INTRODUCTION

Sri Lanka is a land of spices which is having a wide range of endemic spices
including pure Ceylon cinnamon. Cinnamon is one of the ancient spices in the world and is
originally grow wild in central country of Sri Lanka. The history of cinnamon dates back to
about 2800 B.C. Cinnamomum zeylanicum is native to Sri Lanka and it belongs to the
lauraceous family. Mainly, there are two kinds of cinnamon as Ceylon cinnamon and cassia
cinnamon. Ceylon variety is the real one and it has a sweeter, fresher taste than cassia one.
The tropical sunshine, rain is need to grow of cinnamon well and the quality spice depend on
the soil condition. Cinnamon tree is trimmed after two years of the planting. Cinnamon bark
is the primary product gained from tree and harvested twice a year. Most of the cinnamon
produce in the coastal belt; Kaluthara, Galle, Matara, Hambanthota and Rathnapura.

Cinnamon is high in multiple medicinal properties. It has 6.3 g carbohydrates, 0.1g

fat, 4.1g fiber, 19 calories and 0.3g protein per tablespoon. Eugenol is the main chemical
ingredient in cinnamon leaf oil and cinnamaldehyde is obtained from bark oil. However,
there are hundreds of minor chemical constituents which give characteristic flavor and aroma.
Also, this spice is rich in antioxidants, has anti -inflammatory properties, avoid heart
diseases, can improve sensitivity to the hormone Insulin, and has a powerful anti-diabetic
effect. As well as cinnamon is used as a preservative, cosmetic and in pharmaceutical
industry. Likewise cinnamon provides incredible benefits for spice world.

Sri Lanka is rewarded as the major cinnamon producer to the global markets. It makes
the considerable foreign exchange of agricultural plant product of the country and supply
90% of cinnamon demand of the world.

Figure 01: Cinnamon powder and bark

ANNUAL LOCAL AND GLOBAL PRODUCTION

About 10000 families are actively involved with cinnamon plantation in sri Lanka in
around 40 years and about 20% are over 70 years of age. Small holder cultivation is the
dominant type, which are in average about 0.5 ha. The size of holdings has been diminishing
and only 5-10% of the plantations are of sizable extend ranging from 8-20 ha.

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 Figure 02: Production and cultivation of cinnamon in Sri Lanka

Figure 02 shows that annual local production of cinnamon. It indicates that the
cinnamon production has increased from 2006 to 2012 and thereafter it was stagnant. Sri
Lanka boats of the best quality of cinnamon in the world. The country accounted for 8% of
the world`s cinnamon production.

Figure 03: Global production of cinnamon

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LOCAL AND GLOBAL CINNAMON CONSUMPTION

The global cinnamon market is increased. This is due to the growing consumption of
cinnamon and rising awareness of the health benefits of cinnamon. Today, cinnamon is not
only used all around the word as a valuable ingredient in many food items.

From 2007-2016, global cinnamon consumption in physical terms experienced a steady

growth, rising from 174 000 tons in 2007 to 227 000 tons in 2016.

Top cinnamon consuming countries:

1. Indonesia (44 000 tonnes)

2. China (37 000 tonnes)
3. USA (26 000 tonnes)
4. India (25 000 tonnes)

Figure 04: Expected cinnamon consumption

Sri Lanka is the largest exporter and fourth largest producer of cinnamon in the world.
And USA (United States of America) is one of the major global consumers of cinnamon. The
country’s consumption is buoyed fully by imports .In US, cassia cinnamon from Indonesia
and China accounts for the largest share of imports, at 57% and, cinnamon from Sri Lanka
and Vietnam, at 27% and 13% respectively .The global cinnamon market driving factors are
increasing demand for cinnamon in various food products as a flavoring agent in various
savory dishes and beverages worldwide. Increasing opportunities in bakery, pharmaceuticals
and cosmetic industries is also another factor in driving the cinnamon market. Manufacturers
are focusing on providing healthier product offerings by using cinnamon in various product
such as bakery and confectionery. Cinnamon helps consumers in managing their blood sugar
level, which is another major factor for increasing the cinnamon seed market worldwide.

