Dehydrated Onions Market

Global Industry Analysis (2017 - 2020) - Growth Trends and Market Forecast (2021 - 2025)

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Industry: Food & Beverage | Author Name: Sonal

Global Dehydrated Onions Market Enjoys Consistent Growth Despite Seasonal Changes

The demand for dehydrated onions has remained constant amidst season changes and price fluctuations, which make onions a volatile commodity. An excellent solution to these economical ups and downs is dehydrated onions as it ensures a steady supply. The global dehydrated onion market is slated to remain steady between 2020 and 2025 as end-user industries indicate a higher uptake. An indispensable part of most cuisines, the demand for dehydrated onions is expected to thrive as the pandemic pushes consumers to eat more consciously, healthily, and to boost their immune system. 

According to Agricultural Marketing Resource Center, onions rank the fourth-most consumed form of vegetable in the U.S. In 2017, the per capita utilization of onions both fresh and dehydrated stood at 21.9 pounds per person annually. As the trend of ready-to-eat meals continues, analysts anticipate that it will stoke the demand for dehydrated onions at a steady pace.

Ready-to-Eat Meals Spur Demand for Dehydrated Onions in all Forms

In recent years, the demand for ready-to-eat meals has spiked as lifestyles undergo a major overhaul. Packaged food in the forms of snacks, heat-and-serve, or on-the-go breakfast use varied dehydrated food products, which have a longer shelf life. To ensure the need of eating healthy, food manufacturers are focused on providing the right amount of nutrition, which is expected to bode well for the dehydrated onion market in the coming years. Lighter in weight and smaller in bulk, dehydrated onions no matter the form adds tremendous value to packaged food items. 

Dehydrated Onion Wins Appreciation With Benefits Galore

The outbreak of the COVID-19 pandemic brought with it a wave of adhering to healthy habits. This has made a positive impact on the global dehydrated onion market as the vegetable commits to delivering excellent nutritional value in its dehydrated form as well. Linked to good cardiovascular health and lowering cholesterol, onion can be added in a few strategic places to reap its benefits. Dehydrated onions are also known to be a good source of antioxidants. Rich source of vitamin C and sulphur, regular consumption of dehydrated onions is an ideal way of keeping the immune systems upbeat.

To add to the conversation about benefits, dehydrated onions also come at a cost benefit. The easiest and the most economical way of making dehydrated onions is to sun dry them. The process is also known as solar drying and demands no additional cost. At an industrial level, the global dehydrated onion market also uses technologies such as air, vacuum, freeze, spray, and microwave drying. 

This easy process of making dehydrated onions is a benefit from a consumption angle as well for it eliminates the dependency on seasonal price fluctuations created to due supply and demand variables. 

Onion Powder to Dominate as it Remains Most Convenient to Use

Dehydrated onions are available in forms such as powder, peels, flakes, granules, chopped, minced, kibbled, and sliced. Out of these, the powder segment is estimated to lead the global dehydrated onion market in the forecast period. The use of powder form of dehydrated onion as a flavouring agent across a wide range of snacks, salads, soups, appetizers, gravies, and varied meats is expected to bode well for the market. Easy to pack and refrigerate, the demand for dehydrated onion powder is anticipated to grow as consumption of convenience food remains high. The focus of the global food industry to create appealing, flavourful snacks will continue to the undercurrent for dehydrated onion powder in coming years.

White Onion Segment to Emerge as a Leader

The global dehydrated onion market includes a variety such as white, red, pink, and hybrid onions. Out of these, the white onion segment is expected to dominate between 2021 and 2025. Demand for white onions in salads, soups, stews, and roasts all around the year is expected to keep this segment in the lead. Their sharper taste and distinct flavour in dehydrated format are expected to ensure demand sustenance.  

India Makes Asia Pacific Frontrunner in the Global Dehydrated Onion Market

In terms of geography, Asia Pacific is expected to lead the global dehydrated onion market. As India remains the top production house of this vegetable, the region will command its dominance during the forecast period. Cultivated as both, a summer and winter crop, India remains the second-largest exporter of onions. Studies indicate that India contributes 40% of the total global export of dehydrated onions. In recent years, the demand for dehydrated onions has become more domestic as food processing companies have shown a keen interest in powerful flavouring agents.

Meanwhile, North America is expected to be a key regional market for dehydrated onions as it contributes to nearly the remaining 50% of the export. Snacking trends, artificial flavouring, and flavoured sprinkles are expected to push the regional market in an upward direction. The regional market is also expected to benefit from the higher consumption rate of packaged food that uses onion powder for flavouring food items.

Global Dehydrated Onion Market: Key Players

Some of the key players operating in the global dehydrated onion market are Jain Farm Fresh Foods Ltd, Olam International, Daksh Foods Pvt. Ltd., Jiyan Food Ingredients, Murtuza Foods Pvt. Ltd., Natural Dehydrated Vegetables Pvt. Ltd., Earth Expo Company, Real Dehydrates Pvt. Ltd., Kisan Foods.

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