Oct 12, 2018
US$ 51 Bn Fresh Onions and Shallots Market Slated to Witness a Robust Growth through 2022; Medicinal Benefits to Contribute the Most, Predicts Fact.MR
by Team Fact.MR
The global market for fresh onions and shallots is projected to expand at a robust CAGR of 6.3 percent in the coming years. From an estimated value of more than US$ 37 Billion in 2017, revenue from the sales of fresh onions and shallots is pegged to cross US$ 51 Billion by 2022, during the assessment period of 2017-2022. Burgeoning application as a condiment and food formulations coupled with perceived medicinal benefits of onions and shallots are key factors contributing to the growth of global fresh onions and shallots market, predicts Fact.MR.
Fact.MR’s report on the global fresh onions and shallots market, offers a 5-year forecast, delivering key insights on the market dynamics shaping the market’s growth trajectory. The report also assays a comprehensive competitive landscape, with insights on key market leaders and their expansion strategies. Fact.MR foresees potential expansion opportunities in the global fresh onions and shallots market considering the demand for year-round onion supply.
Key regions including North America, Europe, and APEJ are projected to significantly contribute to the growth of global fresh onions and shallots market, throughout the assessment period, accounting for a collective revenue contribution of approximately US$ 40 Billion through 2022. The North American fresh onions and shallots market is likely to witness a significant demand for red and large size onions. However, since the production of jumbo onions remains low in North America owing to unfavorable weather conditions during the harvest season, prices are anticipated to skyrocket. Europe on the other hand, being a large producer of onions, has switched from being a net importer to net exporter, with Spain and Italy being key producers followed by Netherlands, France, and Poland. Atlas, Pikant, and Ed’s red type are the most common shallots grown in APEJ. APEJ is likely to remain a dominant market owing to the seasonal diversity in the region. Global focus on sweet onions will open new market opportunities for producers in APEJ, predicts Fact.MR.
Red onions are projected to be highly preferred in terms of product type, bringing US$ 15.4 Billion revenue, through 2022. Red onions have gained popularity in the recent, especially in foodservice industry—used in salads and sandwiches. In terms of culinary usage, most Asian and European countries use red onions owing their full-bodies flavor and bright hue. Yellow onions are projected to account for nearly 1/3rd of the global market share, owing to their slightly sweet taste notes- a trend that could favor the yellow onions sales.
Revenue through culinary application of fresh onions and shallots is expected to stand at US$ 21 Billion, through the assessment period making for the largest segment. In cuisines across the globe, onions and shallots are being increasingly used owing to its versatile nature resulting in attractive flavor notes. However, soups, sauces, and dressings application of fresh onions and shallot is projected to be the most promising and fastest growing segment, at 9.2 percent CAGR. Growth of this segment is mostly attributable to the demand for low-calorie foods by health-conscious population. In terms of product form, whole fresh onions and shallots are expected to remain the most preferred, accounting for approximately 58 percent market share, over the forecast period.
Favorable government incentive schemes and relatively good domestic production is likely to turn the global pricing of fresh onions and shallots fairly competitive in the international markets, with a potential increase in export shipments. Key stakeholders in the fresh onions and shallots market value chain are anticipated to improve their agricultural productivity (keeping up with seed and technique advancements) and strengthen their supply chain. Escalating trade tensions will remain a key concern, affecting the overall import and export scenario of fresh onions and shallots, predicts Fact.MR.