Recent years have witnessed a significant growth rate in cinnamon oil consumption, which urges sellers to seek for trustworthy locations of cinnamon oil suppliers. So if you are looking for 100% reliable cinnamon oil suppliers, this article is made for you.
- 1 Cinnamon oil suppliers: The overview
- 2 Factors affecting the development of cinnamon oil suppliers
- 3 Road to find cinnamon oil suppliers
- 4 Guidelines to work with cinnamon oil suppliers
- 5 Top 5 cinnamon oil suppliers
Cinnamon oil suppliers: The overview
Cinnamon oil suppliers play an intermediary role in connecting buyers and sellers. A supplier can either manufacture their own cinnamon oil products or buy them from other units then selling to the retailers, but both of them are responsible for giving customers necessary product information and transporting goods to their buyers.
Cinnamon oil suppliers’ typical products
There are 2 most popular types of cinnamon oil in the market:
- Cinnamon Ceylon Oil: The type of oil deprived from Ceylon cinnamon leaves has a mild scent while the oil produced by cinnamon barks has much stronger scent, compared to the leaf type and also carries a unique ‘’cozy” woody smell. It is mostly used in soothing the pain of sickness, inflammation treatment and local anesthetic.
- Cinnamon Cassia Oil: Extracted from Cassia Cinnamon trees, it’s a combination of warm, woody and intense aromas, with spicy and sweet flavor. It is either used to fight germs due to its strongest anti-germ effects or used in cooking.
Of which, cinnamon cassia oil is the most popular and widely-used, accounting for slightly over half of the cinnamon oil trade in the world due to its reasonable price but excellent quality. The main suppliers of cinnamon cassia oil are Indonesia, Vietnam and China.
- With up to 80 – 90% purity and a unique warm and intense flavor, Vietnamese and Chinese cinnamon oil is selling at a very good price: $33 – 35 per liter. This is a really reasonable price for buyers.
- Besides, Ceylon cinnamon oil, which is originally and mostly produced in Sri Lanka, is considered as the best cinnamon oil with the unique and intense aromas. Due to its superior characteristics, its price is of course much more expensive than any others’.
The sites of cinnamon oil suppliers
World’s top cinnamon oil suppliers are mainly located in Asia, including Indonesia, Vietnam, Sri Lanka, and China.
The main reason for that is cinnamon’s idealistic growing conditions. This plant is able to grow at its best when the region is tropical or subtropical. They love humid and warm weather, that’s why cultivating areas are mostly Asian countries.
Two great examples for cinnamon oil suppliers are Vietnam and China. In 2019, Vietnam ranked 1st in exporting cinnamon products (including cinnamon oil) to the world, with 175 million USD in revenue.
Factors affecting the development of cinnamon oil suppliers
To fully understand how this promising industry works, there are four factors that every cinnamon oil trader needs to keep in mind.
Abundant cinnamon oil supply
Normally, the more distributors there are, the easier retailers can approach and understand the product. As long as retailers have necessary knowledge about the product, they are able to consult the most suitable and high-quality product varieties to customers.
- In 2019, Vietnam exported 175 million dollars of cinnamon products, including cinnamon oil, making it the largest cinnamon exporter in the world.
- Specifically, on the official website of Yen Bai province (yenbai.gov.vn), Yen Bai is one of the key cinnamon oil suppliers producing cinnamon in Vietnam. By the end of 2020, Yen Bai is expected to have 76,000 ha of cinnamon trees, which is used to produce cinnamon products including cinnamon oil.
- Based on statistics on OEC, Sri Lanka is always a great destination for cinnamon oil retailers because in many years, accounting for almost 21.9% of global cinnamon export (including cinnamon oil) in 2019.
- Besides, China and Indonesia are also big cinnamon suppliers, including cinnamon oil where the plant grows commercially, making up for 20.9% and 19.9% the amount of global exporting cinnamon in 2019.
In general, the supply source of cinnamon oil is so diverse that buyers all over the world can easily make orders of this product.
Rising customers’ demand
Along with a large number of supply sources, increasing buyers’ demand is also a key factor contributing to the development of cinnamon oil suppliers.
- According to OEC, in 2019, the US was the largest cinnamon importer (including cinnamon oil products) with 124 million dollars in value. Following that is India with 91.1 million dollars.
