With an expected market size of over 14,828.2 tons in 2023, the Indian onion powder market is experiencing significant development in the global food industry. This growth is propelled by the increasing onion powder export from India, expected to reach a volume of nearly 25,051.8 tons by 2032, at a CAGR of 6% between 2024 and 2032. 

Since most of India’s onion powder production facilities are located in the state of Gujarat, it’s safe to say that Gujarat is the clear leader in this sector. The many culinary uses of this substance, together with its many advantages (such as portability, longevity, lack of calories, and availability), contribute to its widespread use in India.

A Survey of the Onion Powder Industry in India

A versatile ingredient with multiple uses in the culinary business, onion powder is a dehydrated version of the onion. Many people love it because of how convenient it is and all the good things it can do. Here are some of the advantages:

• Less bulk and weight than fresh onions means they are easier to carry and store.
• The product maintains its flavor and quality over a long period of time, making it a great option for makers and consumers who value long-term storage.
• Low calorie is great for people who have to control what they eat.
• Many uses in the kitchen mean it may complement a wide range of foods without the pungency of fresh onions.

Regional Insights

Gujarat holds the biggest market share in India’s onion powder industry, making it a major participant in the sector. That area has more onion powder production factories than any other, which is great news for local and international markets. Notable contributors to India’s onion powder supply include Maharashtra, Madhya Pradesh, and Gujarat, suggesting a regional diversification in production capabilities.

Market Segmentation

By End-Use Sector

There are mainly two divisions in the Indian onion powder industry:

1. Commercial
2. Residential

The growth of fast food and ready-to-eat meals in cities has put packaged food goods in high demand, propelling the commercial sector to dominate the industry. More and more people are looking for ways to make cooking easier; thus, this demand is likely to continue growing.

By Application

Application-based market segments include:

1. Food Processing
2. Healthcare

The thriving food business in India is a major factor propelling the food processing sector to a large share. Snacks, sauces, seasonings, and microwave meals made with onion powder are commonplace, satisfying the needs of those with hectic schedules. 

Additionally, onion powder is finding more and more uses in the healthcare industry as word gets out about its nutritional worth and possible health advantages.

By Packaging

Types of packaging also have a role in segmenting the onion powder market:

1. Bulk Packaging
2. Pouches

Regarding volume, bulk packaging is currently king, particularly for commercial uses. But as more and more people buy groceries online and shop for goods in smaller quantities, the demand for pouch packing is increasing.

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Analysis of the Market

Instant mixes, frozen foods, noodles, and other ready-to-cook foods use onion powder, which is driving demand in the Indian onion powder industry. The following factors contribute to this growth:

• Rapid urbanization is the process of more and more people relocating to urban areas and adjusting to city life.

• An increasing number of working people value simple preparation over anything else due to their busy lives.

• Modern dietary trends are driving the demand for high-quality processed foods.

People who want to save time in the kitchen and don’t want to cut onions are buying onion powder in droves. An additional factor contributing to the expansion of the onion powder market in India is the active promotion and increased investment in the sector by the Ministry of Food Processing Industries (MoFPI).

Government programs that aim to improve the infrastructure and quality standards of food processing also positively impact the business.

Furthermore, as a result of its high quality and adaptability, Indian onion powder is becoming an increasingly popular export from India. Indian manufacturers can take advantage of this trend to broaden their customer base beyond the country’s consumers, which would boost market growth overall.

Key Highlights of the Market

Wrapping It Up

The Indian onion powder market is growing due to its versatility and the growing demand for easy meal alternatives. The food processing industry will need onion powder as consumers prefer ready-to-cook foods. Market prospects are high due to regional contributions, especially from Gujarat, and a thriving industry with major enterprises. The rising health consciousness of customers and its inventive culinary uses are helping onion powder sell. The onion powder export from India connects local producers to worldwide demand, offering the potential for development.

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