Dry Onion Market

Dry Onion Market Outlook (2021-2031)

The global market for dry onions is slated to witness substantial growth from 2021-2031, reaching US$ 6.36 Bn by the end of the said forecast period- according to recently published estimates by market research & competitive intelligence provider Fact.MR. As of 2021, the market is likely to accumulate US$ 3.86 Bn. Sales of dry onions for culinary applications will remain elevated, surpassing US$ 1 Bn by 2022.

Market Size Value in 2021	US$ 3.86 Bn
Project Market Forecast Value in 2031	US$ 6.36 Bn
Global Growth Rate (2021-2031)	5.1%
Market Share of U.S	80%

Demand Analysis of Dry Onion from 2016 to 2020 Vs Market Projections for 2021 to 2031     

According to market intelligence published by Fact.MR, demand for dry onions witnessed substantial growth in the historical period 2016-2020, clocking a CAGR of around 4%. Consumption has increased as they are easy to store and fry, coupled with the ability to enhance flavors of multiple food preparations.

During the COVID-19 pandemic, consumption of dry onions increased majorly. Dry onions are especially rich in prebiotics, helping in the proliferation of gut bacteria which help build immunity against the infection. Several studies conducted during the height of the pandemic revealed that onions possess anti-inflammatory substances, which could prevent histamine release and provide relief to patients.

Future market demand is expected to remain reliant on the ever expanding popularity of dehydrated vegetables consumption, given their extended shelf life. Significant advancements in dehydration technology, such as spray drying and vacuum drying, are playing important roles in furthering sales of dry onions. Fact.MR forecasts the market to surge at a CAGR of 5.1% from 2021-2031.

High Sales of Processed Food Products Accelerating Demand for Dry Onions?

Dry onion is made by exposing onion to the heat at a very low level and all the moisture is removed to make it dry. The process of drying onion helps to preserve it for a long time.

Dry onion is being used in a number of processed food products and non-processed food products like sauces, soups, salads, gravies, meats, seafood, etc. Although dry onions are slightly less pungent as compared to the fresh onion, they still add a great zing to many foods.

Along with enhancing the flavor, dry onions also provide various health benefits such as they are rich in potassium, magnesium, and calcium. Moreover, dry onion is also low in calories, fat, and sodium. Hence the majority of the people are shifting towards using dry onion as an essential ingredient in their cooking. Global food processing industries are also increasingly using adding dry onions in various foods.

Preservation of Quality Playing Key Role in Sales of Dry Onions?

As fresh onions are seasonal in some of the countries, dry onion is proving to be an economical and effective technique to use onions even in off-seasons. Researchers are also focusing on finding various new methods to dry onions while maintaining its quality and taste.

In addition, various drying process ranging from air drying to vacuum drying is retaining the quality of onions. Thus, along with research and development, manufacturers are focusing on making dry onions cost-effective. Furthermore, dry onion companies are offering the same in attractive packaging and various forms making it affordable and convenient to use.

Drying onions can help to preserve onions for a long time, hence the demand for dry onions in form of powder, flakes, and granules is increasing. Consumers are also using dry onions in place of fresh onions as they are easy to use and also offer health benefits.

Country-wise Analysis

How is Increasing Onion Consumption in Everyday Diet Broadening Prospects for India?

The scope for dry onion sales is immense in India, with Fact.MR projecting a strong CAGR exceeding 8% for the forecast period ranging from 2021-2031. Given India’s dominant position in the spices, condiments and seasonings industry, consumption of onions in different formats has been on the incline since several years.

According to data published by the Department of Agriculture & Farmers Welfare, around Rs. 16 lakhs (US$ 22,000) worth of output was generated from onion cultivation in FY 2015-16. This high output is an outcome of increased applications in various culinary preparations. Besides, the popularity of dried onions is increasing on the back of rising demand for ready-to-mix spices and condiments.

Another important growth driver for dry onions in India is the mushrooming hotels, restaurants and cafeteria business. Estimates conclude that the restaurant business in India is the largest service sector after retail insurance. It is 20x more lucrative than the film industry, 4.7x more than the hotel industry and 1.5x more than the pharmaceutical sector.

