Food Grade Carbon Dioxide Market Size, Share, Growth, and Industry Analysis, By Type (Gaseous State and Liquid State), By Application (Food Processing and Food Service) and Regional Forecast to 2033

FOOD GRADE CARBON DIOXIDE MARKET REPORT OVERVIEW

The global food grade carbon dioxide market was valued at USD 1.80 billion in 2024 and is expected to reach USD 1.92 billion in 2025, growing to USD 3.15 billion by 2033, with a CAGR of 6.3% during the forecast period.

Food grade carbon dioxide refers to CO2 approved to be used in direct contact with food products, beverages and similar products for consumption due to its purity. It can contain one percent of impurities at most and the impurities cannot be less than one percent. Impurities not exceeding 9% showed that all its components were of high quality and free from any stains, dirt or other contaminants. 1%. This high purity level is essential since it contributes to the efficiency of sorting and further guarantees that the food product in contact with the CO2 will not be contaminated with any substances that may degenerate food quality or make it unsafe to consume. Food grade CO2 is derived through extraction from natural sources or through industrial processes with some rigours taken to ensure that the resulting gas is pure. This product is an approved food substance that is regulated by the European regulatory body as a food additive (E290), with standards implemented to safeguard consumers from the product’s adverse suicidal effects.

There are numerous and very important uses of food grade CO2 in the food and beverage industry. It is commonly applied for the carbonation of beverages such as soda, beer and sparkling mineral water to achieve the appropriate foam which is preferred by the buyers. Furthermore, the application of CO2 as a protective atmosphere is used in food packaging to preserve the shelf life of products since microbes and oxidation processes are slowed. Another major application is in the making of dry ice which is crucial in the preservation and transit of perishable foods. An important consideration with food grade CO2 is its method of handling and storage and storage using containers that are appropriate for food use alone to avoid compromising the purity standards of the gas.

COVID-19 IMPACT

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The demand for packaged foods and drinks especially during the pandemic ensured the continued demand for carbon dioxide in the region. CO2 was needed in food preservation and packaging, as consumers opted for convenient, easy-to-store and longer-lasting foods because of lockdowns and social distancing norms. Another major function that CO2 served was in creating protective atmospheres that retarded decomposition by bacteria or oxidation and thus helped in increasing the duration of the ‘shelf’ life of differently packed-food products. Another factor that boosted demand for food grade CO2 is the increased consumption of carbonated beverages which demanded that the supply be constant to meet the emerging market demands.

LATEST TRENDS

"Technological advancements in packaging techniques help in maintaining the quality and safety to enhance the market"

Technological advancement in Modified Atmosphere Packaging (MAP) and the use of food grade carbon dioxide has improved packaging thus improving food quality and safety. MAP technology entails changing the different gases found in the food packaging atmosphere and this is mostly in the levels of CO2 and low levels of O2 slow the proliferation of spoilage organisms hence enhancing shelf life. This is where food grade high purity CO2 is crucial to ensure that no other substances are being injected into the food. These innovations enable the companies to preserve the quality, texture and nutrient contents of the fresh produce, meats, and dairy products. Therefore, food manufacturers get to provide products that are safer and more durable, consequently minimizing food waste and enhancing consumer satisfaction in terms of quality and ease of use.

FOOD GRADE CARBON DIOXIDE MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Gaseous State and Liquid State.

• Gaseous State: Gaseous carbon dioxide will retain the major applications in soft drinks, beer carbonation and in modified atmosphere packaging to extend shelf life. The gas can easily be incorporated into a production line to ensure efficiency. Stringent regulatory standards ensure its safety and purity. Growth will be further enhanced by the increasing demand for carbonated beverages and packaged foods and new developments in the technologies for the recovery of CO2.

• Liquid State: The liquid state of carbon dioxide is vital in freezing and chilling perishable goods during transportation. It gives fast temperature control that is so essential to the maintenance of food quality. Although this may represent only a minor market share compared with CO2 gas, it becomes very large in the processing of food and logistics. Special pressurized storage is called for, and this is an expanding segment due to innovations and a rapidly rising demand for frozen foods.

By Application

Based on application the global market can be categorized into Food Processing and Food Service.

• Food Processing: Food grade CO2 is involved in food processing, where maintaining freshness and extending shelf life without the growth of microorganisms and oxidation is of the essence. It shall be applied in soft drink carbonization to enhance flavour and texture. CO2 will be used in Modified Atmosphere Packaging (MAP) and as a chilling agent for rapid cooling, hence product quality assurance. High purity standards are regulated to ensure consumer safety.

