Cinnamon is a tree that can only be grown in a few countries, mainly in countries including Indonesia, China, Vietnam and Sri Lanka. In Vietnam, cinnamon is grown in provinces such as Yen Bai, Lao Cai, Bac Kan, Quang Ninh, Quang Nam, Quang Ngai, Thai Nguyen.
Normally, low-lying cinnamon forests can be harvested after only 3-5 years. However, for high-quality products, cinnamon trees must be over 15 years old. All parts of the cinnamon tree such as bark, leaves, flowers, wood, and roots can be used. According to estimates, the total annual global cinnamon production is about 242,000 tons, with total export trade of 154,000 tons.
Cinnamon output of the world's four largest producers is Indonesia with 89,000 tons, China with 82,000 tons, Vietnam ranked 3rd globally in cinnamon output with 41,000 tons, and Sri Lanka with 24,000 tons.
Although Vietnam's cinnamon output is about 41,000 tons/year, only half that of China and Indonesia, our country is currently leading the world in cinnamon export turnover. In 2022, Vietnamese cinnamon accounted for 18.2% of output but 34.4% of global cinnamon export market share with a turnover of over 292 million USD. In addition to domestic output, our country also imports a large amount of cinnamon from China and Indonesia.
 |
| Vietnam's cinnamon imports in June reached 282 tons, worth nearly 1 million USD, down 26% compared to the previous month. |
According to preliminary statistics from the Vietnam Pepper Association (VPA), Vietnam's cinnamon imports in June reached 282 tons, worth nearly 1 million USD, down 26% compared to the previous month.
In the first 6 months of the year, our country imported 2,734 tons of cinnamon with a turnover of 6.4 million USD, down 75% in volume and 77% in turnover. Notably, China is the largest cinnamon supplier to Vietnam with 1,188 tons, accounting for 43% of Vietnam's import structure.
In 2023, Vietnam imported 14,806 tons of cinnamon, with a turnover of 37.6 million USD, compared to the same period in 2022, the import volume decreased by 28%. The two main suppliers are still China and Indonesia, accounting for 81.2% and 12.6%, reaching 12,017 tons and 1,869 tons, respectively.
Currently, Vietnamese cinnamon has been exported to nearly 100 countries around the world, accounting for 95% of the Indian market, 36.5% of the US market and 35% of the European market. However, the export rate of processed cinnamon only accounts for 18.6%, equivalent to 18,659 tons, of which 70% is exported to the US and 12% to Europe.
Despite its high position in the international market, experts assess that the potential and advantages of the cinnamon industry have not been fully exploited. The reasons are fragmented production, lack of high-quality products, and the presence of heavy metals and pesticides, leading to a lack of competitive advantage.
Comment (0)