Sri Lanka’s Cinnamon Industry: Scaling Up to Secure Global Leadership

Ceylon Cinnamon is one of Sri Lanka’s most iconic agricultural export commodities, and it is now poised for a significant transformation in the global spices export sector. |Most industry experts firmly believe this unique spice could serve as a multi-billion-dollar export commodity if it is provided with the right mix of scale, strategic policy, and, most importantly, the supply chain network.
The experts believe that if proper efforts are directed towards expanding output and reworking the export strategies that align with the needs of today’s era. This vision was outlined by Chathura Abeyratne, Director and COO of Joint Agri Products Ceylon, during a recent industry conference in Colombo. He also highlighted that Sri Lanka holds the potential to command as much as 90% of the world’s cinnamon trade. 

• Abeyratne highlighted that the country currently generates around USD 250 million annually from cinnamon exports.
• The figure can, without a shred of doubt, rise to USD 1 billion within the next five to ten years given that government support and private investments are provided. 

Global Market Dynamics: Health and Wellness Demand on the Rise

Abeyratne noted that the United States and Europe are among the world’s largest markets for organic goods. This value is enormous, and it roughly touches around USD 80 billion and USD 60 billion, respectively.

• It must also be mentioned that the youth and growing population in these areas are displaying a higher tendency towards consuming food that is healthy and ethically sourced.
• The food eating patterns are modernizing, and younger consumers in these regions are showing a powerful lifestyle shift.
• They are opting for nutritious, ethically sourced foods today to prevent healthcare costs tomorrow.
• All this is together contributing to the global demand of natural and organic ingredients. It is gradually opening new doors for Sri Lankan cinnamon exporters to expand their presence not within just the network of merchant importer, but also directly in high-value food, beverage, and nutraceutical segments.

Export Data: Strong Consistency, Significant Upside

The trade figures are quite interesting. It clearly shows that Sri Lanka’s cinnamon exports have held steady over the past few years. This to a large extent indicates sustained international demand

• It is worth noting that Sri Lanka currently produces about 20,000 metric tonnes of Ceylon Cinnamon per annum.
• This massive and formidable number represents roughly 20% of total global demand for both cassia and true cinnamon, which is estimated at 250,000 tonnes.
• All of this production is absorbed by the international market, and as such, there is no carryover stock.
• This indicates that the market has a tight supply and constant demand.

Broadening the Portfolio: Beyond Cinnamon

It is not just about cinnamon dominance. Sri Lanks is a country with a rich heritage of cultivating spices and herbs and has an enormous potential to diversify its exports into  other high-value herbal and organic crops.  This majorly includes trending and high value commodities like moringa, gotukola, and curry leaves. 

All these herbs are gaining significant global traction in the health and wellness space. And if the country diversifies, it could make it the hub of organic spice ingredients. 

It would help reduce reliance on a single export in the long run and make the country a stronger player in the global spices markets.

• It would help reduce reliance on a single export and make the country a stronger player in the global markets.
• The country will be able to cater to the needs of a wide range of industries and, more specifically, b2b buyers like cinnamon importers, spice processors, and wellness-product manufacturers all around the world. 

Expanding Markets and Regional Growth

While the United States and the European Union continue to serve as core premium buyers, regional demand — particularly from India — is accelerating. India’s expanding food processing industry and vast consumer base are generating new opportunities for cinnamon and derivative extracts.
For exporters, this evolving market mix — premium buyers in the West and high-volume markets in Asia — delivers both diversification and price stability, enhancing the industry’s long-term resilience.

Strategic Priorities to Reach the USD 1 Billion Milestone

If Sri Lanka wants to transition from a USD 250 million number to an enormous USD 1 billion global leader, it will need several progresses in different key areas. Some of them are as follows.

1. Expanding Cultivation and Boosting Productivity

• Increase cinnamon acreage and incentivize farmer participation.
• Deliver training on sustainable cultivation and improved post-harvest methods.

2. Strengthening Certification and Global Branding

• Promote broader adoption of organic and fair-trade certifications.
• Maximize the value of the Ceylon Cinnamon Geographical Indication (GI) to protect authenticity and quality.

3. Driving Value Addition

• Invest in processing to produce high-value products such as oils, powders, and extracts.
• Facilitate partnerships and joint ventures with cinnamon importers to establish advanced processing capacity within Sri Lanka.

4. Enhancing Trade Promotion and Market Connectivity

• Increase participation in international trade shows and B2B networking events.
• Improve exporters’ digital visibility through global sourcing platforms and e-commerce channels.

Conclusion: From Heritage to Global Leadership

Sri Lanka’s cinnamon industry is standing at a decisive junction, and it is exploring ways to leverage the international market demands.  With sustainable farming traditions and constant demand, and a strong backing of brand recognition, the agriculturally rich island has the potential to become the world’s uncontested leader in true cinnamon.

Realizing that potential will depend on how effectively the nation can expand cultivation, modernize its value chain, and strengthen market positioning across both established and emerging destinations.