Getting Started With Wholesale Cinnamon A Guide for Beginners

Cinnamon is a highly sought-after and versatile spice, widely used in various culinary and health applications. This beginners’ guide will walk you through the steps required to enter the profitable world of wholesale cinnamon trade. Learn the basics of sourcing, pricing, and selling cinnamon to establish a successful business.

1. The potential of wholesale cinnamon in the future

Cinnamon is a spice that comes from the Cinnamomum family of plants. These plants are native to South America, the Caribbean, and Southeast Asia. Cinnamon is used in many different industries, such as food and drink, cosmetics, and pharmaceuticals. Through in-depth research, the number of ways cinnamon can be used has grown a lot, as well as the demand for this spice.

• The COVID-19 pandemic has caused a disturbance in the operation of the cinnamon wholesale market, which has affected cinnamon exports, especially in China and India. India completely closed the border making it impossible to export cinnamon. China, a major importer of Indian spices, including cinnamon, has seen demand plummet due to the COVID-19 outbreak.
• By 2022, the economy has stabilized after the pandemic, and the demand for spices in countries has begun to increase. It is time for wholesale cinnamon to return to the market, according to the financial report for 2022, the wholesale cinnamon market is predicted to have a compound annual growth rate of 2.6% within the next 5 years (2022). -2027).
• Many latest analyzes confirm that within the next 10 years, the world organic spice market will grow at least 4.6% per year, and reach a total value of 15 billion USD. Particularly for the wholesale cinnamon market, from now to 2025, the average growth rate will be 14% per year.

The global demand for cinnamon essential oil, in particular, is enormous and consistently high. The global demand for cinnamon has outpaced the growth in supply, driving up the price of wholesale cinnamon in recent years, notably since 2016.

Through the above data, it can be seen that the cinnamon wholesale industry is an extreme potential in business.

When you buy wholesale cinnamon, you get many profits.

Buying at wholesale cinnamon prices saves you interest more than retail purchases. When wholesale cinnamon you will not have to worry about inventory because the demand for the use and application of cinnamon is always higher than the quantity that can be produced in time to meet the market. In the US, the selling price of cinnamon is about $89,000/ MT while the average import price is only about $5,860/ MT. If calculated according to the purchase price of wholesale cinnamon, the cinnamon wholesaler will make a profit of 15 times the total cost.

2. Types of wholesale cinnamon are often marketed

Since ancient times, people have valued cinnamon for its medicinal effects. Cinnamon is a spice derived from the inner bark of a tree known scientifically as Cinnamomum.
Cinnamon is now widely accessible and reasonably priced in most supermarkets. It is also used as an ingredient in many dishes and meals.

2.1. Raw cinnamon on the wholesale cinnamon market

To put it simply, the climate and soil conditions are ideal for growing cinnamon trees. In 2020, the most cinnamon was produced in Indonesia, Vietnam, China, and Sri Lanka. The following data will show the drawbacks and merits of wholesale raw cinnamon and processed cinnamon.

• Benefits of raw cinnamon wholesale:
  • Wholesalers save more money than buying processed cinnamon. Cinnamon is now used for many different things, so buying raw cinnamon will help Cinnamon wholesalers will not have to bear much processing
  • Cinnamon wholesalers pay more with cinnamon processing raw cinnamon without much processing as well as censorship process. It simply needs to be peeled off the tree and selected based on its size, moisture content and how it will be transported. If raw cinnamon is cheap, the total order value will be cheaper, and the wholesaler will pay less tax because the tax is based on the total order value.
  • Depending on what the buyer wants to do with the cinnamon, wholesale cinnamon will give them more freedom to create the finished product and save them money. So it is very easy to buy raw cinnamon in the market.
• Risks of raw cinnamon wholesale:
  • Wholesale cinnamon buyers may encounter poor-quality raw cinnamon lines, for example, cinnamon is grown in areas that are not fertile, so they cannot produce genuine cinnamon products.
  • In addition, raw cinnamon, if not carefully preserved when packaging the product, may be mouldy. Therefore, cinnamon traders need to pay attention to maintaining the temperature of the cinnamon bark, storing it dry and avoiding direct sunlight when transporting when buying.

