Food Grade Industrial Gases Market

Food Grade Industrial Gases Market Size, Growth (2023-2028)

The Global Food Grade Industrial Gases Market Size was worth US$ 5.9 billion in 2022, and it is estimated to reach a value of US$ 8.1 billion by the end of 2028. As the demand for prepared foods and carbonated beverages has increased, the food-grade industrial gas market has grown significantly.

Market Overview:

Industrial gas is used in various trades like oil and gas, petrochemicals, mining, food, chemistry, and water. However, food-grade gases as additives can find immense applications in the food industry. Carbon dioxide, nitrogen, and oxygen are commonly used in the food industry. Consumers have changed their demand for fresh food to follow a pure diet, regardless of location and season, which is a major factor driving demand for this gas. In addition, the consumption of packaged foods such as fresh fruits and vegetables, carbonated beverages, bakery and confectionery, dairy and frozen products, fish and seafood, and meat is increasing.

Recent Developments in Food Grade Industrial Gases Industry:

• The Government of India issued a draft national chemical policy to increase domestic production in the global chemical industry from 3% in 2014 to 6% in 2020.
• Praxair Inc. has acquired the Linde Group's industrial gas business in Mexico to increase its presence in the Latin American market for food-grade industrial gas.
• France Air Liquide acquired the Linde Group's UK operations for $ 117 million to expand its geographical footprint and product portfolio.
• Messer has established a food-grade carbon dioxide gas manufacturing plant in BinhPhuoc, Vietnam.
• Lindeplc acquired Praxair, one of the largest industrial gas companies in the United States, to invest in the US market.

REPORT COVERAGE:

Food Grade Industrial Gases Market Growth:

As new products are introduced to the food industry and packaging technology advances, the demand for food-grade industrial gases for a variety of end uses also increases.

Drivers:

The world market for food-grade industrial gas is supposed to experience growth during the outlook period as its application in the fields of packaging and storage of frozen foods, fruits, vegetables, beverages, meat, seafood, fast food, bakeries and confectionery. Growing consumer concerns about contamination and the safety of nutritional products have forced companies to implement food-grade industrial gas in packaging and storage applications. As Modified Atmosphere Packaging (MAP) increases in importance to control microbial growth in the food and beverage industry, market demand is assumed to grow in the near future. The need for Food Grade Industrial Gases is likely to increase as the distribution of NSF H1 standards increases in the food and beverage industry. Awareness of preserving aromas and textures is expected to grow, and the shelf life of the nutrition industry will have a positive impact on the market during the prediction period.

The increasing market demand for these gases is expected to accelerate the growth of the global Food Grade Industrial Gases market in the near future due to the latest advances in refrigeration and packaging technology. Year-round consumer demand for fresh vegetables and food is assumed to fuel the food-grade industrial gas market. Food-grade industrial gases are widely used in a variety of applications, such as long shelf life, freezing and refrigeration, preservation and carbonation, and packaging of various beverages. The increase in healthy foods is a major driving force in the global market for food-grade industrial gas. Customers need natural foods without preservatives or less processing without chemical treatment, which again promotes the growth of the worldwide market. As the demand for fresh and packaged foods has increased, industrial gas has been used in the food and beverage sector.

Increased working hours and changes in lifestyle have affected the convenience or growth of packaged foods. As a result, packaging technology and frozen foods have grown. Nitrogen, carbon dioxide, and oxygen are the major industrial gases used in a variety of food applications, such as freezing, packaging, refrigeration, and grinding. The growing demand for carbonated soft drinks is also expected to drive demand for food-grade industrial gas during the forecast period. Carbonated drinks have become an integral part of any event, celebration and other recreational activity. Soft drinks along with drinks are also available for small parties and celebrations. Also, office workers who take a weekend break prefer soft drinks or refreshments to relax and enjoy on the weekends. As the number of events worldwide increases, the demand for carbonated beverages and food-grade industrial gas is anticipated to increase.

Restraints:

The food-grade industrial gases market requires a large capital investment to establish the plant and infrastructure. This is evident in the balance sheet of the existing players, where the plant and equipment sector represent around 40% -45% of the balance sheet. Therefore, high capital investment requirements for food-grade industrial gas plant facilities will limit the market during the forecast period.

Food Grade Industrial Gases Market Segmentation Analysis:

By Type:

• Carbon Dioxide    
• Nitrogen 
• Oxygen

By Application:

• Freezing and Chilling          
• Packaging
• Carbonation

By Product Type:

• Meat        
• Fish & Seafood     
• Dairy & Frozen Products   
• Beverages              
• Fruits & Vegetables            
• Convenience Foods           
• Bakery & Confectionery 

Food Grade Industrial Gases Market Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

Regional Analysis:

North America represents 33% of the food-grade gas market. The growing trend in the large beverage and small brewery industry is driving demand for carbon dioxide in North America, and the United States is the largest and fastest-growing market. Furthermore, due to the highly structured infrastructure of the retail chain and the cold chain, North America has the largest market share in the food-grade industrial gas market. Additionally, the demand for food-grade gas in North America increased significantly as the preference for takeaways increased and the need for bakery and confectionery increased compared to healthy home-cooked meals.

Asia Pacific is expected to be one of the largest markets during the forecast period. Due to the development of processing technology and increasing consumption nationwide, the rise of the food and beverage industry in India and China is assumed to accelerate demand for food-grade industrial gas in the next seven years. In the European food and beverage industry, the importance of hygiene and the implementation of phytosanitary regulatory standards are expected to have a positive impact on the market during the outlook period. The strong manufacturing base of the US food and beverage industry is anticipated. USA Combined with EPA regulations aimed at implementing safety measures in food packaging will have a positive impact on the market for the coming years. The growth of the food and beverage industry in Saudi Arabia is foreseen to be a favourable factor for the market in the near future as domestic consumption increases as the halal standard is set domestically.

Key Players in the Market:

Major Key Players in the Global Food Grade Industrial Gases Market are

• The Linde Group
• Tri-Gas Inc.                
• Air Liquide                  
• Air Gas                         
• Taiyo Nippon Sanso                
• AHG Co. Ltd.                             
• Praxair                         
• Emirates Industrial Gases                    
• Messer Group                          
• Gulf Cryo                  
• Sol-SPA                     
• Matheson