Onion Prices – Historical Graph

Real-time chart of historical daily onion prices. The prices are shown in ton.
The current price is and is last updated on .
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Onion Prices Explained

Onion prices are increasing across global trading regions as weather-related disruptions significantly affect key growing countries. The storage supply of red onions is depleted and the newly harvested variety has very high FOB (free on board) prices. 

In India, the government has to offload some onion reserves to soften the country’s soaring domestic prices. In Northern America, the decreasing onion acreage exacerbates the increasing prices in the region, not to mention the consecutive hurricanes that affected its planting regions and the steady inquiry from the Mexican market. 

While Eastern Europe reported a recovery of its onion output, export ban from Turkey and Ukraine will fuel the rise of onion prices in Europe. Despite this, the growing inclination toward natural and healthy foods will continue to dominate its market. The region posted a growing demand for onions because of expanding culinary diversity and its nutritional benefits.

Why are onion prices fluctuating?

1. Uncertain Trading Activity

Logistical challenges brought by longer transit in the Panama Canal and the Red Sea resulted in deglobalizing trading activity. This means that a producing country forges trading relationships with other closer countries in its region to avoid hefty shipping fees in transporting exports to other country-buyers.

Also, the unpredictability of the commodity’s availability owing to changing weather systems prompted some key producing countries to stock for domestic consumption.

For example, the Indian government’s decision to lift the export ban on onions, coupled with the 40% export duty and a minimum export price of $550 per ton had a notable effect on the market.

It led to a significant drop in onion exports by over 50% as Indian onions became more expensive compared to other countries. Thus, the varying supply and demand dynamics (influenced by trade policies) directly affect onion prices.

2. Cured Onion

The increasing application of cured onions in the food processing industry contributed to market gains for the commodity. It’s widely used in snacks, seasonings, sauces, and soups as the demand for convenience foods and ready-to-eat meals surged, propelling the need for stable and long-lasting onion products.

Also, onion’s enhanced preservation and reduced transportation costs find their way to spice and extract manufacturing companies. McCormick and Unilever incorporate cured onions in their seasoning blends and food products. Moreover, nutraceutical companies are adding onions to products because of their anti-inflammatory and antioxidant properties.

3. Onion Powder

Onion powder is made by dehydrating fresh onions. This commodity is largely utilized in the food service industry because of its consistent flavor and ease of use in large-scale food preparation.

The growing adoption of onion powders in ready-to-eat food products aided its segmented market growth, particularly red onion powder (which has a forecasted 4.6% CAGR growth in 2027).

The National Agricultural Cooperative Marketing Federation data showed that onion consumption in ready-to-eat products increased to 15.2% and will continue to do so as the commodity finds extensive application in industrial canteens.

4. Freeze-Drying Technology

Onion’s seasonal availability and shorter shelf life are diminishing factors of its profitability. However, improved innovation in the food processing industry extends its shelf life.

Freeze-drying technology converts liquid food products into powdered and dried forms while retaining flavor, texture, and nutritional value. This practice is common for perishable goods that require ample time during shipping.

The National Center for Biotechnology Information noted that this method reduces the moisture content of onions to 5.19% from 90.02% of fresh onions. Thus, this technique streamlines onion production and increases its marketability.

Which variables impact the price of an onion?

  • Uncertain Trading Activity
  • Cured Onion
  • Onion Powder
  • Freeze Drying Technology
  • Weather Conditions

Where does onion come from?

The consumption of onions as a spice dates back to ancient civilizations such as the Egyptians, Greeks, and Romans. They used onions for their flavor and medicinal properties. Over time, onions became a staple ingredient in many cuisines worldwide, and their use as a spice continues to be prevalent in modern cooking.

China, India, and the United States are the top onion-producing countries. China leads with an impressive annual production of over 24 million tons, followed closely by India with around 21 million tons, and the United States producing about 2.9 million tons.

Yellow, red, and white onions are the most common onion types in the market. Yellow onions are popular for their strong flavor and high sugar content. They become sweeter when cooked, making them useful in cooking. Red onions, due to their milder taste, are good for salads and sandwiches. White onions (similar to yellow but milder) are widely used in various cuisines.

What are the uses of onion?

While onions are heavily utilized in the food industry, this commodity has an important role in the health and beauty sectors.

1. Culinary – Onions are a staple in kitchens worldwide. They are sautéed, caramelized, or used raw in salads, soups, stews, and sauces. Their strong flavor and aroma enhance the taste of many recipes, making them indispensable in culinary applications.

2. Processed Foods – They are used in processed foods such as onion powder, flakes, and granules. These products are flavor enhancers in snacks, seasonings, and ready-to-eat meals. McCormick & Company and Unilever utilize onion powder in their product formulations to ensure consistent flavor and quality.

3. Pickling – They are preserved to create tangy and flavorful condiments. Pickled onions are used in sandwiches, salads, and as a side dish.

4. Health and Wellness Products – They contain antioxidants, vitamins, and minerals that support immune health and overall well-being. As a result, Nature’s Bounty and Garden of Life incorporate onion extracts in their supplements for their health-promoting properties.

5. Cosmetic and Personal Care – Onions are used in beauty products for their skin benefits. Onion extracts are incorporated in skincare products because of their anti-inflammatory and antioxidant properties. The Body Shop and Lush use these extracts in their formulations to provide natural skincare solutions.

What is the future price of onion?

Onion prices will continue to fluctuate as the commodity’s availability largely relies on favorable weather conditions. However, increased frequency and intensity of extreme weather events like droughts, heatwaves, and floods directly crop yields. The prolonged droughts in the U.S. and India led to water scarcity, impacting onion bulb development and reducing overall output.

The World Meteorological Organization highlighted that the 21st century will be the start of extreme weather events. This weather transition greatly affects global agriculture.

For example, heatwaves in Europe resulted in a 10%-15% reduction in onion yields in some areas. Similarly, the Indian drought translated into localized production declines of up to 20%. These weather-related challenges contribute to price volatility and supply chain disruptions in the onion market.

On the demand side, the increasing utilization of cured and powdered onions across diverse industries largely provides market opportunities. Cured onions offer convenience and reduce post-harvest losses, making them attractive to food processors and retailers. Powdered onions provide a concentrated flavor and are widely used as a convenient ingredient in various applications.

The food processing sectors, like McCormick and Kraft Heinz, use spice blends and seasonings. The pharmaceutical and beauty industries rely on onion extracts for their antioxidant properties. This diverse utilization from different sectors creates opportunities for product development and market growth.

Given the supply and demand dynamics, spice experts forecasted a bullish onion market at $415 per ton in 2030, with a CAGR of 2.50% from 2024 to 2031.

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