When dealing in cinnamon at wholesale prices, you should choose reliable exporters and thoroughly inspect the products; If the cinnamon bark is cracked, the quality will be reduced, costing a lot of money to trade.

2.2. Processed cinnamon on the wholesale cinnamon market

Because of how easy it is to utilize and distribute processed cinnamon, including cinnamon essential oil and cinnamon powder, it is a great choice when starting a business wholesale cinnamon.

• Benefits of processed cinnamon wholesale
  • Due to its widespread acceptance and numerous uses in a variety of industries, including food, medicine, and cosmetics, cinnamon essential oil and powder present a huge market opportunity for wholesale cinnamon. Because there is always more demand than supply, when you buy cinnamon in large quantities, you won’t need storage, which means wholesalers will make more money.
• Risks of processed cinnamon wholesale
  • The main threat that cinnamon traders face when importing processed cinnamon is not being able to find processing factories and suppliers of good quality and qualified cinnamon to wholesale cinnamon.
  • When trading processed cinnamon, buyers have to bear more costs such as processing, packaging, inspection fees and more importantly, export tax for cinnamon wholesalers.

In general, there are benefits and drawbacks to importing both raw and processed cinnamon. Selecting a reliable supplier when starting wholesale cinnamon is the most crucial step in ensuring that only high-quality cinnamon makes its way to stores and restaurants. Choose the best cinnamon for your needs based on the details we provide.

3. The world’s largest wholesale cinnamon countries

Sri Lanka, Malabar, Vietnam, India, Cochin-China, Sumatra, and the Eastern Islands are the most popular locations for production and wholesale cinnamon. The cinnamon trade accounted for only 0.0041% of global production in 2019, placing it at 962nd place on the list of most traded products.

The Asia Pacific region holds the largest market share of cinnamon and is expected to grow at a CAGR of 7.9% during the forecast period. The highest cinnamon production in this region drives market growth globally.
Indonesia is the largest cinnamon producer with an output of 89657 tons in 2019, dominating the Asia Pacific region.
The Asia Pacific region is the leading cinnamon exporter globally, for example, in 2019, the top cinnamon exporting countries are Vietnam ($0.175 billion), Sri Lanka ($0.163 billion), and China (0.156 billion USD) and Indonesia ($0.149 billion).

3.1. Vietnam wholesale cinnamon

Vietnam with the world’s leading cinnamon export volume with $0.175 billion – this can be the optimal choice when you want to wholesale cinnamon.

• Vietnam owns 2,000,000 hectares of cinnamon forest and continues to expand the area to meet the needs of the current cinnamon market. Vietnam is also a long-standing country of cinnamon exploitation and production for export and supply to wholesalers.
• Vietnam also owns large-scale processing factories of raw cinnamon, cinnamon processing with up to 200 distilleries of cinnamon essential oil and smaller-scale factories with an output of 300-800kg/base/year. Each year, the total production of raw cinnamon reaches 22,000 tons and 600 tons of pure cinnamon.

The proof is that Vietnam, a promising country, can meet the demand for raw cinnamon and processed cinnamon in wholesale quantities and also has reliable high quality cinnamon wholesale factories that can import export and distribute to both other countries and businessmen.

3.2. Sri Lanka wholesale cinnamon

Sri Lanka is known as the country with the best quality cinnamon in the world.

• Sri Lanka accounts for 10% of the world’s cinnamon production with 25,000 hectares of cinnamon growing land here.
• Sri Lanka only supplies Ceylon cinnamon to wholesale cinnamon and the price of this cinnamon is quite high compared to other types of raw cinnamon.

However, the scale of cinnamon cultivation in this country has decreased gradually over the years, so when you wholesale cinnamon, consider the type of cinnamon you choose and the source of capital when importing Ceylon cinnamon from Sri Lanka.

3.3. China wholesale cinnamon

When it comes to international sales, China is third for wholesale cinnamon. However, with the greatest population in the world, the local supply of cinnamon may not be sufficient to meet domestic demand.
Cinnamon is grown in numerous countries, and China can import it from there as well, including Vietnam and Indonesia. When looking for a wholesale cinnamon supplier, finding one that can meet your specific needs is important.

3.4. Indonesia wholesale cinnamon

Indonesia is the largest cinnamon-growing country in the world with an output of 89,000 tons of cinnamon.

