Food Grade Gases Market Analysis

Global Food Grade Gases Market Overview

Food Grade Gases Market Size was valued at USD 8.09 billion in 2023. The Food Grade Gases industry is projected to grow from USD 8.73 billion in 2024 to USD 14.86 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.88% during the forecast period (2024 - 2032). Increase in meat and seafood production and consumption of meat, carbonated beverages and fish are the key market drivers enhancing the market growth.Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Food Grade Gases Market Trends

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  Increasing demand for natural food grade gases is driving the market growth

  
  

Market CAGR for Food Grade Gases is being driven by the rising demand for natural food grade gases. There is a growing trend towards using natural food grade gases in food processing and packaging. Natural gases such as carbon dioxide, nitrogen, and argon are preferred over synthetic gases due to their non-toxic and non-flammable nature. These gases are also considered eco-friendly as they do not contribute to warming. The demand for natural food grade gases is expected to increase in the coming years as consumers become more conscious about the environmental impact of the products they consume.

Additionally, growing popularity of cryogenic freezing is expected to drive the demand for food grade gases in the coming years. Cryogenic freezing is a technique used to preserve food products by exposing them to extremely low temperatures. This technique involves the use of food grade gases such as nitrogen and carbon dioxide to create a freezing environment. Cryogenic freezing helps to preserve the nutritional value, texture, and flavor of the food product while extending its shelf life. This technique is gaining popularity among food manufacturers and retailers due to its efficiency and effectiveness in preserving food products.

Modified atmosphere packaging (MAP) is a technique that involves altering the gaseous environment surrounding the packaged food product to improve its shelf life. MAP involves the use of food grade gases such as carbon dioxide, nitrogen, and oxygen to create a controlled atmosphere inside the package. This technique helps to maintain the quality, texture, and freshness of the food product, and it is gaining popularity among food processors and retailers worldwide. The adoption of MAP is expected to continue to drive the growth of the food grade gases market.

For instance, the food grade gases market is expected to experience continued growth due to the adoption of modified atmosphere packaging, the increasing demand for natural food grade gases, and the growing popularity of cryogenic freezing. These trends are driven by the need for longer shelf life, food safety, and environmental sustainability in the food industry driving the Food Grade Gases market revenue.

April 2024

With the goal of assisting enterprises with significant carbon dioxide (CO2) emissions in their decarbonization process, industrial gas manufacturer Messer has launched a new offering called "Carbon Capture as a Service."

The "ZeCarb" concept, which stands for "Zero Carbon," is the company's reaction to the increasing need for CO2 emission reduction strategies in industrial operations worldwide.

ZeCarb, according to the business, offers comprehensive coverage from a single source for the whole carbon capture, utilization, and storage (CCUS) value chain.

Food Grade Gases Market Segment Insights

Food Grade Gases Application Insights

The Food Grade Gases market segmentation, based on application, includes packaging, carbonation and freezing & chilling. The packaging generates the most income. The gases are used to create modified atmospheres that help to extend the shelf life of food products preventing unwanted chemical reactions.

Food Grade Gases End-Use Insights

The Food Grade Gases market segmentation, based on end-use includes fruits & vegetables, beverages and dairy & frozen products. The dairy & frozen products had generates the most income. The gases are used to preserve the freshness, flavor, and appearance of products.

Food Grade Gases Type Insights

The Food Grade Gases market segmentation, based on type includes oxygen, nitrogen and carbon dioxide. The carbon dioxide segment dominates the market. Carbon dioxide is added in soft drinks, wines, beers and carbonated beverages to provide fizz and improve their taste. It is also used in food industry for freezing meat, fruits & vegetables.

Figure 1: Food Grade Gases Market, by Type, 2022 & 2032 (USD billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Food Grade Gases Insights

By US, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Food Grade Gases market area will dominate this market, owing to the presence of well-established food processing industry and increasing demand for convenience foods. The United States is the largest market in the US, followed by Canada and Mexico. The increasing demand for packaged and frozen food products, along with the growing concern for food safety and hygiene, are the major drivers of the market growth in this US. The demand for carbon dioxide is particularly high in this US, owing to its extensive use in carbonated beverages and dry ice.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: FOOD GRADE GASES MARKET SHARE BY US 2022 (%) Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Food Grade Gases market accounts for the second-largest market share, owing to the increasing demand for processed food products and the stringent regulations regarding food safety and hygiene. The demand for nitrogen and oxygen is particularly high in this US, owing to their extensive use in packaging and preservation applications. Further, the German Food Grade Gases market held the largest market share, and the UK Food Grade Gases market was the fastest growing market in the European US

The Asia-Pacific Food Grade Gases Market is expected to grow at the fastest CAGR from 2023 to 2032 owing to the increasing demand for processed and packaged food products, particularly in countries such as China and India. The growing population and rising disposable income are the major drivers of the market growth in this US. The demand for carbon dioxide is particularly high in this US, owing to its extensive use in the carbonated beverage industry. Moreover, China’s Food Grade Gases market held the largest market share, and the Indian Food Grade Gases market was the fastest growing market in the Asia-Pacific US.

