Cinnamon Market by Product and Geography - Forecast and Analysis 2023-2027

Cinnamon Market Forecast 2023-2027

The Cinnamon Market size is projected to increase by USD 367.94 million and the market size is estimated to grow at a CAGR of 7.64% between 2022 and 2027. The market's expansion hinges on several factors, notably the increasing recognition of spice's health advantages, escalating demand for natural food essences, and the rising interest in organic cinnamon. Consumers are becoming more aware of spice's potential health benefits, driving its popularity as a sought-after ingredient in various food and beverage products. This growing awareness is fueling a surge in demand for natural flavors, with spice being a favored choice due to its distinctive taste and potential health perks. Additionally, the preference for organic products is on the rise, prompting a heightened demand for organic spice as consumers prioritize natural and sustainable food options.

Market Overview

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Key Market Driver

The rising awareness about the health benefits of cinnamon is driving market growth. Due to the growing concern about nutrition and healthy food habits, spice has found increased applications in the food and beverage sector. Due to its antibacterial and anti-fungal qualities, spice is commonly employed as a preservative for a number of foodstuffs and beverages.

Moreover, in order to prevent unwanted clotting of blood platelets, cinnamaldehyde is a substance present in cinnamon oil. It is widely known as a potent cure for colds and the flu, in China's traditional medicine. The diverse health benefits of this spice are expected to continue to aid the adoption of cinnamon in the food and beverage sector, subsequently driving the growth of the global market during the forecast period.

Significant Market Trends

The growing application of cinnamon in pharmaceuticals is a primary trend in the market. With a rising number of bacterial species studied to have built up a resistance to antibiotics, the effectiveness of antibiotic pills and medicines in treating infections has drastically reduced over the last few years. As a result of their antibacterial properties, cinnamon, and cinnamon oil have been increasingly used in medicinal products and pharmaceuticals. Natural antimicrobials are known to be present in these essential oils, which are being studied as a potential replacement for antibiotics.

Moreover, cinnamaldehyde is an organic compound that is responsible for the flavor and odor of cinnamon. The ability of cinnamaldehyde to break up bacterial layers or biofilms that cause several infections provides huge potential for this spice in the medical sector. Overall, the application of this spice in pharmaceuticals is expected to increase the growth of the global market over the forecast period.

Major Market Challenege

The compliance constraints with international food standards and export regulations are a major challenge faced by the market. The key cinnamon exporting countries such as Sri Lanka cannot cater to this spice export demand worldwide as the cinnamon is not meeting buyer specifications. Over the past few years, this has been a major obstacle to market growth for cinnamon worldwide. Regulations concerning product quality and the standards of suppliers are strict in certain important import countries for cinnamon products, such as West European countries. 

Moreover, exporters need to ensure that the exported products follow the General Food Law (GFL), which is the legislative framework regulation for food safety in the EU. However, the strict export rules are expected to remain in force, at the beginning of the forecast period, until a few months later on the world's market. Moreover, the growth of the market in focus is expected to slow down over the forecast period as a result of an expected rise in total production costs for these spice products within major export destinations such as Sri Lanka and Indonesia on account of regulatory compliance costs.

Market Segmentation by Application

The commercial segment includes the food processing industry, which is expected to grow at a pace during the forecast period.  Where spices such as cinnamon, are also used as ingredients in packaged food or beverage products that include processed meat, fish, ready-baked pizzas, and others. Therefore, the demand for cinnamon is growing in the commercial segment. Increasing demand for meat snacks, extruded snacks, crisps, and other varieties of baked savory snacks in most developed countries is influencing the sales of cinnamon. 

Market Segmentation by Product

Cinnamon has long been recognized for its unique flavor and aroma, but its benefits extend far beyond its culinary appeal. Rich in minerals and nutrients, including powerful antioxidants, cinnamon has been linked to several health benefits. It shows promise in managing diabetes by regulating blood sugar levels and improving insulin sensitivity. Additionally, research suggests that cinnamon may play a role in reducing the risk of Alzheimer's disease and combating infections such as the common cold. In the food and beverage sector, cinnamon finds extensive use in various products, from baked goods in bakeries to savory cuisines in the poultry industry. Its anti-inflammatory properties and contribution to healthy eating make it a sought-after ingredient, enhancing the taste and flavor of dishes. Furthermore, its ability to regulate blood glucose levels makes it valuable for individuals managing diabetes.

The market share growth by the cassia cinnamon segment will be significant during the forecast period. Indonesian cinnamon is the most popular variety in the Cassia cinnamon segment. This cinnamon variety is cheaper than Saigon cinnamon and finds predominant application as a flavouring and seasoning agent in baked goods and beverages.  The spice and strong variety of cinnamon, which grows most widely in Vietnam, is Saigon cinnamon. Food and beverage manufacturers use this variety of cinnamon as a flavouring agent.

The cassia cinnamon segment was valued at USD 525.75 million in 2017.

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This cinnamon variety finds application in Chinese medications for ailments such as cough and fever. The revenue of the Cassia cinnamon segment is expected to increase during the forecast period. However, their market share is expected to witness a significant decline. The Cassia cinnamon segment is expected to exhibit slower growth compared to the rapidly growing Ceylon cinnamon segment which will slightly impact the growth of the global market during the forecast years.

Key Regions for the Market 

APAC is estimated to contribute 75% to the growth of the global market during the forecast period.