- Besides, Mexico and Bangladesh are also promising cinnamon oil importing destinations, with 71.9 and 37.7 million dollars of total cinnamon importing revenue, respectively.
It is obvious that the cinnamon oil industry has a bright future to develop in the upcoming years, which strongly motivates suppliers and cinnamon oil factories to promote manufacturing processe
Logistics charges have a remarkable influence on cinnamon oil suppliers.
- Great news for the biggest cinnamon oil importer India and Malaysia: 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 the product from Vietnamese suppliers. (according to vnexpress.net)
- However, the main importers of this product are Western countries. Since 10/2021, due to the seriosity of the Covid-19 pandemic, 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 cinnamon oil 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.
Governmental policies are also a factor to be concerned about.
- Vietnamese cinnamon oil suppliers are strongly encouraged by hundreds of international bilateral and multi-bilateral agreements such as EVFTA or CPTTP. Those agreements aim to support Vietnam to export agricultural goods by reducing export tax to the EU and Asian countries.
- The Sri Lanka government has been pouring money to increase cinnamon oil quantity and quality because this nation has a huge potential in product and export spices, especially cinnamon productions.
Policies to ease tax burdens on traders are likely to increase in number year-on-year due to the increase in the number of biternal and multi-biternal agreements. That is good news, which will definitely raise the number of cinnamon oil suppliers and widen the consuming market.
Road to find cinnamon oil suppliers
There are millions of cinnamon oil suppliers out there, but finding reliable ones is not easy. Check 3 basic steps below to stay wise when choosing a supplier.
Identify trustworthy cinnamon oil suppliers
Reliable cinnamon oil 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 cinnamon oil 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.
Spot scam cinnamon oil suppliers
Scamming in the cinnamon oil trade has been escalating in recent years. There are main features of a scammer.
- Incredibly low price: Scam cinnamon oil 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.
Means to find cinnamon oil supplier
Nowadays, approaching cinnamon oil suppliers is like a piece of cake. The list below will show traders several effective ways to do that.
- Internet: Almost every cinnamon oil 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.
- 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 oil 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 cinnamon oil suppliers. Suppliers recommended by embassies are often trustworthy, however, the range of suppliers searched through this channel is not diverse.
Guidelines to work with cinnamon oil suppliers
Normally, there are 5 steps to go through:
- Step 1: The purchaser first sends a Letter of Intent (LOI) to the distributor to state his/her requirements on the cinnamon oil.
- Step 2: The distributor answers to LOI by creating an FCO. Two sides will discuss how to reach a final FCO.
- Step 3: Cinnamon oil 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, cinnamon oil suppliers will give customers after-sales service so that they will repeat the order next time.
Top 5 cinnamon oil suppliers
To give retailers the fullest guideline to approach cinnamon oil suppliers, at the end of this article is top 5 cinnamon oil suppliers in the world
Established in 1991 in Sri Lanka, LakCinnamon founders first started their business with the original Cinnamon of the nation. They fully concentrate on cultivating their best kind of cinnamon and always go for the quality as well as the standards of their products.
A brief list of selling products: Cinnamon essential oil, Cinnamon quilling, Cinnamon powder, Cinnamon chips, etc.
K-Agriculture cinnamon oil supplier
Having more than 21 years of experience in manufacturing and trading agricultural products, K-Agriculture is considered one of the biggest Vietnamese cinnamon oil distributors.
The company has already achieved certificates such as HACCP, ISO 9000, or FSSC 22000. Besides, with an 8000m2 storehouse which has a 15,000-ton production capacity each month, K-Agriculture guarantees to meet the demand of wholesale customers.
The range of cinnamon products is really diverse:
- Cinnamon oil
- Tube cinnamon
- Stick cinnamon
- Cinnamon Powder, etc.
Phone/Whatsapp: +84855 555 837
The Commerce Company
First starting their business in 2018, The Commerce Company is a new distributor of cinnamon oil. One thing special about this company is that the products can be customized according to buyers’ requirements.
Kanta Enterprises Private Limited
Located in New Delhi, India, the company is famous for its high-quality and wide-range products such as natural cinnamon oil, spice oil, ayurvedic cinnamon essential oils, etc. If you are looking for a unit with various types of cinnamon oil, go check its website.
Concentrated on manufacturing cinnamon bark oil. If you are searching for a type of strong and warm oil this is a great location for you to visit.