India is the main export market for Vietnam’s star anise with a total turnover of 20.3 million USD in the first 4 months of 2024.
A POTENTIAL MARKET
According to the data of the Indian Embassy, bilateral trade in 2022-2023 between India and Vietnam was 14.7 billion USD, which was up 3.98%. India’s exports to Vietnam totaled 5.91 billion USD while India’s imports from Vietnam amounted to 8.79 billion USD.
India is the main export market for Vietnam’s star anise with a total turnover of 20.3 million USD in the first 4 months of 2024.
With spending expected to rise from 1.5 trillion USD today to 6 trillion USD by 2030, India has become one of the most attractive export markets globally, experts say.
In addition, in the context of declining purchasing power in the global market, India will be a potential market with a population of 1.4 billion people and a young population (under 35 years old) accounting for more than 60%.
STAR ANISE EXPORTS TO INDIA HAVE BEEN GROWING WELL
Vietnam is currently one of the strongest countries in terms of spice export with the leading position in pepper and cinnamon exports and No. 2 in star anise exports.
According to statistics from the Vietnam Pepper Association (VPA), Vietnam’s export of star anise in April 2024 reached 1,480 tons with a turnover of more than 7 million USD. This was a sharp increase of 48.3% compared to the previous month. Also in April, India was the key export market for Vietnam’s star anise with 1,033 tons, accounting for 69.8% of the weight and up to 60% compared to March.
In the first 4 months of 2024, Vietnam exported 3,915 tons of star anise with a total turnover of 20.3 million USD. India and the US were the two major export markets with 2,409 tons and 295 tons, respectively.
Vietnam is now the largest supplier of cinnamon products to India.
Vietnam’s cinnamon and star anise products are now strongly consumed in many areas of South Asia (such as India and Bangladesh), the Middle East (UAE and Pakistan), East Asia (Japan, Taiwan – China, and Korea), the US, and EU countries. In particular, India and China are the two main export markets, accounting for about 50% and 25% of the weight, respectively.
India is the world’s leading country in star anise and cinnamon consumption. Besides, this country is also a major medicinal producer. Currently, Vietnam dominates the Indian market with more than 80% of cinnamon and star anise imports. Vietnam is the largest supplier of cinnamon products to this market. In the fiscal year 2022 – 2023 alone, Vietnam exported 32,650 tons of cinnamon, accounting for 85% of India’s cinnamon imports.
In addition, Vietnamese cinnamon is popular in India due to its high essential oil content and characteristic taste. On the other hand, the advantage of exporting this product to India is the tariff incentives from the ASEAN-India FTA. In particular, with a large population, India has a huge market demand range for cinnamon, star anise, and medicinal herbs.
One of the positive signals is that at present, Vietnam’s agricultural and processing industry of cinnamon and medicinal plants has gradually moved to a sustainable development stage. This is to increase deep-processing products with higher competitive values and promote production by value chain.
In 2023, Vietnam earned 83 million USD from the export of star anise and the output reached 16,136 tons. The average export price in 2023 was about 6,376 USD/ton. In the whole of 2023, India and China were the two largest markets with 7,860 tons and 4,116 tons, accounting for 48.7% and 25.5% of the export market, respectively./.