Global Dehydrated Onions Market Snapshot (2023 to 2033)

The predicted size of the global dehydrated onions market in 2022 was close to USD 1.1 billion. The global dehydrated onion market is growing due to reasons such as increased consumer demand for fast food as well as ready-to-eat convenience foods. It is thus anticipated to have produced USD 3.6 billion by 2023, alongside a CAGR of 19% from 2023 to 2033.

The market for dehydrated onions has been pushed by the fast food industry's explosive rise as a result of customers' hectic lifestyles in industrialized and emerging nations. Rising demand for ready-to-eat food items including noodles, sauces, soups, pizza, spaghetti, and other items is a major factor driving the dehydrated onion industry. The key component in dishes like sauces, soups, and salad dressing is dehydrated onion.

Dehydrated onion is used as a garnish on prepared foods such meat dishes, casseroles, and vegetable dishes. Dehydrated onions are also in high demand since they are utilized in commercial kitchens, institutions, and workplace canteens as culinary onions. Compared to fresh onion, these dehydrated onion has more potent tastes.

The low-calorie, high-nutrient dehydrated onion is a good source of potassium, vitamin B, as well as C. Dehydrated onion is packaged in pouches, containers, and aseptic cartons, all of which prolong the flavor's shelf life. It aids in retaining less moisture and helps to avoid the growth of mold.

The market for dehydrated onions has also grown as a consequence of the widespread availability of dehydrated onions on a variety of platforms, including contemporary commerce and online sales channels. The demand for dehydrated onions has also risen as a result of millennials' increased spending on healthy food items.

Report Attribute Details
Estimated Market Value (2022) USD 1.1 billion
Expected Market Value (2023) USD 1.6 billion
Projected Forecast Value (2033) USD 3.6 billion
Anticipated Growth Rate (2023 to 2033) 19% CAGR

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Global Dehydrated Onions Market Historical Analysis (2018 to 2022) Vs. Forecast Outlook (2023 to 2033)

Increasing consumer awareness regarding nutritious diets and improved shelf life of dehydrated food products has escalated the growth of the dehydrated onions market globally during 2018 to 2022 with a CAGR of 2.0%, which is further expected to rise at a CAGR of 19% during the forecast period of 2023 to 2033.

Dehydrated onions have a number of health benefits including treatments for cough and cold, reducing the risk of cancer, and diabetes management. These benefits will drive sales prospects for the foreseeable future.

The higher shelf life of dehydrated vegetables allows for logistical benefits. The dehydrated onions market is growing directly in proportion to the growth of dehydrated vegetables as a result of the various advantages of dehydration technology.

What is Primarily Driving the Market for Dehydrated Onions?

Increase in Demand for Convenience Food Affecting Growth

Customers are seeking convenience food increasingly to complement their hectic lifestyle. The demand for convenience food is driven by a busy lifestyle and aging population. Customers prioritize ease of use, packaging, nutritional value, safety, variety, and product appeal when purchasing convenience foods.

Some of the most favored vegetables in dehydrated formats include onions, broccoli, potatoes, and tomatoes, which have wide availability and are easy-to-cook. Dehydration technology can be used to process most vegetables, preserving nutritional content in addition to texture and flavor.

Manufacturers are focusing on producing dehydrated vegetables to gain a better market share to meet the high demand. The rapid growth of the food service industry in various developing markets is also expected to fuel demand.

Expanding Processed Foods Sector to Fuel the Market Expansion

Demanding work culture in cities has resulted in difficulties for consumers to spend time cooking food at home. Consumers have been driven to choose ready-to-eat meals or other convenience food options.

The increasing number of working women, globally, is also driving the global dehydrated onion market. According to the United States Department of Labor, there were 128.2 million working women in the United States in 2015, which is expected to reach 164.8 million by 2026.

