Nepal: Cinnamon Market 2025

Cinnamon Market Size in Nepal

In 2022, the Nepalese cinnamon market increased by 562% to $X for the first time since 2019, thus ending a two-year declining trend. Over the period under review, consumption, however, faced a abrupt downturn. Cinnamon consumption peaked at $X in 2013; however, from 2014 to 2022, consumption stood at a somewhat lower figure.

Cinnamon Production in Nepal

In value terms, cinnamon production declined slightly to $X in 2022 estimated in export price. Overall, production recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2015 with an increase of 17%. Over the period under review, production attained the maximum level at $X in 2019; afterwards, it flattened through to 2022.

In 2022, the average cinnamon yield in Nepal totaled less than X kg per ha, approximately equating the previous year's figure. In general, the yield continues to indicate a relatively flat trend pattern. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2022, approx. less than X ha of cinnamon (canella) were harvested in Nepal; approximately equating the previous year's figure. Overall, the harvested area continues to indicate a relatively flat trend pattern.

Cinnamon Exports

Exports from Nepal

In 2022, shipments abroad of cinnamon (canella) decreased by -10.4% to X tons for the first time since 2019, thus ending a two-year rising trend. Over the period under review, exports, however, saw a buoyant expansion. The growth pace was the most rapid in 2014 with an increase of 494% against the previous year. The exports peaked at X tons in 2021, and then declined in the following year.

In value terms, cinnamon exports reduced to $X in 2022. Overall, exports, however, continue to indicate a strong increase. The pace of growth was the most pronounced in 2014 with an increase of 428% against the previous year. The exports peaked at $X in 2021, and then fell in the following year.

Exports by Country

India (X tons) was the main destination for cinnamon exports from Nepal, accounting for a approx. 100% share of total exports.

From 2012 to 2022, the average annual rate of growth in terms of volume to India stood at +12.6%.

In value terms, India ($X) also remains the key foreign market for cinnamon (canella) exports from Nepal.

From 2012 to 2022, the average annual growth rate of value to India stood at +12.9%.

Export Prices by Country

In 2022, the average cinnamon export price amounted to $X per ton, remaining relatively unchanged against the previous year. In general, the export price, however, showed a relatively flat trend pattern. The pace of growth was the most pronounced in 2015 when the average export price increased by 20%. Over the period under review, the average export prices attained the maximum at $X per ton in 2019; however, from 2020 to 2022, the export prices remained at a lower figure.

As there is only one major export destination, the average price level is determined by prices for India.

From 2012 to 2022, the rate of growth in terms of prices for India amounted to +0.2% per year.

Cinnamon Imports

Imports into Nepal

In 2022, after five years of growth, there was significant decline in purchases abroad of cinnamon (canella), when their volume decreased by -6.8% to X tons. Overall, total imports indicated a buoyant expansion from 2012 to 2022: its volume increased at an average annual rate of +10.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +67.4% against 2016 indices. The most prominent rate of growth was recorded in 2013 with an increase of 107% against the previous year. Over the period under review, imports reached the maximum at X tons in 2021, and then shrank in the following year.

In value terms, cinnamon imports contracted to $X in 2022. In general, imports, however, posted a remarkable increase. The pace of growth was the most pronounced in 2013 when imports increased by 122%. Over the period under review, imports attained the maximum at $X in 2021, and then contracted in the following year.

Imports by Country

In 2022, China (X tons) was the main supplier of cinnamon to Nepal, with a 95% share of total imports. Moreover, cinnamon imports from China exceeded the figures recorded by the second-largest supplier, India (X tons), more than tenfold.

From 2012 to 2022, the average annual rate of growth in terms of volume from China totaled +10.9%. The remaining supplying countries recorded the following average annual rates of imports growth: India (+40.5% per year) and Vietnam (-6.4% per year).

In value terms, China ($X) constituted the largest supplier of cinnamon (canella) to Nepal, comprising 93% of total imports. The second position in the ranking was taken by India ($X), with a 5.9% share of total imports.

From 2012 to 2022, the average annual rate of growth in terms of value from China amounted to +19.1%. The remaining supplying countries recorded the following average annual rates of imports growth: India (+46.0% per year) and Vietnam (-2.9% per year).

Import Prices by Country

The average cinnamon import price stood at $X per ton in 2022, leveling off at the previous year. In general, import price indicated a buoyant increase from 2012 to 2022: its price increased at an average annual rate of +7.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, cinnamon import price decreased by -2.0% against 2019 indices. The most prominent rate of growth was recorded in 2014 an increase of 36%. The import price peaked at $X per ton in 2019; afterwards, it flattened through to 2022.

Average prices varied somewhat amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was India ($X per ton), while the price for China ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by China (+7.4%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform