Cinnamon is a spice made from a tropical tree's bark. It is a versatile culinary ingredient that can be used whole or ground.
The size of the global market for cinnamon oil was USD 117.1 million in 2022 and is anticipated to grow to USD 144.8 million by 2028, at a CAGR of 3.6%v over the forecast period.
Covid 19 Impact & Market Status
Cinnamon exports were impacted by the COVID-19 restrictions, particularly in China and India. India has totally blocked its borders, making it impossible to export cinnamon. Due to the COVID-19 epidemic, China, a major importer of Indian spices, particularly cinnamon, saw a dramatic drop in demand. The market's performance was disrupted as a result of this. Exports and imports were staggered throughout the world due to shutdown limitations. Despite a rise in demand for cinnamon, market supply and demand are unable to connect favourably due to constraints.
China is the Leading Exporter
China is the second-largest producer of cinnamon in the world and its top exporter. A few south-eastern Chinese provinces, such as Guangdong and Guangxi, and other regulated cultural landscapes are the principal cinnamon-producing locations in China. In nations like Vietnam, Iraq, and Turkey, demand for Chinese cinnamon (Cinnamomum cassia) is rising. Its cinnamon exports account for 27.4 percent of global cinnamon exports, and it is the world's top cinnamon exporter. In 2021, the country exported 85,649 metric tonnes of cinnamon, with Vietnam accounting for 48.2% of the total. Cinnamon has also seen a huge increase in popularity in the pharmaceutical and cosmetics sectors in recent years. Cinnamon output in key producing nations like China is benefiting from the growth in market demand.
Asia as the Main Market
The Asia-Pacific region is the world's top cinnamon producer, with Indonesia alone accounting for approximately 42.0 percent of worldwide production. Indonesia was the world's largest cinnamon producer in 2020, with 91,242.0 metric tonnes produced. China, Vietnam, and Sri Lanka came in second, third, and fourth, with 72,528, 31,429, and 22,820 metric tonnes, respectively.
Additionally, in Himachal Pradesh, India, the CSIR's IHBT (Institute of Himalayan Bioresource Technology) will pilot cinnamon cultivation in 2021. The product will be launched on a commercial basis if the pilot project is successful. This might gradually reduce India's cinnamon imports, which currently total INR 909 crore per year. Spices, such as cinnamon, have seen an increase in demand in recent years across the world. In recent years, cinnamon has seen a substantial increase in use in the pharmaceutical and cosmetics sectors. Cinnamon output is increasing in key producing countries as market demand rises.
Many people associate the spicy, sweet aroma of cinnamon with satisfying meals and pleasant weather. For its fragrant properties, cinnamon oil is valued. Additionally, it has various cosmetic and health benefits.
The bark or leaves of numerous plants, such as Cinnamomum verum and Cinnamomum cassia, are used to make cinnamon oil.
Cassia cinnamon, which comes from the Cinnamomum cassia tree, is the type of cinnamon oil that is most widely available. Ceylon cinnamon is made from the cinnamon plant Cinnamomum verum. The price of this kind is higher. Compounds and phytochemicals like cinnamaldehyde and eugenol are found in both forms. Cinnamon's health benefits are due to these components. Cinnamon oil is a popular option for at-home aromatherapy treatments because of its advantages. In aromatherapy, essential oils are vaporised or diffused into the air so that they can be inhaled or absorbed through the skin. Numerous benefits of aromatherapy have been linked to it, including reduced unhappiness and anxiety as well as better sleep. Many people enjoy and find calming the scent of cinnamon, despite the fact that the use of cinnamon oil in aromatherapy hasn't been thoroughly studied. The global cinnamon market is anticipated to expand at a CAGR of 2.3 percent during the anticipated time frame.
Now Health Group Inc, Sun Organic, Kamani Oil Industries Pvt Ltd, doTERRA International, Kama Ayurveda Pvt. Ltd. Young Living Limited, Bonsoul, LorAnn Oils Inc, The John D, Synthite Industries ltd, and Sigma Aldrich are some of the main competitors in the global cinnamon oil market.
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Sri Lanka's Ceylon cinnamon received a protected geographical indicator status from the European Union in February 2022. This GI aids in the collective ownership of the product and improves market distinctiveness. With the support of the CSIR's Institute of Himalayan Bioresource Technology, Himachal Pradesh became the first state in India to commence organic cinnamon planting in September 2021. (IHBT).
Nestlé Health Science's Carnation Breakfast Essentials will collaborate with Cinnabon to produce a new Cinnabon Bakery Inspired Flavoured Nutritional Drink in 2021. This healthy beverage offers 240 calories, 10 grammes of protein, and tastes like Cinnabon cinnamon buns.
The largest producer of cinnamon is Indonesia, which accounts for 41.0% of global production. China, Vietnam, and Sri Lanka are the next three largest producers. The demand for spices, particularly cinnamon, has surged recently as a result of the increased usage of the spice in the pharmaceutical and cosmetic industries.
Cinnamon Oil Market Scope
|Revenue forecast in 2028
|USD 144.8 million
|CAGR of 3.6 % during 2018-2028
|Volume, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Now Health Group Inc, Sun Organic, Kamani Oil Industries Pvt Ltd, doTERRA International, Kama Ayurveda Pvt. Ltd. Young Living Limited, Bonsoul, LorAnn Oils Inc, The John D, Synthite Industries ltd, and Sigma Aldrich
Key Segments of the Global Cinnamon Oil Market
Volume Overview (USD Million)
- Cinnamon Bark Oil
- Cinnamon Leaf Oil
Application Overview, (USD Million)
- Food & Beverage
Regional Overview, (USD Million)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa