Seasoning & Dressing Manufacturing
Description
Companies in this industry make spices, dry gravy mixes, seasoning mixes, salad dressings, sauces, and natural extracts. Major companies include US-based Kraft Heinz and McCormick, along with Ajinomoto and Kikkoman (both headquartered in Japan), Givaudan (Switzerland), Kerry Group (Ireland), and Unilever (dually headquartered in the Netherlands and the UK).
Global spices and seasonings market is forecast to reach over $35 billion by 2028 at a compound annual growth rate (CAGR) of 5.37% during the 2023-2028 forecast period, according to the IMARC Group. India is the world's largest producer, consumer and exporter of spices. It produces almost 75 of the 109 varieties listed by the International Organization for Standardization (ISO) and accounts for half of the global trading in spices, according to the India Brand Equity Foundation (IBEF).
The US seasoning and dressing manufacturing industry includes about 785 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $20 billion. The industry doesn't include companies that make tomato-based sauces (including pasta sauce, ketchup, and salsa) or pourable gravies.
COMPETITIVE LANDSCAPE
Demand is driven by consumer tastes and health considerations. The profitability of individual companies depends on efficient operations, effective marketing, and a strong sales force. Large companies have advantages in purchasing, distribution, and marketing. Small operations can compete effectively by manufacturing exotic sauces, sourcing and selling rare herbs, or formulating custom spice blends, extracts, and mixes. The US industry is concentrated: the top 50 companies account for about 70% of industry revenue.
Imports, mostly from China, Vietnam, Canada, Mexico, and India account for about 10% of the US market. Exports, which go mainly to Canada and Mexico, account for about 10% of US production.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include prepared sauces, which includes mustard, Worcestershire, soy, horseradish, and other sauces, accounting for about 20%, along with dry mix food preparations (20%). Other products include flavoring extracts (about 20%) and spoon-type salad dressing (about 10%).
To manufacture spices, blowers or gravity separators clean impurities from herbs, seeds, or peppercorns. Spices may need a special soak or treatment to eliminate bacteria. Imported spices may require additional fumigation, inspection, or gamma irradiation before being cleaned. Pepper, cumin, and cinnamon are sometimes ground into a fine powder using cold-mill rollers. A sifter sorts the spices by size and, for spice blends, conveys them to a mixing station. Sorted and blended spices move by conveyor to the packing station. Packaged spices can range from small one-ounce jars to 50-pound cases and canisters.
Mayonnaise is made with continuous blending machines that create an emulsion. The emulsified blend moves through a series of pumps and heat exchangers to maintain a constant temperature as flavorings are piped in through openings in the blending machine. A viscometer tests consistency, altering water or oil levels to produce an even, smooth spread. Most continuous blending machines can produce both mayonnaise and thick salad dressings made with cooked food starches.
Once blended, the finished product moves by tubes or extruders to a bottling station. Pre-sterilized jars or bottles move along a conveyor as overhead spouts drop pre-measured amounts of dressing into each container. Containers are mechanically sealed and labeled before being boxed, placed on pallets, and warehoused. Large companies typically maintain multiple factories and warehouses strategically located throughout the US.
Inputs for dressings include soybean oil, modified food starch, eggs, buttermilk, corn syrup, sugar, herbs, salt, and vinegar. Inputs for seasonings are the spices or herbs themselves. Both seasonings and dressings require material input costs for items like cardboard, metal, glass, and plastic bags.
Global spices and seasonings market is forecast to reach over $35 billion by 2028 at a compound annual growth rate (CAGR) of 5.37% during the 2023-2028 forecast period, according to the IMARC Group. India is the world's largest producer, consumer and exporter of spices. It produces almost 75 of the 109 varieties listed by the International Organization for Standardization (ISO) and accounts for half of the global trading in spices, according to the India Brand Equity Foundation (IBEF).
The US seasoning and dressing manufacturing industry includes about 785 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $20 billion. The industry doesn't include companies that make tomato-based sauces (including pasta sauce, ketchup, and salsa) or pourable gravies.
COMPETITIVE LANDSCAPE
Demand is driven by consumer tastes and health considerations. The profitability of individual companies depends on efficient operations, effective marketing, and a strong sales force. Large companies have advantages in purchasing, distribution, and marketing. Small operations can compete effectively by manufacturing exotic sauces, sourcing and selling rare herbs, or formulating custom spice blends, extracts, and mixes. The US industry is concentrated: the top 50 companies account for about 70% of industry revenue.
Imports, mostly from China, Vietnam, Canada, Mexico, and India account for about 10% of the US market. Exports, which go mainly to Canada and Mexico, account for about 10% of US production.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include prepared sauces, which includes mustard, Worcestershire, soy, horseradish, and other sauces, accounting for about 20%, along with dry mix food preparations (20%). Other products include flavoring extracts (about 20%) and spoon-type salad dressing (about 10%).
To manufacture spices, blowers or gravity separators clean impurities from herbs, seeds, or peppercorns. Spices may need a special soak or treatment to eliminate bacteria. Imported spices may require additional fumigation, inspection, or gamma irradiation before being cleaned. Pepper, cumin, and cinnamon are sometimes ground into a fine powder using cold-mill rollers. A sifter sorts the spices by size and, for spice blends, conveys them to a mixing station. Sorted and blended spices move by conveyor to the packing station. Packaged spices can range from small one-ounce jars to 50-pound cases and canisters.
Mayonnaise is made with continuous blending machines that create an emulsion. The emulsified blend moves through a series of pumps and heat exchangers to maintain a constant temperature as flavorings are piped in through openings in the blending machine. A viscometer tests consistency, altering water or oil levels to produce an even, smooth spread. Most continuous blending machines can produce both mayonnaise and thick salad dressings made with cooked food starches.
Once blended, the finished product moves by tubes or extruders to a bottling station. Pre-sterilized jars or bottles move along a conveyor as overhead spouts drop pre-measured amounts of dressing into each container. Containers are mechanically sealed and labeled before being boxed, placed on pallets, and warehoused. Large companies typically maintain multiple factories and warehouses strategically located throughout the US.
Inputs for dressings include soybean oil, modified food starch, eggs, buttermilk, corn syrup, sugar, herbs, salt, and vinegar. Inputs for seasonings are the spices or herbs themselves. Both seasonings and dressings require material input costs for items like cardboard, metal, glass, and plastic bags.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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