it is predicted to be just a contemporary event and the international economy will revive and grow significantly. That means the price of cinnamon sticks in bulk will be more stable after this pandemic.

Prestigious suppliers of cinnamon sticks in bulk

In a world full of business scammers, having a list of trustworthy companies, which are able to offer buyers wholesale high-quality stick cinnamon, is a must.

Rempah Sari, Indonesia

With more than 47 years of specializing in trading cinnamon, coffee and nuts, Rempah Sari is always on the list of top reliable cinnamon suppliers both domestically and internationally. Its export capacity of Cassia cinnamon ranges from 2500 – 3500 tons per year, which is able to meet the demand of customers who want to buy cinnamon sticks in bulk.

K-Agriculture, Vietnam

The quality of commodities and customer service are the two most vital factors when analyzing a cinnamon company, whether it is worth working with. But there is no need for searching, K-Agriculture – a Vietnamese company, always meets these demands. The company guarantees to give traders excellent-quality stick cinnamon at affordable prices.

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K-Agriculture

Contact us:
Website: https://k-agriculture.com/
Email: info@k-agriculture.com
Phone/WhatsApp: +84855 555 837

Lak Cinnamon, Sri Lanka

A destination for ones who are looking to buy Ceylon cinnamon sticks in bulk. Located in Sri Lanka, the hotspot of Ceylon cinnamon, Lak Cinnamon can hardly be defeated by any enemies in this field.

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