Global Food Grade Carbon Dioxide Market By Type (Gaseous State, Liquid State), By Application(Freezing & Chilling, Packaging, Carbonation), By End-Use(Beverages, Dairy & Frozen Products, Meat, Poultry, Bakery and Confectionery, Others), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2024-2033

Report Overview

The Global Food Grade Carbon Dioxide Market size is expected to be worth around USD 2.7 Billion by 2033, From USD 1.5 Billion by 2023, growing at a CAGR of 6.0% during the forecast period from 2024 to 2033.

The Food Grade Carbon Dioxide Market encompasses the production and distribution of high-purity CO2 used primarily in food processing and beverage carbonation. This market serves as a critical component in preserving freshness, maintaining product quality, and enhancing flavor profiles across various food sectors.

As executives and product managers explore this market, they assess CO2’s role in packaging, carbonating drinks, and modifying atmospheres for extended shelf life. The strategic utilization of food-grade CO2 facilitates compliance with health and safety standards, offering a competitive edge in consumer markets focused on quality and sustainability.

The Food Grade Carbon Dioxide Market is witnessing a notable surge, driven by its extensive applications in the food and beverage industry. This market encompasses the utilization of CO2 for carbonation in soft drinks, preservation in food packaging, and as a chilling agent in the transport of perishable goods. The burgeoning demand for carbonated beverages and the increasing preference for packaged and frozen foods are key growth drivers.

Additionally, advancements in CO2 recovery technologies from fermentation and combustion processes are contributing to market expansion. The market is also benefiting from the growing trend towards the use of natural preservatives and additives in the food industry, as food grade CO2 is perceived as a safer and more environmentally friendly option compared to synthetic chemicals.

To underscore the importance of food grade CO2 in reducing the carbon footprint within the food sector, the SU-EATABLE LIFE database provides compelling data. It contains 3,349 carbon footprint values of food commodities extracted from 841 publications spanning 1998 to 2019. This data is organized into 85 typologies, 11 sub-typologies, and 323 items. The database highlights the environmental impact of various food commodities and emphasizes the role of CO2 in sustainable food production and preservation.

Key Takeaways

• Market Growth:  The Global Food Grade Carbon Dioxide Market size is expected to be worth around USD 2.7 Billion by 2033, From USD 1.5 Billion by 2023, growing at a CAGR of 6.0% during the forecast period from 2024 to 2033.
  
• Regional Dominance: The Food Grade Carbon Dioxide Market in North America is valued at USD 0.6 billion, representing 37.6%.
  
• Segmentation Insights:
  • By Type: Gaseous state dominates with a 76.4% share in the market.
  • By Application: Freezing & chilling leads usage at 46.7% in applications.
  • By End-Use: Beverages remain the top end-use sector at 39.4% market share.
• Growth Opportunities: The global Food Grade Carbon Dioxide market is growing in emerging markets like China, India, and Brazil due to urbanization, rising incomes, and expanding food industries. Sustainable production innovations are also driving market growth.
  

Driving Factors

Increasing Demand for Carbonated Beverages

The food grade carbon dioxide market is significantly driven by the rising demand for carbonated beverages. As consumer preferences shift towards fizzy drinks, both in non-alcoholic beverages and alcoholic categories, the need for carbon dioxide in production processes has surged. According to market data, the global carbonated soft drinks market was valued at approximately USD 406 billion in 2021, with projections indicating a steady CAGR of 5.1% over the next decade.

This robust growth directly translates to increased consumption of food-grade carbon dioxide, which is a critical ingredient in creating the effervescent quality of these beverages. The expanding reach of multinational beverage companies into emerging markets further amplifies this demand, ensuring consistent market growth for food-grade CO2.

Growing Use in Food Preservation and Packaging

Another pivotal factor contributing to the growth of the food grade carbon dioxide market is its extensive use in food preservation and packaging. CO2 is widely employed in the food industry for its preservative properties, helping to extend the shelf life of perishable goods. The global food preservation market is expected to reach USD 12.8 billion by 2025, with CO2 playing a crucial role.

Its ability to inhibit microbial growth and maintain the freshness of products like meats, fruits, and vegetables is invaluable. Additionally, the increasing trend of ready-to-eat and convenience foods has spurred the demand for effective preservation methods, thereby boosting the utilization of food grade carbon dioxide.

