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Cinnamon in bulk as a promising trading market

Recent years have seen tremendous growth in the demand for cinnamon in bulk due to its economic profits as well as various applications in healthcare and cooking. Therefore, it becomes an ideal choice for traders who are searching for multiplying their profit margin.

Cinnamon in bulk: A quick view

In this section, individuals and businesses interested in trading cinnamon in bulk will be given the most fundamental but extremely essential information about this potential market.

The definition of cinnamon in bulk

In simple words, trading cinnamon in bulk is the activity of selling and buying cinnamon products in large quantities. The demand for wholesale cinnamon has been constantly surging, which is really tempting to ambitious wholesalers in the world.

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Definition of cinnamon in bulk

Main products and characteristics

Dozens of cinnamon-related products might give inexperienced merchants a headache when choosing the most popular and suitable one to trade. These 7 types of cinnamon in the chart below are the most common and widely accepted in the global market.

Length Moisture Essential Oil
Tube cinnamon 30 – 45 cm 12% 2 – 5%
Stick cinnamon 15 – 20 cm 12% 2 – 4%
Cigarette cinnamon 8 – 10 cm 12% 2 – 4%
Split cinnamon 15 – 25 cm 12% 1.5 – 2%
Broken cinnamon _ 12% 1- 4%
Cinnamon powder _ _ _
Cinnamon oil _ _ 80 – 95%

Those quality standards, in some cases, can be flexible due to the demand for custom-made products of buyers.

Wholesale price

The price of cinnamon in bulk varies depending on their specifications, namely length, essential oil value, or rolled rate, ranging from $3,000 to around $7,000 per ton. For example, cinnamon products containing a higher value of oil such as a tube or stick cinnamon (from 2 to 5 percent) will be more costly than some others, like broken or spit cinnamon. The average cinnamon wholesale price is from $4000 to nearly $7000 per ton.

In the meanwhile, with a bit lower content of essential oil (from 1.5 – 4%), the prices of broken and split cinnamon are cheaper, typically below $3000. Due to the noticeable differences among prices, wholesalers need to carefully choose their target customers and products.

Main importers

In a report of the Observatory of Economic Complexity (OEC), in 2019, the world’s imported worth of cinnamon was $748M. At the same time, the USA became the biggest importer of cinnamon in bulk with more than $124M of cinnamon import value. India followed the USA and became the runner-up with $90M worth of imported cinnamon.

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Main importers are the USA, India,…

Cassia is reported to be the most common cinnamon variety thanks to its affordable price. Besides Cassia cinnamon, Ceylon is the second-popular one. It experiences tremendous demand from Europeans due to its distinct mild and earthy flavor.

Top suppliers of cinnamon in bulk in the world

Most of the world’s cinnamon is produced and distributed from Asian countries, whose climate and soil foster the development of cinnamon trees. The four large cinnamon exporters are Vietnam, Sri Lanka, China, and Indonesia.

Due to favorable climate and soil, Asian countries are hotspots for the production and distribution of cinnamon. Among them, Indonesia, Vietnam, China, and Sri Lanka are the 4 major cinnamon exporters in the world. 

Vietnam

In 2019, Vietnam experienced the position as the largest cinnamon exporter with $175M worth of wholesale cinnamon sent abroad, making up for nearly a quarter of the global export value.

Behind the impressive popularity of Vietnamese cinnamon is its distinct flavor, which is preferred by the majority of worldwide customers. Vietnamese cinnamon has a different taste, compared to Chinese and Indonesian. Cinnamon from Vietnam contains a high level of cinnamaldehyde, which really boosts the aromatic fragrant and strong flavor. Meanwhile, Indonesian cinnamon tastes lighter and is more bitter when it comes to the Chinese type.

