Cinnamon Bark Oil Market Is Driven By Increasing Demand From Food And Beverage Industry

By Author: Ben
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The cinnamon bark oil market has been gaining significant traction over the past few years, primarily driven by rising demand from the food and beverage industry. Cinnamon bark oil is prominently used as a flavoring agent in diverse food products such as bakery items, cereals, snacks, and beverages. It imparts an aromatic flavor and provides refreshing taste to the food products. Apart from being used as a flavoring agent, cinnamon bark oil also serves as an effective food preservative due to its antibacterial and antioxidant properties. It helps extend the shelf life of food items without compromising on their taste and nutritional value. Further, growing awareness about the various health benefits of cinnamon bark oil has been supplementing its usage in dietary supplements and functional foods & beverages.

The Global Cinnamon Bark Oil Market Size is estimated to be valued at US$ 119.6 Mn in 2024 and is expected to exhibit a CAGR of 3.6% over the forecast period 2024-2031.

Key players operating in the cinnamon bark oil are Living Essential Oils, Mountain Rose Herbs, Eden Botanicals, The Plant Guru, Mountain ...
... rose herbs and Among Others.

Key Takeaways

Key players operating in the cinnamon bark oil market are Living Essential Oils, Mountain Rose Herbs, Eden Botanicals, The Plant Guru, Mountain rose herbs and Among Others. These key players account for a significant share of the global market. Living Essential Oils and Mountain Rose Herbs are recognized as prominent producers and suppliers of cinnamon bark oil worldwide.

The demand for cinnamon bark oil is witnessing significant growth across the globe owing to burgeoning demand from the food & beverage industry. Cinnamon bark oil not only enhances the flavor but also the aesthetic appeal of various food products. Its preservative properties further augment its utilization in the food & beverage sector.

The Asia Pacific market is expected to witness lucrative growth over the forecast period led by expanding food & beverage industry in the region. Additionally, increasing usage of essential oils in traditional Asian medicine is further propelling the regional market. Leading manufacturers are also exploring opportunities to consolidate their position in emerging nations of Asia Pacific.

Market Drivers

One of the key drivers propelling the cinnamon bark oil market growth is the increasing demand from the food & beverage industry. Cinnamon bark oil serves as a natural and healthy flavoring additive in various food products. It adds an attractive aroma and refreshing taste to snacks, bakery items, cereals, desserts, etc. Further, cinnamon bark oil acts as a preservative by preventing microbial growth in food, which increases its utilization in the food industry. Rising health consciousness is also driving demand as cinnamon bark oil promotes digestion and heart health. Its anti-inflammatory and antifungal properties have further augmented usage in developing medicines and personal care items.

Impact of geopolitical situation on Cinnamon Bark Oil market growth

The global cinnamon bark oil market is witnessing increasing challenges due to the ongoing geopolitical tensions and conflicts across various regions. The volatile global economy and widespread supply chain disruptions caused by the Russia-Ukraine war have negatively impacted the production and export of cinnamon from major exporting countries like India, Sri Lanka, Indonesia, etc. Rising trade barriers and import restrictions imposed by some countries on cinnamon products from others amid political tensions have hampered cross-border trade flows. This poses a challenge for market players in sourcing cinnamon bark raw materials at stable prices from diversified geographies.

Furthermore, changing climatic conditions and frequent occurrences of droughts and floods in cinnamon cultivating regions due to global warming have threatened stable cinnamon supplies and pushed up raw material procurement costs. The market needs to focus on developing resilient supply networks and alternative sourcing strategies to mitigate geographic risks. Innovation in cultivation methods can help boost yields and make supply less vulnerable to weather vagaries. Collaborations along the value chain will be crucial for the market to effectively cope with geopolitical risks and sustain long-term growth in the coming years.

Geographical regions with highest Cinnamon Bark Oil market concentration

The Cinnamon Bark Oil market is highly concentrated in South and Southeast Asia where major cinnamon production occurs. Within this region, Sri Lanka leads the market with the highest value share exceeding 30% of the global market. Ideal agro-climatic conditions make the country a top producer and exporter, supplying to over 150 countries. Indonesia and India follow Sri Lanka with a substantial combined market share of over 40% supported by their large-scale cinnamon cultivation. Other Asian countries like Malaysia and Vietnam have also emerged as prominent suppliers in recent years to meet the rising global demand for cinnamon oil.

Fastest growing region in the Cinnamon Bark Oil market

The European region represents the fastest growing market for Cinnamon Bark Oil globally. The demand in Europe is driven by growing adoption of cinnamon oil across various end use industries like food and beverages, therapeutic products, personal care & cosmetics, and household products. Increasing health consciousness and preference for natural ingredients provide opportunities for further market expansion. Countries like Germany, France, UK, and Italy have emerged as major revenue generators. Additionally, rising exotic spice and herbal extracts trend along with growing spending power is anticipated to significantly boost the European cinnamon bark oil market during the forecast period.

What Are The Key Data Covered In This Cinnamon Bark Oil Market Report?

:- Market CAGR throughout the predicted period

:- Comprehensive information on the aspects that will drive the Cinnamon Bark Oil Market's growth between 2024 and 2031.

:- Accurate calculation of the size of the Cinnamon Bark Oil Market and its contribution to the market, with emphasis on the parent market

:- Realistic forecasts of future trends and changes in consumer behaviour

:- Cinnamon Bark Oil Market Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa

:- A complete examination of the market's competitive landscape, as well as extensive information on vendors

:- Detailed examination of the factors that will impede the expansion of Cinnamon Bark Oil Market vendors

FAQ’S

Q.1 What are the main factors influencing the Cinnamon Bark Oil market?

Q.2 Which companies are the major sources in this industry?

Q.3 What are the market’s opportunities, risks, and general structure?

Q.4 Which of the top Cinnamon Bark Oil Market companies compare in terms of sales, revenue, and prices?

Q.5 Which businesses serve as the Cinnamon Bark Oil market’s distributors, traders, and dealers?

Q.6 How are market types and applications and deals, revenue, and value explored?

Q.7 What does a business area’s assessment of agreements, income, and value implicate?

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