Cinnamon Oil Market Size & Forecast Report - 2025 to 2030

The global cinnamon oil market size was valued at around USD 0.15 billion in 2024 and projected to grow at a significant CAGR of over 6% during the forecast period from 2025 to 2030. The market is witnessing steady growth, driven by increasing consumer demand for natural, plant-based ingredients across industries such as food & beverage, personal care, and aromatherapy. Cinnamon oil—extracted from bark or leaves—offers antimicrobial, anti-inflammatory, and aromatic properties, making it a valuable ingredient in functional foods, cosmetics, and wellness products. In particular, the shift toward organic and clean-label formulations has amplified interest in high-grade cinnamon bark oil, while cinnamon leaf oil continues to gain traction in aromatherapy and topical applications.

Asia-Pacific dominates both the production and consumption of cinnamon oil, with countries like Sri Lanka, India, and China playing a major role due to abundant raw material availability and cost-effective labor. However, Europe is emerging as one of the fastest-growing markets, driven by demand for premium and organic essential oils in the cosmetic and pharmaceutical sectors. Cinnamon oil is commonly distributed through both online platforms and specialty retail channels, with manufacturers increasingly focusing on sustainable sourcing and extraction methods to differentiate their offerings. As consumers continue to prioritize wellness and natural ingredients, the cinnamon oil market is expected to experience moderate but consistent growth over the coming years.

Market Outlook:

Market Drivers:

The movement toward green chemistry and sustainable extraction innovations continues to elevate the cinnamon oil market. In mid‑2025, industry leaders have accelerated the adoption of eco-friendly distillation techniques—such as biodegradable solvent substitution and waste-heat recovery systems—to reduce greenhouse gas emissions and boost yield efficiency in cinnamon bark oil extraction. These innovations not only enhance oil quality and operational efficiency, but also address sustainability credentials, making cinnamon oil more attractive to natural cosmetic brands and eco-conscious consumers.

On the regulatory front, the European Union’s recent actions have provided both clarity and constraints. In April 2024, the EU authorized cinnamon bark and leaf oils (from Cinnamomum verum and C. aromaticum) as feed additives for certain animal species, marking their official recognition under Regulation 2024/1186. However, in July 2025, the EU corrected a critical safety parameter by adjusting the maximum allowed methyleugenol concentration in cinnamon bark oil from 0.04% down to 0.004%. This tightening of allergen limits reflects increased scrutiny over allergenic and reprotoxic compounds in essential oils, which is prompting manufacturers to invest more in product testing, purity assurance, and regulatory compliance.

Market Trends:

Diversification & Technology-Led Innovation

Cinnamon oil producers are increasingly embracing advanced extraction technologies—such as supercritical CO₂ and microwave-assisted methods—to enhance oil yield while preserving bioactive compounds like cinnamaldehyde and cinnamic acid. These methods reduce reliance on traditional steam distillation and solvent extraction, improving quality, consistency, and sustainability in supply chains. At the same time, industry participants are focusing on organic and sustainably sourced cinnamon, with emphasis on traceability through farm‑to‑bottle transparency. Demand is rising for high‐purity, eco‑friendly oils, especially in aromatherapy, natural cosmetics, and functional foods markets.

Market Expansion & Emerging Safety Focus

Cinnamon oil’s expanding role across diverse applications—particularly in cosmetics/beauty, food & beverages, and pharmaceutical/nutraceutical sectors—is diversifying demand. As of mid‑2025, cosmetics and skincare account for over 34% of usage, with food flavoring at nearly 29% and wellness formulations at ~18%. A recent study published in May 2025 has raised regulatory attention: excessive intake of cinnamon oil may interfere with prescription medications by accelerating drug metabolism via activation of xenobiotic receptors, underscoring new safety considerations as usage grows in supplements and health products.

Surging Demand for Organic and Fair-Trade Cinnamon Oil

Consumers are becoming more mindful of sourcing ethics and environmental impact, driving the popularity of certified organic and fair-trade cinnamon oil. This is particularly prominent in the U.S. and EU markets, where labels such as USDA Organic and Fair for Life are influencing purchase decisions. Brands sourcing cinnamon from Sri Lanka, India, and Madagascar are now emphasizing their ethical farming practices, sustainable harvesting, and direct-from-farmer models to enhance brand trust and value.

Clean Beauty and Aromatherapy Adoption

The clean beauty movement continues to favor natural essential oils—like cinnamon—for their therapeutic and aromatic benefits. Cinnamon leaf oil is especially prominent in aromatherapy and natural skincare formulations due to its soothing and antimicrobial properties. This trend has led to a surge in demand for diluted cinnamon blends, roll-ons, and natural perfumes in retail and spa-based wellness spaces.

Product Innovation in Delivery Formats

Market players are introducing innovative formats such as water-soluble cinnamon oil, nano-emulsions, and encapsulated cinnamon oil beads to improve stability and usability in cosmetics, foods, and nutraceuticals. These formulations enhance absorption and control release, which is especially beneficial in functional beverages and targeted skincare applications.

Market Opportunities:

The global cinnamon oil market presents strong opportunities in the nutraceuticals and dietary supplements sector, leveraging its antimicrobial, antioxidant, and metabolic wellness properties. Approximately 21% of new supplement products now feature cinnamon oil, and 31% of functional food innovations include it for gut health benefits and immune support. This expansion aligns with rising consumer demand for natural ingredients and clean-label wellness offerings. Additionally, the cosmetic-grade segment is evolving rapidly, with premium brands investing in encapsulated delivery systems, nano-emulsions, and stable formulations to improve efficacy in anti-acne, anti-aging, and aromatherapy skincare lines.

