Organic Cinnamon from Vietnam Dominates the Canadian Market
Vietnam’s Growing Role in the Global Cinnamon Market
Vietnam, the third-largest cinnamon producer worldwide after Indonesia and China, continues to strengthen its presence in global markets. In 2022, Vietnam's cinnamon export value reached $276 million, reflecting consistent growth over the years.Lao Cai province has emerged as a key player in organic cinnamon cultivation. Out of 50,000 hectares of cinnamon plantations, 3,600 hectares have achieved organic certification. Farmers in Lao Cai manually weed instead of using pesticides, ensuring product safety. The “Eco-Farmer Certification,” renewed annually, highlights the region’s commitment to sustainable and safe forestry production.
By 2030, Lao Cai aims to stabilize 65,000 hectares of cinnamon plantations, with one-third cultivated organically. This expansion aligns with the province’s goal of targeting premium international markets such as Europe and the U.S.
Cinnamon Exports Surge in Canada
Vietnam’s cinnamon exports to Canada rose by over 43% last year. Canadian businesses are increasingly recognizing Vietnam's production capacity and benefiting from the CPTPP Agreement’s tax advantages. If the current growth continues, Vietnamese suppliers could capture 50% of Canada’s cinnamon market in the near future.Cinnamon and star anise are essential in industries such as food, pharmaceuticals, and cosmetics. Their use extends to beverages like coffee and matcha, where they enhance flavor. The global demand for cassia essential oil has remained high, contributing to rising prices since 2016.
In recent years, the export value of cinnamon and star anise has shown steady growth, increasing from $245 million in 2020 to $274 million in 2021, and reaching $276 million in 2022.
Future Opportunities and Challenges
The global organic spice market is projected to grow by 4.6% annually, reaching $15 billion within a decade. For cinnamon specifically, an average annual growth rate of 14% is expected through 2025. These trends offer a significant opportunity for Vietnam to expand its market share.However, only a small portion of Vietnam’s 150,000 hectares of cinnamon plantations is certified organic. To enhance market competitiveness, Vietnam’s Trade Office in Canada has encouraged enterprises to focus on deeply processed products rather than raw exports. Certifying geographical indications for Vietnamese cinnamon will also help distinguish it from competitors like South Asian Ceylon cinnamon.
Conclusion
Vietnam’s organic cinnamon industry is well-positioned to meet growing global demand. By expanding organic cultivation, focusing on value-added products, and leveraging trade agreements like CPTPP, Vietnam is set to dominate markets such as Canada, the U.S., and Europe. These strategic efforts will further solidify Vietnam’s role as a leader in the global spice trade.Click here to reach our trading platfrom CMBroker
