Dry Onion Market

Dry Onion Market Outlook (2023 to 2033)

The global dry onion market has reached a valuation of US$ 4.26 billion in 2023 and is estimated to jump to US$ 7.01 billion by 2033-end. Worldwide shipments of dry onions are predicted to rise at 5.1% CAGR over the next ten years, which is higher than the historical CAGR of 4.1% (2018 to 2022).

Dry onions are dehydrated onions that retain the fresh onion flavour and just change the texture to improve their shelf life. Increasing demand for the reduction of food waste is pushing farmers to adopt different types of preservation methods such as drying and dehydrating.

• In March 2023, the Central Government of India revealed its intentions to irradiate onions post-harvest before storing them to reduce losses due to wastage and rotting in storage. The Centre had plans of doing this on a pilot basis before implementing it on a large scale.

The longer shelf life of dry onion powder is propelling its demand in the processed food industry as it stays stable for a long period and retains the taste of onions as well. Growing consumption of convenience foods, adoption of hectic lifestyles, expanding working women population, rapid urbanization, and increasing focus on sustainable agricultural practices are key prospects that could augment sales of dried red onions, dehydrated onion flakes, dry fried onions, etc. in the future.

Fluctuations and volatility in the pricing of fresh onions are also major prospects that could potentially boost the consumption of dry onions over the next ten years. The surging popularity of plant-based food and a growing number of people opting for plant-based diets and keto diets could also benefit shipments of dry onion going forward.

The launch of new drying solutions and advancements in dehydration technologies are projected to help dry onion companies streamline their business as efficiency and productivity increase.

• In March 2023, The Pangasinan State University (PSU) and the Department of Science and Technology Food Innovation Center (DOST-FIC) announced the launch of new technologies to manufacture onion powder and shrimp paste (bagoong).

Report Attributes	Details
Dry Onion Market Size (2023)	US$ 4.26 Billion
Projected Market Value (2033F)	US$ 7.01 Billion
Global Market Growth Rate (2023 to 2033)	5.1% CAGR
China Market Value (2033)	US$ 1.03 Billion
United States Market Growth Rate (2023 to 2033)	6.2% CAGR
United Kingdom Market Value (2033F)	US$ 1 Billion
United States Market Growth Rate (2023 to 2033)	6.6% CAGR
Historical Global Market Growth Rate (2023 to 2033)	4.1% CAGR
Key Companies Profiled	Olam International Daksh Foods Murtuza Foods Pvt. Ltd. Cascade Specialties Inc. Shreeji Dehydrate Pardes Dehydration Kings Dehydrated Foods Pvt. Ltd. Vibrant Dehydro Foods Pvt. Ltd. Natural Dehydrated Vegetables Foodchem International Corporation

How are Start-ups Making a Name for Themselves in This Industry?

“Innovative Approach – Key to Getting Somewhere in the Marketplace”

New companies providing dehydrated onions are focusing on taking a creative and innovative approach to make a mark in the global landscape. Improving the shelf-life of dried onion products is a popular trend that aspiring dry onion manufacturers can focus on and improve their presence in the global market.

• Zilli’s, a start-up based in India and incubated under the Atal Incubation Center ALEAP We-hub, announced the launch of its new dried and powdered product range with a shelf life of 12 to 18 months in January 2021.
• S4S Technologies, a decentralized agri-processing company is helping Indian farmers to reduce farm wastage by providing solar dryers to help them manage the shelf life of their produce and thereby reduce any losses that occur due to wastage or improper preservation of food products. The start-up also purchases the output from farmers to further sell it to food processing companies.
• Indian agritech start-up called Godaam Innovations is deploying IoT technology to help farmers avoid onion waste and bring stability to the highly volatile onion market. The company installs IoT devices to detect rotting and control the micro-climate of warehouses while alerting farmers of the same to reduce wastage drastically.

Start-ups can benefit by learning more about aspects such as local supply, pricing trends, product standards, safety regulations, and new developments that have been discussed extensively in this dry onion industry study by skilled analysts at Fact.MR, a market research and competitive intelligence provider.

Country-wise Insights

Which Countries are Lucrative Markets for Dry Onion Manufacturers in APAC?

“China, India – Offering Highly Attractive Business Scope”

India and China, both of these countries are known for their agricultural sector, which contributes influentially to their GDP and reputation in the global trade business. Both countries account for a substantial amount of onion production in the world and are highly lucrative spaces for dry onion providers.

An increase in per capita disposable income of people in the aforementioned countries has resulted in changed consumer habits and allowed more people to opt for dining-out services, which is also expected to bolster demand for dried onion flakes, dried onion powder, etc.

