Food Grade Carbon Dioxide Market Report Scope & Overview:

The Food Grade Carbon Dioxide Market size was valued at USD 7.7 billion in 2022 and is expected to grow to USD 13.23 billion by 2030 and grow at a CAGR of 7 % over the forecast period of 2023-2030.

Natural gas that has had its carbon dioxide (CO2) extracted is frequently handled as a waste gas and merely released to the environment. The waste gas must typically be treated in a flare or thermal oxidizer before being vented if it includes considerable levels of hydrocarbons or other pollutants, which raises the expense of operating the natural gas treatment process. This is especially problematic for small-scale natural gas treatment systems that remove CO2 using membranes or pressure swing adsorption (PSA).

The food and beverage industries utilize carbon dioxide extensively, especially to freeze and prepare meat and to shock animals before slaughter. The gas is converted into dry ice to keep food cold and adds the pop and fizz to soft drinks and beer.

It reduced demand for ethanol, and supplies of carbon dioxide, a byproduct of industrial activities including the manufacturing of ethanol and fertilizer, have been scarce. According to officials in the food sector and suppliers of carbon dioxide, shortages of the fuel have now become severe in several areas of the nation as production difficulties coincided with high summer demand. This autumn, it's anticipated that industrial plants that create the gas will shut down for maintenance.

MARKET DYNAMICS

KEY DRIVERS:  

• Growth in exports of packaged and frozen foods

• Absence of suitable substitutes

• Prefer packaged foods that are easily accessible.

Convenience food packaging often uses food-grade gases like carbon dioxide (C02), nitrogen (N), and oxygen (O2) to extend the shelf life of fresh food goods. A movement towards the consumption of safer, healthier, and higher-quality food items has been brought about by consumers' growing health concerns, particularly in North America and Europe.

RESTRAIN:

• Strict Government Regulations

• Increasing regulations against carbonate

OPPORTUNITY: 

• New product launches

• Advancements in packaging technologies

• Food grade gas manufacturing

CHALLENGES:

• Packaging requires the proper mixing of gases in a controlled atmosphere.

One of the biggest challenges facing producers of packaging technology and equipment is the requirement to supply the proper blend of gases in controlled environment packaging technologies like modified atmosphere packaging and active packaging. For instance, to extend the shelf life of ready-to-eat meals, which include a complex variety of components, the proper combination of gases must be used in the packing; this is a component of MAP packaging. Carbon dioxide, oxygen, and nitrogen are the gases utilized in MAP. For instance, a mixture of 20% carbon dioxide and 80% oxygen is ideal for packing meat goods because it balances the meat's beautiful hue and improves visual appeal; any difference from this ratio reduces the visual appeal.

KEY MARKET SEGMENTATION

By Type

• Carbon Dioxide

• Nitrogen

• Oxygen

• Other Types (Hydrogen & Argon)

By Industry

• Meat, Poultry & Seafood Industry

• Dairy & Frozen Products Industry

• Beverages Industry

• Fruits & Vegetables Industry

• Convenience Food Products Industry

• Bakery & Confectionery Products Industry

• Other Industries

By Mode of Supply

•  Bulk

• Cylinder

By Application

• Freezing And Chilling

• Packaging

• Carbonation

• Other Applications (Hydrogenation, Blanketing, Purging, Sparging)

REGIONAL ANALYSIS

North America now dominates the market for food grade carbon dioxide in terms of revenue production. Growth in North America is being driven by an increase in carbonated beverages, notably soda drinks, which is being closely followed by a rise in packaged food demand. During the projection period, Latin America is anticipated to see a modest CAGR.

Europe is anticipated to have significant growth. The market in Europe is being driven by an expanding food processing sector and rising processed food consumption. Over the course of the forecast, it is anticipated to experience significant growth. Growing processed food consumption and a growing food processing sector are driving the European market. Asian nations like China, India, and Japan are included in the area. Over the course of the projected period, South Korea, Australia, and New Zealand are anticipated to post high CAGRs.

REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

RECENT DEVELOPMENTS

• In October 2022, Linde and JSL worked together to increase the Kalinga Nagar unit's production capacity. For this facility, Linde primarily provides oxygen, argon, and carbon dioxide.

• The Merchant Industrial Gases Business of Air Liquide in the Kingdom of Saudi Arabia was bought by Air Products' Middle East Merchant Industrial Gas Joint Venture, Abdullah Hashim Industrial Gases & Equipment Co. Ltd., in October 2022.

• To provide hydrogen and steam, Linde and BASF, one of the biggest chemical firms in the world, struck a long-term agreement in February 2022. This aided Linde's company's growth into fresh regions.

KEY PLAYERS 

The Major Players are AIR PRODUCTS AND CHEMICALS, INC., THE MESSER GROUP GmbH, COREGAS PTY LTD.(WESFARMERS), THE MASSY GAS PRODUCTS (TRINIDAD) LTD., GULF CYRO, LINDE PLC., SOL GROUP, TAIYO NIPPON SANSO CORPORATION, AIR LIQUIDE S.A., AIR WATER INC. and other players

AIR PRODUCTS AND CHEMICALS, INC-Company Financial Analysis