Vietnam's Cinnamon and Star Anise Market Report 2024

I/ Cinnamon: Growth and Market Dynamics

In 2024, Vietnam recorded a total cinnamon export volume of 99,874 tons, generating export revenue of USD 274.5 million, marking an 11.7% increase in volume and a 5.2% increase in value compared to 2023. Despite a 9.4% decline in volume and an 11% decline in value during the first four months of the year, the sector experienced a significant recovery toward the end of 2024.

Export Market Highlights

India remained the largest export market for Vietnamese cinnamon in 2024, with 35,885 tons exported, accounting for 35.9% of total exports. However, this marked a 5.7% decrease compared to the previous year.

The United States was the second-largest market, with 11,078 tons exported, representing 11.1% of total exports and an impressive 9.0% growth compared to 2023.

Bangladesh ranked third, with 7,928 tons exported, accounting for 7.9% of total exports and achieving a remarkable 42.5% increase year-over-year.

Leading Exporters in 2024

Prosi Th?ng Long continued to dominate the cinnamon export sector as the largest exporter in Vietnam, contributing 14.9% of total exports with 14,891 tons, a 7.6% increase compared to 2023.

The following companies also made significant contributions:

• Gia V? S?n Hà: Exported 6,163 tons, an impressive 31.8% growth, accounting for 6.2% of the market.
• Tu?n Minh: Exported 4,618 tons, a remarkable 48.3% growth, accounting for 4.6% of the market.
• Senspices Vi?t Nam: Exported 4,299 tons, a 16.2% decline, accounting for 4.3% of the market.
• Olam Vi?t Nam: Exported 4,128 tons, a 19.8% growth, accounting for 4.1% of the market.

Prosi Th?ng Long's Leadership

Prosi Th?ng Long reaffirmed its position as the industry leader in 2024, maintaining the largest market share in Vietnam’s cinnamon export sector. This achievement reflects the company's consistent commitment to quality, market expansion, and innovation in the spice industry.

II/ Overview of Star Anise in Vietnam

In 2024, Vietnam exported 14,004 tons of star anise, generating a total export revenue of USD 63.7 million. This represented a 5.7% decline in export volume and a 16.2% drop in value compared to 2023. Despite these challenges, Prosi Th?ng Long achieved significant growth, reinforcing its leadership in the star anise export sector.

Export Market Highlights

India remained the largest market for Vietnamese star anise, accounting for 66.8% of total exports, with 9,352 tons exported—an impressive 19.0% growth compared to the previous year.

Other notable export markets included:

• United States: 563 tons
• China: 420 tons
• Taiwan: 361 tons
• Thailand: 269 tons

Leading Exporters in 2024

Prosi Th?ng Long solidified its position as the top exporter of star anise in Vietnam, exporting 2,865 tons and accounting for 20.5% of the total market share, a 19.6% increase compared to 2023.

Other key contributors included:

• Tu?n Minh: 769 tons
• Senspices: 579 tons
• H?ng S?n Vi?t Nam: 446 tons
• Huy Chúc M & M: 398 tons

Prosi Th?ng Long’s Expansion

To meet growing market demand, Prosi Th?ng Long expanded its production capacity by opening a new factory in L?ng S?n in 2024. This strategic move underscores the company’s commitment to innovation and its mission to deliver premium-quality star anise to global markets.

III/ Challenges in Vietnam's Cinnamon and Star Anise Export Sector

Despite achieving positive results, Vietnam's cinnamon and star anise industries face numerous challenges that demand strategic solutions to sustain growth and competitiveness in the global market.

1. Intensifying Competition

The global spice market is becoming increasingly competitive, with major exporting countries such as Indonesia, Sri Lanka, and India vying for market share. Vietnamese exporters must differentiate themselves by offering superior quality and value-added products to remain ahead of competitors.

2. Stringent Quality Standards

Importing markets, especially in the EU and the United States, are implementing stricter quality and safety requirements. These include higher standards for pesticide residues, microbiological safety, and organic certifications. Meeting these demands requires significant investments in processing technology, quality control systems, and compliance documentation.

3. Price Volatility

The international market for cinnamon and star anise is highly sensitive to price fluctuations caused by supply-demand imbalances, currency exchange rates, and geopolitical factors. Such volatility poses risks to exporters, particularly when negotiating long-term contracts.

Prosi Th?ng Long’s Approach

As the industry leader, Prosi Th?ng Long is proactively addressing these challenges by:

• Strengthening Market Relationships: Building strong partnerships with key buyers to navigate market uncertainties effectively
• Investing in Modern Facilities: Expanding production capabilities, such as the new factory in L?ng S?n, to ensure consistent quality and supply.
• Enhancing Quality Control: Implementing advanced processing technologies to meet stringent international standards.

IV/The Rising Trend of Organic Cinnamon and Star Anise Development

Vietnam has been the world’s largest exporter of cinnamon since 2021, a remarkable achievement that highlights the country’s pivotal role in the global spice industry. To sustain and enhance this position, the cinnamon and star anise sector must embrace innovation, with the development of organic production emerging as a key strategy for the future.

Why Organic Matters

1. Global Demand for Organic Products Consumers worldwide are increasingly prioritizing health, sustainability, and environmentally friendly practices. The demand for organic spices, including cinnamon and star anise, is rising, especially in high-value markets such as the EU, the United States, and Japan.
2. Enhanced Market Access Organic certifications open doors to premium markets and allow Vietnamese exporters to secure higher profit margins. Products labeled organic carry a reputation for quality and sustainability, aligning with global trends.
3. Sustainability and Environmental Benefits Organic farming practices reduce the use of harmful pesticides and synthetic fertilizers, promoting healthier ecosystems and long-term soil fertility. This ensures sustainable growth for the industry while addressing environmental concerns.

Prosi Th?ng Long’s Vision for Organic Spices

As a leader in Vietnam’s spice export industry, Prosi Th?ng Long is committed to advancing organic cinnamon and star anise production. Key initiatives include:

• Supporting Farmers: Collaborating with local growers to transition to organic farming practices, providing technical training, and ensuring compliance with international organic standards.
• Investing in Certification: Achieving globally recognized organic certifications to boost the marketability of Vietnamese spices.
• Promoting Sustainability: Implementing eco-friendly practices across the supply chain to reinforce Vietnam’s reputation as a responsible and sustainable supplier.

The Road Ahead

The development of organic cinnamon and star anise represents a critical step in securing Vietnam’s position as a global leader in the spice market. By embracing this trend, the industry can not only meet evolving consumer preferences but also contribute to a more sustainable and resilient future for Vietnamese agriculture.

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