Onion Powder Market - Forecast(2024 - 2030)

Onion Powder Market Overview

The Onion Powder Market size is estimated to reach $274.6 million by 2027. Furthermore, it is poised to grow at a CAGR of 4.2% over the forecast period of 2022-2027. Onion powders are made from dehydrated onions that add the same flavor as fresh onions. Onion powders are used as a prominent ingredient in seasoned salt and spiced mixes. Onion powders are effectively adopted as an essential ingredient in foods, such as soups, sauces, and salad dressing. Onion powders are increasingly becoming a product of choice not only among urban consumers but also in the food processing industries across the world. The rise in the adoption of white onion powders, the increase in the demand for freeze drying technologies for dehydrated onions, and the growing investment by the key players to develop onion powders for grilled chicken are contributing to the growth of the Onion Powder Market. The robust focus on developing onion powders for various applications are some of the factors driving the Onion Powder Industry forward in the projected period of 2022-2027.

Onion Powder Market Report Coverage

The report: “Onion Powder Market Forecast (2022-2027)", by Industry ARC covers an in-depth analysis of the following segments of the Onion Powder Market.

By Product Type- Red Onion Powder, Pink Onion Powder, and White Onion Powder.
By Nature- Organic and Conventional.
By Distribution Channel- Supermarkets/Hypermarkets, Online Channels, Convenience Stores, and Others.
By Geography- North America (U.S., Canada, Mexico), Europe (Germany, United Kingdom (U.K.), France, Italy, Spain, Russia, and Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia, and New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America), and Rest of the World (the Middle East, and Africa).

Key Takeaways

• Geographically, North America held a dominant market share in the year 2021. It is owing to the growing adoption of various technologies for developing dehydrated onions for grilled chicken. Moreover, the increasing demand for spray drying and freeze drying for dehydrating white onions is further propelling the demand for Onion powder. Additionally, North America is expected to offer lucrative growth opportunities to marketers owing to the growing research and development activities to develop onion powders for various applications.
• The robust growth in the applications, such as seasoned salt, salad dressing, and spiced mixes are driving the Onion Powder Market. However, the Volatility of Prices of Onions is one of the major factors impeding the onion powder market growth.
• A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Onion Powder Market Report.

  Onion Powder Market- Geography (%) for 2021.

  
  

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Onion Powder Market Segmentation Analysis- By Product Type

Onion Powder Market Segmentation Analysis- By Distribution Channel

Onion Powder Market Segmentation Analysis- By Geography

The Onion Powder market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held a dominant market share of 34% in the year 2021 as compared to its other counterparts. It is owing to the rise in the demand for spray drying and freeze drying technologies for dehydrating white onions and the rise in awareness about the shelf life of dehydrated products among consumers. According to a study by Cornell University, the annual per capita use of onions and onion powders has increased 50 percent in recent years. The factors, such as the factors such as the rise in the adoption of various technologies for developing sauces and the growing investment by the key players to develop flavored onion powders are propelling the growth of the Onion Powder Market.

Onion Powder Market Drivers  

The Growing Adoption of Onion Powders in Ready-to-Eat Food Products has readily aided the market growth.

The Rise in the Demand for Freeze Drying Technology has enhanced the growth of the Onion Powder Market.

According to the National Center for Biotechnology Information (NCBI), Freeze Drying Technology have the ability to reduce the moisture content of onions to 5.19% from 90.02% of fresh onions. Freeze Drying is one of the most widely used technology for converting liquid food products into powdered and dried forms. The key players across the world are increasingly adopting freeze drying and spray drying for dehydrated onion powders owing to their short time and low heat combination that leads to a quality product, which is further propelling the growth of the Dehydrated Onions Market.

Onion Powder Market Challenges

The Volatility of Prices of Onions is impeding the market growth.

The key players in the market are increasing their investment to carry out various research and development activities for developing advanced freeze-drying technologies. However, the volatility of costs of onions owing to seasonal variations and availability is one of the major factors that is estimated to reduce the growth of the Onion Powder Market. Owing to this, onion exports are less than 10% of domestic production, and farmers face a very volatile market The major factor for high volatility in onion prices is the uncertainty of the production in certain seasons. Moreover, slight disruptions in the supply chain and damage due to heavy rains in recent years have resulted in a spurt in prices.

Onion Powder Industry Outlook

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Onion Powder Market. The top 10- Onion Powder Market companies are-

1. Kisan Foods
2. VIJI FOODS
3. Anuha Food Products
4. BCFoods
5. Mane
6. Sleaford Quality Foods Ltd
7. Rochias
8. Xi'an Victar Bio-Tech Corp
9. Steenbergs Organic
10. Pardes Dehydration Company

Recent Developments

• In January 2021, Anuha Food Products (AFPPL) has launched an array of ready-to-cook products under its dehydrated gluten-free F&B brand Zilli’s. The products launched include an exciting range of processed foods, such as red onion powder, dehydrated ginger, tamarind, Kolkata jhal muri masala, fruit rolls. These products were launched to cater to the rising demand for ready-to-cook healthy fixes amidst the pandemic.
• In July 2020, BCFoods has acquired an onion and garlic facility located in India, from Darshan Foods. The purchase expands BCFoods presence in the country. Moreover, the expansion into India is planned to build a supply chain of more diversified sources of onion and garlic.
• In June 2020, Mane has launched natural roasted onion in powder form. These products are 100% natural, concentrated, and made with fresh materials. The company is focusing on delivering a roasted culinary taste to processed meat, juices, and sauces.

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