Cinnamon Market Size (2024 – 2030)

The Global Cinnamon Market was valued at USD 1.5 billion and is projected to reach a market size of USD 2.55 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 7.9%.

Cinnamon is a popular spice derived from the inner bark of trees belonging to the Cinnamomum genus and two main types of cinnamon are Ceylon cinnamon (Cinnamomum verum) and Cassia cinnamon (Cinnamomum cassia). The spice is widely used in the food and beverage industry, in the production of essential oils, perfumes, and traditional medicine. The Cinnamon Market is expected to grow significantly in the coming years due to growing consumer preferences for natural and flavorful ingredients.The major well-established key players in the Cinnamon Market are Evergreen Exports (India), HDDES Extracts (Sri Lanka), Ceylon Spice Company (Sri Lanka), Saigon Cinnamon (Vietnam), and Kancor Ingredients Limited (India).

Key Market Insights:

Cinnamon is a potent antioxidant, securing the highest rank among herbs. When compared to other spices, it holds the seventh position in terms of antioxidant content. Its esteemed reputation dates back to ancient times. It has been a valued component in traditional Chinese herbalism since around 3000 BC. Cinnamon is cultivated extensively, covering a significant land area estimated between 50,000 and 100,000 hectares. It plays a crucial role as a spice in the preparation of pho, a popular noodle soup.

Growing demand for natural, healthy ingredients and the expansion of the food industry, coupled with cinnamon's perceived health benefits are propelling the Cinnamon Market. The restraints on the Cinnamon Market include Price fluctuations, supply chain vulnerabilities, climate sensitivity, limited geographic diversity, and competition from synthetic alternatives. Asia-Pacific is the largest and fastest-growing segment during the forecast period. As the leading producer and exporter globally, Indonesia commands approximately 40% of the market share for cinnamon. The country's cinnamon production primarily centers around the cassia variety, characterized by its potent and sturdy flavor profile.

Cinnamon Market Drivers:

Growing Demand for Natural and Healthy Ingredients drives the demand for Cinnamon Market

There is a global trend towards healthier eating habits. Consumers are seeking natural and wholesome ingredients in their food and beverages. Cinnamon is perceived as a natural spice with potential health benefits. Cinnamon includes antioxidant and anti-inflammatory properties, contributing to its popularity among health-conscious consumers. The demand for functional foods that offer health benefits beyond basic nutrition is rising. Cinnamon fits into this trend. It is often incorporated into products aiming to provide additional health advantages.

Expansion of the Food and Beverage Industry is propelling the Cinnamon Market

The demand for functional foods that offer health benefits beyond basic nutrition is rising. Cinnamon fits into this trend. It is often incorporated into products aiming to provide additional health advantages. International cuisine is becoming popular worldwide, and the use of cinnamon in diverse dishes contributes to its increasing demand. Food companies are continually seeking to differentiate their products, driving innovation in formulations. Cinnamon's unique flavor and perceived health benefits make it an attractive ingredient for innovations. Cinnamon's distinct taste appeals to consumers seeking diverse and exotic flavor experiences. This further fuels its incorporation into various food and beverage products.

Cinnamon Market Restraints and Challenges

The major challenges faced by the Cinnamon Market are the climatic conditions and changes in weather patterns. Cinnamon cultivation is sensitive to climatic conditions. Changes in weather patterns can influence crop yields. Unfavorable weather events, such as excessive rainfall or drought, adversely affect cinnamon production, leading to shortages and increased prices. The other restraints to the Cinnamon Market include Price fluctuations, supply chain vulnerabilities, limited geographic diversity, and competition from synthetic alternatives.

Cinnamon Market Opportunities:

The Cinnamon Market has various opportunities in the market. Increasing consumer interest in functional foods and natural ingredients presents opportunities for cinnamon in diverse products. The growing demand for exotic flavors in global cuisines creates avenues for cinnamon as a versatile and distinctive spice. Expanding awareness of cinnamon's potential health benefits with the rising trend of health-conscious consumer choices creates significant opportunities. Market diversification and exploration of new applications, such as in beverages and health supplements, also offer growth opportunities. Other Opportunities in the Cinnamon Market include leveraging sustainable and ethical sourcing practices. This can cater to the increasing consumer preference for socially responsible products.

CINNAMON MARKET REPORT COVERAGE:

Cinnamon Market Segmentation: By Types of Cinnamon

• Ceylon Cinnamon

• Cassia Cinnamon

In 2023, based on market segmentation by Types of Cinnamon, Cassia Cinnamon occupies the highest share of the Cinnamon Market. This is mainly due to its stronger flavor, wider production, and lower cost. The robust and spicy flavor of Cassia cinnamon makes it suitable for various culinary applications. This contributes to its sustained demand and growth.

However, Ceylon cinnamon is the fastest-growing segment during the forecast period and is projected to grow at a CAGR of 15%.  This is due to its milder and sweeter taste. It is often considered a premium variety and has a niche market.

