Vietnam tops the world in cinnamon exports

This information was presented at the Sustainable Development Workshop for the Vietnamese cinnamon industry in 2023, organized by the Ministry of Agriculture and Rural Development in collaboration with various organizations on November 15. The event also introduced the Public-Private Partnership (PPP) Working Group on pepper and spices, a Sub-committee on the cinnamon industry.

In 2022, Vietnamese cinnamon accounted for 18.2% of global production but held a 34.4% share in the global cinnamon export market. Vietnam is also the world’s top exporter of cinnamon, with an export value exceeding USD 292 million.

According to the Vietnam Pepper Association, as of the end of October 2023, Vietnam exported 74,744 tons of cinnamon, generating USD 220.3 million, a 19.2% increase in volume but a 1.3% decrease in value compared to the same period last year. The average export price of cinnamon over the first 10 months was USD 2,948 per ton, a 17.2% decrease from the same period in 2022.

The primary export markets for Vietnamese cinnamon are India, holding a 43.9% market share, followed by the United States, Bangladesh, and others.

While cinnamon has significant export potential, it is also influenced by the trend of green and sustainable consumption, carbon reduction, and the need for source traceability. Quality assurance, especially regarding pesticide residues, is crucial. For example, the U.S. tightly regulates the use of prohibited substances.

Despite being the world leader in cinnamon exports, Vietnam lacks a clear national-level strategic direction for sustainable development and lacks mechanisms to conduct timely research to meet market demands.

The issue of seed quality remains unresolved, with no research on leading varieties. This is a key factor contributing to Vietnam’s cinnamon output being significantly lower than the global potential, especially compared to China.

@Cafef