Creating substantial growth potential for dehydrated vegetable products due to fast-paced lifestyles, consumers are looking for quick, inexpensive, and delectable food products. The need for dehydrated products is growing especially in tier-1 cities.

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Nandini Roy Choudhury

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Category-wise Insights

Why are Organic Dehydrated Onions High in Demand?

The Organic Segment is likely to Gain Traction for its Clean labels

The organic dehydrated onions segment is expected grow at a CAGR of 8.3% through the forecast period of 2023 to 2033. The surging demand for organic dehydrated onions is primarily due to their increasing production and growing awareness about their health benefits.

Consumers are ready to pay extra for organic goods because they contain lower risk of pesticides and are widely considered to be more nutritious, despite the increased prices. The market for dehydrated onions is predicted to rise as customers become aware of the health benefits of organic products.

Which Variety of Dehydrated Onions Holds the Maximum Share?

White Onions to Remain High in Demand Throughout the Forecast Period

Among the varied onion types, white onions remain the most preferred form and the segment holds a dominant share of 64.4% in 2022 and is expected to grow at a CAGR of 5.9% over the forecast period.

Which is the Top-selling Form of Dehydrated Onions? Granulated Onions is Anticipated to be Used More for Its Convenience

Granulated dehydrated onions segment is exhibiting relatively faster growth. The segment is expected to rise at a CAGR of 6.7%, and is expected to be valued at USD 278.1 million in the year 2033. This growth can be attributed to ease of use in food processing and relatively longer shelf life.

Why is the Use of Spray Drying Technologies on a Rise?

Spray Drying Technology is likely to generate a Good Sum for the Global Market

The spray drying technologies segment is expected to exhibit a CAGR of 6.4% through the assessment period and is expected to generate a market value of USD 245.6 million in the year 2033.

One of the most prevalent methods for dehydrating onions is spray drying. It entails removing moisture for the vegetable in a quicker manner as compared to conventional methods. Spray drying, in combination with other unit processes, is critical for meeting market demand for dehydrated onions.

Will the Food Processing Sector Remain the Dominant Dehydrated Onions End User?

The Food Sector may hold the Dominant Share of the Global Market in 2023

The food processing sector held a market value share of 67.70% in 2022. Sales of dehydrated onions within the sector is anticipated to be valued at USD 1,389.5 million in the year 2031.

The expansion of the food processing industry and rising demand for ready-to-eat or convenience foods will spur demand for dehydrated onions in the coming years. The application of dried onions in snacks, soups, sauces, and baking and confectionery goods has increased.

How are B2C Distribution Channels Influencing Dehydrated Onion Sales?

The B2C Channel will gain Traction Owing to the Rising Number of Online Retailers

Online retailers constitute the fastest growing B2C distribution channel in the market. The segment is expected to register a 7.8% CAGR over the forecast period, reaching a valuation of USD 59.1 million by 2033.

Online retailers make it easy for consumers to compare food price levels and gain information on the origin of food products and details of the producer or supplier. They offer greater transparency with regard to product information, which will remain one of the chief growth drivers in the segment.

Region-wise Analysis

How are Dehydrated Onions Sales Faring in the United States?

Healthy Snacking Options to Boost the Demand from 2023 to 2033

According to FMI, North America will remain one of the most attractive markets during the forecast period. According to the study, the United States accounted for 21.7% of the North America market in 2022.

Consumers in United States are opting for healthy snacking due to the rising awareness towards obesity and high calorie foods. They are opting for food products with nutrient-rich profiles.

The United States holds a substantial portion of the global dehydrated onions market due to its huge population, affinity for dehydrated foods, and high expenditure capacity.

What is driving the Demand for Dehydrated Onions in Brazil?

Various Classes of People are Opting for Convenient and Safe Foods

The Brazil dehydrated onions market is expected to be valued at USD 27.7 million in 2023. The global trend of rising food ingredient quality is also rising in Brazil, and is becoming increasingly significant for urban consumers and retailers.

