Cinnamon Oil Market Size & Growth Report to 2030

The global cinnamon oil market is poised for substantial growth, with its value estimated at USD 0.15 billion in 2024 and projected to expand at a compound annual growth rate (CAGR) of over 6% between 2025 and 2030. Cinnamon oil, extracted from the bark or leaves of cinnamon trees, is gaining traction across multiple industries due to its antimicrobial, anti-inflammatory, antioxidant, and aromatic properties. These characteristics make it a highly versatile essential oil used in food & beverages, cosmetics, personal care, pharmaceuticals, and aromatherapy.

Increased consumer demand for natural and clean-label ingredients has significantly influenced the cinnamon oil market. The growing emphasis on wellness, organic formulations, and plant-based lifestyles has further boosted its appeal. Moreover, advancements in extraction techniques and growing investment in sustainable sourcing are shaping the future of this market.

Market Drivers Fueling Growth in the Cinnamon Oil Market

1. Rising Consumer Preference for Natural & Organic Products

The global shift toward natural, organic, and sustainable ingredients is a major growth driver in the cinnamon oil market. Consumers are increasingly opting for chemical-free alternatives in their diets, skincare routines, and wellness practices. Cinnamon oil is well-positioned to meet this demand with its plant-derived origin and multifunctional uses, ranging from digestive health to skincare and aromatherapy.

2. Technological Advancements in Oil Extraction

Modern extraction technologies such as supercritical CO₂, microwave-assisted extraction, and ultrasonic processing are improving cinnamon oil quality, yield, and bioactive retention. These innovations allow manufacturers to optimize cinnamaldehyde and eugenol content—two key compounds that give cinnamon oil its therapeutic and aromatic qualities. These advancements also align with industry trends toward sustainability and clean-label production, providing manufacturers with a competitive edge.

3. Sustainability and Green Chemistry Trends

The cinnamon oil market is increasingly shaped by green chemistry and eco-conscious practices. Leading producers are adopting biodegradable solvents, low-emission distillation systems, and waste-heat recovery technologies to reduce their environmental impact. As sustainability becomes a top purchasing criterion, eco-friendly cinnamon oil—especially those backed by certifications like USDA Organic or Fair Trade—is becoming a premium product category.

Regulatory Landscape and Safety Considerations

In April 2024, the European Union authorized cinnamon leaf and bark oils (from Cinnamomum verum and C. aromaticum) for use as animal feed additives under Regulation 2024/1186. This regulation officially recognizes cinnamon oil’s functionality in sensory and flavor-enhancing roles in livestock nutrition.

However, by July 2025, the EU introduced a critical revision by reducing the maximum permissible methyleugenol concentration in cinnamon bark oil from 0.04% to 0.004%. Methyleugenol, a naturally occurring compound, is now under increased scrutiny due to potential allergenicity and reproductive toxicity, prompting manufacturers to enhance their quality assurance and testing protocols to ensure regulatory compliance.

Cinnamon Oil Market Trends

Diversification and Application Expansion

The application scope of cinnamon oil continues to widen across food & beverages, cosmetics, pharmaceuticals, and wellness products. As of 2025, the cosmetics and skincare segment accounts for over 1/3 market share of global cinnamon oil consumption, followed by food flavoring and aromatherapy and wellness blends. The clean beauty trend is driving increased use of cinnamon oil in facial cleansers, serums, lip balms, massage oils, and natural perfumes.

Growing Focus on Organic and Fair-Trade Certification

Consumers in regions like North America and Europe are actively seeking ethically produced, fair-trade cinnamon oil, particularly from Sri Lanka, India, and Madagascar. Brands promoting farm-to-bottle transparency and emphasizing traceability are gaining strong consumer trust and commanding premium pricing. Certifications such as USDA Organic, Fair for Life, and EcoCert are becoming key differentiators in a competitive market.

Rise of Functional and Nutraceutical Applications

Cinnamon oil’s antioxidant, antimicrobial, and metabolic health benefits are creating opportunities in the nutraceutical and dietary supplements market. Around 21% of new supplements now include cinnamon oil as a key ingredient, while 31% of functional food innovations leverage its potential for gut health and immune support. As natural health products become mainstream, cinnamon oil is expected to play a growing role in this high-growth segment.

Innovative Product Formats

To meet changing consumer expectations, companies are developing innovative delivery systems like nano-emulsions, encapsulated oil beads, and water-soluble cinnamon oil. These advancements improve the bioavailability, stability, and usability of cinnamon oil in skincare, beverages, and dietary formulations.

