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Cinnamon Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global cinnamon products market was valued at USD 1.2 billion in 2022 and is projected to expand at a CAGR of 5.6% from 2023 to 2030. The increasing demand for cinnamon-flavored food and beverages is driving the growth of the market. Cinnamon is widely used in several food applications such as beverages, baked goods, and pies. Growing consumer preference for cinnamon-based products such as cakes, cookies, and pastries is expected to drive the market’s growth. Furthermore, the rising demand for ready-to-eat convenience food is driving the market growth.
In recent years, the increasing demand for organic cinnamon products is one of the major factors driving the market. Cinnamon is known to have several health benefits, such as improving digestive health, reducing inflammation, and helping to regulate blood sugar levels. The increasing awareness of health benefits of cinnamon among consumers is driving the demand for organic cinnamon products. Furthermore, the growing popularity of vegan cinnamon-based products is expected to drive the market’s growth.
The emergence of e-commerce platforms has been instrumental in the growth of the cinnamon products market. The increasing number of online stores is providing ample opportunities for market players to expand their consumer base and reach out to a larger audience. The growing number of e-commerce platforms offering discounts, attractive offers, and convenient delivery services is boosting the sales of cinnamon products online.
The rising trend of premiumization in the demand for cinnamon products, with an increased impact of clean-label ingredients, has led to the high price of organic cinnamon products. Furthermore, the increasing number of innovative product launches to cater to the growing product demand from customers is expected to further support the growth of the market.
The increasing number of health-conscious consumers is driving the demand for cinnamon-based products, such as energy drinks and nutrition bars. In addition, the growing demand for functional food products and nutraceuticals is expected to drive the market’s growth. Furthermore, the increasing demand for natural flavors in food and beverage products is driving the demand for cinnamon products.
Product Insights
The ground cinnamon segment held the largest market share of around 75.3% in 2022. Ground cinnamon is widely used in food products such as bakery items, ice creams, and chocolates to enhance the flavor and aroma of the food products. Additionally, ground cinnamon is also used in various traditional dishes and beverages, such as apple pies and spiced tea, thereby propelling its demand across the world. Moreover, the rising trend of exotic spices across the world has further increased the demand for ground cinnamon.
The cinnamon bark segment is expected to expand at the fastest CAGR of 8.3% over the forecast period. Cinnamon bark is used for its medicinal properties, such as for reducing inflammation, treating digestive problems, and relieving symptoms of the common cold. The bark is also used as a natural food preservative, as it is rich in antioxidants, which help to extend the shelf life of food products. Furthermore, due to its natural preservative properties, the demand for cinnamon bark is high in the food & beverage industry.
Distribution Channel Insights
The supermarkets and hypermarkets segment is expected to hold the largest market share in 2022. The growth of this segment is mainly driven by the rising consumer inclination towards supermarkets & hypermarkets as a primary source to purchase food products. According to a study by Statista in 2020, supermarkets & hypermarkets are preferred by consumers as they provide a wide variety of products and convenience in purchasing them. These establishments also provide a reasonable selection of products and assist customers in making rapid purchasing decisions for the required product.
The online segment is anticipated to expand at the highest CAGR of 12.2% over the forecast period. The development of e-commerce in the food industry has been rapid, with companies launching online websites and shopping apps to increase their brand visibility among consumers. For instance, in April 2021, Amazon launched Amazon Pantry to provide customers with a wide range of grocery and household products. The platform allows customers to shop for cinnamon products, which are not available in their local stores. In addition, it also offers discounts on bulk orders, which is expected to drive the segment growth in the coming years.
Type Insights
The organic cinnamon segment accounted for the highest revenue share of 62.0% in the year 2022. Growing consumer awareness about the benefits of organic products and the increasing demand for organic products from health-conscious consumers is driving the market for organic cinnamon. Furthermore, the increasing demand for organic products from the food & beverage industry is also contributing to the growth of this segment.
