Ceylon cinnamon production and markets

Abstract

Sri Lanka is the market leader of Ceylon cinnamon with a 90% global market share. Cinnamon is one of the leading foreign exchange earners from among agricultural exports of Sri Lanka. The cinnamon extent of cultivation, production, and yield has only marginally increased over the past few decades despite high potential in the global market. However, the major competitive product cassia produced and exported predominantly by Indonesia, China, and Vietnam has contributed to the erosion of Ceylon cinnamon market share, notwithstanding warning from leading health agencies about its negative impact on health due to high content of coumarin. Ceylon cinnamon has the potential to become Sri Lanka's number one foreign exchange earner from the agriculture sector by building on its competitive edge as the main true cinnamon supplier. Product and process innovation with a focus on compliance with food safety and quality requirements remains the most feasible and practical option to exploit the competitive edge of Ceylon cinnamon in the global marketplace. Marketing strategies should focus on product diversification, value addition, and brand recognition.