Dehydrated Onion Project Report



If you are thinking of doing business with Dehydrated Onion Processing, you are in the right place; you can download the dehydrated onion project report in pdf format for a complete guide here.

In India, onions are one of the most common vegetables consumed regularly. India is the world’s second-largest onion-growing country. The pungency of Indian onions is well-known, and they are accessible all year. However, many onions spoil in the supply chain due to insufficient post-harvest infrastructure and value addition. As a result, processing onions into various value-added products can reduce losses and provide a massive opportunity for entrepreneurship development at the micro, small, and medium-scale levels, thanks to effective government schemes like the MoFPI’s PM-Formalization Micro Food Processing Enterprises Scheme.

Immature and mature bulbs are both eaten as vegetables and condiments. It has traces of iron and calcium and vitamin B and a trace of vitamin C. Onions have a high food calorie level, a medium protein content, and are high in calcium and riboflavin compared to other fresh vegetables.

With Dehydrated onions, you can also do the business of processing Dehydrated Vegetables and Dehydrated Garlic; you can get information about both these projects by reading our article.

Dehydrated Onions Business Plan and Market Potential

Before preparing the business plan report for the project, you need to understand the potential opportunities in the Indian market for Dehydrated onions.

Dehydration has long been considered one of the most effective methods of storing food for later use. Dehydration of onions is now a popular trend in which all moisture is removed from the onion, leaving it dry. Dehydrated onions are also used as an antibacterial in the healing of wounds. Antioxidants included in dehydrated onions aid in the prevention of heart disease. This item’s consumption is also beneficial to the circulatory system. Onions contain fibre, which slows digestion and keeps energy levels in the human body constant.

Dehydrated onions are becoming popular worldwide, owing to the increased popularity of convenience/packaged foods. Consumer knowledge of the enhanced shelf life of dried goods has aided in accepting dry onions among consumers, particularly in emerging nations. Over the 10-year assessment period, 2018-2028, Future Market Insights estimates the dehydrated onions market to develop steadily at a respectable CAGR of 4.8 percent. However, growth rates in emerging nations are attractive during the projection period, owing to increased consumer awareness and household demand for dehydrated onions.

What  Role Does a Dehydrated Onion Project Report Play?

  • Project reports are tools that may assist new business owners in learning, changing, adapting, improving, and adopting new processes, products, or technology.
  • The dehydrated onion project report will provide you with a complete picture of how your project is performing and boost your visibility.
  • It also aids in acquiring loans and finance from a variety of banks, NBFCs, private equity, venture capital funds, government-sponsored schemes such as the Mundra Loan, and financial institutions.
  • It assists the entrepreneur in obtaining a precise understanding of the first inputs necessary for the firm.
  • A project report is required for obtaining a bank loan, which includes a business strategy, estimated financials, viability research, technical analysis, and other information.

Market Industry Outlook

The Dehydrated Onions Market’s major product launches, mergers and acquisitions, joint ventures, and regional growth. The top 10 companies in the Dehydrated Onions Market share will be fragmented by 2020.

Garlico Ingredients Limited., Darshan Foods., Jain Farm Fresh Foods Limited, Daksh Foods P Ltd., Murtuza Foods Private Ltd., M/s Sensient Natural Ingredients., M/s Oceanic Foods Limited, M/s B.K. Dehy Foods, Jiyan Food Ingredients., Kisan Foods., Earth Expo Company is the top ten firms in the Dehydrated Onions Market.

Dehydration is defined in the food processing industry as eliminating 85 percent or more of the water from a food product by various methods of thermal energy exposure. Thermal dehydration decreases product volume, lengthens shelf life, and saves transportation costs. There is no obvious distinction between drying and dehydrating, with the latter being used as a complement to drying in some cases. In most cases, the direct use of solar energy, such as in raisin drying, is not confused with dehydrating. Dehydration is also not a phrase that is commonly used to describe water loss due to evaporation.

Dehydrated onions are primarily utilised as a component in various food items. They are supplied to manufacturing companies as an industrial raw material, with demand for dehydrated onions being a function of demand for these food products. On the other hand, Dry onions are in high demand for usage as culinary onions, both by big catering companies – institutions and industrial canteens – and by individuals.

Other applications for dehydrated onions include canned soups and stews, infant foods, fish, meat and bread goods, and more recently, dried ready-meals.’ Demand for dehydrated onions is distributed differently across market segments. All four market segments sell dehydrated onion slices and bits.

Dehydrated Onion Market Segmentation based on Onion Variety.

Dehydrated Onions Market is divided into Red Onions, Pink Onions, and White Onions. White onions had the most significant market share because they are widely utilised in producing dehydrated onions, whereas other onions are not well suited to dehydration. Red onions are expected to be the fastest-growing sector during the projection period, with a CAGR of 5.1 percent. Several population studies have found that eating foods high in anthocyanin reduces the risk of cardiovascular disease, driving up demand for red onion powder.

Market Segmentation of Dehydrated Onions Based on Product form

Minced, Sliced, Chopped, Granules, Powder, Kibbled, Flakes are the many product forms of dehydrated onions. With the growth of fast-food restaurants throughout the world, dry onion powder is in great demand for pizza and burgers. Due to its use as a substitute for fresh onions in recipes such as chilli sauces, soups, casseroles, stews, and others.