Consumers in the middle and higher social classes in cities want food that is both safe and convenient. For the manufacturers of dried onions in Brazil, this is both a challenge and an opportunity.

What are the Growth Prospects of the Dehydrated Onions Market in the United Kingdom?

Healthy Eating Trends among the Consumers to Skyrocket the sales

Rising health consciousness is anticipated to result in consumers seeking healthier diets which is driving demand. The food industry is anticipated to improve over the next decade despite the economic slump due to the COVID-19 outbreak.

Sales are expected to increase steadily year on year. Over the forecast period through 2023 to 2033, revenue is expected to grow at a CAGR of 17.5% to reach over USD 68.6 million in the year 2033.

How are Dehydrated Onions Producers in China Contributing to Growth?

Innovative Foods being launched by the Retailers are Pulling in More Consumers

According to FMI’s analysis, China is expected to grow at a CAGR of 14.5% over the forecast period of 2023 to 2033. The dehydrated onions market is growing due to Chinese consumer needs for healthy and innovative foods. Foreign retail manufacturers are also increasing their presence in the country, which is projected to fuel market expansion.

The dehydrated onions market in China is rapidly expanding, owing to increased consumer demand for processed foods and a growing preference for ready-to-eat meals.

Why is the India Dehydrated Onions Market Reflecting Faster Growth?

The Growth is Doubling for India is a Leading Suppliers of Onions

According to FMI analysis, the Indian market is expected to grow at a CAGR of 13.5% over the forecast period of 2023 to 2033.

India is a leading producer of processed vegetables such as onion and garlic in South Asia. Demand for dehydrated onions from the country has increased dramatically due to the higher quality and aromatic properties of locally produced goods.

India has emerged as a leading supplier of dehydrated products made from onions to other South Asian countries because of high product quality and abundant yield.

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Market Competition

Food manufacturing companies are proactively implementing research and development and technology advances in response to the growing demand for healthier food by consumers. Many food companies are working to reduce the quantity of salt, sugar, and sodium in their products.

The key players in this market include:

  • 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

Some of the products being launched by the key players are:

  • In August 2017, ITC, one of India's foremost multi-business enterprise, announced its entry into the dehydrated vegetables market, providing consumers with healthy food.
  • In July 2020, BC Foods announced the acquisition of an onion and garlic dehydration facility from Darshan Foods in Gujarat, India, with the objective of meeting its geographical expansion needs.
  • In January 2021, Anuha Foods launched a new range of ready to cook products under its gluten free and dehydrated food product ranges under the Zilli’s brand including dehydrated onion flakes.
  • Food firm Olde Thompson was purchased by Olam International from Kainos Capital in 2021 for USD 950.00 million. The firm will be able to expand internationally in the spice market thanks to this acquisition. It increases OFI's private label possibilities and makes it possible for the company to offer customers a wide variety of robust, authentic, natural tastes and flavors with end-to-end sustainability as well as traceability.

Report Scope

Report Attribute Details
Growth Rate CAGR of 19% from 2022 to 2032
Market value in 2023 USD 1.6 billion
Market value in 2033 USD 3.6 billion
Base Year for Estimation 2022
Historical Data 2018 to 2022
Forecast Period 2023 to 2033
Quantitative Units USD billion for value
Report Coverage Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis
Segments Covered Nature, Variety, Form, End Use, Technology, Distribution Channel, Region
Regions Covered North America; Latin America; Europe; Asia Pacific; Middle East and Africa
Key Countries Profiled United States, Canada, Mexico, Brazil, Rest of Latin America, Germany, United Kingdom, France, Spain, Italy, Japan, China, Singapore, Thailand, Indonesia, Israel, GCC countries, South Africa, Australia, New Zealand
Key Companies Profiled 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
Customization & Pricing Available on Request

Key Segments Profiled in the Global Dehydrated Onions Market

By Nature:

  • Organic
  • Conventional

By Variety:

