The Cinnamon bark oil market has seen steady growth due to expanding uses of cinnamon oil in various industries such as food and beverages, personal care, home care, and aromatherapy. Cinnamon bark oil is extracted from the inner bark of tropical evergreen cinnamon trees through steam distillation. It is a natural food flavouring agent and preservative that imparts an intense cinnamon flavour and aroma. Cinnamon bark oil is widely used to flavour cinnamon rolls, cookies, cakes, and other bakery items. It is also utilized in candies, chewing gums, and dairy items like ice cream due to its ability to blend well with other flavours. Besides imparting a delightful cinnamon fragrance, the oil acts as a natural preservative and antioxidant in foods and beverages.

The Global Cinnamon Bark Oil Market 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 To 2031.

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, Plant Therapy, Health Group Inc., Bulk Apothecary, Nature’s Alchemy, Aromatics International, Florinama. The major players are focusing on geographical expansion and new product launches to cement their position in the market. For instance, Living Essential Oils launched new cinnamon bark oil products with improved purity levels and aromatic properties in 2021.
The global demand for cinnamon bark oil is growing due to increasing awareness about its health benefits and widespread applications. The oil is known to have antimicrobial, anti-inflammatory, antioxidant, and digestive-soothing properties. It is extensively used in aromatherapy products for relaxation and stress relief.

The cinnamon bark oil market is expanding rapidly around the world on account of rising demand from developed markets of North America and Europe. The market is witnessing stronger growth in the Asia Pacific region driven by population growth and improving living standards. Countries like China, India, and Indonesia are seen as highly lucrative and high growth markets for cinnamon bark oil in the coming years.

Market Drivers

The food and beverage industry accounts for the largest share of demand for cinnamon bark oil, which is one of the key drivers of this market. According to reports, food and beverage applications are estimated to consume over 35% of the total cinnamon bark oil produced globally. The delightful cinnamon flavour and natural preservative qualities of the oil make it very popular as a food flavouring and food-grade preservative. The growing demand for flavoured and convenience food products worldwide is propelling the utilization of cinnamon bark oil in the F&B industry.

Impact Of Geopolitical Situation On Cinnamon Bark Oil Market Growth

The ongoing geopolitical tensions and conflicts across various regions are impacting the cinnamon bark oil market growth. Cinnamon is native to South Asia and Southeast Asia. Many of the key cinnamon producing countries like Sri Lanka, Indonesia and Vietnam are located in regions that have seen political instability and trade wars in recent years. The Russia-Ukraine conflict has disrupted global trade and logistics. This has made it difficult for cinnamon bark oil producers and exporters to access global markets smoothly. Rising fuel costs and supply chain issues caused by the war are increasing production and transportation costs for cinnamon bark oil producers. Further, trade sanctions and restrictions imposed on major economies like Russia and China by the West can reduce the addressable market for cinnamon producers. The market players need to closely monitor geopolitical developments and diversify their supply chains and market reach to mitigate risks. Exploring new regional markets and forging strategic partnerships can help sustain growth amid geopolitical turbulence.

Geographical Regions With Highest Cinnamon Bark Oil Market Share

In terms of value, the Asia Pacific region accounts for the largest share of the global cinnamon bark oil market currently. Countries like Sri Lanka, Indonesia, Vietnam and India are among the world's largest cinnamon producers. Abundant availability of raw materials and a large domestic market have made Asia Pacific the centre of cinnamon bark oil production. Within the region, Sri Lanka has the highest per capita consumption of cinnamon. North America is another major regional market, driven by increasing usage of cinnamon oil in flavourings, fragrances and personal care products. Europe also captures a notable share with Germany, France and UK among the leading European consumers of cinnamon bark oil.

Fastest Growing Region In The Cinnamon Bark Oil Market

Currently, the cinnamon bark oil market in North America region is witnessing the highest growth rate globally. Increasing awareness about the various health benefits of cinnamon and rising demand for natural ingredients in food, beverages and wellness products are fueling market expansion in the region. Growing preference for alternative therapies and popularity of Ayurveda and natural remedies are also supporting the use of cinnamon oil as a dietary supplement. Further, high disposable incomes, advanced lifestyles and cosmopolitan culture of populations in America and Canada provide ample opportunities for cinnamon bark oil producers to promote their products. If current demand trends remain intact, North America has strong potential to emerge as the fastest growing as well as a lucrative regional market for cinnamon bark oil over the forecast period.

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