• Cinnamon of the Cassia variety, widely used in common spices and medications, is primarily grown in Indonesia. Due to the rapid surge in demand for cinnamon during the Covid outbreak, the price of cinnamon has soared in Indonesia.
• To yet, however, the wholesale cost of cinnamon has remained constant when compared to the global average. For wholesalers of cinnamon who plan to join the Indonesian market, this will also be a reliable source of cinnamon.

4. Price of wholesale cinnamon

Prices of wholesale cinnamon in the world’s largest countries

Countries	Price ( USD/MT)
China	2790 – 2250
Vietnam	12530 – 12420
Indonesia	3640 – 3420
Sri Lanka	10240 – 11570

Sources: Synthesized from Selina Wamucii

From the data table, it can be seen that the difference in the wholesale price of cinnamon between countries is quite large. China is currently the country with the lowest cinnamon price, after Indonesia, despite the fact that China’s cinnamon exports are the second largest in the world. Vietnam’s pepper price is the highest

The cause of the difference in pepper prices between countries can be due to the different labour costs of each country, the number of products and the quality and variety of cinnamon between different countries. We will analyze these factors in more detail in the following section

5. Factors that affect the wholesale cinnamon value

The cost of wholesale cinnamon in the current market might vary depending on a number of factors. The price of bulk cinnamon could alter depending on factors such as the weather, disease, crop harvest, and political climate….
Due to the fact that cinnamon is now a product with multiple industrial uses, there is a growing demand for it, but not enough supply to meet it. Because of this, the price of cinnamon is rising because there is a shortage compared to the demand. Allow our specialists to develop practical strategies to begin selling wholesale cinnamon.

• Supply for wholesale cinnamon: Statistics show that the countries of the Asia-Pacific area have the greatest supply of cinnamon to supply the market’s rising demand. Wholesalers might select nations like Vietnam, Indonesia, and China because their plentiful supplies will provide a steady wholesale price for cinnamon and shield traders from the risk of a decline in the value

• Increased demand for wholesale cinnamon: The global cinnamon trade is expected to grow by $214.73 million, achieving a CAGR of more than 21% during the forecast period adding that the global cinnamon trade market size has the potential to grow by $214.73 million during the forecast period. period 2020-2024. This is one of the signs showing an increase in consumer demand for cinnamon

• Government policies from exported wholesale cinnamon: Countries have gradually reduced trade restrictions, shaken hands, and signed numerous accords that are good for the economy in recent years. especially in agriculture. Besides peppers wholesale, rice wholesale…. Policies from countries that export and import have assisted in stabilizing the price of wholesale cinnamon, cutting unneeded expenses, and enabling cinnamon traders to purchase cinnamon at a more affordable price.

6. List of reliable manufacturers for your wholesale cinnamon

We will provide you with a list of trusted suppliers so that you can start your own wholesale cinnamon business easily.

• VINASAMEX: Vinasimex is one of the largest companies in Vietnam, and its wide range of high-quality organic products has made it famous around the world. This company has the best cinnamon production base in Vietnam, so the price of wholesale cinnamon will be higher than average at this company. But compared to Sri Lanka or Indonesia, the price of wholesale cinnamon in this country is still lower and the quality is the same.

• Nghia Hoan Viet Agri Export: Known as the best cinnamon supplier in Vietnam because of the quality of its products and how much they care about its customers. Hoan Nghia Viet Agricultural Products Export Company owns a lot of production plants to make sure they have enough cinnamon and that it is of good quality. Cinnamon wholesalers can also get services for custom product packaging. People in the market trust Viet Agri Export because their prices are lower than those of many other companies that supply wholesale cinnamon in the market.

• Lak Cinnamon: Lak Cinnamon is a famous company in Sri Lanka, which has great advantages in the production and distribution of prestigious Ceylon cinnamon. Buyers who come to this company are always satisfied by the excellent product quality and professional customer service. The wholesale price of cinnamon in Sri Lanka is always more expensive than other types of cinnamon on the market, but compared to the quality of Ceylon cinnamon they offer, the price is completely worth it.

After reading this post, Viet Agri hopes you have fully understood the wholesale cinnamon market and started your own cinnamon company.