The global food grade industrial gases market size was calculated to be USD 8.1 billion in 2023 and is anticipated to be worth USD 11.95 billion by 2029 from USD 8.64 billion in 2024, growing at a CAGR of 6.7% during the forecast period.
Food-grade gases help preserve the organoleptic properties of food products, which is essential in the food industry. Carbon dioxide, nitrogen, argon, and oxygen are some of the food-grade gases used for industrial purposes to improve the shelf life along with the ability of the products. Food-grade industrial gases are very effective in keeping products fresh for longer than usual. The use of these gases is very common in the food and beverages industry in various procedures like manufacturing, processing, handling, storage, and sterilization of various products such as foods and beverages. The new procedures in the food and beverage industry enable the promotion of food quality and freshness as per government guidelines. Top companies are closely working with new techniques to maintain food safety control and security. Increasing awareness of the nutritional value of products among the public is solely to increase the opportunities for the food-grade industrial gases market.
Nowadays, people work for too long hours, and there is no time to prepare the whole meal at home. This inconvenient situation is a positive sign for the food and beverage industry to launch various products that are easy and quick to prepare according to their preferences. Ready-to-eat food products can be prepared in a very short amount of time without compromising taste and nutritional value. This food needs to be manufactured using proper procedures to deliver freshness and quality for a longer time. The food-grade industrial gases market share is quietly growing with the dominantly rising working women population. The launch of various food products using special procedures is a boom for working women. These products are of high value in emerging countries where working women can easily balance their personal and professional lives.
In addition, increasing urbanization along with rising disposable income is likely to surge the growth rate of the food-grade industrial grade market. The adoption of sedentary lifestyles is another attribute that propels the market size to the next level. In urban areas, people prefer to have convenient food products and carbonated drinks. The growing awareness among consumers of the importance of nutritional value is majorly influencing companies to rely on the advanced packaging style of food-grade industrial gas technologies.
The launch of innovative manufacturing and processing techniques in the food and beverages industry, with growing support from the government authorities, is set to create potential growth opportunities for the market. The increasing number of food and beverages industries, along with the increasing population across the world, is likely to promote opportunities for the food-grade industrial gases market in the future. The prominence of maintaining high-quality food products using various techniques, especially to extend the shelf lifetime of the packaged products, is expected to level up the size of the market in the foreseen years.
According to the US Department Of Agriculture Economic Research Service, US consumers, government entities, and businesses spent over all amount USD 2.39 trillion in 2022 on ready to eat and snacks products which are easily available in the grocery stores.
High spending on packaged food products among consumers, especially in developed and developing countries, is adding a boost to the market's growth rate. In many countries, people mostly rely on frozen and packaged food products due to the low availability of such products, which is attributed to the outraging share of the food-grade industrial gases market.
Small-scale industries cannot afford advanced technologies in the food industry due to their high cost, especially in undeveloped countries. Undeveloped countries do not support through funds or investments where small-scale industries cannot deliver the convenient products as a company does with the latest technologies, which is certainly a major drawback for the market key players.
The food products that are packaged and processed generally do not come in the way of healthy products. However, the foods are manufactured using many techniques to keep the freshness and quality for a longer time; the packaged or processed foods cannot compete with the fresh and healthy foods. An increasing number of people trying to make time to cook fresh meals is also one of the factors ascribed to hinder the share of the food-grade industrial gases market.
