The export value of Vietnam cassia products reached $220 million in the first 10 months of 2023. However, the cassia industry still lacks a sustainable national development strategy.
In October 2023, Vietnam exported 7,241 tons of cassia, generating $20.5 million, a 28.1% increase compared to September. Most Asian markets showed strong growth, except for India, which saw a 10.8% drop to 2,600 tons. Key increases included Indonesia (93.2%), South Korea (225.8%), Pakistan (242%), and Bangladesh (900%).
The United States ranked as Vietnam’s second-largest cassia export market in October, with 847 tons, up 24% from September.
By the end of October 2023, Vietnam cassia products exported 74,744 tons, totaling $220.3 million. This marked a 19.2% increase in volume but a 1.3% decrease in value compared to the same period in 2022.
The average export price for cinnamon in the first 10 months of 2023 was $2,948 per ton, down 17.2% from 2022.
There are main export markets of Vietnamese cinnamon products:
India: 32,795 tons (43.9% market share), up 24.7%.
United States: 8,379 tons, up 11.2%.
Bangladesh: 4,780 tons, up 25.7%.
Brazil: 2,538 tons, up 30.6%.
Indonesia: 2,202 tons, up 75.7%.
According to Mr. Tiep, from the Ministry of Agriculture and Rural Development, demand for Vietnamese cassia is increasing in food, cosmetic, and pharmaceutical industries. These cassia products are heavily consumed in South Asia, the Middle East, East Asia, the United States, and EU countries.
Mr. Anh, Chief of the Vietnam Pepper Association, stated that Vietnam currently has more than 160,000 hectares of cassia, producing 45,000 tons annually. Also, global demand for Vietnamese spices remains high, and Vietnam benefits from free trade agreements. However, the cassia sector lacks a national sustainable development strategy. Vietnamese spice companies face technology and capital shortages, limiting deep processing and value addition.
Geopolitical instability might disrupt prices, while competitors like Indonesia and China pose ongoing challenges. Climate change and rising costs further strain supply chains, impacting agriculture globally.
Global spice consumption trends emphasize eco-friendly production, carbon reduction, traceability, quality assurance, and value-added organic products. Mr. Anh suggested that improving quality and cutting production costs are essential to creating competitive, high-value products. Therefore, companies should diversify products, markets, and cultivation regions while focusing on deep processing, particularly farm-to-table spice products.
Also, stable spice cultivation areas and comprehensive regional planning are vital for long-term investment strategies.
Mr. Cong, Vietnam’s Agricultural Counselor in the EU, noted Europe is a leading importer of spices, accounting for one-fourth of global imports, with over 95% sourced from developing countries. Between 2019–2021, imports from developing nations reached €1.8 billion, growing 9% annually. Also, Europe’s high average import prices make it an attractive target market for Vietnamese spice suppliers. However, exporters must meet stringent requirements, including strict controls on harmful substances, pesticide residues, heat treatments, and transparent supply chains.
Mr. Huy, Vietnam’s Agricultural Counselor in the U.S, highlighted increasing spice demand due to consumers’ focus on health and immunity post-COVID-19. To expand market share, Vietnam should diversify spice products for food, cosmetics, and pharmaceutical industries.
Spice crops also hold ecological value, preserving biodiversity and providing economic benefits under forest canopies. These attributes align with green consumption trends, which U.S. consumers increasingly prioritize.
To boost exporting Vietnam cassia products, we must embrace sustainable cultivation, enhance quality, expand value-added products, and meet stringent market requirements. Aligning with global trends like green consumption and eco-friendly production is essential to secure a competitive edge.
Vietnamese sources: Bao cong thuong