Seasoning And Dressing Global Market Report 2021:
COVID 19 Impact and Recovery to 2030"–
[I couldn't find Old Bay seafood seasoning at all for a while]
68 billion in 2020 to $141.53 billion in 2021 at a compound annual growth rate (CAGR) of 3.5%. The growth is mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $193.51 billion in 2025 at a CAGR of 8%.
The seasoning and dressings market consists of sales of seasoning and dressings by entities (organizations, sole traders and partnerships) that produce dressings and sauces, such as mayonnaise, salad dressing, vinegar, mustard, horseradish, soy sauce, tarter sauce, Worcestershire sauce, and other prepared sauces (except tomato-based and gravies); manufacturing spices, table salt, seasoning, and flavoring extracts (except coffee and meat), and natural food colorings; and produce dry mix food preparations, such as salad dressing mixes, gravy and sauce mixes, frosting mixes, and other dry mix preparations.
The companies in the seasoning and dressing industry process raw materials into seasonings and dressings, package and distribute them through various distribution channels to both individual customers and commercial establishments. The seasoning and dressings market is segmented into seasoning and dressings.
Asia Pacific was the largest region in the global seasoning and dressing market, accounting for 55% of the market in 2020. North America was the second largest region accounting for 19% of the global seasoning and dressing market. Africa was the smallest region in the global seasoning and dressing market.
Seasoning and dressing manufacturing companies are adopting automation and artificial intelligence (AI) technology to maximize production efficiency. Robotic systems automate, batching, conveying, processing, storage and packaging of products thus decreasing production cycle time and increasing output. AI incorporates novelty and creativity to the food by identifying a base formula for a flavor category.
Automation enables seasoning processing companies to improve plant conditions, reduce contamination, minimal human interaction thus making processing safer for workers as well as consumers.
Plants with fixed automation systems increase yields by at least 2-3% over workers. Kraft Heinz, Givaudan, McCormick, Ajinomoto, Kikkoman, Kerry Group are some of the companies that use food automation equipment. For instance, McCormick in collaboration with IBM research is using AI to create new palatable flavors. Kraft Heinz has invested in robotics and artificial intelligence to implement automation and to reduce manufacturing inefficiencies.
The outbreak of Coronavirus disease (COVID-19) has acted as a massive restraint on the seasoning and dressing manufacturing market in 2020 as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally.
COVID 19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People's Republic of China and spread globally including Western Europe, North America and Asia. Food and beverage manufacturers depend on supply of raw materials from domestic and international suppliers.
As many governments restricted the movement of goods across countries and locally, manufacturers had to halt production due to lack of raw materials. Also, restrictions on trade of non-essential goods and fear of contamination through manufacturing facilities contributed to the decline.
The outbreak is expected to continue to have a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the seasoning and dressing manufacturing market will recover from the shock across the forecast period as it is a 'black swan' event and not related to ongoing or fundamental weaknesses in the market or the global economy.
Many countries across the globe are experiencing falling prices of crops due to overcapacity; this is expected result in low raw material costs for seasoning and dressing manufacturing companies. For example, in 2019, the Indian government spent $873 million to subsidize the export of sugar as a result of overproduction of sugarcane, thereby reducing prices.
Thus, overproduction of certain crops is likely to result in higher profit margins for seasoning and dressing manufacturing companies. Higher profit margins will enable food and beverage companies to increase their production and drive the market going forward.
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