[Source: Persistence Market Insight]
Consumers are increasingly seeking the combination of taste and nutrition in every food product, as the preference for healthy eating is rising, without compromising on the taste of food. This has further increased the demand for healthy food ingredients, including spices, which are the major ingredients that impart taste and flavor to food products. Spices play a vital role in developing the taste and flavor in food products, and also contain numerous health beneficial properties. Due to this, the demand for healthy and flavorful spices such as cinnamon is growing. Cinnamon is known for its sweet taste that increases the flavor and taste profile of food products. Additionally, cinnamon also possesses health beneficial properties, such as antioxidants that fight against free radicals and prevent damage to cells. Moreover, cinnamon also helps manage blood sugar and cholesterol levels. All these factors are playing a major role in the growth of the global cinnamon market.
Increasing Use of Blended Spices Favoring Growth of Cinnamon Market
Blended spices are emerging as a new advantageous combination providing diverse flavor and taste to food products. Currently, food manufacturers are creating innovative blends by adding different spices. These blended spices are further utilized for seasoning and other purposes. Spices such as cinnamon, turmeric, black pepper, ginger, and chili are mostly used for blending due to their flavor profile. As consumers across the world are craving vibrant spices and taste profiles, spice manufacturers are formulating innovative solutions by offering blended spices. Furthermore, blended spices are also associated with numerous health benefits such as antioxidants and anti-inflammatory effects.
In September 2017, McCormick & Company launched twenty-four classic McCormick spices, herbs, and seasoning blends. Main spices such as cinnamon, turmeric, garlic powder, and others are included in these blends.
‘Organic Cinnamon’ Benefitting Market Growth
The ‘go organic’ trend has influenced consumers to add more organic foods into their diets. This trend also impacts cinnamon growers. Additionally, food manufacturers are increasingly targeting health-conscious consumers, and are demanding organic cinnamon from their suppliers. This has further increased the cultivation and utilization of organic cinnamon. Organic cinnamon is grown under different circumstances, without the use of any pesticides.
For instance, in 2018, McCormick & Company launched new organic seasonings under its brand McCormick Gourmet. In these seasoning offerings, cinnamon is one of the major ingredients.
Global Cinnamon MarketNorth America & Latin America Offering Growth Opportunities
North America and Latin America is projected to exhibit high growth in the global cinnamon market during the forecast period of 2020-2030. Growth witnessed in these regions is attributable to the rising consumption of cinnamon-based food products, such as cinnamon rolls, cinnamon whiskey, and others. Furthermore, Ceylon cinnamon is one of the most imported spices in Latin American countries such as Mexico, which is further creating a favorable market scenario for cinnamon in the region.
South Asia and East Asia are still dominating the global cinnamon market with the highest market value share, owing to the higher production and consumption rate of cinnamon in these regions. Countries such as Indonesia, Sri Lanka, and India have been consuming cinnamon from a long time. Cinnamon used in cooking and making tea is a major contributing factor for its higher consumption in South Asia. China is also one of the major producers of cinnamon, and also consumes a substantial amount of the spice.
Covid-19 Effect on Cinnamon Market
The unfortunate spread of COVID-19 disease is affecting the global economy, and every industry is currently facing unwanted consequences due to this global pandemic. The food and beverage industry is also strongly fighting against this frightful situation, and balancing supply and demand for substantial growth of the industry. However, some markets in the industry are still witnessing promising growth rates, such as the cinnamon market. Cinnamon, as a spice, is widely used across the world, and demand shouldn’t be affected much due to the Covid-19 pandemic. However, the market could face supply disruptions during the early part of the forecast period, as it is majorly produced and imported from South East Asia. As such, the COVID-19 pandemic would have a moderate effect on the global cinnamon market.
As the virus spreads and cases mount, and lockdowns increase, there are seemingly countless ways that the food industry will be tested and strained in the coming months and quarters. The seasonality of crop production and shelf-life of products will impact the supply cycle. Market demand will be fulfilled when supply chain services resume, which will facilitate sales from key production clusters to consumption clusters
Analysts’ Viewpoint
The global cinnamon market is witnessing substantial growth, with North America and Latin America projected to offer beneficial opportunities during the forecast period of 2020-2030. Increasing use of cinnamon in beverages, along with the foodservice industry, is a major factor projected to boost the growth of the global cinnamon market in the foreseeable future.
Leading market players such as McCormick & Company and Cinnatopia are focusing on business expansion and acquisitions to strengthen their position in the global cinnamon market. Increasing production capacity and improvement in quality are other strategies being adopted by key players to gain a competitive edge in the global cinnamon market.
