Cinnamon exports earned more than 220 million USD in the first 10 months of 2023

According to the Vietnam Pepper Association, in October 2023, Vietnam exported 7,241 tons of cinnamon, total export turnover reached 20.5 million USD, compared to September, the export volume increased by 28.1%.

Cinnamon exports earned more than 220 million USD

In the Asian region, only exports to India decreased by 10.8% to 2,600 tons, while exports to other markets increased sharply such as: Indonesia increased by 93.2%; Korea increased by 225.8%; Pakistan increased by 242%; Bangladesh increased by 900%…

Vietnam's second largest cinnamon export market in October was the United States, reaching 847 tons, up 24% over the previous month.

By the end of October 2023, Vietnam exported 74,744 tons of cinnamon, total export turnover reached 220.3 million USD, up 19.2% in volume and down 1.3% in value over the same period. last year.

The average export price of cinnamon in the first 10 months of 2023 reached 2,948 USD/ton, down 17.2% compared to the same period in 2022.

The main export markets of Vietnamese cinnamon include: India reaching 32,795 tons, accounting for 43.9% of the market share and increasing by 24.7%; The United States reached 8,379 tons, an increase of 11.2%; Bangladesh reached 4,780 tons, an increase of 25.7%; Brazil reached 2,538 tons, an increase of 30.6%; Indonesia reached 2,202 tons, an increase of 75.7%.

The top 5 cinnamon exporting enterprises in the Vietnam Pepper Association include: Prosi Thang Long reaching 11,971 tons, down 3%; Senspices Vietnam reached 4,360 tons, an increase of 49.9%; Son Ha spices reached 3,868 tons, down 5.5%; Olam Vietnam reached 2,551 tons, down 35.8%; Expo Commodities reached 2,483 tons, an increase of 61.4%.

Mr. Nguyen Nhu Tiep - Director of the Department of Quality, Processing and Market Development (Ministry of Agriculture and Rural Development) commented that due to the trend of increasing demand for raw materials in the food and cosmetic industries, products, pharmaceuticals... currently, Vietnamese cinnamon and anise are widely consumed in many regions of South Asia (India, Bangladesh), the Middle East (UAE, Pakistan), East Asia (Japan, Taiwan (China) , Korea, the United States and countries of the European Union (EU).

There is still a lack of strategic direction for sustainable development at the national level

Mr. Le Viet Anh - Chief of Office of the Vietnam Pepper Association informed that Vietnam currently has about 166,875 hectares of cinnamon with 45,000 tons. Market demand for spices is still high... therefore, Vietnam has advantages in exporting spices, especially when there are free trade agreements such as EVFTA, CPTPP...

However, Vietnam's spice industry still faces many challenges. Specifically, the cinnamon industry still does not have a national sustainable development strategy. While businesses still lack technology and capital to invest in deep processing to increase product value.

Geopolitical instability factors may continue to cause price instability rather than supply and demand factors. Meanwhile, competition from other manufacturing countries such as Indonesia and China is always persistent.

In addition, the unpredictable developments of climate change will be the main challenge for the agricultural industry globally while costs continue to increase which will greatly impact supply...

Talking about market trends, Mr. Le Viet Anh said that the current and upcoming global spice market trends are green consumption, reducing carbon emissions; product traceability; quality assurance; value-added products, organic...

Faced with that situation, to boost exports to other markets, Mr. Viet Anh believes that there is only one way to improve quality and reduce production costs to create valuable products of high quality and durability. more competitive. Aiming to diversify products, diversify markets, diversify growing areas.

Businesses should focus more on strategies to increase deep processing, especially spices processed from farm to table. Maintain a stable area of spice crops according to the planning of the Ministry of Agriculture and Rural Development . In particular, there needs to be a master plan for growing and production areas so that investors can feel secure and have a long-term investment strategy...

From a market perspective, Mr. Tran Van Cong - Vietnamese Agricultural Counselor to the European Union (EU) said that Europe is one of the leading importing regions of spices and flavorings, accounting for about 1/3 of the total. 4 of the world's total imports, with more than 95% of imports from outside Europe coming from developing countries.

Of which, imports from developing countries alone reached 1.8 billion Euro and accounted for 60% of Europe's imports in the period 2019 - 2021, an increase of 9%/year. In addition, average import prices in Europe are also higher than in most other regions. This makes Europe a target market for exporters from developing countries.

However, exporting to this market needs to pay attention to a number of requirements such as strict control of toxic substances, allergens, pesticide residues, heat treatment, plant quarantine, and certification. Food safety, transparent supply chain...

Regarding another key market of Vietnamese spices, the United States, Mr. Pham Quang Huy - Counselor for Vietnamese Agriculture in the United States shared that the demand for spices in this market is increasing due to the need for spices. demand to increase resistance and protect consumers' health after Covid-19.

To increase the market share of Vietnamese spices in this market as well as make Vietnam a destination of choice in the global spice supply chain, Mr. Pham Quang Huy said that, besides raw products, it is necessary to diversify spice products serving the food industry, cosmetics, pharmaceuticals...

According to Mr. Pham Quang Huy, spice plants not only bring economic value but are also a precious, indigenous genetic resource, helping to eradicate hunger and reduce poverty, contributing to the conservation of biodiversity under the forest canopy... These are Important factors that businesses can include to promote Vietnamese spice products in the face of green consumption trends, environmental protection, and emission reduction in the US market .