India is The Biggest Market for Vietnam’s Cinnamon

Vietnam’s Cinnamon Industry Thrives Alongside Pepper and Coffee Exports

Vietnam is not only known for its coffee and pepper exports but also for its vast supply of one of the world’s oldest spices—cinnamon. This rare spice is cultivated in only a few countries, including Indonesia, China, and Sri Lanka. In Vietnam, cinnamon is grown across provinces such as Yen Bai, Lao Cai, Quang Ninh, and Quang Ngai, covering a total area of 180,000 hectares.

According to data from the Vietnam Pepper Association (VPA), Vietnam exported 9,871 tons of cinnamon in July 2024, generating $27.3 million. In the first seven months of 2024, over 54,000 tons were exported, bringing in $154.1 million—an increase of 6% in volume and 0.2% in revenue compared to the same period last year.

India: The Biggest Market for Vietnam’s Cinnamon

India remains Vietnam’s largest export market for cinnamon, with Vietnam being India’s top supplier. In the 2022-2023 fiscal year alone, Vietnam exported over 32,000 tons of cinnamon to India, accounting for 85% of India’s total cinnamon imports. Vietnam’s cinnamon is favored in India for its high oil content and distinctive flavor. India imports cinnamon for two purposes: domestic consumption and further processing for export.

The Oldest Spice in the World

Cinnamon is believed to be the oldest known spice, first discovered and used in China before spreading to Europe and other parts of the world through trade. Cinnamon trees typically take 3-5 years to harvest in low forests, but for higher-quality products, the trees must be over 15 years old. Every part of the cinnamon tree—bark, leaves, flowers, wood, and roots—can be used, making it incredibly valuable.

To boost Vietnam’s global market share in spices, experts suggest diversifying products beyond raw spices to serve industries such as food, cosmetics, and pharmaceuticals. Beyond its economic value, cinnamon plays a key role in preserving biodiversity, alleviating poverty, and supporting sustainable development in forested areas.

Challenges Facing Vietnam’s Cinnamon Industry

Despite its success, some cinnamon products face challenges. For example, cinnamon essential oil struggled with low sales and export restrictions in 2023, with prices falling to as low as 280 – 330 million VND per ton. These challenges were largely due to unfavorable regulations. However, in recent months, prices have started to recover, reaching 360 – 400 million VND per ton. This upward trend is expected to continue as authorities work to resolve export code issues and streamline the regulatory process.

Vietnam’s cinnamon industry is not only contributing significantly to the country’s economy but also playing an important role in global spice markets. As regulations improve and demand grows, Vietnam’s cinnamon exports are poised for even greater success in the years to come.

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