Vietnam Cinnamon Market Update: H1 2026 Export Trends and Outlook

Vietnam Cinnamon Market H1 2026.png

Vietnam’s cinnamon exports moderated in the first half of 2026 after achieving record performance in 2025. While weaker demand from several traditional Asian markets weighed on overall shipments, strong growth in the United States, the wider Americas and parts of Africa showed that global demand was becoming more geographically diversified.

Vietnam Exported 61,297 Tonnes in the First Half of 2026

According to preliminary statistics from the Vietnam Pepper and Spice Association, Vietnam exported 61,297 tonnes of cinnamon worth US$156.2 million during the first six months of 2026. Export volume declined by 3.4% and value by 3.2% compared with the same period of 2025. Based on these totals, the average export value was approximately US$2,548 per tonne, remaining broadly stable year on year.

The half-year result followed a positive start. During January and February, Vietnam exported 14,564 tonnes valued at US$37.4 million, representing increases of 16.8% in volume and 10% in value from the same period of 2025. The market subsequently lost some momentum as purchasing slowed in several Asian destinations.

Vietnam Cinnamon Export - H1 2026
Vietnam Cinnamon Export – H1 2026

Asian Demand Softened, but the Region Remained Dominant

Asia continued to account for the majority of Vietnamese cinnamon exports, receiving 42,008 tonnes, equivalent to 68.5% of total shipments. However, regional volume declined by 11.2% year on year.

India remained Vietnam’s largest individual market, importing 24,432 tonnes during the first six months. Bangladesh followed with 4,623 tonnes, while the United Arab Emirates purchased 2,419 tonnes.

The slowdown became more visible in June. Vietnam exported 12,611 tonnes of cinnamon valued at US$31.9 million during the month, down 9.5% in volume and 9.4% in value from May. June export volume was also 11.3% lower than one year earlier.

India imported 6,243 tonnes in June, a decrease of 19.2% year on year. Overall shipments to Asia fell by 19.8% from June 2025, indicating that purchasing activity in several traditional bulk markets had weakened after the relatively strong first quarter.

The United States and the Americas Provided a Stronger Growth Engine

The clearest positive development was the performance of the American markets. Vietnam exported 12,966 tonnes to the Americas during the first half of 2026, an increase of 31.3% compared with the same period of 2025.

The United States alone imported 8,341 tonnes, up 27.7% year on year. In June, shipments to the US reached 1,449 tonnes, increasing by 36.7% from June 2025 despite the overall monthly slowdown in Vietnamese exports. African markets also recorded growth of 23.8% during the six-month period.

European demand was more mixed. Vietnam shipped 1,113 tonnes to Europe in June, rising by 49.4% from May but remaining 7.5% below the level recorded one year earlier. These contrasting regional movements suggest that the first-half decline did not reflect a uniform contraction in global cinnamon demand. Instead, purchasing shifted away from some traditional Asian destinations toward the United States and other developing markets.

Key Export Destinations - Vietnam Cassia Cinnamon
Key Export Destinations – Vietnam Cassia Cinnamon

A Moderate Correction After a Record Year

The comparison with 2025 is important. Vietnam exported a record 120,295 tonnes of cinnamon worth US$300.2 million last year. Export volume increased by 20.4% and value by 9.4% from 2024, making 2025 the strongest year recorded by the Vietnamese cinnamon sector.

India accounted for 45,184 tonnes in 2025, or 37.6% of Vietnam’s total export volume. The United States imported 13,583 tonnes, while Bangladesh purchased 10,202 tonnes.

Against this unusually high base, the approximately 3% decline recorded in the first half of 2026 appears to be a moderate market correction rather than a fundamental reversal. Export value declined at nearly the same rate as volume, suggesting that average pricing remained relatively resilient even as total shipments softened.

Vietnam Remains Central to the Global Cinnamon Supply Chain

The world cinnamon market continues to rely heavily on a small group of Asian producing countries, particularly China, Vietnam, Indonesia and Sri Lanka. FAOSTAT remains the principal international database for comparing production across origins, although consolidated worldwide statistics are published with a time lag and complete global figures for the first half of 2026 are not yet available.

Within this supply structure, the main producing origins serve different segments of the international market. Vietnam is particularly associated with cassia cinnamon offering a strong, sweet-spicy profile and grades suitable for grinding, tea blending, industrial processing and extraction. Sri Lanka remains closely associated with Ceylon cinnamon, while Indonesia and China continue to be major suppliers of other commercial cassia varieties.

The first-half trade data indicate that global buyers are not simply purchasing more or less cinnamon as a single commodity. Demand increasingly differs according to origin, oil content, flavor profile, particle size, intended application, regulatory requirements and processing level.

Imports into Vietnam Also Increased

Vietnam imported 3,087 tonnes of cinnamon worth US$6.8 million during the first half of 2026. Import volume rose by 35.5% and value by 28.9% compared with the same period of 2025.

Indonesia was the largest supplier, delivering 1,923 tonnes, followed by China with 789 tonnes. Although imports remained small compared with Vietnam’s exports, the increase may reflect demand for different origins, product characteristics or raw materials used by domestic processors and trading companies.

Food Safety and Traceability Remain Important Buying Factors

Beyond price and availability, international scrutiny of cinnamon quality remains high. The US Food and Drug Administration continued to list public health alerts covering a number of ground cinnamon products found with elevated lead levels. The agency has also reminded cinnamon manufacturers, processors and distributors of their responsibility to identify and control potential chemical hazards.

In Europe, the Rapid Alert System for Food and Feed allows authorities to exchange information and act on food safety risks identified at the border or within the market. This regulatory environment reinforces the importance of traceable sourcing, contaminant control, pesticide-residue management, hygienic processing and reliable batch documentation for spice suppliers.

For Vietnamese exporters, the opportunity therefore extends beyond increasing volume. Investments in cleaning, milling, steam treatment, laboratory testing, traceability, organic production and application-specific processing can help suppliers access more demanding and higher-value market segments.

Outlook for the Second Half of 2026

The direction of the Vietnamese cinnamon market in the second half of the year will depend partly on whether purchasing recovers in India and other major Asian markets. However, continued expansion in the United States, the Americas and selected African destinations could reduce the industry’s reliance on a small number of traditional buyers.

The relatively stable average export value recorded during the first half is encouraging. Nevertheless, suppliers will need to compete not only on price but also on product consistency, food safety, documentation and the ability to meet application-specific requirements.

For international buyers, early communication regarding required grade, volatile oil content, coumarin level, particle size, microbiological limits, pesticide residues, heavy metals, packing and delivery schedules will be increasingly important when planning purchases for the remainder of 2026.

Overall, the first half of 2026 presented a mixed but resilient picture. Vietnam’s cinnamon exports declined moderately from a high comparison base, while strong growth outside Asia demonstrated the continuing international appeal of Vietnamese cassia and the potential for broader market diversification. 

Source: Vietnam Pepper and Spice Association (VPSA), preliminary January–June 2026 statistics, as reported by Vietnam News Agency on 6 July 2026.