Dehydrated Onion Market Size to Grow at a CAGR of 4.31% During the Forecast Period 2021-2026

Dehydrated Onions Market size was estimated at $1.01 billion in 2020, projected to grow at a CAGR of 4.31% during the forecast period 2021-2026. Drying or removing moisture from the onions results in dehydrated onions, it is the best way of preserving onions for future purpose. The active medicinal components in onions are vitamin C for rotting and tonic and the component Clokinin is like insulin that regulates blood sugar. Onions have been found to have more antibiotics than penicillin, uremayocin and sulphate that cures tuberculosis, syphilis, gonorrhoea. Unlike, seasonal availability of onions, this product is readily available throughout year and is not affected by any seasonal price change and this the major factor driving the markets growth. High demand for fresh onions coupled with low market awareness among consumers are the factors restraining the markets growth.

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Dehydrated Onions Market Segment Analysis - By Onion Variety

Based on Onion Variety Dehydrated Onions Market is segmented into Red Onions, Pink Onions, White Onions. White onions accounted for the largest market share as it is extensively used in producing dehydrated onions owing to the fact that other onion are not much suitable for dehydration when compared to white onions as of low solid content, low levels of pungency and high content of reducing sugars in white onions. Red onions are estimated to be the fastest growing segment poised to grow at 5.1% CAGR during forecast period owing to the usage of red onion in producing dehydrated onion powder. The dehydrated red onion powder is mostly used in various food preparations when there is a need for desired onion’s texture, taste and flavour and appearance. Various population studies sates that the individual who consumes food products rich in anthocyanin showed a reduced risk of cardiovascular diseases, this is increasing the demand for red onion powder.

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Dehydrated Onions Market Segment Analysis - By Product Form

Based on Product Form Dehydrated Onions Market is segmented in to Minced, Sliced, Chopped, Granules, Powder, Kibbled, Flakes. Powder form has accounted for largest market share owing to the growing usage of dehydrated onion powder as a chief ingredient across a wide range of products such as pizza and burgers. Growing urban population that prefers convenient food is increasing the demand for pizza and burgers. Dehydrate onion powder is witnessing high demand from pizza and burgers by the expansion of fast food chain across the globe and the high consumption of such food items among the young population is increasing the usage of flavouring products like dehydrated onion powder. The dehydrated onion flakes is estimated to be the fastest growing segment owing their usage as a substitute for the fresh onions in liquid based recipes like as chilli sauces, soups, casseroles, stews and others.

Dehydrated Onions Market Segment Analysis - By Geography

Based on Geography Dehydrated Onions Market is segmented into North America, Asia-Pacific, Europe, Rest of World. North America dominated the largest market share of 36.86% in 2020. This is owing to the highest disposable income along with growing food and beverage sector in this region. Asia-Pacific is estimated to be the fastest growing region poised to grow at fastest CAGR during the forecast period 2021-2026 owing to the increasing production of onions along with significant growth of advanced production technologies for dehydrated onions production in this region. Developing countries such as India and China in Asia-Pacific region, are accessible to onions only during particular seasons, thus providing a beneficial opportunity especially for dehydrated onion manufacturer to provide customers with a fair choice, particularly during off-seasons.

Dehydrated Onions Market Drivers

Gluten free and Healthy Food Products:

Consumers have become health conscious than ever, and the demand for gluten-free food has hit new heights all over the world. The players in dehydrated onion industry are benefiting from growing trend in health and wellness and that customers are adopting dehydrated onions in their food items such as dressings, sauces, ready –to-eat meals and others. Particularly in gluten-free food items, dehydrated onions are becoming an essential ingredient especially in developing countries. Moreover, consumers are inclined towards the food ingredients that enhance the convenience in cooking and this factor is driving the markets growth.

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Dehydrated Onions Market Challenges

Demand for Fresh Onions:

The preference for the fresh onions along with low awareness are the factors hampering the markets growth. In addition to this the fluctuation of raw products owing to the seasonal variations is another factor that hinders the market growth.

Dehydrated Onions Market Industry Outlook

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Dehydrated Onions Market. In 2020, Dehydrated Onions Market share is fragmented by the top ten players present in the market. Dehydrated Onions Market top 10 companies are Garlico Ingredients Ltd., Jain Farm Fresh Foods Ltd., Daksh Foods Pvt Ltd., Darshan Foods., Murtuza Foods Pvt Ltd., Oceanic Foods Ltd., Sensient Natural Ingredients., B.K. Dehy Foods, Jiyan Food Ingredients., Kisan Foods., Earth Expo Company.

Acquisitions/Product Launches:

On August 25, 2020 BCFoods has announced its acquisition from Darshan Foods of an onion and garlic dehydration facility unit situated in Gujarat, India. This acquisition extends the presence of BCFoods in India to include onion and garlic dehydration to complement its Kochin office.

Key Takeaways

Geographically, North America Dehydrated Onions Market accounted for the 36.86% revenue share in 2020 owing to the highest disposable income and rising food and beverage industries in countries of this region.

Detailed analysis on the Strength, Weakness and Opportunities of the prominent players operating in the market is provided in the Dehydrated Onions Market.

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Venkat Reddy
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