Market Segmentation Analysis

By Product Type:

✔️ Cinnamon Bark Oil (Dominant Segment)

Cinnamon bark oil leads the market in revenue terms due to its high cinnamaldehyde content, potent aroma, and strong antimicrobial properties. It is favored in functional foods, premium personal care products, and therapeutic formulations. With increasing demand for high-purity, therapeutic-grade oils, bark oil is becoming the preferred option in North America, Europe, and premium product lines.

✔️ Cinnamon Leaf Oil

While cinnamon leaf oil commands a higher volume share, it’s considered less potent than bark oil. Rich in eugenol, leaf oil is commonly used in aromatherapy, soaps, and topical formulations, where affordability and gentle properties are key. It remains a staple for entry-level and mass-market applications.

By Cinnamon Type:

• Ceylon Cinnamon Oil (Premium Segment)
• Cassia Cinnamon Oil (High Availability)
• Others (Hybrid and regional variants)

Ceylon cinnamon oil, often referred to as “true cinnamon”, is sought after for its lower coumarin content and refined aroma, making it ideal for high-end cosmetics and food products. Cassia cinnamon oil, more affordable and abundant, is widely used in bulk applications and pharmaceuticals.

By Application:

Cosmetics & Personal Care (Dominant Application)

In 2024, cosmetics and personal care emerged as the leading segment, contributing the largest revenue share in the cinnamon oil market. The oil is widely used in facial care, perfumes, shampoos, and anti-aging formulations for its aromatic, antiseptic, and stimulating properties.

Food & Beverages

Cinnamon oil is a popular natural flavoring agent in confectionery, teas, beverages, and baked goods, especially in clean-label and organic food products. Its antimicrobial properties also make it suitable for food preservation.

Pharmaceuticals & Nutraceuticals

Cinnamon oil supports blood sugar regulation, digestion, and immune health, making it ideal for supplements and health-focused functional foods. It’s increasingly used in capsules, tinctures, balms, and respiratory health formulas.

Aromatherapy

Cinnamon oil is valued in aromatherapy for its warming, comforting, and uplifting effects. It is commonly included in diffuser blends, massage oils, and relaxation products, often paired with other essential oils like clove or orange.

Regional Insights: Asia Pacific Leads the Cinnamon Oil Market

Asia-Pacific – Leading Region in Production and Consumption

As of 2024, Asia-Pacific holds the largest share in the cinnamon oil market. Countries like Sri Lanka (Ceylon cinnamon), India, Indonesia, and Vietnam dominate both production and exports due to abundant raw materials and low-cost labor.

In July 2024, the Sri Lankan government launched a Department for Cinnamon Development to enhance quality, processing capacity, and traceability. Simultaneously, India’s SPICED initiative under the Mission Clean and Safe Spices is helping spice producers—including cinnamon oil manufacturers—upgrade processing, hygiene, and export-readiness through traceability and geo-tagging systems.

Europe – Fastest Growing Region

Driven by increasing demand for organic essential oils in cosmetics, pharmaceuticals, and functional foods, Europe is emerging as the fastest-growing region. Regulatory updates like methyleugenol limits are enforcing high standards, encouraging innovation in purity assurance and product safety.

North America – Strong Demand for Wellness and Clean-Label Products

North America’s demand for natural wellness, skincare, and nutraceuticals has boosted cinnamon oil imports. The U.S. and Canada are key consumer markets, favoring premium, traceable, and sustainable oil products, especially through e-commerce and direct-to-consumer (DTC) brands.

Key Market Players in the Cinnamon Oil Market

• doTERRA International
• Young Living Essential Oils
• Mountain Rose Herbs
• NOW Foods
• Givaudan
• Ultra International B.V.
• AOS Products Pvt. Ltd.
• The Lebermuth Company, Inc.
• Floracopeia Inc.
• doWELL Essential Oils
• Others

These companies are actively investing in R&D, sustainable sourcing, vertical integration, and international market expansion to solidify their positions in the global cinnamon oil industry.

Cinnamon Oil Market Outlook 2025–2030

Overall, the cinnamon oil market is on a growth trajectory, driven by increasing consumer interest in natural ingredients, sustainable sourcing, and functional wellness solutions. With its wide-ranging applications in beauty, health, food, and aromatherapy, cinnamon oil is expected to see steady demand worldwide. Companies that invest in premium quality, compliance, innovation, and sustainability are best positioned to capitalize on this evolving and vibrant market.