Global Dry Ice Market By Product Type (Blocks, Pellets, Slices, Others), By Grade (Food Grade, Industrial Grade, Pharmaceutical Grade), By End-use (Food and Beverages, Healthcare and Medical, Industrial Cleaning, Logistics and Transportation, Entertainment, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

The Global Dry Ice Market is expected to be worth around USD 3.1 Billion by 2034, up from USD 1.5 Billion by 2024, growing at a CAGR of 7.5% during the forecast period from 2025 to 2034.

Dry ice, or solid carbon dioxide (CO2), is a key product used primarily in refrigeration and cooling applications. Unlike regular ice, dry ice does not melt into a liquid but sublimates directly into gas, making it ideal for applications requiring temperature control without the risk of water damage. Its unique properties make it valuable in various sectors, including food transportation, medical applications, entertainment, and cleaning industries. Dry ice is produced by compressing and cooling CO2 gas, which solidifies into a snow-like substance. It is then compacted into pellets or blocks for practical use.

The dry ice industry is primarily driven by the increasing demand for temperature-sensitive transportation and preservation, particularly in the food sector. According to the U.S. Food and Drug Administration (FDA), temperature-controlled supply chains have grown exponentially, with an estimated 80% of pharmaceutical products being temperature-sensitive. The food industry alone, which includes meat, seafood, dairy, and frozen foods, accounts for a large share of dry ice consumption.

In 2020, approximately 60% of dry ice usage was attributed to food and beverage industries. Companies like McDonald’s, Nestlé, and Coca-Cola have relied on dry ice to maintain the quality of their products during long-distance shipping.

The U.S. Department of Transportation (DOT) also highlights that the demand for dry ice in food logistics is crucial, with over 2.5 billion tons of food being transported annually, much of which requires refrigeration or cryogenic cooling.

Several factors contribute to the growth of the dry ice market. First, the expansion of the food and pharmaceutical sectors plays a significant role. With the increasing demand for ready-to-eat meals and frozen food items, the need for efficient cold storage solutions has risen.

For instance, in the U.S., frozen food sales grew by 22% in 2020 during the COVID-19 pandemic, boosting the demand for dry ice. Additionally, the growing pharmaceutical industry, especially with the rise of COVID-19 vaccine distribution, has significantly impacted dry ice demand. The U.S. FDA’s approval of mRNA-based vaccines required a rapid increase in dry ice use for transportation, especially given the ultra-low temperatures required for vaccine storage.

Key Takeaways

• Dry Ice Market is expected to be worth around USD 3.1 Billion by 2034, up from USD 1.5 Billion by 2024, growing at a CAGR of 7.5%.
• Pellets held a dominant market position, capturing more than a 41.10% share of the dry ice market.
• Food Grade dry ice held a dominant market position, capturing more than a 45.20% share.
• Food & Beverages sector held a dominant market position in the dry ice market, capturing more than a 46.30% share.
• Asia-Pacific (APAC) region stands out as a significant player, holding a commanding 38.10% share, which translates to a market size of approximately USD 0.5 billion.

By Product Type

Pellets Lead Dry Ice Market with Over 41% Share in 2024

In 2024, Pellets held a dominant market position, capturing more than a 41.10% share of the dry ice market. This significant market share is attributed to the versatility and convenience of pellets in various applications, including shipping and transport, where they are favored for their ease of handling and efficient cooling properties.

Additionally, the growing demand in sectors such as food processing, pharmaceuticals, and dry ice blasting for cleaning purposes has further propelled the prominence of pellets. The ability to precisely control portion sizes and rapid sublimation rate makes pellets especially popular in environments requiring stringent cooling standards, contributing to their leading position in the market.

By Grade

Food Grade Dry Ice Takes the Lead with 45.2% Market Share in 2024

In 2024, Food Grade dry ice held a dominant market position, capturing more than a 45.20% share. This substantial market share underscores its critical role in the food industry, particularly in food preservation and transportation.

Food grade dry ice is prized for its purity and compliance with stringent health standards, making it essential for maintaining the quality and safety of perishable goods during storage and transit. Its ability to provide non-toxic cooling without leaving residue is highly valued in food processing and catering services, further securing its leadership in the market. The ongoing expansion of the global food sector, with an increasing focus on export and import activities, continues to drive the demand for food grade dry ice, reinforcing its top position in the industry.

By End-use

Food & Beverages Sector Dominates Dry Ice Market with 46.3% Share in 2024

In 2024, the Food & Beverages sector held a dominant market position in the dry ice market, capturing more than a 46.30% share. This leading position is largely driven by the critical role of dry ice in cooling and preservation processes within the food industry. Dry ice is extensively used for its efficiency in maintaining the necessary low temperatures during the transportation and storage of perishable food products.

Its sublimation to gas without leaving any liquid residue is particularly advantageous in settings where moisture control is essential, such as in the packaging of fresh produce and meats. Additionally, the expanding global food market, with its increasing logistics requirements and stringent food safety regulations, continues to enhance the demand for dry ice in this sector, solidifying its substantial market share.

Key Market Segments

By Product Type

• Blocks
• Pellets
• Slices
• Others

By Grade

• Food Grade
• Industrial Grade
• Pharmaceutical Grade

By End-use

• Food & Beverages
• Healthcare & Medical
• Industrial Cleaning
• Logistics & Transportation
• Entertainment
• Others

Driving Factors

Increasing Demand in Cold Chain Logistics Drives Dry Ice Market Growth

One of the major driving factors for the growth of the dry ice market is the expanding cold chain logistics sector. As global trade in perishable products increases, the need for effective cooling solutions that maintain product integrity during transportation is more critical than ever. Dry ice is extensively utilized in this sector due to its ability to keep shipments at consistent low temperatures without the risk of cross-contamination or moisture damage, which is essential for transporting sensitive items such as pharmaceuticals, seafood, and fresh produce.

For instance, according to the Food and Agriculture Organization (FAO), over 49% of globally traded fruits and vegetables are shipped to different countries, requiring reliable cooling methods to prevent spoilage and ensure food safety during transit. The unique properties of dry ice, such as its sublimation from a solid directly to a gas, make it an ideal choice for exporters and logistics companies looking for efficient and hygienic cooling solutions.

Moreover, government initiatives aimed at enhancing food safety standards have further propelled the use of dry ice. Regulations that mandate strict temperature controls during the storage and transport of food and pharmaceutical products have led to increased reliance on dry ice. For example, the U.S. Food and Drug Administration’s (FDA) Food Safety Modernization Act (FSMA) emphasizes the importance of proper temperature control, underlining the need for high-quality cooling materials, which has in turn boosted the demand for dry ice in these sectors.

Restraining Factors

Safety Concerns and Handling Requirements Limit Dry Ice Adoption

A significant restraining factor for the dry ice market is the safety concerns and stringent handling requirements associated with its use. Dry ice, being solid carbon dioxide, sublimates at -78.5 degrees Celsius (-109.3 degrees Fahrenheit), which poses severe risk factors such as frostbite and asphyxiation if not handled properly. These safety risks require rigorous training and strict adherence to safety protocols, which can deter small businesses or organizations with limited resources from adopting dry ice as a cooling solution.

For instance, the Occupational Safety and Health Administration (OSHA) mandates specific handling and storage guidelines for dry ice to prevent accidental exposure and injuries. These regulations, while necessary for safety, can introduce additional operational complexities and costs. Compliance requires protective equipment and proper ventilation systems, which might not be feasible for all operators, particularly in small-scale industries or in regions with limited infrastructure.

Furthermore, the transport and storage of dry ice require specialized containers that maintain its extremely low temperature while preventing the build-up of carbon dioxide gas, which can lead to container rupture or workplace hazards. This need for specialized equipment not only increases the operational costs but also limits the practicality of using dry ice in remote or less-developed areas.

Growth Opportunities

Expansion into Emerging Markets Presents Growth Opportunities for Dry Ice

A significant growth opportunity for the dry ice market lies in its expansion into emerging markets, particularly in Asia, Africa, and Latin America. These regions are witnessing rapid industrialization and growth in sectors such as food processing, pharmaceuticals, and healthcare, all of which require effective cooling solutions. Dry ice, with its superior cooling properties and ability to maintain temperature integrity without power, is ideally suited to meet these needs.

For example, the Food and Agriculture Organization (FAO) reports that the Asia-Pacific region is experiencing a boom in its food export sector, with a growing demand for ensuring that food products reach global markets in optimal condition. The unique ability of dry ice to cool without leaving moisture residue makes it an attractive option for exporters who need to maintain quality and freshness over long transportation periods without the risk of contamination.

Additionally, government initiatives aimed at improving food safety and pharmaceutical storage in these regions provide a supportive environment for the use of dry ice. Programs aimed at strengthening the cold chain capabilities are becoming more prevalent, with governments providing subsidies or incentives for adopting advanced cooling technologies. For instance, India’s government has launched initiatives to boost its cold chain infrastructure, recognizing the role of efficient cooling solutions in reducing post-harvest losses and enhancing food safety.

Latest Trends

Eco-Friendly Applications Propel Latest Trends in Dry Ice Usage

A notable trend in the dry ice market is its increasing use in environmentally friendly applications, particularly in the area of waste management and industrial cleaning. As industries and regulatory bodies push for greener alternatives to traditional chemicals and methods, dry ice blasting has emerged as a leading solution. This method uses dry ice pellets for cleaning surfaces, effectively removing residues like grease, oil, and biofilm without water or chemical solvents and leaving no secondary waste.

The Food and Agriculture Organization (FAO) underscores the importance of sustainable practices in food production and processing. Dry ice blasting meets these criteria by providing a cleaning method that helps food processing facilities meet stringent hygiene standards without the environmental impact associated with chemical cleaners. This trend is particularly relevant in the context of global initiatives to reduce water use and chemical runoff, which are critical in food production sectors.

Furthermore, government initiatives around the world are supporting the adoption of technologies that reduce environmental footprints. For instance, the European Union’s policies on reducing chemical use in industrial applications highlight the importance of finding alternatives that both perform effectively and lessen ecological impact. Dry ice, as a cleaning agent, aligns perfectly with these policies by offering a solution that is both effective and environmentally benign.

Regional Analysis

In the dry ice market, the Asia-Pacific (APAC) region stands out as a significant player, holding a commanding 38.10% share, which translates to a market size of approximately USD 0.5 billion. This substantial market footprint is primarily driven by rapid industrial growth across key economies such as China, India, and Japan. The region’s expansion in sectors such as food processing, healthcare, and electronics manufacturing has spurred increased demand for reliable and efficient cooling solutions, where dry ice plays a critical role.

The food industry in APAC, in particular, benefits immensely from dry ice applications, especially in food preservation and transportation. With a burgeoning population and increasing exports of perishable goods, maintaining the integrity of food products during transit is paramount, making dry ice an invaluable resource. Furthermore, the growing pharmaceutical sector in APAC, which requires stringent compliance with cold chain standards to ensure the efficacy and safety of medications, continues to drive the demand for dry ice.

Governments across the region are also implementing regulations that favor the adoption of eco-friendly and efficient cooling technologies, thus bolstering the market for dry ice. For instance, initiatives aimed at reducing food wastage and improving pharmaceutical supply chains are supporting the adoption of advanced cooling solutions.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Air Liquide S.A. is a major player in the global dry ice market, renowned for its comprehensive gas solutions across various industries, including healthcare, electronics, and food processing. The company leverages advanced technologies to produce high-quality dry ice products that cater to stringent cooling and preservation needs, supporting the growth of sustainable and efficient practices within these sectors.

Linde plc stands out in the dry ice market for its extensive production capabilities and innovative supply solutions. As a leading industrial gas and engineering company, Linde delivers a wide range of dry ice applications, primarily focusing on optimizing processes in the healthcare, food, and beverage industries, ensuring high standards of quality and safety.

Continental Carbonic Products, Inc. specializes in the production and distribution of dry ice and liquid CO2, providing essential products for environmental, industrial, and health applications. Their focus on reliable delivery and service excellence makes them a preferred supplier for businesses looking for effective cooling and cleaning solutions.

Market Key Players

• Air Liquide
• Linde plc
• Continental Carbonic Products, Inc.
• OXARC Inc.
• Sicgil india limited
• Cee Kay Supply, Inc.
• Asco Carbon Dioxide Ltd
• Apple Ice
• Central McGowan
• Sol Group Corporation
• The iceman
• Brookline Ice Co
• Sutton-Garten Co.
• nexAir LLC
• Yara International ASA
• Other Key Players

Recent Developments

In 2024, Air Liquide S.A. solidified its position in the dry ice market through substantial investments and strategic initiatives aimed at expanding its capabilities and market reach. The company invested nearly 60 million euros to acquire and operate an Air Separation Unit (ASU) in Yantai, China, under a long-term contract with Wanhua Chemical Group, showcasing its commitment to growing its industrial gas operations in key global markets

In 2024, Linde plc demonstrated its resilience and strategic growth within the dry ice market, despite challenging macroeconomic conditions. The company maintained robust sales totaling $33.0 billion, emphasizing its focus on disciplined capital allocation and productivity initiatives across its segments.

Report Scope