Indonesia Leads Vietnam’s Cinnamon Imports
Indonesia Tops Vietnam’s Cinnamon Import Market
In September 2024, Indonesia solidified its position as Vietnam’s largest cinnamon import market. Vietnam imported 2,024 tons of cinnamon from Indonesia, representing nearly 107% of its total cinnamon imports—a figure reflecting re-exports or complex trade dynamics. The Vietnam Pepper and Spice Association (VPSA) valued these imports at $216 million, a slight 0.5% decline compared to August.Indonesia’s exports to Vietnam included 14.6 tons, showcasing its growing role in meeting Vietnam’s cinnamon demand.
During the first nine months of 2024, Vietnam imported 3,448 tons of cinnamon, valued at $8.3 million. This marked a sharp 74% decline in volume and a 76% drop in value compared to the same period in 2023. This decline reflects reduced domestic demand for imported cinnamon and increased reliance on local production.
Vietnam’s Cinnamon Exports Stay Strong
On the export front, Vietnam showed resilience despite market fluctuations. Between January and September 2024, Vietnam exported 69,350 tons of cinnamon, generating $194.2 million in revenue. While export volumes rose by 2.7%, the value dipped by 2.8%, driven by price pressures in global markets.Prosi Thang Long emerged as a leading exporter, shipping 9,999 tons and capturing 14.4% of Vietnam’s cinnamon export market share. Vietnam continues to dominate major markets, including India, China, Bangladesh, and the U.S., reinforcing its status as the world’s top cinnamon exporter.
Cinnamon: A Pillar of Vietnam’s Economy
Cinnamon cultivation spans approximately 180,000 hectares across Vietnam’s northern mountainous provinces and the North Central Coast. Annual production ranges from 70,000 to 80,000 tons, supported by an estimated cinnamon bark reserve of 900,000 to 1.2 million tons.In 2022, Vietnam’s cinnamon export turnover exceeded $292 million, cementing its leadership in the global market. By 2023, exports grew to about 90,000 tons, a 14.6% increase in volume. However, export value declined by 10.7%, reflecting shifts in international pricing.
Global Demand Fuels Opportunities for Vietnam
Vietnam’s cinnamon dominates several international markets:- India: Accounts for 95% of Vietnam’s cinnamon exports.
- U.S.: Covers 36.5% of the market.
- Europe: Represents 35% of cinnamon exports.
Cinnamon Cultivation and Expanding Potential
Ethnic minority households in remote provinces are at the heart of Vietnam’s cinnamon cultivation. Key growing regions like Yen Bai, Lao Cai, Thanh Hoa, and Nghe An show high potential for expansion, with the government actively promoting sustainable farming practices.Global demand for cinnamon continues to rise, not only in the food industry but also in pharmaceuticals, cosmetics, and functional foods. To meet these demands, Vietnam is investing in modern processing facilities for products like cinnamon powder and ground cinnamon.
Conclusion: Vietnam’s Cinnamon Industry at a Crossroads
Vietnam’s cinnamon industry remains a global powerhouse, supported by robust exports and favorable growing conditions. However, challenges like declining export values and the underperformance of processed cinnamon highlight the need for strategic investments.By focusing on quality improvements and diversifying its product range, Vietnam is well-positioned to maintain its leadership in global markets while exploring new opportunities in high-demand sectors.
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