Geographical Segmentation of the Dehydrated Onion Market

Geographically, North America had the highest market share of 36.86 percent in 2020. During the projection period 2021-2026, Asia-Pacific is expected to be the fastest-growing region with the highest CAGR. Onions are only available during specific seasons in developing nations like India and China, presenting a valuable potential for dehydrated onion manufacturers.

Dehydrated Onions Market Drivers Gluten-free and Healthy Food Products.

Consumers are more health-conscious than ever before, and demand for gluten-free food is at an all-time high throughout the world. Customers are using dried onions in their food products such as dressings, sauces, ready-to-eat meals, and other goods, helping the participants in the dehydrated onion business. Dehydrated onions are becoming an increasingly important component in gluten-free foods, particularly in poorer nations. Furthermore, customers are drawn to culinary components that make cooking easier, and this aspect is propelling the industry forward.

Also Read: Article on Top 35 Food Business Ideas High Return with Low Investment.

Area required for Dehydrated Onions Industrial Setup

The industrial setup necessitates storage, workshop, or production space and room for power supply utilities and auxiliary equipment such as generators. Some of the building’s area is also needed for office staff amenities, documents, and office furniture, among other things. As a result, the total space required for a complete industrial setup is around 10,000 square feet (Approx.).

Machinery & equipment

Basic machinery requirements are as follows:

  1. Vibrating Pre-Cleaner
  2. Vibrating Screen Separator
  3. Onion Peeling Machine
  4. Vegetable Slicer
  5. Specific Gravity Separator
  6. Dehydrator
  7. Boiler
  8. Hot Air Dryer
  9. Cold Air Dryer
  10. Bin Dyer
  11. Refrigeration Plant
  12. Colour Sorter
  13. Metal Detector
  14. Weighing Machine
  15. Sealing Machine
  16. Other Ancillary machines like the pump, feed water plant for boiler, etc.

Types of equipment

  1. Escalator
  2. Bucket Elevator
  3. Open Soaking Tank
  4. Washing Tank
  5. Conveyor
  6. Storage Tank Other Ancillary equipment like electrical panels, trays, racks, trolleys, etc.

Raw Material

Basic raw material requirements are as follows:

  • Fresh Onion(Pink)
  • Packing Material.

Manufacturing Process

Onions are purchased in bulk from a local wholesale vegetable market and kept in raw material storage until needed. The onions are first sent through a vibrating pre-cleaner to remove any loose skin or debris, after which they are fed through an onion separator. The separated onions are then transported by an escalator to a soaking tank, soaked in water for a suitable amount of time before being transported into the processing facility via a bucket elevator. The onions are poured onto a conveyor that transports them to a washing tank, part of a washing machine. They are entirely cleaned to eliminate foreign agents before being sent to another bucket elevator for further processing.

The onions are then poured onto a conveyor, which transports them to another conveyor system, limiting the supply for further processing and allowing the surplus water to drain out in the previous conveyor segment. This conveyor transports the onion to a Vibrating Screen Separator, eliminating the majority of the onion’s contaminants and loose skin.

Another conveyor collects the cleaned onions from the separator and sends them to the onion peeling machine, which removes the onion’s outer skin. These peeled onions are then sent to a vegetable slicer, which slices them into the necessary sizes, after which they travel through a dewatering system, which is simply an air dryer, before being transported to a dehydrator by another elevator. The dehydrator reduces the moisture content to the desired level until they are sufficiently dry, after which they are screened with a metal detector and then visually examined on a sorting conveyor before being packed in food-grade packaging and shipped for sale.


Dehydrated Onions weigh around 1.75 pounds and are packed airtight in a #10 container. A case of 6 #10 cans weighs 10.5 pounds and contains 6 cans. There are 159 servings in each can. 1 tbsp is one serving. A serving size after rehydration is approximately 1 tbsp.


Under optimal storage circumstances, dehydrated onions will last 10 to 15 years in a sealed #10 container (oxygen absorber included) (cool, dry place). It has a shelf life of 6 to 12 months after opening.

Key Points Cover in Dehydrated onion Project Report  

The project report for Dehydrated onions processing covers the following topics. Can download project report in pdf format instantly by paying the nominal cost and study various aspects of Dehydrated onions business.

Sr. No.Particulars
1Purpose of The Document
2Project At A Glance
3Product Introduction
4Uses & Market Potential
5Machinery & Equipments
6Cost of Machines
7Cost of Equipments
8Raw Material
9Manufacturing Process
11Power Requirement
12Manpower Requirement
13Bank Term Loan
15Approvals & Registration Requirement
16Implementation Schedule
17Financials Aspects
18Projected Balance Sheet
19Projected Profitability Statement
20Cash Flow Statement
21Computation of Sale
22Computation of Making
23Closing Stock
24Computation of Working Capital Requirement
25Break Up of Labour
26Break Up of Salary
27Computation of Depreciation
28Repayment Schedule of Term Loan
29Calculation of D.S.C.R
30Computation of Electricity
31Break Even Point Analysis
32Plant & Machinery List


What are the Market Challenges faced by dehydrated onions?

The desire for fresh onions and a lack of awareness is limiting the market’s expansion. Furthermore, the volatility of raw products due to seasonal changes is another issue that hampers market expansion. Sprouting and roots are two of the most challenging aspects of onion preservation. Temperature regulates sprouting, whereas relative humidity regulates roots. Sprouting occurs at temperatures between 10 and 250 degrees Celsius, and the higher the relative humidity, the more rooting occurs. Sprouting can be preserved if maleic hydrazide at 2500 ppm is sprayed 75-90 days after transplanting to the field. 


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