Seasoning and Dressing Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 750 seasoning and dressing manufacturers in the US produce condiments, sauces, spices, and seasonings that enhance the flavor of food. Major product categories include prepared sauces; dry mix food preparations; spices, flavorings, and food colorings; and salad dressings, mayonnaise, and sandwich spreads. The category does not include ketchup.
Variable Raw Ingredient Costs
Raw ingredients are agricultural products, which are subject to price fluctuations that depend on underlying commodity costs and global market conditions.
Plant-Based Foods Growth
Americans are increasingly incorporating plant-based foods into their diets, a change that favors the salad dressing category.
Industry size & Structure
The average seasoning and dressing manufacturer employs about 58 workers and generates over $36 million annually.
- The seasoning and dressing manufacturing industry consists of about 750 firms that employ 43,500 workers and generate over $27 billion annually.
- The industry is concentrated; the top 50 companies account for between 80% and 90% of industry revenue.
- Mayonnaise, dressing, and prepared sauce manufacturers account for 46% of establishments and 48% of total industry revenue, while spice and extract manufacturers account for 54% of establishments and 52% of industry revenue.
- Major companies, which include Kraft/Heinz, Campbell Soup, and McCormick, have a global presence. Large conglomerates like Unilever and Clorox also produce seasonings and dressings. Privately held companies include McIlhenny/Tabasco, Ken’s Foods, and Newman’s Own.
- The US ranks eighth in the world in spice consumption. India is the world’s largest consumer of spices, accounting for about 39% of global consumption.
Industry Forecast
Seasoning and Dressing Manufacturers Industry Growth
Recent Developments
Feb 23, 2025 - New High for Wages
- The producer price index (PPI) for seasoning and dressing manufacturers, which measures prices producers receive for their products, stayed flat in December compared to a year ago but was just shy of its peak in November, according to the latest US Bureau of Labor Statistics data. Employment by the industry fell 3.6% in December compared to a year ago, while average wages at food manufacturers rose 4.6% YoY in January to a new high of $24.08 per hour, BLS data show.
- After threatening to impose 25% tariffs on goods from Canada and Mexico – the two largest suppliers of seasonings to the US – President Trump reversed course, announcing imports from those two countries will remain tariff-free for at least one more month. The pause ensured short-term stability for spices like chilies, cumin, and oregano, which are key exports from Mexico, wrote US spice manufacturer Majestic Spice in a blog post. However, tariffs ranging from 10-25% remain in place on Chinese imports, including garlic, ginger, and star anise. Garlic imports from China – valued at around $100 million annually – carry a 25% tariff, while ginger faces similar high tariffs, impacting costs for importers and ultimately US consumers. Because the US relies heavily on imported spices, even small policy changes can impact costs, supply, and sourcing decisions, according to Majestic Spice.
- The Food and Drug Administration in December issued a final rule that updates the definition of the nutrient content claim "healthy,” that appears on food labels. To qualify as "healthy" under the updated definition, food products must contain a certain amount of a food from at least one of the food groups or subgroups outlined by the Dietary Guidelines for Americans including fruits, vegetables, protein foods, dairy, and grains. Foods that qualify for the “healthy” claim must also meet certain limits on saturated fat, sodium, and added sugars. Notably, for the first time, the updated “healthy” claim definition sets certain limits for added sugars. Some store-bought salad dressings may be high in saturated fat, added sugar, and sodium. Foods that meet the FDA’s updated definition of healthy include nuts and seeds, higher fat fish such as salmon, olive oil, and water.
- Testing by Consumer Reports has found high levels of lead in cinnamon powder and multi-spice blends from a dozen brands. The consumer research and advocacy nonprofit tested 36 products, a third of which had lead concentrations high enough that just a quarter-teaspoon contained more lead than should be consumed in a day. Earlier this year, the FDA warned consumers not to buy six brands of cinnamon and, after further testing, added 11 more to the list. The agency began testing cinnamon for lead after several brands of apple puree pouches sold by major retailers were linked to lead poisoning cases in over 460 children. Amid growing concerns over lead in the global supply chain, the American Spice Trade Association and FDA recently briefed lawmakers on Capitol Hill on creating collaborative public-private initiatives to combat lead poisoning and promote a safe global supply chain.
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