Seasoning and Dressing Manufacturing

The US seasoning and dressing manufacturing industry includes about 600 companies with combined annual revenue of $14 billion. Major companies include Kraft, Heinz, and McCormick. The industry is concentrated: the top 50 companies account for over 70 percent of industry revenue.

The seasoning and dressing manufacturing industry includes companies that make spices, dry gravy mixes, seasoning mixes, salad dressings, sauces, and natural extracts. 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 industry is capital-intensive; average annual revenue per employee is about $420,000.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include spices (15 percent of industry revenue); pourable and spoon-type salad dressing (15 percent); natural flavoring extracts (10 percent); non-tomato-based prepared sauces (10 percent); and powdered seasoning mixes (10 percent). Other products include mayonnaise, mustard, vinegar, cider, imitation flavoring extracts, powdered gravy and sauce mixes, salt, and pepper.

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 ...