Organic cinnamon from Vietnam has strong presence in India, the US, and European countries. Notably, in 2022, organic cinnamon exports experienced a significant surge in Canada.
Currently, Vietnam ranks as the third-largest cinnamon producer worldwide, following Indonesia and China. Vietnam’s cinnamon export value has steadily increased over the years, reaching approximately $276 million in 2022.
Organic cinnamon from Vietnam
To achieve sustainable growth in cultivation and export, a macro-level plan is essential. Only doing it well, Vietnamese cinnamon products meet stricter requirements from the demanding markets. Understanding these requirements, Lao Cai province has been developing an organic and clean raw material zones to enhance product value.
The “Eco-Farmer Certification,” annual renew, serves as a passport and testament to safe forestry production methods. Instead of using pesticides, local farmers manually weed to ensure product safety.
Out of over 50,000 hectares of cinnamon in Lao Cai, around 3,600 hectares have received organic certification. Organic cinnamon has not only increased farmers’ income but also created opportunities to expand into demanding markets.
A leader from a cinnamon supplier in Vietnam shared, “We’ve been purchasing Vietnamese cinnamon materials for a long time. Visiting the region and directly evaluating products from cooperatives has allowed us to set specific requirements for their production.”
Organic broken cinnamon from Vietnam
With favorable policies to attract businesses, Lao Cai now hosts 16 facilities producing cinnamon essential oils and cinnamon products. The expansion of organic cinnamon plantations and the stable operation of processing enterprises contribute to a sustainable production chain for cinnamon trees.
According to the Chairman of the Lao Cai, “Developing sustainably through organic cultivation allows us to explore new markets, particularly demanding ones like Europe or the U.S.” Lao Cai aims to stabilize approximately 65,000 hectares of cinnamon by 2030, with one-third cultivated organically.
Vietnam currently boasts about 150,000 hectares of cinnamon, accounting for 17% of the global total. In addition, cinnamon is primarily grown in Yen Bai and Quang Nam provinces. Total annual output of cinnamon barks estimates more than one million tons.
Vietnamese cinnamon products are widely consumed in various markets such as the U.S., EU, China, and India. Notably, over the past year, cinnamon exports to the Canadian market experienced a significant surge, increasing by over 43% compared to the previous year.
Organic cinnamon sticks from Vietnam
Thanks to the benefits of the CPTPP Agreement, Canadian businesses are increasingly recognizing Vietnamese products and production capacity. If growth continues, Vietnamese cassia suppliers could capture 50% of Canada’s cinnamon market in the coming years.
Besides being spices, cinnamon and star anise are important materials in food, pharmaceutical, and cosmetic industries. They make coffee, matcha, and beverages more flavorful. The global demand for cassia essential oil has remained high, driving prices higher, especially since 2016.
According to the statistics, the export value of cinnamon and star anise has risen consistently year by year. It was from $245 million in 2020, to $274 million in 2021, and $276 million in 2022.
Recent analyses predict that the global organic spice market will grow at least 4.6% annually. The annual market scale will reach to $15 billion over the next decade. For cinnamon specifically, the average annual growth rate is expected to be 14% through 2025. This presents a significant opportunity for Vietnam, as cinnamon is highly favored worldwide.
Organic cinnamon box from Vietnam
However, only a small portion of 150,000 hectares of organic cinnamon from Vietnam has been certified. To enhance market share and product value, Vietnam’s Trade Office in Canada encouraged processing enterprises to emphasize on deeply processed products rather than relying on raw exports.
Canadians increasingly prefer cinnamon in their cuisine and health care. Particularly after COVID-19, studies have highlighted cinnamon’s immune-boosting properties. The CPTPP has provided tax advantages, helping us surpass competitors like Indonesia and India.
To increase market share, it is necessary to certify geographical indications for Vietnamese cinnamon. This will promote and differentiate Vietnamese cinnamon from South Asian Ceylon cinnamon. Additionally, processing businesses should collaborate with other industries to enhance the added value.
Vietnamese source: https://vtv.vn/kinh-te/que-viet-nam-chiem-linh-thi-phan-tai-canada-20230215124056209.htm