High Sales of Processed Food Products to Accelerate Demand for Dry Onions – Fact.MR Survey

The global dry onion market is poised to reach US$ 6.36 Bn, expanding at a CAGR of 5.1% across the 2021-2031 forecast period, according to a recently published report by Fact.MR. Extensive applications across a range of culinary products, including fast foods, processed foods and bakery products, is likely to sustain demand in the forthcoming decade.

Historically, from 2016 to 2020, sales of dry onions surged at a CAGR of around 4%. The onset of the coronavirus pandemic affected various industries on a large scale. However, demand for dry onion increased due to its properties benefiting the human health. Although, the dry onion industry witnessed a dip in the initial quarters of the pandemic, the sales for the same is expected to retrieve.

Future market demand is heavily reliant on documented health benefits associated with onion consumption, such as improving gut health, imparting anti-histamines and possessing antioxidant properties. Healthcare practitioners are looking to incorporate dry onions for numerous therapeutic uses.


Key Takeaways from the Market Study

  • Global market for dry onions likely to be valued at US$ 3.86 Bn in 2021
  • Spray dried onions to account for maximum sales, accumulating over US$ 200 Mn by 2031
  • Dried onions to remain prominent for culinary applications, expected to surge at a CAGR of 5%
  • 4 out of 5 dry onion sales to occur across the U.S from 2021 to 2031
  • India to be one of the fastest growing markets, flourishing at a CAGR of 8% through 2031

 “Availability of dry onions in various packaging formats along with demand from different geographical regions is playing a key role in the sales of dry onions.” opines a Fact.MR analyst

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