Vietnam ranks third globally in cinnamon spice production, with an export output of about 41,000 tons per year. Besides, the export price of Vietnam’s cinnamon is often at the highest level compared to rival cinnamon-growing countries such as China and Indonesia. Why is the price of Vietnamese cinnamon spice so high? And what is the trend of Vietnam cinnamon price fluctuations in 2023? Let’s read this article below!
An overview of the Vietnam cinnamon spice industry
Currently, the total area of cinnamon in Vietnam is about 170,000 hectares. Vietnam’s cinnamon spice export value has continuously increased in recent years.
Vietnam’s cinnamon spice production in recent years
In Vietnam, cinnamon is grown mostly in provinces such as Lao Cai (53.3 thousand ha), Yen Bai (81 thousand ha), and Quang Nam (about 15 thousand ha). These three provinces account for about 70% of the total cinnamon area in the country. The annual production of cinnamon spice is estimated at 900 thousand – 1.2 million tons. The average yield of cinnamon is from 70 to 80 thousand tons/per year.
According to the FAO report, Vietnam’s total cinnamon production in 2019 reached 41,408 tons, accounting for 17% of global production. It is expected that in 2022, the export value of cinnamon will reach about 276 million USD. The main markets of Vietnamese cinnamon spice are India and the US. The export value to these two markets is $90.7 million and $54.2 million, respectively.
Vietnam cinnamon spice global trading potential
Vietnam cinnamon has a lot of potential as the demand from high-quality markets such as the US and Europe is constantly increasing. Besides, Vietnam also benefits from many new generation FTAs such as CPTPP, VPA/FLEGT Agreement. Many trading tax rates are reduced or eliminated.
The demand for cinnamon spice is growing faster than the global supply, currently estimated at 9 – 12%. Currently, Vietnamese cinnamon is strongly consumed in many regions of South Asia (such as India and Bangladesh), the Middle East (UAE, Pakistan), East Asia (Japan, Taiwan – China, Korea), the US, and countries of the European Union – EU.
Cinnamon spice is always in short supply, so it is a very sought-after spice in the market and has a volatile price over time. Especially, currently, Vietnam is the country producing the best quality cinnamon in the world at a competitive price, so the demand for Vietnamese cinnamon is huge. If it is possible to take advantage of this to trade Vietnamese cinnamon spice in the international market, it will be very profitable. Or it can be said, the potential of Vietnam’s cinnamon trade is huge.
2023 export price of Vietnam cinnamon spice and price trend forecast
If you are a direct cinnamon importer from Vietnam or a cinnamon spice trader in the international market, you need to understand the current cinnamon price and the future trend of cinnamon price fluctuations. In general, the price of Vietnamese cinnamon in particular, and the global price of cinnamon in general will tend to increase over time.
Export price of Vietnam cinnamon in 2023
The special feature of cinnamon is that it is not a seasonal crop. If any year the cinnamon does not have a good price, the farmer may not harvest them but wait until the price rises to harvest cinnamon or store the cinnamon in a warehouse. Even after harvesting, with proper storage of cinnamon, farmers can keep cinnamon sticks fresh for 1 – 2 years without losing too much of their flavor. According to the latest price list from K-Agriculture Factory, the price of Vietnamese cinnamon spice FOB Hai Phong Port per 1 ton in February of 2023 is as follows:
(20 – 45 cm)
(8 – 12 cm)
(20 – 45 cm)
(1 – 5 cm)
|Broken KABC cinnamon
(1 – 4cm)
|$288x – $31xx||$561x – $57xx||$552x – $56xx||$254x – $27xx||$48xx|
Indian customers often prefer broken cinnamon the most as they have a much lower price compared to other types and is suitable to consume daily. If you want to buy broken cinnamon in bulk, K-Agriculture Factory is proud to be one of the best providers of broken cinnamon in Vietnam.
The older the cinnamon tree, the richer the bark is, so farmers can not harvest cinnamon for decades without worrying about the quality of cinnamon. In addition, the more essential oil in cinnamon, the higher the price of them, farmers do not worry about price pressure because they are the ones who can control the supply volume.
Price trend forecast of Vietnam cinnamon in 2023
The price of cinnamon spice in Vietnam is often higher than that of major cinnamon-growing countries such as China, Indonesia, and India. The reason is that consumers and trading partners in Europe quickly realize that Cassia cinnamon products from Vietnam have superior quality compared to that from China and Indonesia, so they pay the price to buy Cassia cinnamon from Vietnam.
K-Agriculture Factory forecasts that Vietnam’s cinnamon price will continue to be high in the next few years, specifically in 2023, it will tend to increase around the average price of about 4 USD/kg. However, in the long run, if China and Indonesia promote the development of cinnamon, the risk is that Vietnam’s cinnamon price will tend to decrease slightly. Markets like South Asia and the Middle East often prioritize cheaper prices, so they may choose to buy cinnamon spice from China or Indonesia.
Where to buy the best cinnamon spice in Vietnam?
Because Vietnamese cinnamon is said to have the best use, if you want to buy high-quality cinnamon spice, you should choose reputable suppliers in Vietnam to buy it.
K-Agriculture: The leading supplier of Vietnamese cinnamon spice
K-Agriculture Factory is one of the most prestigious exporters of high-quality cinnamon spice in Vietnam with over 25 years of international business. We have a system of cinnamon factories up to thousands of square meters, so we are committed to the most competitive factory price in the market. K-Agriculture Factory guarantees product quality of 100% real cinnamon peeled, containing no preservatives, no fakes, and no poor quality Chinese goods.
Contact K-Agriculture Factory via
- Website: k-agriculture.com
- Mail: email@example.com
- Phone/Whatsapp: +84 855555 837
Phalco: A reliable trader of Vietnamese cinnamon in bulk
Phalco is a reliable address for foreign businesses to import Vietnamese high-quality cinnamon spice. It is one of the leading trading companies in the field of agricultural products, especially spices. Thanks to their numerous partnerships with foreign customers, they have become one of the go-to businesses for food exports from Vietnam.
S-Spices: One of the most reputable Vietnamese cinnamon brands
S-Spices is one of Vietnam’s most well-known export spice companies. Because it owns a vast industrial system for each product, the company offers a wide range of high-quality spices such as cinnamon, star anise, and pepper,… at competitive market prices. S-Spices also has quality inspection paperwork, so consumers can rest assured when importing large quantities of cinnamon from Vietnam.