The conventional cinnamon segment is anticipated to expand at the highest CAGR of 8.2% over the forecast period. This can be attributed to the increasing demand for conventional cinnamon products from the food and beverage industry. Conventional cinnamon is widely used in the food and beverage industry in various food items such as pastries, breads, beverages, and desserts. Furthermore, manufacturers are introducing new and innovative products in the conventional segment, which is likely to drive the growth of this segment.
Regional Insights
Europe dominated the market and accounted for the largest revenue share of over 33.1% in 2022. The region is one of the major producers of Cinnamon and contributes significantly to the export of cinnamon. The increasing consumption of cinnamon products in preparation of food items and beverages is a key factor driving the growth of the market in the region. For instance, in June 2021, England-based food production company, Tiptree, launched cinnamon flavored tea, which is expected to drive the demand for cinnamon products in the region.
North America is expected to witness the second-fastest growth in the coming years. The rising demand for bakery items and health supplements, such as cinnamon capsules, which are used to treat inflammation, is expected to drive the growth of the market in the region. For instance, in May 2021, California-based health supplements company Vitauthority launched a cinnamon-flavored health supplement.
Financial Projections
In this part of the cinnamon products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your cinnamon products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a cinnamon products business comes from the sale of cinnamon products. This includes the sale of cinnamon-flavored baked goods, spices, teas, and other food items. Additionally, this business could generate revenue from catering/wholesale orders, online sales, and fundraising.
Projecting Expenses
In this section, all the regular expenses related to keeping the cinnamon products business running will be described. The list of operating expenses includes ingredients, packaging, wages, utilities, maintenance and repairs, insurance policies, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the cinnamon products market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In March 2022, McCormick & Company Inc. launched new cinnamon-flavored coffee and tea products.
– In June 2022, Nestle launched a new range of frozen desserts featuring cinnamon-flavored ice cream.
– In August 2022, Hershey’s launched a line of cinnamon-flavored candy bars.
Some of the prominent players in the cinnamon products market include:
– McCormick & Company Inc.
– Cargill Inc.
– Nestle
– Barry Callebaut
– Hershey’s
– The J.M. Smucker Company
– Archer Daniels Midland Company
– Olam International
– Amadeus Foods
– Frontier Natural Products Co-Op
Global Cinnamon Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global cinnamon products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Cinnamon Powder
– Cinnamon Extracts
– Cinnamon Essential Oils
– Cinnamon Leaves
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Natural
– Organic
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the Major Drivers of the Global Cinnamon Products Market?
[A]: The major drivers for the global cinnamon products market include increasing consumer demand for natural flavors, rising health consciousness among consumers, and increasing demand for food ingredients that offer health benefits. The increasing use of cinnamon in confectionery, bakery, and sauces is also expected to fuel the growth of the market.
[Q]: What are the Key Segments of the Global Cinnamon Products Market?
[A]: The global cinnamon products market is segmented by product type, application, and region. By product type, the market is divided into ground cinnamon, cinnamon sticks, and cinnamon oil. By application, the market is divided into food, beverages, and pharmaceuticals.
[Q]: What are the Major Regional Markets for Cinnamon Products?
[A]: The major regional markets for cinnamon products include North America, Europe, Asia-Pacific, and Rest of the World. North America is projected to hold the largest share of the market due to the rising demand for natural flavors and health benefits offered by cinnamon products.
[Q]: What are the Different Strategies Used by Market Players?
[A]: Market players in the global cinnamon products market are focusing on strategies such as product launches and innovation, mergers and acquisitions, and collaborations to increase their market share and presence. These strategies are helping the market players to expand their product portfolios and gain a competitive edge in the market.
[Q]: What are the Major Challenges Facing the Global Cinnamon Products Market?
[A]: The major challenges facing the global cinnamon products market include the high cost of raw materials, fluctuations in the price of cinnamon, and stringent regulations related to the use of cinnamon products in food and beverages.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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