This is largely in part due to surging disposable incomes which encourages people to frequent outdoor eating environments. While dining outdoors, consumers are willing to experiment with various food choices, which is increasing usage of dry onions for multiple cuisine preparations. 

Onion Powder Bolstering Demand for Dry Onions in the U.S?

People in the U.S have shown growing inclination towards nutrient-rich foods in the last few years. In addition, increasing obesity in the region has upsurged the demand for healthy food. Thus, onion powder is largely used while cooking various vegetables. Furthermore, increasing number of Indians in Canada have bolstered the demand for dried onion in the region.

Moreover, increasing demand and use of dry onions in everyday cooking and increasing production of onion powder as an ingredient as some of the factors resulting in the growth of dry onion market in the U.S. Thus, the market for dry onions is expected to witness healthy growth, capturing over 4/5th of global market revenue.

Category-Wise Insights

Nutritious Properties of Onions Making them Popular for Culinary Applications?

Dry onions usage for culinary applications has surged by leaps and bounds, given its ability to enhance flavors of multiple food preparations. Roasted onion flakes are used in small quantities to usher in crispiness and piquant, as well as improve tastes of salads, sandwiches, dipping sauces and spreads.

A significant advantage of utilizing dried onions is that they are less prone to burning while cooking. Furthermore, using dehydrated onions contains probiotics, which improve sleep and even reduce stress. Based on these advantages, the culinary segment is likely to reach US$ 1 Bn by 2022, expanding at a CAGR of 5% until 2031.

Which Drying Process is expected to Garner Major Traction?

According to Fact.MR, spray dried onions are likely to generate substantial growth opportunities, expected to account for over US$ 200 Mn by 2031 and exhibiting a CAGR of over 5%. This technique is highly preferred because of the highly heat sensitive nature of dried onion. Furthermore, it is a complete and continuous process, leading to swift and rapid drying.

Spray drying of onions also helps in achieving uniform and controlled size particles. Also, as the heat and mass transfer ration is larger for particles, spray drying provides excellent solubility as well. Additionally, spray dried onions are also easy to transport, due to its light weight.

Competitive Landscape

Prominent manufacturers of dry onions focus on important growth strategies, ranging from collaborations with food safety technology providers to offer high quality products to introducing hygienic and sustainable manufacturing processes. Moreover, the market is dominated by numerous regional level manufacturers.

• In October 2021, Olam International partnered with food safety tech provider Agri-Neo to provide organically pasteurized dried onions. The partnership will enhance food safety for both conventional and organic ingredients. The partnership combines the company’s leadership in dried onions with the latter’s pasteurization technology titled Neo-PureTM.
• Kings Dehydrated Foods Pvt. Ltd. is another prominent market players, offering a broad range of dehydrated onions. Its portfolio includes dehydrated fried onions, dehydrated onion powder and dehydrated onion kibbles respectively. These are in high demand, attributed to their high purity, hygienically processed approach, enhanced shelf life, natural taste and excellent quality
• Likewise, Murtuza Foods Pvt. Ltd. offers 12 different forms of dehydrated white, pink and red onions. These include powders, flakes, minces, chopped onions, granulated onions, and customized cuts respectively. The company’s core focus while manufacturing dry onions involved maintenance of superior quality, ensuring sustainability in operations and emphasize on social responsibility

Report Scope

Attribute	Details
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Key Countries Covered	U.S Canada Brazil Mexico Argentina Germany U.K Spain France Italy Nordics India Malaysia Thailand Singapore China Japan Australia GCC South Africa Nigeria Israel
Key Segments Covered	Form Drying Process Application Type Region
Key Companies Profiled	Kings Dehydrated Foods Pvt. Ltd Murtuza Foods Pvt. Ltd Vibrant Dehydro Foods Pvt. Ltd Cascade Specialties Inc. Shreeji Dehydrate Vibrant Dehydro Foods Pvt. Ltd Foodchem International Corporation Pardes Dehydration Daksh Foods Olam International Natural Dehydrated Vegetables

Key Segments Covered

• Form

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

• Drying Process

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

• Application Type

  • 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
  • East Asia
  • South Asia
  • Oceania 
  • Middle East & Africa