Rising Demand for Convenience and Ready-to-eat food drives the Demand for Dehydrated Onion Market

The Demand for ready-to-eat food in the market is projected to grow due to cumulative working population, rising per capita expenditure on convenience food, growing per capita disposable income, change in lifestyle among affluent consumers and changing taste preferences of people are driving the market of dehydrated onions globally. This trend has impacted manufacturers to fulfill the consumers' demands and launch a variety of dehydrated onion products in the market.

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Data Bridge Market Research analyses that the dehydrated onion market is expected to grow at a CAGR of 6.8% in the forecast period of 2021 to 2028 and is expected to reach USD 977,461.04 thousand by 2028. The rising consumer inclination towards healthy routines and various initiatives taken by government bodies in different nations are expected to drive the growth of the global dehydrated onion market in the forecast period.

Growing Demand from various end use industries is expected to drive the Market's Growth Rate

Dehydrated onions have Demand from different industries such as households, food processing and the foodservice sector. Dried out onions have the idyllic parity of tart and sweet flavor that alone comes out of fresh onions. With their intense flavor, the entire dehydrated onion flakes add an extraordinary punch to different food products such as soups, sauces, snacks, and convenience food, increasing the Demand for dehydrated onions for the foodservice industry. Thus, the increased Demand for dehydrated onion in various end-use industries fulfills the needs of the consumers as they are availing a variety of dehydrated onion products in the market.

Report Scope and Market Segmentation

Segment Analysis:

Global dehydrated onion market is categorized into eight segments based on form, packaging, nature, variety, technology, distribution channel, end user and application.

• On the basis of form, the global dehydrated onion market is segmented into whole, powder, granules, slices, cubes, minced chopped, flakes, rings, diced, crosscuts, chunks, paste and others. In 2021, the whole segment is expected to dominate the dehydrated onion market growing with the CAGR of 7.7% in the forecast period of 2021 to 2028 due to the increase in Demand for whole dehydrated onions in various end-use industries.
• On the basis of packaging, the global dehydrated onion market is segmented into bags/pouches, cans, aseptic cartons and reusable jars. Bags/pouches are further sub-segmented into pet and paper. In 2021, bags/pouches segment is expected to dominate the dehydrated onion market growing with the CAGR of 7.4% in the forecast period of 2021 to 2028 due to its easy-to-use nature as it comes small size thus it is easy to carry and cost-effectiveness.
• On the basis of nature, the global dehydrated onion market is segmented into organic and conventional. In 2021, the conventional segment is expected to dominate the dehydrated onion market growing with the CAGR of 6.6%

The conventional segment is expected to dominate the dehydrated onion market

In 2021, the conventional segment is expected to dominate the dehydrated onion market, growing with the CAGR of 6.6% in the forecast period of 2021 to 2028 due to increased awareness about the health benefits of conventional dehydrated onions.

• On the basis of variety, the global dehydrated onion market is segmented into white onions, red onions, pink onions and hybrid. In 2021, the white onions segment is anticipated to dominate the global dehydrated onion market growing with the CAGR of 7.7% in the forecast period of 2021 to 2028 due to increased consumption of white dehydrated onions in various regions.
• On the basis of technology, the global dehydrated onion market is segmented into vacuum drying, air drying, spray drying, microwave drying, freeze drying, drum drying, fried and others. In 2021, the air drying segment is anticipated to dominate the global dehydrated onion market growing with the CAGR of 7.4%

The air drying segment is anticipated to dominate the global dehydrated onion market

In 2021, the air drying segment is anticipated to dominate the global dehydrated onion market growing with the CAGR of 7.4% in the forecast period of 2021 to 2028 due to increased adoption of air drying technology in various regions.

• On the basis of distribution channel, the global dehydrated onion market is segmented into B2B and B2C. In 2021, B2B segment is expected to dominate the global dehydrated onion market growing with the CAGR of 6.9% in the forecast period of 2021 to 2028 due to the increased Demand for dehydrated onion various end industries and wholesalers in bulk amount.
• On the basis of end user the global dehydrated onion market is segmented into household, food processing, food services and industrial. In 2021, the food processing segment is anticipated to dominate the global dehydrated onion market growing with the CAGR of 6.3% in the forecast period of 2021 to 2028 due to increased production and consumption of dehydrated onions in various food products to enhance the taste and flavor of the product.
• On the basis of application, the global dehydrated onion market is segmented into culinary, soups, sauces, salad dressings, snacks and convenience food, bakery products, beverages, pharmaceuticals, dietary supplements, personal care and cosmetics, meat and poultry products and others. In 2021, the snacks and convenience food segment is anticipated to dominate the global dehydrated onion market growing with the CAGR of 7.9% in the forecast period of 2021 to 2028 due to increased consumption and Demand of dehydrate onions of various convenience food items in various forms such as cubes and granules, slices among others.