  • White Onion
  • Red Onion
  • Pink Onion
  • Hybrid

By Form:

  • Chopped
  • Minced
  • Granules
  • Powder
  • Flakes
  • Kibbled
  • Sliced

By End Use:

  • Food Processing
    • Dressing & Sauces
    • Ready Meals
    • Snacks & Savory
    • Infant Food
    • Soups
    • Others
  • Food Service Providers
  • Retail/Household

By Technology:

  • Air Drying
  • Vacuum Drying
  • Freeze Drying
  • Microwave Drying
  • Spray Drying
  • Others

By Distribution Channel:

  • B2B
  • B2C
    • Hyper/Super Markets
    • Convenience Stores
    • Specialty Stores
    • Traditional Grocery Retailers
    • Online Retailers

By Region:

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East and Africa

Frequently Asked Questions

What is the market value in 2023?

In 2023, the dehydrated onions market is valued at USD 1.6 billion.

What will be the growth rate until 2033?

Until 2033, the market will experience a 19% CAGR.

What is majorly propelling the market growth?

Increasing convenience food demand drives market growth.

What is the CAGR for organic dehydrated onions?

Organic onions will expand at an 8.3% CAGR through 2033.

Who are some key manufacturers?

Olam International, Kisan Foods, and BC Foods Inc. are some key players.

Table of Content
	1. Executive Summary
	2. Market Overview
	3. Market Background
	4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
	5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Nature
		5.1. Organic
		5.2. Conventional
	6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Variety
		6.1. White Onion
		6.2. Red Onion
		6.3. Pink Onion
		6.4. Hybrid
	7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Form
		7.1. Chopped
		7.2. Minced
		7.3. Granules
		7.4. Powder
		7.5. Flakes
		7.6. Kibbled
		7.7. Sliced
	8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use
		8.1. Food Processing
			8.1.1. Dressing & Sauces
			8.1.2. Ready Meals
			8.1.3. Snacks & Savory
			8.1.4. Infant Food
			8.1.5. Soups
			8.1.6. Others
		8.2. Food Service Providers
		8.3. Retail/Household
	9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Technology
		9.1. Air Drying
		9.2. Vacuum Drying
		9.3. Freeze Drying
		9.4. Microwave Drying
		9.5. Spray Drying
		9.6. Others
	10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Distribution
		10.1. B2B
		10.2. B2C
			10.2.1. Hyper/Super Markets
			10.2.2. Convenience Stores
			10.2.3. Specialty Stores
			10.2.4. Traditional Grocery Retailers
			10.2.5. Online Retailers
	11. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
		11.1. North America
		11.2. Latin America
		11.3. Europe
		11.4. Asia Pacific
		11.5. MEA
	12. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	13. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	14. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	15. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	16. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	17. Key Countries Market Analysis
	18. Market Structure Analysis
	19. Competition Analysis
		19.1. Olam International
		19.2. Jain Farm Fresh Foods Ltd
		19.3. Daksh Foods Pvt. Ltd.
		19.4. Jiyan Food Ingredients
		19.5. Natural Dehydrated Vegetables Pvt. Ltd.
		19.6. Real Dehydrates Pvt. Ltd.
		19.7. Earth Expo Company
		19.8. Kisan Foods
		19.9. Harmony House Foods, Inc.
		19.10. Silva International Inc.
		19.11. Green Rootz
		19.12. BC Foods Inc.
		19.13. Suszarnia Warzyw Jaworski Sp. J.
		19.14. Pardes Dehydration Company
		19.15. Murtuza Foods Pvt. Ltd.
		19.16. Darshan Foods Pvt. Ltd.
		19.17. Garon Dehydrates Private Limited
		19.18. Rocky Mountain Spice Company
		19.19. R. J. Van Drunen & Sons, Inc.
		19.20. German Foods
	20. Assumptions & Acronyms Used
	21. Research Methodology
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