An Assessment of Market Landscape of Cinnamon in Sri Lanka

Purpose : The cinnamon trade is not only Sri Lanka’s oldest trade but the only trade where it holds a monopoly in the world market. Being the leading supplier of true cinnamon to the international market, Sri Lanka is still unable to cater the global demand. Our approach mainly focused to investigate, map and analyze the market landscape of Ceylon cinnamon.

Research Method : Industry insights were drawn from 675 cinnamon growers, 485 peelers, 220 collectors, 50 balers/exporters, 30 value added producers and 50 consumers from Galle, Matara, Kalutara and Ratnapura districts. Stratified and convenience sampling techniques were employed to select appropriate samples. Primary data were collected using internet-based data collection techniques and traditional data collection tools.

Findings : Producer base and peelers were identified as the main upstream actors. Upstream product basket was revealed to comprise with quills (Alba, C5 Special, C5, M1, M2, H1, H2 grades), quillings and featherings. Collectors/dealers, balers, exporters and value-added producers and freight forwarders, off-shore buyers, supermarkets, retailers and consumers collectively represent the downstream. Semi-processed and ultra-processed products were observed in the basket of value-added product exporters. 38% of the studied spice traders were emerging participants and they were followed by contenders (24%), market challenges (16%), niche participants and market leaders (11% each). Key brands associated with cinnamon related products available at the main markets; USA, Mexico, Canada, Germany, UK, India and Japan were used to develop the brand landscape.

Originality / Value : Discovered stakeholder, institutional and brandlandscapes will drivethe Ceylon cinnamon industry towards success in highly competitive market environments.