Cinnamon Market Segmentation: By Product Forms

• Ground cinnamon

• Cinnamon sticks

• Cinnamon oil

• Extracts

In 2023, based on market segmentation by Product Forms, the Ground cinnamon segment occupies the highest share of the Cinnamon Market. This is mainly due to its convenience and ease of incorporation into various recipes. It's widely used in baking, cooking, and beverage preparation.

However, the Cinnamon extracts are the fastest-growing segment during the forecast period. This is mainly due to the versatility of cinnamon extracts for flavoring and functional purposes. Cinnamon extracts, including liquid and powdered forms, are finding applications in various industries, including food, pharmaceuticals, and supplements.

Cinnamon Market Segmentation: By Applications

• Food and Beverages

  • Baked goods, confectionery, desserts

  • Beverages (teas, coffees, cocktails)

  • Savory dishes, sauces

• Cosmetics

• Perfumery

• Pharmaceuticals

• Others

In 2023, based on market segmentation by Application, the Food and Beverages segment occupies the highest share of the Cinnamon Market. This is mainly due to the increasing consumption of cinnamon in the food and beverage industry, with applications in baked goods, confectionery, desserts, teas, coffees, cocktails, savory dishes, and sauces.

Cosmetics are the fastest-growing segment during the forecast period. This growth is driven by the demand for natural ingredients in cosmetic formulations and the use of cinnamon in skincare products. Cinnamon is used in cosmetics for its aromatic properties and potential skin benefits.

Cinnamon Market Segmentation: Regional Analysis

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

In 2023, based on market segmentation by region, Asia-Pacific occupies the highest share of the Cinnamon Market. It has a market share of 45%. This growth is due to the rapid growth of the food and beverage industry in the Asia-Pacific region, changing consumer preferences, and urbanization. Indonesia has been the largest producer and exporter of cinnamon globally.

Asia-Pacific is also the fastest-growing segment during the forecast period. This is mainly due to the rising awareness of the health benefits of cinnamon and the incorporation of cinnamon into various food and beverage products. Countries like China and India have significant market share due to growing populations and increasing demand for food products, including those flavored with cinnamon.

COVID-19 Impact Analysis on the Global Cinnamon Market:

The COVID-19 pandemic had a significant impact on the Cinnamon Market. There were lockdowns, social distancing, travel restrictions, safety rules, and transportation disruptions. This affected the supply chain for cinnamon and led to delays in shipments, impacting the availability of cinnamon in certain markets. During the pandemic, the closure of restaurants, cafes, and other food service establishments resulted in a decline in demand for cinnamon in certain applications, particularly in the food service sector. The pandemic accelerated changes in consumer behavior, such as increased focus on health and wellness, home cooking, and a preference for natural ingredients. This influenced the demand for cinnamon. Thus, the pandemic accelerated certain trends in the Cinnamon Market.

Latest Trends/ Developments:

Cinnamon's versatility in both sweet and savory dishes results in continued exploration by chefs and food manufacturers, contributing to its diverse culinary applications. The global culinary scene's ongoing exploration and fusion of diverse flavors also contribute to the integration of cinnamon into an even broader range of cuisines and dishes. The Ongoing scientific research on the potential health benefits of cinnamon, such as its anti-inflammatory and antioxidant properties continues to drive the popularity of cinnamon. There is growing consumer interest in premium and high-quality cinnamon varieties, especially Ceylon cinnamon, as the preference for authentic and unique flavors grows. Companies emphasizing environmentally friendly and socially responsible practices in cinnamon production also gain favor.

Key Players:

1. Evergreen Exports (India)

2. HDDES Extracts (Pvt) Ltd (Sri Lanka)

3. Ceylon Spice Company (Sri Lanka)

4. Bio Foods (Sri Lanka)

5. Aroma Ceylon (Sri Lanka)

6. Cinnatopia (USA)

7. Bio Foods (Sri Lanka)

8. Saigon Cinnamon (Vietnam)

9. Elite Spice, Inc. (USA)

10. McCormick & Company, Inc. (USA)

Market News:

• On January 22, 2024, Blue Bell introduced its newest ice cream variant, Cinnamon Twist, showcasing a blend of brown sugar and cinnamon flavors, accompanied by cinnamon bun dough pieces and a cinnamon icing swirl. This limited-time flavor aims to delight consumers with a sweet twist reminiscent of a popular pastry and is available in both half-gallon and pint sizes, providing a unique and indulgent experience.

• On January 23, 2024, Crumbl, recognized for its extensive rotating cookie menu, revealed a groundbreaking addition – Cinnamon Squares, marking the brand's debut in non-cookie baked treats. Initially tested in select markets and later released nationwide, these delectable squares boast a fluffy cake base infused with brown sugar cinnamon butter and adorned with a vanilla-flavored cream cheese frosting.

• On January 16, 2024, BJ's Restaurant launched the Cinnamon Roll Pizookie, a limited-time dessert featuring four freshly baked cinnamon rolls, vanilla bean ice cream, cream cheese icing, and a warm caramel sauce drizzle. Priced at $5 each, all pizookie flavors, including the new addition, are part of the Pizookie Tuesdays promotion for dine-in, takeout, or delivery, catering to customer demand for the return of the popular Monkey Bread Pizookie.