Rising Adoption in Modified Atmosphere Packaging (MAP) Technologies

The adoption of Modified Atmosphere Packaging (MAP) technologies is a significant driver for the food grade carbon dioxide market. MAP extends the shelf life of food products by altering the atmospheric composition within the packaging, with CO2 being a key component. This technology is gaining traction, especially in the meat, seafood, and dairy industries, where maintaining product freshness and quality is paramount.

The global MAP market was valued at USD 12.3 billion in 2020 and is projected to grow at a CAGR of 4.9% through 2027. As consumers increasingly demand high-quality, long-lasting food products, the reliance on MAP technologies and, consequently, food-grade carbon dioxide is expected to rise, driving market expansion.

Restraining Factors

High Production Costs

High production costs are a significant restraining factor for the food grade carbon dioxide market. The extraction, purification, and storage processes for food grade CO2 are expensive, involving sophisticated technology and substantial energy consumption. These costs are further exacerbated by the need for specialized equipment to ensure the purity and quality of the CO2 meet food industry standards.

According to industry reports, production costs can account for up to 60% of the total operating expenses in CO2 manufacturing facilities. These high costs translate into higher prices for end-users, potentially limiting the market’s expansion, especially in cost-sensitive regions. Small and medium-sized enterprises (SMEs) in the food and beverage industry may find it particularly challenging to absorb these costs, leading to reduced adoption rates and slower market growth.

Stringent Regulations and Safety Standards

The stringent regulations and safety standards governing the production and use of food grade carbon dioxide also act as a significant restraint on market growth. Regulatory bodies, such as the U.S. Food and Drug Administration (FDA) and the European Food Safety Authority (EFSA), impose rigorous standards to ensure the safety and quality of food grade CO2. Compliance with these regulations requires substantial investment in quality control systems, regular audits, and certifications, further increasing production costs.

Non-compliance can result in severe penalties, product recalls, and damage to brand reputation. Additionally, the complexity and variability of regulations across different regions can create barriers to market entry and expansion. For instance, differing safety standards between the U.S., Europe, and Asia require manufacturers to adapt their processes, adding to operational complexity and cost.

By Type  Analysis

Gaseous state carbon dioxide dominates with 76.4% due to its extensive utility in food processing.

In 2023, Gaseous State held a dominant market position in the “By Type” segment of the Food Grade Carbon Dioxide Market, capturing more than a 76.4% share. The substantial market share of Gaseous State can be attributed to its extensive application in carbonation processes for beverages, where it imparts the essential fizz and taste. Additionally, gaseous CO2 is widely used in modified atmosphere packaging, which extends the shelf life of perishable food products by replacing the air inside the packaging with a protective gas mixture that predominantly includes carbon dioxide.

Liquid State, on the other hand, accounted for the remaining market share. Although smaller in comparison, the utilization of liquid CO2 is crucial in quick-freezing applications. Its rapid cooling properties make it ideal for producing dry ice, used extensively in transporting temperature-sensitive food products, including ice creams and frozen foods. Liquid CO2’s role is also prominent in chilling applications during meat processing, where it is favored for its ability to maintain low temperatures without compromising the product’s moisture content.

The dominance of Gaseous State in the market is further supported by its cost-effectiveness and ease of handling compared to liquid CO2. However, both states of carbon dioxide play pivotal roles in maintaining quality and enhancing the safety and longevity of food products, underlining their essential positions in the food processing industry. As environmental regulations and technological advancements continue to evolve, the market dynamics between gaseous and liquid carbon dioxide are expected to witness shifts, potentially influencing their respective market shares.

By Application Analysis

Freezing and chilling applications command 46.7%, essential for quality preservation in the food sector.

In 2023, Freezing & Chilling held a dominant market position in the “By Application” segment of the Food Grade Carbon Dioxide Market, capturing more than a 46.7% share. This significant market share is primarily driven by the critical role of CO2 in rapid freezing and chilling applications within the food industry.

CO2, particularly in its liquid and dry ice forms, is highly effective in reducing the temperature of food products quickly, which is essential for preserving freshness, preventing bacterial growth, and extending shelf life. This application is indispensable in the meat and seafood sectors, where maintaining product integrity and safety standards is paramount.

The remaining market shares were distributed between Packaging and Carbonation applications. Packaging, utilizing CO2 as part of modified atmosphere packaging (MAP), helps in prolonging the shelf life of fresh produce, bakery items, and snack foods by slowing down oxidation and spoilage processes. This application accounted for a substantial portion of the market, leveraging carbon dioxide’s properties to create an inert atmosphere around perishables.

