The expansion of fast-food joints, hotels, and food processing units has positively impacted the market of dehydrated onions, which are often included as key ingredients in a myriad food items. Coupled with this, direct consumption through household recipes will enable growth in the dehydrated onions market at over 5% CAGR between 2021 and 2031.
As per Future Market Insights (FMI) analysis, the market is expected to reach a valuation of over US$ 1.7 Bn by 2031.
Key end users of dehydrated onions are food processing units, HoReCa (hotels, restaurants, and cafes), and household kitchens. Food processing units use dehydrated onions to manufacture ready-to-eat foods. Hotels and restaurants use dehydrated onions for gravies and other food items.
In household cooking, dehydrated onions are emerging as a preferred substitute for fresh onions. However, this consumer segment remains largely untapped. This can emerge as a suitable niche market for new entrants. Companies largely focus only single consumer demographics.
The demand for dehydrated onions is surging due to improvements in technologies utilized in the production of dehydrated food. Technologies such as vacuum and air-dried processes support production, and distribution are increasingly adopted, which will bode well for the market. Also, regulatory approvals have been creating growth opportunities for dehydrated onion manufacturers.
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Key Takeaways from the Dehydrated Onions Market Study
- The U.S. dehydrated onions market will grow from US$ 319 Mn in 2021 to US$ 478.2 Mn in 2031. This represents an absolute $ opportunity of US$ 159.2 Mn in the forecast period.
- Conventional dehydrated onions account for 87% of the market in 2021, supported by lower costs and easier access to required volumes of raw materials.
- White dehydrated onions will grow at a CAGR of 4.9% from 2021 to 2031, driven by higher crop and processing yields.
- The U.K. will emerge as a leading market in Europe, accounting for more than US$ 44 million in 2021, aided by strong demand from the food processing sector of the country.
- GCC countries will remain major contributors to the MEA market with a share of 39.3% in 2021, supported by relatively high export levels.
“Onions, despite being one of the most commonly consumed vegetables in the world, have restrictions in terms of shelf life. On the other hand, dehydrated onions can be stored for longer time and have wider scope of applications, which in turn is propelling the growth of the dehydrated onions market,” said a lead analyst at FMI.
Robust Supply Chains to Increase Market Penetration
Global supply chains for dehydrated onions are largely mature, with adequate transportation infrastructure available to facilitate product movement. Dehydrated onions have benefited from existing supply methods since they may reach clients directly without barriers. Most dried onions come in specialized packaging, which makes storing and transportation easier.
For dehydrated products, companies are using the similar supply chain and transportation modes that find use in frozen food. With minor modifications in storage units, transportation can be made easy and hurdle-free, which improves the trade of dehydrated vegetables.
Almost all developed countries (excluding the Middle East) have an established supply chain, due to which, they are able to supply products directly to retail stores and customers on time.
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Who is Winning?
Leading manufacturers in the moderately fragmented dehydrated onions market are focusing on capacity expansion, investments into strategic geographic expansion and infrastructure developments for product processing applications.
Some of the leading companies offering dehydrated onions are Olam International, Jain Farm Fresh Foods Ltd, Daksh Foods Pvt. Ltd., Jiyan Food Ingredients, Natural Dehydrated Vegetables Pvt. Ltd., Real Dehydrates Pvt. Ltd., Earth Expo Company, Kisan Foods, Harmony House Foods, Inc. Company, Silva International Inc. Company, Green Rootz, BC Foods Inc., Suszarnia Warzyw Jaworski Sp. J., Pardes Dehydration Company, Murtuza Foods Pvt. Ltd., Darshan Foods Pvt. Ltd., Garon Dehydrates Private Limited, Rocky Mountain Spice Company, R. J. Van Drunen & Sons, Inc., German Foods and other.
Get Valuable Insights into Dehydrated Onions Market
Future Market Insights, in its new offering, provides an unbiased analysis of the dehydrated onions market, presenting historical demand data (2016-2020) and forecast statistics for the period from (2021-2031). The study divulges compelling insights on the dehydrated onions market based on nature (organic and conventional), by variety (white onion, red onion, pink onion, and hybrid), by form (chopped, minced, granules, powder, flakes, kibbled, and sliced), by end use (food processing, food service providers, and retail/household), by technology (air drying, vacuum drying, freeze drying, microwave drying, spray drying, and others), by distribution channel (B2B and B2C) across ten major regions North America, Latin America, Europe, East Asia, Oceania, South Asia, MEA, China, India, and Mexico.
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