According to data from the Vietnam Pepper Association (VPSA), Vietnam imported 416 tons of cinnamon in April, with a turnover of one million USD, a decrease of 23.1% compared to March. Indonesia is the largest supplier, accounting for 72.4%, equivalent to 301 tons, a decrease of 26.9% compared to March.
In the first four months of 2025, Vietnam imported 1,638 tons of cinnamon, with a turnover of 3.8 million USD, a decrease of 18.5% in both volume and value.
In terms of market, Indonesia is the largest supplier of cinnamon to Vietnam with 1,144 tons, accounting for nearly 70% of the market share. In second place is China with 285 tons, equivalent to 17%.
According to reports from the Food and Agriculture Organization (FAO) and trade news, Indonesia is one of the largest producers and exporters of cinnamon in the world, particularly the Cassia variety (Cinnamomum cassia). Data from the VPSA also shows that Indonesia, along with Vietnam and China, is one of the top three countries in global cinnamon production, with Indonesia often ranked highest in Cassia cinnamon exports.
Indonesia and China are the two largest suppliers of cinnamon to Vietnam.
Cassia cinnamon is the main type of cinnamon in Indonesia, particularly grown in regions such as Sumatra and Java. This type of cinnamon has a strong, sweet flavor and is less spicy compared to Ceylon cinnamon (mainly from Sri Lanka and Madagascar). Cassia dominates in exports due to its lower cost and suitability for the needs of the food, pharmaceutical, and cosmetic industries.
In terms of cultivation area, Indonesia has large cinnamon-growing regions, primarily concentrated in areas such as Sumatra and Java. The estimated scale is hundreds of thousands of hectares, supported by suitable tropical climate and soil conditions. The Indonesian cinnamon industry has significant room for growth thanks to its large population, abundant labor force, and digital transformation strategy in agriculture. The Indonesian government is promoting sustainable production, applying technology to optimize the supply chain and meet the green standards of the EU and the US.
Forecast for 2025: with trade agreements like RCEP, Indonesia has the opportunity to expand its export markets, especially to African and Latin American countries, while also enhancing deep processing to increase the value of cinnamon products.
For Vietnamese cinnamon, the country has great export prospects thanks to global demand increasing by 8-12% each year, especially in the food, pharmaceutical, and cosmetic industries. Free trade agreements like RCEP open up opportunities to enter new markets. Earlier in 2024, Vietnam exported 99,874 tons of cinnamon, with a total export value of 274.5 million USD. Compared to 2024, the export volume increased by 11.7%, and the export value increased by 5.2%. India is the largest market for Vietnamese cinnamon exports in 2024, reaching 35,885 tons, accounting for 35.9% of the country’s total exports.
However, the cinnamon industry faces challenges regarding quality, chemical residues, and EU green standards. To achieve sustainable development, Vietnam needs to invest in deep processing, build value chains, and expand the area of organic cinnamon (currently only about 7% of the total area).