From 2007 to 2016, the global cinnamon market value fluctuated perceptibly. According to the report, “World: Cinnamon (Canella) – Market Report. Analysis and Forecast to 2025” recently published by IndexBox, a significant increase in 2008 (121% year-on-year y/y) was followed by a slight drop in 2009 (96% y/y). Over the next two years, the market gradually increased until it plunged again in 2012/2013. Between 2014 and 2016, the cinnamon market increased steadily. In 2016, the global cinnamon market value reached 532 million USD.
From 2007 to 2016, global cinnamon consumption in physical terms experienced a steady growth, rising from 174 000 tons in 2007 to 227 000 tons in 2016. It expanded with a CAGR of +3.0% over the period under review.
Driven by the growth of population, the popularity of spices, and the growth of the pharmaceutical and cosmetic industry, the cinnamon sector is expected to continue an upward consumption trend, expanding with an anticipated CAGR of +2.0%, which will lead the market volume to 267 million tons.
Indonesia, China, the US and India lead global cinnamon consumption
Indonesia (44 000 tons), China (37 000 tons), the US (26 000 tons) and India (25 000 tons) were the countries with the highest consumption, together accounting for almost 57% of global figures.
In terms of the key consumer countries in 2016, Indonesia (170 gr per year) and the US (80 gr per year) registered a per capita consumption figure higher than the global average of 31 kg per 1 000 persons, while China (26 gr per year) and India (19 gr per year) recorded the lowest.
Production of cinnamon reached its highest level
Cinnamon production reached 229 000 tons in 2016, with a positive dynamic being recorded over the last few years, except for a slight decline in 2010. From 2007 to 2016, cinnamon production grew at an annual average rate of +2.1%.
Indonesia and China were the main producers of cinnamon
Indonesia was the key world cinnamon producing country with an output of about 91.6 000 tons in 2016, which accounted for 40% of total global output. The other major producers were China (34%), Vietnam (17%) and Sri lanka (8%).
In Indonesia, production levels decreased by -1.2% annually from 2007 to 2016. The other major producing countries indicated an increase in cinnamon output in physical terms: Vietnam (+8.7%), China (+4.0%) and Sri Lanka (+3.4%).
Around 67% of global cinnamon output is exported
Cinnamon is a widely traded commodity, with the share of export in total global output standing at approximately 67% from 2007 to 2016. The high trade intensity is determined mainly by substantial distances between the main cinnamon producing countries and the key consuming countries.
Indonesia and China were the largest suppliers of cinnamon
In 2016, the volume of global exports totaled 154 000 tons, with a mixed dynamic being recorded over the last few years. A gradual increase over the period from 2013 to 2014 was followed by a slight decline in 2015; in 2016 it remained unchanged.
In value terms, global exports showed steady growth over the last few years, at an average annual rate of + 10.6%. In 2016, global cinnamon exports expanded to 484.4 million USD.
Indonesia (48.9 thousand tons) and China (42.4 thousand tons) were the main global suppliers of cinnamon, with a combined share of 60% of global exports. They were followed by Vietnam (19%) and Sri Lanka (10%).
From 2007 to 2016, Vietnam (+7.6% per year) was the fastest growing supplier amongst the major exporters. The share of Vietnam (+8 percentage points) and China (+2 percentage points) increased between 2007 and 2016, while the share of Indonesia (-7 percentage points) displayed a negative dynamic. The share of Sri Lanka remained relatively stable throughout the analyzed period.
India and Bangladesh increased cinnamon imports
The volume of global imports totaled 151.6 thousand tons, or 468.8 million USD in 2016. The imports dynamic was generally in line with exports. These trade flows globally complement each other. Following the high trade intensity, the share of imports in global demand accounted for about 67%.
In 2016, the US (27.4 thousand tons), India (25.7 thousand tons and, lagging somewhat behind, Bangladesh (8.2 thousand tons), Mexico (7.7 thousand tons), the Netherlands (5.2 thousand tons), the United Arab Emirates (4.6 thousand tons) and Saudi Arabia (4.4 thousand tons) were the leading destinations for cinnamon imports, together making up 55% of global imports in physical terms.
In terms of the major importing countries, India (+8.4% per year) and Bangladesh (+8.0% per year) indicated the highest annual rates of growth from 2007 to 2016. While the shares of India (+6 percentage points) and Bangladesh (+2 percentage points) increased from 2007 to 2016, the share of the United Arab Emirates (-5 percentage points) illustrated a negative dynamic. The shares of the other countries remained relatively stable throughout the analyzed period. – IndexBox