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Vietnam

Sri Lanka

Almost exclusively cultivating the prestigious Ceylon cinnamon, Sri Lanka stood as the second-biggest exporter of cinnamon, recording $163M of export value in 2019. The main customers of Sri Lanka’s cinnamon are Mexico, countries in the EU, and the US. Due to the scarcity of Ceylon, the price of it is much more expensive than the Cassia, ranging from $6,000 to $10,000 per ton. This “extravagant’’ price helps to multiply the export value of Sri Lanka and makes it one of the leading cinnamon exporters in the world.

Indonesia

Making up for one-fifth of the global cinnamon export value, in 2019, Indonesia was the fourth-largest cinnamon exporter with $149M worth of cinnamon. It is due to favorable natural conditions and a close connection between the two nations in terms of wholesale cinnamon to the US, which is a giant in importing cinnamon in bulk. This information is recognized in OEC – a reliable website collecting and assessing agricultural products’ data.

Elements factoring in the price of cinnamon in bulk

It is a must for wholesalers to keep in mind the factors driving the price of wholesale cinnamon.

  • Abundant supply

The output of cinnamon was recorded to rise by 1.7% on average each year (according to IndexBox’s report from 2007 to 2016). This increased rate remained stable without remarkable fluctuations. Between 2019 and 2020, in a report of the World’s Top Exports, there was a surge of exported wholesale cinnamon volume, about +34.8%. Thanks to that superabundant supply source, the trading activities of cinnamon in bulk are streamlined and the price range of cinnamon is maintained stable.

  • Huge demand

According to OEC, wholesale cinnamon’s global import value in 2019 was $748M, experiencing an increase of 30% compared to $587M of the previous year. The demand for trading cinnamon in bulk stays steady through the years due to its various applications in healthcare, cooking, and huge economic potential. This does wonders for wholesale traders because buyers willingly accept a higher price range of cinnamon against other spices.

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Elements factoring in the price of cinnamon in bulk

  • Various governmental policies

In this century, the price of wholesale cinnamon has gradually decreased thanks to the increase in the number of bilateral and multilateral agreements, which boost commercial activities by removing tariffs. For instance, the Eu – Vietnam Free Trade Agreement (EVFTA) took effect, which helped to eliminate 99% of all tariffs. As a result, Vietnamese agricultural products are able to penetrate into the EU’s market much easier than before, including cinnamon in bulk.

  • The Covid-19 pandemic

The trading of cinnamon in bulk in the last 3 years was disrupted by the outbreak of the Covid-19 pandemic. As a giant importer of wholesale cinnamon, China had experienced a remarkable decrease in its demand for this product. Besides, successive quarantines and lockdowns also delayed trading activities, causing cinnamon prices to decrease.

Top repeatable companies supplying cinnamon in bulk

The list below is really helpful for ones struggling to find high-quality and trustworthy cinnamon exporters that come from Vietnam, China, and Indonesia.

K-Agriculture

If you are searching for a prestigious producer as well as a reputable cinnamon factory of Vietnamese cinnamon in bulk, K-Agriculture is an excellent choice for you. With more than 23 years of experience in trading cinnamon in large quantities, the company is given all the credit to provide the best Vietnamese Cassia cinnamon with professional customer service.

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K-Agriculture

Contact us:

  • Phone: +84855 555 837 (Whatsapp Available)
  • Website: vietnamesecinnamon84.com
  • Email: sarahnguyen.kagri@gmail.com

Rempah Sari

This Indonesian company is no longer a strange name to the majority of cinnamon wholesalers. Rempah Sari is famous for its extremely wide range of cinnamon in bulk products and the distinct milder Indonesian Cassia cinnamon.

Jining Sunagro Trade

Jining Sunagro has successively become a giant in exporting cinnamon in China thanks to its firm guarantee for the quality of its products. Cinnamon in bulk of this company is proved by ETI, GRASP, and SGS.

Conclusion

The article has delivered the most important and basic knowledge about trading cinnamon in bulk. If you need to know more information, please visit us through the website https://vietnamesecinnamon84.com/ or phone number +84855 555 837 (Available on Whatsapp) 

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