Major Players

Data Bridge Market Research recognizes the following companies as the major dehydrated onion market players in dehydrated onion market are Daksh Foods Private Limited (India), Earth Expo Company (India),Green Rootz (India), Harmony House Foods, Inc. (U.S.), Jain Farm Fresh (India), JIYAN FOOD INGREDIENTS (U.S.), Natural Dehydrated Vegetables Pvt. Ltd. (U.S.), Olam International (Singapore), Real Dehydrates Pvt Ltd (India), Silva International(U.S.), Van Drunen Farms. (U.S.), B.K.Dehy Foods, Rocky Mountain Spice Company (U.S.), Oceanic Foods Ltd. (India), Viji Foods (India), Qingdao UnisonEco Food Technology Co.,Ltd. (China)

Market Development

• In January 2021, Anuha Food Products (AFPPL), a food processing start-up, recently launched an array of ready-to-cook products under its dehydrated gluten-free F&B brand Zilli’s, the brand aims to cater to the rising Demand for ready-to-cook healthy fixes amidst the pandemic with its recently launched dehydrated onion flakes and garlic cloves.
• In April 2021, Teys USA, a joint venture between Cargill and Teys Australia, launched a new line of grass-fed, free-range beef products fully cooked and single portioned under its Truly Simple brand, which are seasoned with dehydrated onions such as onion powder.
• In October 2020, Sleaford Quality Foods Limited launched new herbs and spices under its chef William pot range. It included onion powder. The company is focusing on product launches to increase its penetration in the food industry by expanding its product portfolio.

Regional Analysis

Geographically, the countries covered in the dehydrated onion market report are U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, Rest of Europe in Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in Asia-Pacific (APAC), Brazil, Argentina, Rest of South America as a part of South America, UAE, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa(MEA) as a part of Middle East and Africa(MEA).

As per Data Bridge Market Research analysis:

Asia-Pacific is the dominant region in dehydrated onion market during the forecast period

Asia-Pacific dominated the dehydrated onion market owing to the rising awareness among growers, significant share by major players and wide application in various industries. Asia-Pacific will continue to dominate the dehydrated onion market in terms of market share and market revenue and will continue to flourish its dominance during the forecast period. This is due to the health benefits of dehydrated onions in this region. 

North America is estimated to be the fastest-growing region in dehydrated onion market

North America is expected to grow during the forecast period due to the presence of major market players in this region. In addition to this, the increasing Demand for ready-to-eat and convenience food is expected propel the market's growth rate in this region.

How does Fluctuations in Raw Materials have negative impact on the Market?

The raw materials needed for dehydrated onion include various onions such as red, white and pink. The increasing prices of onions hinder the global dehydrated onion market as dehydrated onion manufacturers find it difficult to buy dehydrated onions as volatile prices of fresh onion may hamper the manufacturing of dehydrated onion and result in the increased cost of end products.

Additionally, disruption in the supply chain is also the reason for fluctuating raw materials prices such as onions. Food and beverage manufacturers depend on the number of domestic and international raw materials. As most governments restricted the movement of goods across countries and locally due to COVID-19, the manufacturers had to halt the production due to a lack of raw materials. The ban on the export of fresh onions has resulted in increased raw material prices in the international market and it adversely affected the global dehydrated onion market. Thus, the import-export ban is also the main reason for the fluctuating prices. For instance, In September 2020, India prohibited the export of all onion varieties except those cut, sliced or in powder form. The raw material price fluctuations have affected manufacturers adversely and ultimately, the prices of fresh onion resulted in increased costs of dehydrated onions. Manufacturers have to cope with such situations and handle the sudden increase and decrease in Demand for the products. This, in turn, is affecting the growth of the global dehydrated onion market.

Hence, the fluctuation of raw material prices is expected to restrain the growth of the global dehydrated onion market in the forecast period.

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