Difficulty in handling the equipment acts as a major challenging factor for the food-grade industrial gases market. Ignorance in following the safety measures while using the cylinders that store and handle the gas leads to fatal accidents, which might also hinder the growth rate of the market. Stringent government rules and regulations to reduce environmental pollution are a great challenge for market players. The procedure involves releasing hazardous gases that might harm the environment, which is sustained in limiting the usage of this procedure in food and beverages in a few countries.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
6.7% |
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Segments Covered |
By Type, Application, Product Type, And Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC; PESTLE Analysis. Porter’s Five Forces Analysis, Competitive Landscape; Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Associated British Foods Plc., Unilever Group, Tata Global Beverages, Nestle S.A., Barry's Tea Limited, Mcleod Russel India Limited, Hain Celestial Group, Inc., TaeTea, The Republic of Tea, Inc., ITO EN, Ltd. ApeejaySurrendra Group |
The carbon dioxide segment is leading with the highest share of the food-grade industrial gases market. Carbon dioxide has wide applications in the food and beverage industry. The shelf life of fruits and vegetables is extended by drying them using CO2. Also, it acts as goods refrigeration, which is helpful during the transportation of food and beverages without losing their quality. Especially for meat, CO2 is used to prevent spoiling agents by promoting the texture and taste without spoiling.
Nitrogen segment is likely to hit the highest CAGR by the end of 2029 owing to increasing number of companies launching various food products by opting a significant packaging style. Nitrogen is majorly used in enhancing the quality of food products using suitable packaging and preserving style. Packaging with the nitrogen helps in slowing down the oxidation and bacterial growth that extends the shelf life span.
The freezing and chilling segment is ruling with the dominant market share, whereas the packaging segment is expected to have the highest growth rate during the forecast period. The rising need to import or export food products, especially meat, from other countries is escalating the growth rate of the market. Freezing and chilling are the most important concepts in the food and beverages industry. Freezing is maintaining a product usually below -18°C, whereas chilling refers to randomly chilling products like beverages between 2 to 4°C. This application helps them not lose the quality of the food and beverages. Packaging is playing an important role in the food and beverage industry these days, and it is ascribed to the growth rate of this segment. Packaging is one of the forms for food products to be transported or distributed safely without any physical damage or contamination.
The dairy & frozen products segment is greatly influencing the growth rate of the food-grade industrial gases market. Dairy products such as milk are essential in every household, and the need for proper packaging with the latest technological developments adds fuel to the growth rate of the market. The fruits and vegetables segment is likely to have the fastest growth rate in the coming years. The trend towards the adoption of healthy eating habits to avoid the risk of chronic diseases is another attribute that contributes to the highest growth opportunities for the food-grade industrial gases market.
Asia Pacific holds the dominant share of the food-grade industrial gases market, with the population eventually rising in developing countries like India and China. India and China are the major countries in Asia Pacific that are contributing the highest share of the market. Increasing investments and rising prominence to expand the food production unit with innovative developments in the food and beverages industry are accelerating the growth rate of the market in Asia Pacific.
North America's food-grade industrial gases market is next to Asia Pacific, leading the highest share. Government norms to strictly follow the hygiene and safety packaging system for food and beverage products escalate the demand for food-grade industrial gases. The presence of the top packaging industries for food and beverage products in the US will eventually bolster the size of the food-grade industrial gas market.
European nations focus on launching high-quality food products using innovative technologies that impel the growth rate of the food-grade industrial gases market. The entire food supply chain has to maintain the safety precautions that ensure the protection of human life. European Food Safety Authority implements stringent action to maintain the quality of the food, which also creates awareness among consumers about the importance of choosing food products wisely by looking over the labeling. Companies focusing on following the stringent rules and regulations by the government that ensure the quality of the food and beverages can propel the growth rate of the market in European countries.
Major key players of the global food grade industrial gases market include Associated British Foods Plc., Unilever Group, Tata Global Beverages, Nestle S.A., Barry's Tea Limited, Mcleod Russel India Limited, Hain Celestial Group, Inc., TaeTea, The Republic of Tea, Inc., ITO EN, Ltd. ApeejaySurrendra Group
By Type
By Application
By Product Type
By Region
Frequently Asked Questions
Key drivers include the expansion of the food and beverage industry, rising consumer demand for fresh and minimally processed foods, and technological advancements in food preservation methods.
Significant growth is observed in regions like North America, Europe, and Asia-Pacific, driven by the robust food and beverage sectors and technological advancements.
They are typically delivered in high-pressure cylinders, liquid gas containers, or via bulk delivery systems. Proper storage conditions are essential to maintain gas purity and safety.
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