Sri Lanka’s Cinnamon market to attain $ 1.89 billion by 2034
The Morning: As per Fact.MR, a provider of market research and competitive intelligence, the global cinnamon market is estimated to account for a value of $ 1.02 billion in 2024 and is forecasted to reach $ 1.89 billion at 6.4% CAGR by the end of 2034. Increasing focus on health and fitness coupled with growing awareness of the benefits of cinnamon consumption are projected to drive market growth over the coming years.
Growing popularity of organic products, evolving consumer preferences, and extensive use of cinnamon in the formulation of different food products are other prospects that could create new opportunities for cinnamon companies across the study period. The South Asia & Oceania region is projected to account for a significant market share over the next 10 years owing to the presence of key cinnamon producers and high consumption of cinnamon.
An increasing number of cinnamon-flavored food products being launched around the world is also projected to drive cinnamon demand in the long run. This study by Fact.MR, a market research and competitive intelligence provider, suggests that East Asia, South Asia & Oceania will collectively account for a leading cinnamon market share by the end of 2034.
Cinnamon suppliers should focus on supplying their products to different industry verticals to diversify their business. Cinnamon companies can also focus on supplying organic cinnamon as the trend of clean labeling and organic ingredients gains prominence on a global level.
To leverage the increasing demand for cinnamon-flavored food items and enhance future sales, suppliers of cinnamon are strategically positioning themselves in the competitive landscape.
In April 2022, Krispy Kreme, a well-known American coffeehouse chain recognized for its delectable doughnuts, disclosed a collaborative venture with Cinnamon Toast Crunch. This partnership resulted in the introduction of a novel Cinnamon Milk doughnut collection, exclusively offered at selected Krispy Kreme outlets in the United States for a limited duration.
Ceylon cinnamon enjoys widespread popularity worldwide due to its exceptional taste, surpassing other cinnamon varieties. The appeal of this cinnamon type lies in its low concentration of coumarin, a compound linked to potential liver damage. Notably, Ceylon cinnamon has gained significant usage in Mexico, where it is a key ingredient in various Mexican culinary preparations. Originating from Sri Lanka, the majority of Ceylon cinnamon is sourced from this region.
Similarly, Cassia cinnamon is widely adopted globally, primarily due to its cost-effectiveness compared to other cinnamon varieties. Its economical nature and robust flavor make Cassia cinnamon a preferred choice in numerous commercial applications.
Fact.MR, in its new offering, presents an unbiased analysis of the global cinnamon market, presenting historical demand data for 2018 to 2023 and forecast statistics for 2024 to 2034.
The study divulges essential insights on the market based on type (Cassia cinnamon, Ceylon cinnamon, Saigon cinnamon, Korintje cinnamon), nature (organic conventional), distribution channel (business-to-business, business-to-consumer), and application (residential, commercial), across six major regions of the world (North America, Europe, Latin America, East Asia, South Asia & Oceania, and MEA).
OSL take:
Sri Lanka’s spice exports have earned attractive returns for the country through the years. Cnnamon exports have been a traditional export commodity. However, cinnamon is now being produced to meet high global standards while also being exported as a value-added commodity. The many trade agreements as well as trade concessions enjoyed by Sri Lanka with other countries have and will continue to boost the export sector, including cinnamon exports. Identify the growing potential in Sri Lanka’s cinnamon exports, local export authorities are engaged in promotional campaigns and educational programmers aimed at diversifying the existing portfolio of cinnamon and cinnamon based products. With the local authorities targeting an increase in revenue generated by cinnamon exports and the introduction of new incentive schemes for businesses interested in engaging in the cinnamon industry, there’s a clear growth in the business/investment opportunities in the cinnamon production and export sectors. Given the business potential in Sri Lanka’s cinnamon industry, foreign businesses/investors could explore the expanding opportunities in the industry while also looking at forming partnerships or joint ventures with local businesses engaged in the industry with the aim of further expansion.
| Article Code : | VBS/AT/20240116/Z_6 |