Dehydrated Onion Market Size, Share, Industry, Forecast and outlook (2024-2031)

Dehydrated Onion Market is segmented By Form (Slices, Powder, Granules, Flakes, Others), By Nature (Organic Dehydrated Onion, Conventional Dehydrated Onion), By Onion Variety (White Onions, Red Onions, Pink Onions), By Technology (Vacuum Drying, Air Drying, Spray Drying, Freeze Drying, Others), By End-User (Household, Food Processing, Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Market Overview

The Dehydrated Onion Market valued USD YY million in 2020 and is estimated to reach USD YY million by 2031, growing at a high CAGR.

Dehydrated onion is a processed onion product that is produced by removing moisture from fresh onion through drying process. Drying is performed to reduce the actual moisture content of onions from 86% to nearly 7% by weight, thereby reducing the risk of microbial contamination and increasing the shelf life. Dehydration is considered as the most viable method of preserving onions owing to the effective storage potential and high nutritional value of dehydrated products.

As systemic drying does not involve peeling or any other exclusion of fresh bulbs, dehydrated onion upholds the taste, texture and color of fresh onions. Dehydrated onion is usually available commercially in the form of flakes, granules and slices. However, these forms are further grounded to form dry onion powder which is widely used as seasoning in culinary applications.

Market Summary

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Market Dynamics

Wide range of health benefits are driving the consumption of dehydrated onion

 Dehydrated Onions hold prebiotics, which enhances sleep and help to reduces stress. When the bacteria in stomach digest the prebiotic fiber, they improve gut health and release metabolic byproducts. Dehydrated onion contains yeast and enzymes used for stomach as stimulants for hormones and glands.

The fiber present in the onions slows digestion and maintains the energy levels stable in human body. Also, the inulin present in the vegetable maintains your stamina levels. Dehydrated onion has numerous health benefits, such as holds antioxidants and vitamin C, which helps prevent heart disease and control blood sugar and insulin. It also holds sulfur and iron, which help to strengthen the nerve. It also helps in free radical loss, which is capable of early aging to skin.

 Dehydration increases shelf life, so low risk of wastage as stock with companies, thus profitable to businesses

Dehydrated onion is a commercial crop globally and is largely used by population for culinary applications. However, it is seasonal and highly dependent on rain, thus limiting its availability in abnormal conditions. Dehydrated onion evolved as the effective solution as dehydration and storage will ensure year-round availability for food industry and regulate market price. Dehydrated onion also provides superior physical attributes than fresh onion in some food applications. Onion as powder is preferred over fresh slices.

Organic onion is another key trend in the dehydrated onion market. Growing awareness towards benefits of organic produce is motivating consumers to choose organic products.

Market Segmentation

Increasing demand for the vacuum drying process for dehydration of onion

Onion is the main vegetable used in almost all food preparations; it adds a delicious flavor. It is used in almost every house, hotel and restaurant for preparing food. Conventional onion does not have a long shelf, so the manufacturer develops the process by which it can preserve for a long time and preserve its taste, color, flavor, and moisture content.

Vacuum drying is a dehydration technique that is significantly used for heat delicate food products because the drying process is at a lower temperature, pressure, and low oxygen. By the high degree vacuum processing, good taste and flavor are produced but by low degree reduced the quality of onion. The main parameter to consider during process temperature, vacuum level and product dimension is the parameters of dried onion such as color, flavor, moisture, and nutrition loss.

Market Geographical Share

Asia-Pacific is the largest producer and consumer of dehydrated onion

Asia-Pacific dominates the dehydrated onion market. In developing countries like India, agriculture is the backbone of its economy. China and India are the largest producers of onion globally. In India, weather conditions, drought, rain and other factors are impacting the crop of onion and fluctuation in price lessens the earning of farmers.

Whole get destroyed sometimes due to waiting for an increase in price or during off-season in the market. Now farmers sell their crops to dehydrated processing units and export them to various countries to achieve the minimum cost of their crop production.

India also rose as a significant supplier of dehydrated onion and due to its quality and aromatic feature, it increased its demand in the region. India is also one of the largest consumers of onion, like spicy, gravy food, increasing demand.

Companies and Competitive Landscape

Wide usage of dehydrated onion in processed food and households made the market competitive

The global dehydrated onion market is highly segregated with many players Daksh Foods Pvt. Ltd., Green Rootz, Jain Farm Fresh, Earth Expo Company, JIYAN FOOD INGREDIENTS, Natural Dehydrated Vegetables Pvt. Ltd., Harmony House Foods, Inc., Olam International, Real Dehydrates Pvt Ltd, Silva International, Van Drunen Farms, B.K. Dehy Foods, Zilli's, ITC, BCFoods and others.

• On 10 July 2020, BCFoods obtained a garlic and onion dehydration facility from Darshan Food located in Gujarat, India.
• On 6 January 2021, Anuha Food Products Pvt. Ltd has started an array of Ready-To-Cook products of dehydrated gluten-free F&B brand Zilli's.
• On 9 January 2018, ITC launched a new range of Master Chef smart onion.

COVID-19 Impact:

Growing demand for processed food has increased the demand for dehydrated onion

COVID-19 has impacted all industries globally. The pandemic affected production, supply and demand also. Due to COVID-19 spread, government put the lockdown on the countries and restricted the movement. Because of lockdown, shops, factories, processing units remained closed, which reduced earning of people due to low-income people giving preference to essential products. Onions are available on the market at an affordable price, which decreases the demand for dehydrated onions.

The demand for processed food has increased drastically; dehydrated onion is largely used in food processing industry. Due to coronavirus spread, people prefer packed products to wash or sanitize them to be safe from getting infected and boost the demand for processed food, which further increases the demand for dehydrated.