Dry onion produced by removing the moisture from the onion is gaining traction among consumers, restaurants and food chains. By removing the moisture from onions, it becomes easier to preserve onion for a long time. Manufacturers are providing dry onion in form of flakes, granules, powder, etc. Food processing companies are moving towards using natural ingredients and colors in the processed food, hence, these companies are also demanding dry onions on a large scale. Consumers are also shifting from using fresh onions to dry onions as it offers various health benefits. It also includes potassium, calcium, and magnesium. Moreover, it contains very less fat, sodium, and calories. Enhancing the flavor of various foods and offering benefit of long-term storage, dry onions are increasingly being used as a substitute for fresh onions.
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According to a study by Fact.MR, the global dry onion market is likely to experience robust growth. The market is estimated to register 6.4% CAGR during the forecast period 2017-2022. The benefit of preserving the onion for a long time after drying is of the biggest factors resulting in the increased demand for dry onion. Moreover, dry onions are also being used to produce dry onion powder as an ingredient in various foods. Food processing industry is also using dry onions as an ingredient in ready-to-eat products, sauces, soup powders, etc. Below insights show how the global dry onion market will perform in the coming years.
Asia Pacific Excluding Japan (APEJ) is expected to dominate the global dry onion market. APEJ dry onion market is estimated to create an incremental opportunity exceeding US$ 400 million between 2017 and 2022. High production of onion in various countries in APEJ is driving the market growth. Moreover, increased production is also resulting in the rise in exports of the dry onion globally, hence boosting the growth in APEJ.
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Meanwhile, North America dry onion market is also expected to witness healthy growth. By the end of 2022, North America is estimated to exceed US$ 800 million revenue. Increasing demand and use of dry onions in everyday cooking and increasing production of onion powder as an ingredient as some of the factors resulting in the growth of dry onion market in North America.
Compared to the other drying processes, air drying process for making dry onion is expected to emerge as the highly adopted process. Air drying process is estimated to reach close to US$ 2,000 million revenue by the end of 2022. Dry onions are expected to be largely used in culinary. Culinary is expected to witness healthy growth. Between 2017 and 2022, culinary is also estimated to create an incremental opportunity surpassing US$ 200 million.
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