The Vietnamese cinnamon industry is undergoing a strong transformation, not only affirming its solid position on the international market but also opening up potential strategic directions.
According to the Vietnam Pepper and Spice Association (VPSA), in the first six months of 2025, Vietnam exported a significant amount of cinnamon, with total export turnover reaching 274.5 million USD, an increase of 11.7% compared to the same period in 2024.
In June 2025 alone, cinnamon exports were 15,725 tons, with a turnover of 38.2 million USD. This is an increase of 38.9% in volume and 24.9% in value compared to June 2024.
Vietnam’s cinnamon export turnover increased by 11.7% in 6 months.
Vietnamese cinnamon products are consumed widely in various markets such as the USA, EU, China, and India. Among them, India continues to be Vietnam’s main market. Vietnamese cinnamon products are favored in India due to their high essential oil content and distinctive flavor. Especially with its large population, India has a high demand for cinnamon, star anise, and medicinal herbs. Therefore, this is one of the potential markets for Vietnamese cinnamon.
Notably, the demand for cinnamon in the functional food, cosmetics, and herbal medicine sectors in developed countries is rapidly increasing, opening up a significant opportunity for Vietnamese businesses to enhance product value. Moreover, the commitments in free trade agreements (FTAs) such as EVFTA and CPTPP are contributing to reducing tariffs, creating favorable conditions for Vietnamese cinnamon to expand its market share in high-end markets.
Vietnam is currently the third-largest cinnamon producer in the world, after Indonesia and China. The area of cinnamon has also increased significantly, from 13,863 hectares in 2000 to 186,000 hectares in 2023. Yen Bai and Lao Cai are the provinces with the largest cinnamon, accounting for 47.8% and 33.3% of the total area, respectively.
The global cinnamon export market will continue to grow in the coming years, thanks to the trend of using natural spices, traditional medicinal herbs, and clean food. However, the competition among major producing countries will force each nation to define its own distinct strategy, combining production capacity, quality, and added value.
In 2025, the cinnamon market is expected to remain stable with a global production of around 250,000 tons, a slight increase compared to last year. China and Vietnam continue to lead, while Indonesia remains stable despite a slight downward trend.
To maintain growth momentum and truly enhance its position, the Vietnamese cinnamon industry is facing significant challenges. The heavy dependence on raw exports is a significant barrier, limiting added value, especially when compared to major exporting countries like Indonesia, Sri Lanka, and India, which are intensifying deep processing and making systematic investments in the supply chain.
In addition, import markets are increasingly imposing stricter requirements on traceability, organic certification, technical standards, and food safety. This forces businesses to invest more in raw material regions, processing technology, and quality control.
In the face of these challenges, many domestic businesses have begun to shift towards sustainable development, actively collaborating with farmers to establish organic raw material regions while also applying international production standards such as HACCP or GMP or achieving USDA and EU Organic certifications. This is seen as an inevitable path to enhance competitiveness and increase export value in the medium and long term.