Carbonation, the process of dissolving CO2 into beverages to create effervescence, also holds a significant stake in the market. It is fundamental to the production of carbonated soft drinks, beers, and sparkling waters. The preference for carbonated drinks among consumers globally fuels the demand for high-quality food-grade CO2 in this segment.

Despite the dominance of Freezing & Chilling, the versatility of food-grade CO2 across various applications ensures a balanced growth dynamic within the market, responding to evolving consumer preferences and technological advancements in food processing and preservation.

By End-Use Analysis

Beverages are the largest end-use segment, comprising 39.4%, driven by demand for carbonated drinks.

In 2023, Beverages held a dominant market position in the “By End-Use” segment of the Food Grade Carbon Dioxide Market, capturing more than a 39.4% share. The dominance of this sector is largely attributed to the extensive use of carbon dioxide in carbonated soft drinks, beers, and sparkling waters. The consistent consumer demand for carbonated beverages drives the substantial use of food-grade CO2, making it an indispensable component in the beverage industry for both taste and preservation purposes.

Other segments within the market include Dairy & Frozen Products, Meat, Poultry, Bakery and Confectionery, and Others. Dairy & Frozen Products utilize CO2 primarily in freezing applications to maintain texture and nutritional quality. The Meat and Poultry sectors rely on CO2 for both processing and packaging, employing modified atmosphere packaging (MAP) to extend shelf life and ensure product safety. Bakery and Confectionery industries use carbon dioxide in freezing processes and to enhance product texture in certain baked goods.

The “Others” category encompasses various smaller-scale applications such as in horticulture to promote plant growth, in pH stabilization processes in swimming pools, and in fire extinguishers. Although these applications capture smaller shares of the market, their diverse uses of CO2 underline the versatility and broad applicability of food-grade carbon dioxide across multiple industries.

Key Market Segments

By Type

• Gaseous State
• Liquid State

By Application

• Freezing & Chilling
• Packaging
• Carbonation

By End-Use

• Beverages
• Dairy & Frozen Products
• Meat
• Poultry
• Bakery and Confectionery
• Others

Growth Opportunities

Expansion in Emerging Markets

The global Food Grade Carbon Dioxide market is experiencing significant growth opportunities, particularly in emerging markets. In 2023, countries such as China, India, and Brazil are seeing increased demand for food-grade carbon dioxide due to their expanding food and beverage industries. Rapid urbanization, rising disposable incomes, and a growing middle class are driving this demand.

These factors have led to increased consumption of carbonated beverages, packaged foods, and preservation technologies that utilize food-grade carbon dioxide. Additionally, the growth of the cold chain logistics sector in these regions is further bolstering market expansion. Companies are investing heavily in these markets to capitalize on the untapped potential, establishing local production facilities and distribution networks to meet the rising demand efficiently.

Innovation in Sustainable Production Methods

Innovation in sustainable production methods is another critical factor contributing to the growth of the food grade carbon dioxide market in 2023. The industry is witnessing a shift towards more environmentally friendly and energy-efficient production processes. Advances in carbon capture and utilization technologies are enabling companies to produce food-grade carbon dioxide from renewable sources, thereby reducing their carbon footprint.

Additionally, the implementation of stringent environmental regulations across various regions is pushing manufacturers to adopt greener production methods. Companies that invest in sustainable technologies are not only gaining a competitive edge but are also aligning with global sustainability goals, attracting eco-conscious consumers and investors.

Latest Trends

Adoption of CO2 Extraction in Plant-Based Food Products

The global Food Grade Carbon Dioxide market is witnessing a notable trend in the adoption of CO2 extraction for plant-based food products. This method, known for its efficiency and eco-friendliness, is increasingly being utilized by manufacturers to extract flavors, essential oils, and active ingredients from plants.

CO2 extraction offers several advantages, including the preservation of the purity and potency of plant-based compounds without the use of harmful solvents. This trend is driven by the growing consumer preference for natural and clean-label products, particularly among health-conscious and environmentally aware individuals.

Additionally, the plant-based food industry is expanding rapidly, with significant investments and innovations aimed at meeting the rising demand for meat alternatives, dairy-free products, and other plant-based options. The adoption of CO2 extraction aligns with this industry’s focus on sustainability and high-quality production, making it a pivotal trend in 2023.

