Increased Global Consumption of Processed Food Drives Demand for Dehydrated Onions: FMI Market Expert

A senior market analyst at Future Market Insights discusses the evolving dynamics of the dehydrated onions market and the activities of producers to optimally tackle the same.

The growing consumption of dehydrated vegetables around the globe can be largely attributed to enhanced palatability and long duration of consumable quality. In addition, dried vegetables are cost efficient to store and transport as well. As a result, producers of dehydrated onions can optimally make use of surplus fresh onion produce, in addition to making considerable savings on the packaging materials of the product, which bodes well for the future prospects of the dehydrated onions market.

What is India’s status in the global dehydrated onions market?

Owing to the high production rate of fresh onions, in comparison to other countries, India currently exports more than 30% of all exported dehydrated onions. Moreover, increasing awareness about the health benefits of consuming dried vegetables is also expected to significantly increase the production and sales of dehydrated onions in food products in this region.

On the other hand, rising prices in the international market, and sluggish growth on a domestic scale are anticipated to restrict the countries dehydrated onion production, in the near future, at least for the short term. These effects have been offset by government activities by local bodies such as the Agricultural and Processed Food Products Export Development Authority (APEDA), which regularly conducts campaigns for the promotion of dried vegetable products and awareness about its uses on a national scale. The government is also offering a minimum guaranteed price policy, which allows farmers to legitimize collaterals towards small scale loans, thereby enhancing the supply chain of the industry.

What initiatives are dehydrated onion manufacturers undertaking to sustain growth?

Unlike western countries, populations in Asia are generally averse to the consumption of dehydrated vegetables, over the consumption of fresh counterparts, which is keeping dehydrated onions from becoming a mainstream food product in the region. However, growing awareness about the advantages of consuming dried vegetables through the proliferation of the internet, the adoption of the various types of dehydrated onions is expected to grow rapidly in the years ahead.

With growing consumption of processed food, and the introduction of new technologies that enable improved efficiency of dehydrating processes, the production and demand of such products is expected to increase.

What innovations in packaging processes will make a notable impact on the demand for dehydrated onions?

Manufacturers are increasingly moving from traditional drying methods to using solar powered dehydrators to minimize the risk of contamination, boost moisture extraction techniques, and extend the shelf life of the end products. This is creating a robust demand for dehydrated onions, especially from masala manufacturers, hospitality establishments, ready-to-cook-meals producers, and processed foods manufacturers.

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About Sandali 225 Articles
A former journalist, Sandali is a content marketer with over 5 years of writing experience, across various industries including Food Innovation, Healthcare, and IoT and Technology. Sandali has been weaving corporate stories for organizations through different forms of impactful marketing content. Her key aim is to strategically align well-crafted narratives with business objectives, translating into a powerful communications platform for the company.