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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Although APAC has a high diversity in cuisine styles, such as Indian, Chinese, and Thai, cinnamon is widely accepted as a spice and seasoning agent in several countries in the region. Cassia cinnamon has gained huge popularity in India over the last few years; however, growing awareness of health implications associated with Cassia cinnamon is expected to impact the market value in the short term. The market growth in recent years has been driven by the increased utilization of cinnamon in cosmetics and pharmaceuticals. Cinnamon oil and bark, known for their medicinal properties, have been utilized in traditional Chinese and Indian medicine for centuries to address various conditions like indigestion, diabetes, and stress.

As China, Japan, and Southeast Asian countries like South Korea and Singapore emerge as global pharmaceutical hubs, the region is poised to witness further adoption of cinnamon products. The diverse culinary traditions across Asia contribute to the expansion of the market in the Asia-Pacific (APAC) region. Eastern Asian cuisine, including Chinese, Japanese, and Indonesian cuisines, is particularly popular, while Southeast Asian cuisine comprises Thai, Vietnamese, and Malaysian foods. These varied cuisines require different types of cinnamon to enhance the flavors of their dishes, thereby increasing the demand for cinnamon powders and granules. Examples of popular dressings that incorporate cinnamon as an ingredient are sweet roasted sesame and cinnamon paste, soy sauce, fish sauce, dumpling sauce, and other condiments. Historically, APAC has been a prominent producer and consumer of cinnamon.

Company Overview

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Key Offering- Biofoods Pvt. Ltd.: The company offers cinnamon such as cinnamon quills.
• Key Offering- Cell Foods: The company offers cinnamon such as Cell Foods cinnamon.
• Key Offering- Cinnamon Exports Pvt Ltd.: The company offers cinnamon such as Ceylon cinnamon.

The market report also includes detailed analyses of the competitive landscape of the market and information about 23 market companies, including:

• Biofoods Pvt. Ltd.
• Cell Foods
• Ceylon Spice Co.
• Cinnamon Exports Pvt Ltd.
• EHL Ltd.
• Elite Spice Inc.
• EOAS Organics Pvt Ltd.
• First Spice Mixing Co.
• Goya Foods Inc.
• The Great American Spice Co.
• HDDES Group
• McCormick and Co. Inc.
• Organic Spices Inc.
• Ozone Naturals
• Sauer Brands Inc.
• SDS Spices
• Taj Agro International
• The Bart Ingredients Co.
• True Ceylon Spices
• Vijaya Enterprises

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Product Outlook 
  • Cassia cinnamon
  • Ceylon cinnamon
• Application Outlook 
  • Residential
  • Commercial
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • APAC
    • Chili
    • Argentina
    • Brazil

Market Analyst Overview

The market is deeply entrenched in the realms of nutrition and health, given its rich composition of minerals, nutrients, and antioxidants. Studies suggest potential benefits in combating Alzheimer's disease and mitigating symptoms of the common cold, stomach spasms, muscular spasms, nausea, vomiting, gas, and diarrhea. Beyond medicinal use, cinnamon is a popular flavoring ingredient in bread-based foods, cereals, fruits, alcoholic beverages, and more. Its aromatic qualities make it a staple in culinary and personal care products, influencing both the residential and commercial sectors.

Moreover, the essential oil extracted from cinnamon finds applications in nutraceutical products and healthy eating regimes, primarily due to its potential to regulate blood glucose levels and offer anti-inflammatory properties. In the poultry industry, cinnamon is explored as an alternative to antibiotic growth promotors, promoting blood sugar regulation and imparting distinct flavors to savory cuisines, baked goods, and confectionery items. The market's trajectory aligns with growing consumer awareness of organic foods and the multifaceted role of cinnamon as a versatile culinary ingredient with potential health advantages.

Furthermore, the market is deeply rooted in its role as an aromatic condiment, enhancing the flavor profile of various bread-based foods and food products. the market is influenced by several elements such as Bread based foods, the residential sector, the commercial sector, anti-inflammatory properties. The distinct taste of cinnamon, whether in cinnamon powder form or the premium Korintje cinnamon, is highly sought after in both the residential and commercial sectors. Beyond its culinary appeal, cinnamon consumption is associated with potential benefits for various medical conditions due to its anti-inflammatory properties.

In addition, in the culinary industry, cinnamon is a key ingredient in bakeries where it imparts a warm and spicy flavor to pastries, cakes, and bread. Its use extends beyond traditional baking, finding applications in beverages, sauces, and desserts. The market for cinnamon reflects a growing consumer preference for natural and flavorful ingredients, driving innovations in cinnamon-based products.

Market Scope
Report Coverage	Details
Page number	157
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 7.64%
Market growth 2023-2027	USD 367.94 million
Market structure	Fragmented
YoY growth 2022-2023(%)	6.91
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 75%
Key countries	Indonesia, China, Vietnam, Sri Lanka, and India
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Biofoods Pvt. Ltd., Cell Foods, Ceylon Spice Co., Cinnamon Exports Pvt Ltd., EHL Ltd., Elite Spice Inc., EOAS Organics Pvt Ltd., First Spice Mixing Co., Goya Foods Inc., The Great American Spice Co., HDDES Group, McCormick and Co. Inc., Organic Spices Inc., Ozone Naturals, Sauer Brands Inc., SDS Spices, Taj Agro International, The Bart Ingredients Co., True Ceylon Spices, and Vijaya Enterprises
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough market research and growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market growth and forecasting analysis of factors that will challenge the growth of market companies

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