Increasing Use in the Production of Sparkling Water and Functional Drinks

Another significant trend in the global Food Grade Carbon Dioxide market is its increasing use in the production of sparkling water and functional drinks. With a shift towards healthier beverage choices, consumers are gravitating towards sparkling water and functional drinks, which offer hydration along with additional health benefits. Functional drinks, enriched with vitamins, minerals, and other beneficial compounds, are becoming popular as consumers seek convenient ways to enhance their daily nutrition.

The use of food-grade carbon dioxide in these beverages ensures consistent carbonation and quality, making it an essential component in the production process. The market for sparkling water and functional drinks is expanding rapidly, driven by innovative product offerings and marketing strategies that highlight their health benefits. As a result, the demand for food-grade carbon dioxide is rising, encouraging manufacturers to enhance their production capacities and invest in new technologies to meet this growing demand efficiently. This trend is expected to continue, reinforcing the critical role of food-grade carbon dioxide in the beverage industry.

Regional Analysis

The North American Food Grade Carbon Dioxide Market holds a 37.6% share, valued at USD 0.6 billion.

The Food Grade Carbon Dioxide Market exhibits diverse dynamics across key regions: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Dominating the global landscape, North America accounts for 37.6% of the market share, translating to a value of USD 0.6 billion. This robust figure is driven by extensive utilization in food processing and beverage industries, where carbon dioxide is critical for carbonation and preservation.

Moving to Europe, the market is characterized by stringent regulations regarding food safety and environmental sustainability. These regulations bolster the demand for high-purity carbon dioxide, especially in the packaged food and brewing sectors. Europe’s market is also supported by a well-established industrial base, which promotes innovation in food processing technologies.

Asia Pacific is witnessing rapid growth, fueled by increasing consumer spending on packaged foods and beverages. The expansion of food and beverage manufacturing facilities, especially in China and India, has significantly driven the demand for food-grade carbon dioxide. This region is poised for the highest growth rate due to its expanding middle class and rising urbanization.

In the Middle East & Africa, the market is still nascent but shows potential due to developing food processing industries and urbanization trends. Increased investments in food safety and quality are expected to drive demand for food-grade carbon dioxide over the forecast period.

Latin America, though smaller in comparison, is seeing gradual growth influenced by the evolving food sector in countries like Brazil and Argentina. The demand in this region is primarily driven by the beverage sector, where carbon dioxide is essential for carbonation processes.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates

Key Players Analysis

In 2023, the global Food Grade Carbon Dioxide Market remains a dynamic and competitive landscape, with several key players driving innovations and market expansion. Among these, Air Liquide, Air Products, and Linde stand out as industry leaders, largely due to their extensive production capabilities and robust global distribution networks.

These companies leverage their technological advancements and strategic partnerships to enhance their market positions and meet the rising demand across various food processing and preservation applications.

Matheson and Messer also play significant roles, focusing on specialized applications of food-grade carbon dioxide, such as the carbonation of beverages and modified atmosphere packaging. Their commitment to quality and safety standards aligns with the stringent regulatory requirements of the food industry, which further solidifies their market standing.

Emerging players like POET and Reliant are noteworthy for their innovative approaches in sourcing and sustainability. POET, for instance, emphasizes the production of bio-based carbon dioxide, a practice that aligns with the growing consumer preference for sustainable and environmentally friendly production processes.

Furthermore, regional specialists such as Sicgil India Limited, SOL Group, and Strandmøllen A/S cater to specific geographic markets, leveraging local expertise and tailored solutions to meet the unique needs of regional customers. Their focus on customer-centric innovations and service excellence enables them to maintain a strong presence in their respective markets.

Market Key Players

• Air Liquide
• Air Products
• Linde
• Matheson
• Messer
• POET
• Reliant
• Carbonic Systems
• ACAIL GÁS
• Greco Gas Inc.
• Sicgil India Limited
• SOL Group
• Strandmøllen A/S
• Taiyo Nippon Sanso Corporation.

Recent Development

• In January 2024, Ettitude, a bedding brand renowned for its sustainable practices, innovates with CleanBamboo® materials, saving over 3M liters of water and 1,000 tons of CO2 emissions, while holding a B Corp certification. They collaborate on fabric innovation and advocate for textile sustainability.
• In November 2023, Engineers at Lehigh University developed a CO2-filtering device, converting captured carbon into baking soda for safe ocean disposal, potentially aiding climate goals. Challenges remain for scalability and chemical management.

Report Scope