April 18, 2024
Cinnamon Bark Oil Market

Cinnamon Bark Oil Market Is Driven By Increasing Applications In Food And Beverages

The cinnamon bark oil market is used widely in food and beverages flavoring due to its anti-inflammatory and antibacterial properties. Cinnamon bark oil is extracted from the inner bark of various Cinnamomic trees, mostly Cinnamomic velum trees. It has positive effects on health conditions like diabetes, cardiovascular disease, arthritis, and digestion.

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 include 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. Key players are expanding their production capacities and distribution networks to meet the growing demand for cinnamon bark oil.

The growing demand for cinnamon bark oil from the food and beverages industry is driving the market. Its aromatic properties make it suitable for use in bakery, cereals, soups, seasoning powders, and confectionery products. Rising health consciousness is also fueling the use of cinnamon bark oil as a dietary supplement.

The market is witnessing high growth opportunities in regions like North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Major players are expanding globally to tap the market potential in developing nations. Strong distribution networks in developing countries will support the global expansion of cinnamon bark oil in the coming years.

Market Key Trends

One of the key trends in the cinnamon bark oil market is its increasing popularity as a natural preservative and microbial agent. Cinnamon oil has antibacterial and antifungal properties that make it suitable for use as a natural preservative in food products without synthetic chemicals. It inhibits the growth of food spoilage microbes and extends the shelf life of foods. This drives its use as a natural preservative and contributes to the growth of the global cinnamon bark oil market.

Porter’s Analysis

Threat Of New Entrants: Low capital requirement encourages new suppliers enter the market slowly.

Bargaining Power Of Buyers: Many buyers and suppliers in the market make buyers order in bulk quantities lowering the prices.

Bargaining Power Of Suppliers: Established suppliers differentiated their products on quality/flavours increasing buyer dependency.

Threat of New Substitutes: Products such as clove oil are used for similar applications posing low threat of substitution.

Competitive Rivalry: Suppliers compete intensely on factors such as quality, packaging and branding to improve customer retention in the saturated market

Geographical Region

Geographical region where cinnamon bark oil market is concentrated in terms of value is Asia Pacific region. The region accounts for around 60% value share of the total market owing to countries like India, Indonesia, China and Sri Lanka being the major producers of cinnamon globally.

The fastest growing region for cinnamon bark oil market during the forecast period is North America region. Increasing demand from food & beverage industry for natural flavors and aromas along with rising preference for organic and herbal products is pushing the market growth in countries like United States and Canada. Growing health conscious population and innovative application development are also contributing to the market expansion.

*Note:
1.       Source: CoherentMI, Public sources, Desk research
2.       We have leveraged AI tools to mine information and compile it