PRODUCT CLASSIFICATION
Rich in antioxidants, essential oils, and bioactive compounds, cinnamon offers numerous health benefits, including anti-inflammatory properties, improved blood sugar regulation, and antimicrobial effects. Beyond its traditional use as a spice in sweet and savory dishes, cinnamon is widely incorporated into confectionery, bakery products, beverages, dairy innovations, and nutraceuticals, making it a versatile ingredient across multiple industries.
From a trade perspective, cinnamon falls under HS Code 0906 in the category of spices, which also includes pepper, cloves, and nutmeg. Its classification highlights its role as a globally traded commodity with cultural and economic significance.
The global cinnamon market was valued at approximately $835 million in 2023, reflecting a slight decline of 11% compared to 2022, but maintaining a steady long-term growth rate of 2.26% annually. Vietnam leads as the top exporter with $245 million in shipments, while the United States is the largest importer at $151 million.
However, production faces challenges such as climate variability, deforestation, and quality control, particularly in regions where cinnamon trees are cultivated. Advances in sustainable farming and certification schemes are helping to mitigate these risks and ensure consistent supply.
Regionally, Asia dominates production, with Vietnam, Indonesia, and Sri Lanka as major suppliers, while North America and Europe drive consumption, especially in the food and beverage sectors.
Cinnamon has a Product Complexity Index (PCI) of -1.99, ranking 1,010th out of 1,044 products in 2023, underscoring its relatively low technological complexity but high cultural and commercial value.
CINNAMON TRADE IN VIETNAM
Vietnam is the leading global exporter of crushed or ground cinnamon, with exports valued at $62.3 million in 2023, representing 31.7% of total global cinnamon exports. Cinnamon is a key agricultural product for Vietnam, underscoring its central role in the spice trade.
The main destinations for Vietnamese cinnamon are:
- United States ($32M)
- Canada ($5.62M)
- Netherlands ($2.56M)
- Mexico ($2.16M)
- Germany ($1.72M)
These figures highlight the dominance of North American and European markets in absorbing Vietnam’s cinnamon supply.
On the import side, Vietnam sources cinnamon primarily from:
- Indonesia ($1.76M)
- Hong Kong ($317k)
- Netherlands ($174k)
- United Arab Emirates ($164k)
- United States ($143k)
Though imports are minimal compared to exports.
Cinnamon is not only one of Vietnam’s most important spice exports but also a driver of bilateral trade relationships. For example, cinnamon accounts for a significant share of Vietnam’s exports to the United States, reflecting its strategic importance in trade balances.
EXPORT
In 2023, Vietnam shipped out $62.3M worth of cinnamon, securing its position as the world’s leading supplier among 132 exporting nations. Within the country’s export portfolio, cinnamon ranked as the 538th most significant product out of 4,097, underscoring its niche but strategic role in the national economy.
The largest buyers of Vietnamese cinnamon during that year were:
- United States ($32M)
- Canada ($5.62M)
- Netherlands ($2.56M)
- Mexico ($2.16M)
- Germany ($1.72M)
Between 2022 and 2023, the most dynamic growth in demand came from:
- Colombia (+$353k, +253%)
- Guatemala (+$247k)
- Mexico (+$182k)
Reflecting shifting trade flows and expanding consumption in new regions.
IMPORT
In 2023, Vietnam brought in a small volume of cinnamon, valued at $2.64M. This placed the country as the 42nd largest importer out of 132 nations worldwide. Within Vietnam’s overall import basket, cinnamon ranked 2,875th out of 4,416 products, highlighting its limited role as an import.
The imports were sourced mainly from Indonesia ($1.76M), with smaller volumes from Hong Kong, Netherlands, UAE, and the United States.
MARKETS FOR CINNAMON EXPORTS
- United States – $32M
- Canada – $5.62M
- Netherlands – $2.56M
- Mexico – $2.16M
- Germany – $1.72M
MARKETS FOR CINNAMON IMPORTS
- Indonesia – $1.76M
- Hong Kong – $317k
- Netherlands – $174k
- United Arab Emirates – $164k
- United States – $143k
CONCLUSIONS
In 2023, Vietnam’s cinnamon trade reinforced the country’s position as the world’s leading supplier of crushed or ground cinnamon. With favorable growing conditions and a long-standing tradition of spice cultivation, cinnamon has become a defining feature of Vietnam’s agricultural exports and international trade profile.
This achievement reflects Vietnam’s ability to connect global demand with local resources, strengthening its role in the global spice market. Such dominance not only highlights the country’s current success but also provides a foundation for future growth, particularly if more value is captured through local processing and diversification.