COMPARISON BETWEEN THE SUPPLY AND CONSUMPTION

When studying on global cinnamon production, it has been increased more than ten
times since 1970. In 2018 calculated global production was 237 000 tonnes. It’s a 4%
increase when compared to previous year. Even though there are minor fluctuations through
past few years, overall increase can be observed in the trend. A huge expansion of cinnamon
market is indicated from 2017-2018 at an average annual rate of 2%. World’s major
cinnamon (cassia) producing country is Indonesia. It is about 40% of total global production.
And the global export value is around 154 000 tonnes in 2016. Steady growth can be seen in
export market over past few years at a rate of 10.6%.

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 As key consumer countries of cinnamon in the world, Indonesia, China, USA and
India accounted for 57% of global consumption. Based on data of 2018, cinnamon
consumption has been decreased by 19.8% against 2014%. Even the global consumption has
reached to its peak on 2014($1.3 Billions) consumption failed to regain its momentum from
2015-2018.

When comparing supply and consumption of cinnamon in the world, it is clear that
supply is higher than the consumption. So, there is an excess in production. But it not a big
problem to deal with since cinnamon can store about 3-4 years. And the world largest
producers are the world largest consumers also (Indonesia and China). USA is the leader in
cinnamon importer and third largest cinnamon consumer.

DEVELOPED PRODUCTS OF CINNAMON AND THEIR POPULARITY

Cinnamon produced in Sri Lanka has acquired a long -standing reputation in the
international market. Today, there are many value-added products of cinnamon in the local
and international market.

Value-added Product Popularity

Bark Oil  Concentrated pure Ceylon Cinnamon bark oil contains a high
percentage of Cinnamic Aldehyde. It’s an important food flavoring
agent and also used in perfumery industry and in pharmaceutical
industry.

Cinnamon Leaf Oil  Concentrated pure Cinnamon leaf oil contains a high percentage of
Cinnamon Eugenol. Eugenol is an aromatic compound and often
used for flavoring toothpaste along with mint and eucalyptus oils.

Cinnamon Powder  Cinnamon powder comes from the bark of tropical, evergreen trees.
In order to harvest cinnamon, it’s peeled off the inside of the bark of
the tree. It is often added to baked goods, stewed fruits and is a
common ingredient in many spice mixtures.

Cinnamon Drink  The health drink that burns fat easily in a natural and harmless way
instead of dieting and drugs.
 Helps in controlling diabetics type 2(most common type).
 Reduces cholesterol.

Cinnamon with Black Tea  Aromatic spicy beverage with multiple health benefits.
Drink  Tasty refreshment drink.
 Pleasant aroma.

Cinnamon Green Tea Drink  It consists of cinnamon and Green tea.

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Cinnamon Chips  Cinnamon chips are dried un-peelable bark of plantation Cinnamon
that includes the outer bark obtained through beating or scraping the
shoots.

Quillings  Cinnamon quillings are a byproduct created in the process of cutting

and baling Cinnamon.

Quills  With its exquisite flavor and aroma, they are a most sought-after
ingredient in an assortment of delicacies.

Featherings  Cinnamon featherings are pieces of inner bark obtained by peeling

and/or scraping the bark of small twigs and stalks of plantation
Cinnamon shoots.

REFERENCES

http://www.factfish.com/statistic/cinnamon%2C%20production%20quantity

http://www.agri.ruh.ac.lk/Departments/Engineering/cinnamon/Cin%20stat.htm#Top

http://unionexportlanka.com.lk/value%20added%20products.html

https://www.maturataplantations.com/cinnamon/cinnamon-value-additions.html

http://www.fao.org/faostat/en/#home

https://www.stilltasty.com/fooditems/index/16887

https://m.bizcommunity.com/Article/1/641/177652.html

https://www.slideshare.net/mobile/lakshitharuwan/cinnamon-presentation

https://www.indexbox.io/store/world-cinnamon-canella-market-report-analysis-and-forecast-
to-2020/

http://www.fastmoving.co.za/news/international-news-18/global-cinnamon-consumption-on-
the-rise-11854

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