• Shipments of dry onions in China are extrapolated to increase at a 4.1% CAGR from 2023 to 2033 and attain revenue of US$ 1.03 billion by the end of the forecast period.

Which Dry Onion Product is Paying Off Bigtime in the United States?

“Growing Popularity of Onion Powder as Kitchen Essential”

Onion powder is becoming somewhat of a staple in kitchens of the United States and this is a testament to its rising popularity in the country. The high prevalence of obesity and other lifestyle disorders has resulted in growing demand for nutrient-rich foods, which is promoting the use of low-calorie food ingredients. The growing popularity of veganism is also expected to favor the consumption of dry onions going forward.

• Sales of dry onions in the United States are extrapolated to account for a valuation of US$ 1.62 billion by the end of the forecast period.

Rising use of dry onions in everyday cooking and the growing popularity of different cuisines in the country are also projected to bolster demand for products such as chopped dried onions, roasted onion flakes, dehydrated white onions, crispy dried onions, etc. throughout the forecast period.

Why is Dry Onion Consumption Increasing Rapidly in Europe?

“Surging Adoption of Plant-based Diets Complementing Regional Market Growth”

European countries have been leading the world in terms of the adoption of plant-based diets and plant-based food products. Increasing eco-consciousness and growing awareness regarding the benefits associated with vegan and plant-based diets are factors that are estimated to favor demand for dry onion over the coming years.

• Dry onion demand in the United Kingdom is anticipated to rise at 4.7% CAGR across the forecast period to secure a value of US$ 1 billion by 2033-end.

Dried onion flakes, dry onion powder, and dried caramelized onions are being used by vegan consumers in their salads and healthy food recipes to add flavor and increase their nutrient content as well. Germany and the United Kingdom are projected to emerge as highly remunerative spaces in the European region citing the growing adoption of plant-based foods.

Category-wise Insights

How Do Most Companies Dry Their Onions?

“Vacuum Drying Method Preferred Choice for Majority of Dry Onion Providers”

The dry onion market is segmented based on drying process and further classified as air onion drying, freeze onion drying, vacuum onion drying, and other onion drying processes.

Vacuum drying allows dry onion manufacturers to prevent oxidation and retain the texture, color, and flavor of onions in the best way possible. The process is rapid and highly efficient, which is why it is adopted by most dehydrated onion vendors around the world.

• Demand for vacuum drying of onions is forecasted to rise at 5.2% CAGR from 2023 to 2033.

Where Will Dry Onion Consumption Be Higher?

“Culinary Applications Estimated to Lead Global Dry Onion Demand”

Based on application, the dry onion market is segmented into culinary applications, soups, sauces, salad dressings, snacks & convenience food, bakery products, fast food restaurant chains, meat & poultry products, and other applications.

Use of dried onion products in culinary applications is estimated to account for the majority of revenue generated in the global marketplace over the coming years. The growing world population and increasing popularity of different cuisines around the world are projected to fuel dry onion consumption through culinary application across the forecast period.

• Over the next ten years, dry onion demand in culinary applications is anticipated to evolve at 4.2% CAGR.

Dried onion flakes, dried fried onions, and dehydrated onion powder are some products that are projected to witness unprecedented demand from culinary applications in the future.

Competitive Landscape:

Top-tier dry onion suppliers are also expected to adopt different strategies such as collaborations, mergers, acquisitions, and partnerships to expand their business scope and improve revenue generation capacity.

• In October 2021, Olam International, a leading agri-business company operating in 60 countries, announced that it had partnered with food safety tech provider Agri-Neo to provide organically pasteurized dried onions. This move was aimed at enhancing the food safety for both conventional and organic ingredients provided by Olam and combines Olam’s leadership in dried onions with Agri-Neo’s pasteurization technology titled Neo-PureTM.

Key Segments of Dry Onion Industry Research

• By Form :

  • Dry Onion Flakes
  • Dry Onion Powder
  • Dry Onion Granules
  • Minced Dry Onion
  • Other Dry Onion Forms

• By Drying Process :

  • Air Onion Drying
  • Freeze Onion Drying
  • Vacuum Onion Drying
  • Other Onion Drying Processes

• By Application :

  • Culinary Applications
  • Soups
  • Sauces
  • Salad Dressings
  • Snacks & Convenience Food
  • Bakery Products
  • Fast Food Restaurant Chains
  • Meat & Poultry Products
  • Other Applications

• By Region :

  • North America
  • Latin America
  • Europe
  • APAC
  • MEA