For instance, the food grade gases market is expected to continue its growth trajectory over the coming years, driven by the increasing demand for processed and packaged food products, along with the growing awareness about food safety and hygiene. Nitrogen, oxygen, and carbon dioxide are the most widely used food grade gases, owing to their extensive use in various applications such as packaging, freezing, and preservation.

Food Grade Gases Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Food Grade Gases market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Food Grade Gases industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Food Grade Gases industry to benefit clients and increase the market sector. In recent years, the Food Grade Gases industry has offered some of the most significant advantages to medicine. Major players in the Food Grade Gases market, including Air Products and Chemicals, Inc (US), TAIYO NIPPON SANSO CORPORATION (JAPAN), SOL Group (Italy), The Linde Group (Ireland), National Gases Ltd (Pakistan) and Praxair Technology, Air Liquide (France), Messer Group (Germany), WESFARMERS LIMITED (Australia), Gulf Cryo (Kuwait.), AIR WATER INC (Japan), PT Aneka Gas Industri (Indonesia), The Tyczka Group (Germany), Parker Hannifin Ltd (US), Inc (Kuwait), and others, are attempting to increase market demand by investing in research and development operations.

Air Products and Chemicals, Inc. founded in 1940, located in Allentown, Pennsylvania is an American multinational company whose business is to sell gases and chemicals for industrial uses. Air Products serves customers in technology, energy, healthcare, food and industrial markets worldwide with atmospheric industrial gases such as oxygen, nitrogen, argon and carbon dioxide and chemical intermediaries. In July 2020, Air Products announced that its new steam methane reformer (SMR) and cold box in Geismar, Louisiana, are now operational and supplying Huntsman's neighboring industrial operations. Under the long-term agreement, Air Products developed, owns, and runs the facility, which supplies Huntsman with carbon monoxide, steam, and hydrogen. The Gulf Coast hydrogen pipeline and network system (GCP), the world's biggest hydrogen plant and pipeline network system, is linked to Air Products' SMR as well.

Messer Group GmbH founded in 1898, located in Bad Soden, Germany, is a supplier of industrial gases such as oxygen, nitrogen, argon, carbon dioxide, hydrogen, helium and gases for medical use. In May 2020, Messer, the world's biggest privately held industrial-gases company, announced that its new carbon dioxide plant in Keyes, California, has started operations, allowing it to serve new and existing customers in northern California and nearby areas through rail network. The new factory has the capacity to produce up to 450 tonnes of CO2 per day, which is critical for the area's food freezing and chilling, carbonated beverages production.

According to Bernd Eulitz, CEO of Messer, "we are in the process of changing the way companies across all industries reduce their carbon footprint, aligning with global sustainability goals while tapping into new growth opportunities."

The International Energy Agency (IEA) estimates that in order to reach the Net Zero by 2050 scenario, 1.2 gigatonnes of CO2 emissions must be avoided annually by CCUS.

"With our 'Carbon Capture as a Service' offering, marketed as 'ZeCarb,' we offer businesses and municipalities an economical way to meet their carbon emission targets while also upholding their environmental obligations."

In order to launch a CO2 recovery facility in Austria that is scheduled to start operations this year, Messer teamed up with the massive chemical company BASF last year.

Using BASF's OASE blue technology, the CO2 will be extracted from an industrial company's flue gas. Messer will then purify the recovered CO2 to food-grade purity and use it to improve the dependability of supply in Bavaria, Eastern Switzerland, South Tyrol, and Western Australia.

Key Companies in the Food Grade Gases market include

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  Air Products and Chemicals, Inc (US),

  
  


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  TAIYO NIPPON SANSO CORPORATION (JAPAN)

  
  


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  SOL Group (Italy)

  
  


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  The Linde Group (Ireland)

  
  


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  National Gases Ltd (Pakistan) and Praxair Technology

  
  


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  Air Liquide (France)

  
  


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  Messer Group (Germany)

  
  


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  WESFARMERS LIMITED (Australia)

  
  


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  Gulf Cryo (Kuwait.)

  
  


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  AIR WATER INC (Japan)

  
  


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  PT Aneka Gas Industri (Indonesia)

  
  


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  The Tyczka Group (Germany)

  
  


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  Parker Hannifin Ltd (US)

  
  


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  Inc (Kuwait)

  
  

Food Grade Gases Industry Developments

In March 2020: With PBF Energy (US), Air Products & Chemical agreed to a contract for the USD 530 million purchase of five operational hydrogen units.

In July 2022: The nearby industrial operations of Hunstman Company (US) were supplied by the new industrial gases plant in Louisiana that Air Products & Chemicals stated would operate in Onstream.

In 2024 Air Products released new food-grade gases with improved safety and quality assurance for food preservation.

In 2023 Linde introduced advanced food-grade gas solutions designed for enhanced freshness and shelf life of products.

Food Grade Gases Market Segmentation

Food Grade Gases End-Use Outlook

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  Fruits & Vegetables

  
  


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  Beverages

  
  


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  Dairy & Frozen Products

  
  

Food Grade Gases Type Outlook

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  Oxygen

  
  


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  Nitrogen

  
  


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  Carbon dioxide

  
  

Food Grade Gases Application Outlook

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  Freezing & Chilling

  
  


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  Carbonation

  
  


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  Packaging

  
  

Food Grade Gases USal Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America