A key structural opportunity stems from institutional support and sustainable sourcing initiatives in major cinnamon-producing countries. For instance, in July 2024, the Sri Lankan government established a dedicated Department for Cinnamon Development to support growers, improve quality standards, add value through processing, and boost international exports. This move is expected to improve supply consistency, promote premium Ceylon-derived oils, and enhance traceability—allowing brands to command premium pricing and cultivate trust in markets like Europe and North America.

Market Segments Insights:

By Product Type:

The global cinnamon oil market is bifurcated into product type, cinnamon type, application, and geography. On the basis of product type, the cinnamon bark oil is the dominant segment by revenue, owing to its high potency, wider range of applications, and premium pricing. Bark oil contains a high concentration of cinnamaldehyde, which imparts strong antimicrobial, antifungal, and aromatic properties. These characteristics make it particularly valuable in food & beverage flavorings, pharmaceuticals, and high-end cosmetics. The demand for natural and potent flavoring agents has surged, especially in North America and Europe, where consumers seek clean-label, functional ingredients. Furthermore, bark oil is increasingly used in nutraceuticals and therapeutic blends due to its health-supportive properties, commanding higher margins and driving overall market value.

Though cinnamon leaf oil holds a larger volume share due to its lower price and widespread use in soaps, aromatherapy, and household products, it lacks the concentration and versatility that bark oil offers in high-growth, premium sectors. As a result, cinnamon bark oil leads the market in value terms, even if leaf oil may dominate in volume. The growing preference for organic, traceable, and high-purity ingredients has further propelled the bark oil segment, as producers and brands highlight “Ceylon cinnamon bark oil” to appeal to premium markets. Its strong growth prospects and higher unit value continue to reinforce its position as the dominant product type in the cinnamon oil market.

By Application:

On the basis of application, the global cinnamon oil market is further segmented into food & beverages, cosmetics & personal care, pharmaceuticals, aromatherapy, and others. As of 2024, the cosmetics & personal care segment is the dominant application segment in the global market, contributing the largest revenue share in recent years. This dominance is driven by the growing consumer demand for natural, plant-based, and clean-label beauty products, where cinnamon oil—especially leaf oil rich in eugenol—is used for its antimicrobial, anti-inflammatory, and aromatic properties. It is a common ingredient in soaps, facial cleansers, creams, lip balms, perfumes, and essential oil blends. The rising awareness of the harmful effects of synthetic chemicals in skincare has accelerated the shift toward botanical alternatives, and cinnamon oil fits well into this trend. Furthermore, cinnamon oil’s warming and circulation-stimulating effects make it popular in anti-aging and cellulite-reducing treatments.

The surge in wellness and self-care routines, fueled by trends like “clean beauty” and “aromacosmetics,” has expanded cinnamon oil’s role beyond traditional topical applications into aromatherapeutic beauty formulations. Major markets such as North America and Europe are seeing a proliferation of product launches that highlight cinnamon oil as a natural active ingredient. In 2025, cosmetics and personal care accounted for over 1/3 market share of total cinnamon oil consumption, outpacing the food & beverage and aromatherapy segments in both volume and value. With continued innovation in essential oil-based skincare and increased interest in functional cosmetics, this segment is expected to maintain its lead in the foreseeable future.

The cinnamon oil market research report presents the analysis of each segment from 2020 to 2030 considering 2024 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2025 to 2030.

Historical & Forecast Period

• 2020-23 – Historical Year
• 2024 – Base Year
• 2025-2030 – Forecast Period

Market Segmentation:

By Product Type:

• Cinnamon Leaf Oil
• Cinnamon Bark Oil

By Cinnamon Type:

• Ceylon Cinnamon Oil
• Cassia Cinnamon Oil
• Others

By Application:

• Food & Beverages
• Cosmetics & Personal Care
• Pharmaceuticals
• Aromatherapy
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

Geographically, as of 2024, the Asia-Pacific region remains the dominant force in the global cinnamon oil market, both as the largest producer and a rapidly expanding consumer base. Key players like Sri Lanka (premium Ceylon cinnamon), India, China, Indonesia, and Vietnam benefit from ample raw material availability, favorable growing conditions, and cost-efficient production models. These countries have developed robust export frameworks supported by efficient agricultural practices and skilled labor, ensuring consistent supply and high-quality output. Asia-Pacific’s strong position in both volume and value cements its leadership in the cinnamon oil industry.

In a significant development reinforcing this dominance, India’s Spices Board launched the SPICED scheme in September 2024 (effective through FY 2025–26), under the “Mission Clean and Safe Spices” component, which emphasizes quality improvements, export-ready post-harvest processing, and traceability enhancement via geo-tagging and certification mechanisms. This initiative aims to boost the global competitiveness of Indian spices—including cinnamon oil—by supporting FPOs and SMEs in achieving food-safety compliance and value addition. With rising domestic demand for botanicals, Ayurveda-based wellness products, and clean-label essential oils in major markets across India, China, and Southeast Asia, the region is not only powering global supply but also emerging as a high-growth consumption hub—solidifying Asia-Pacific’s unrivaled position in the cinnamon oil market.

Competitive Landscape:

Some of the prominent market players operating in the global cinnamon oil market are doTERRA International, Young Living Essential Oils, Mountain Rose Herbs, NOW Foods, and Givaudan. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

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

Key Questions Answered by Cinnamon Oil Market Report

• Global cinnamon oil market forecasts from 2025-2030
• Regional market forecasts from 2025-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2025-2030 covering 15 major countries from the regions as mentioned above
• Cinnamon oil submarket forecasts from 2025-2030 covering the market by product type, cinnamon type, application, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level cinnamon oil markets from 2025-2030
• Competitive Landscape and market positioning of top 10 players operating in the market