Updated Dec 31, 2022 14:09

Cinnamon Market in Guatemala

Market Overview
After two years of decline, the Guatemalan cinnamon market increased by % to $ in . Overall, consumption continues to indicate strong growth. As a result, consumption reached the peak level of $. From to , the growth of the market remained at a somewhat lower figure.


Consumption
In , after two years of decline, there was significant growth in consumption of cinnamon (canella), when its volume increased by % to tons. Overall, consumption saw a measured increase. As a result, consumption attained the peak volume of tons. From to , the growth of the consumption failed to regain momentum.

The revenue of the cinnamon market in Guatemala surged to $ in , increasing by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption posted a resilient expansion. As a result, consumption attained the peak level of $. From to , the growth of the market failed to regain momentum.


Market Forecast
Driven by increasing demand for cinnamon in Guatemala, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Driven by a growing demand, the share of imports in total supply in Guatemala increased significantly over the last fifteen-year period (from % to %). Total import supply of cinnamon is expected to rise, though it will be moderately impacted by price increases. Cinnamon market in Guatemala consists almost entirely of imported products. In recent years, import price have increased sharply. Despite the hike in price, Guatemala relies completely on foreign supplies: the volume of domestic output remains insufficient to satiate market demand. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports increased moderately ( percentage point) over the period under review.


Trade Balance
Guatemala remains a net importer of cinnamon; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of tons, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.