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Global Cinnamon Market to Witness Rapid Growth in Demand During 2020 - 2030

Cinnamon is increasingly becoming one of the most demanded spices across the food and beverage industry, owing to its vibrant flavor and several health benefits. Food manufacturers are utilizing cinnamon to make different types of beverages, which are widely being accepted by consumers. Cinnamon spiced tea, apple cinnamon spritzer, cinnamon-spiced coffee, and cinnamon spice punch are some of the cinnamon-flavored beverages that are becoming popular amongst consumers. Furthermore, cinnamon is also widely utilized in several alcoholic beverages to provide a cinnamon flavor to the drinks. Fireball cinnamon whisky, Cannella spirits, and Goldschlager cinnamon schnapps are common examples of cinnamon-flavored alcoholic offerings.

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The global cinnamon market has witnessed substantial growth over the past few years, and this trend is expected to continue through the course of the forecast period (2020 to 2030). The global cinnamon market is estimated to rise at a steady CAGR of 4% during the forecast period.

Key Takeaways from Cinnamon Market Study:

By type, Ceylon cinnamon is expected to register the highest growth rate in the global cinnamon market during the forecast period. A major contributing factor is the high quality of Ceylon cinnamon along with the low level of coumarin.
The food industry is dominating the global cinnamon market by end use with the highest market value share. High use of cinnamon powder in bakery and confectionery products, and as a dressing, is majorly responsible for this prominent market value share.
By form, cinnamon extract is estimated to register a higher CAGR than whole cinnamon, owing to the increasing use of cinnamon oil in cosmetics and personal care products, along with increasing use of cinnamon powder in the foodservice industry.
The conventional segment is dominating the cinnamon market with the highest market value share. However, the growing influence of organic food products is a major growth factor that will surge the organic segment in the future.
Due to the coronavirus pandemic, the export of agriproducts such as cinnamon has slowed down, especially from South Asia and East Asia. The pandemic has had an immediate negative impact on the demand for cinnamon from food processors and manufacturers, who are the key importers of cinnamon, especially in North America and Europe.
Post pandemic, more stringent export protocols and regulations may be outlined. This may continue to impact the supply chain for the second quarter and initial half of the third quarter of 2020, and impact the demand for food processing and agri-produce such as cinnamon.

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Cinnamon Market: Competitive Landscape

The cinnamon market is consolidated in nature. Key players operating in the cinnamon market are adapting their market strategies to benefit the most from prevailing market trends. Leading manufacturers are adopting strategies such as business expansion and strengthening their supply chain with a focus on increasing production capacity. Additionally, manufacturers are aiming to cater to the rising number of health-conscious consumers to gain a competitive advantage.

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