• Food Service: The demand for food grade CO2 in the dispensing of carbonated beverages and preservation of ingredient freshness is at its best in buffets and catering. Besides, it supports sustainability efforts and enhances flavour profiles, hence creating a niche market in gourmet dining. Growing consumer preference toward carbonated drinks and the expanding food service sector is raising demand for the food grade.

DRIVING FACTORS

"Increasing popularity of carbonated beverages to boost the market"

The increase in the consumption of carbonated products such as soda and sparkling water is prognosticated to contribute to the demand of the global food grade carbon dioxide market growth. This gas is used for carbonating these drinks and gives them the bubbly feel and taste that is associated with such products and is admired by the customers. With the shift towards personal hygiene and healthy lifestyles, they are moving away from the consumption of alcohol and sweet products which in return has increased the market for sparkling water and flavored carbonated beverages. Besides, the shift towards premium and craft sodas and new developments in the beverage sector primarily impacting flavours and packaging have also contributed to this. Concerning carbonated products, it is evident that the frequency and quality of food grade CO2 should not be compromised, as manufacturers need to meet the expectations of the consumer clients. As a result, the increasing consumption of such products results in the need for higher purity of CO2 which in turn boosts the revenue of the segment.

"Food processing aids in various food applications to expand the market"

Food grade carbon dioxide is widely used as a processing aid in other food applications, particularly in the preservation of meats and seafood because it tends to enhance the shelf life of food products in the sense of slowing down microbial activities and spoilage mechanisms. Freezing and chilling processes entail the use of liquid CO2 and this leads to enhanced cooling of perishable foods thus retaining quality. It is also useful in the preservation of foods especially fruits and vegetables since the process of oxidation causes discoloration of the food and loss of most of the nutrients. Modified atmospheric packaging (MAP) uses carbon dioxide to modify the surrounding atmosphere to a state that cannot support the rapid decay of the product during storage and transport. These applications are essential in the management and prevention of foodborne illnesses, minimizing loss and ensuring customer satisfaction through the availability of fresh and quality food products.

RESTRAINING FACTORS

"Challenges of trying to meet regulatory compliance standards to slow the market"

Compliance with food grade CO2 regulatory requirements in food safety and quality brings challenges to the supply chain of food grade carbon dioxide. Adherence to these strict ordinances is important to guarantee the quality and safety of CO2 used in food and beverage processes. There are strict rules for the testing of the contaminants and the impurities level as the regulatory bodies such as the FDA or in Europe, the EFSA will not permit any company to expose the consumers to any health hazards. To maintain these standards, producers have to employ necessary measures in quality control, well-documented records on products and recurrent examinations. Furthermore, any variation or lack of compliance can result in serious ramifications such as product recall and legal action. Hence, compliance with these requirements is critical to achieve consumers’ confidence and to protect public health in the food chain.

OPPORTUNITIES

"Government Initiatives Supporting CCUS Technologies"

The Indian government has recognized the importance of Carbon Capture, Utilization, and Storage (CCUS) technologies in achieving environmental sustainability. The NITI Aayog report highlights that by 2050, approximately US$ 6 billion per year in economic damage can be avoided through the deployment of CCUS technologies.

"Research and Development in CCUS"

India is actively investing in research and development to advance CCUS technologies. Collaborations between the Department of Science and Technology (DST) and the UK Research and Innovation (UKRI) have identified areas for joint activity in CCUS, aiming to enhance the country's capabilities in this field.

CHALLENGES

"Technological and Infrastructure Barriers"

The development of effective sorbents for CO₂ capture remains a significant challenge. The high cost of developing sorbents that can effectively bind to CO₂ present in flue gas or the atmosphere is a major obstacle.

"Limited Demand for CO₂ Utilization"

The demand for CO₂ is limited compared to the vast amount of CO₂ that needs to be removed from the atmosphere to mitigate environmental impacts. This imbalance poses a challenge for scaling up CO₂ utilization technologies.

FOOD GRADE CARBON DIOXIDE MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

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"North America is dominating the market due to an increase in the consumption of carbonated beverages"

The increase in the global food grade carbon dioxide market share is mainly attributed to the increase in carbonated beverages consumption in North America especially soda drinks. It is due to this rise in popularity that carbonation requires CO2 to be at its optimal level for the quality of its beverages. Also, more consumer awareness of the quality, convenience and longer shelf life of packaged food leads to the enhancing demand for the food grade CO2. This gas is of considerable importance where its use enhances the shelf life of products under packages by checking on microbial growth besides checking oxidation. With the increasing demands of the food and beverage industry catering for more diverse consumer choices, there is consequently a steady need for improved food grade CO2. The market of North America is thus witnessing steady growth, which is facilitated by the aforementioned shift in consumer trends towards beverage consumption as well as packaged foods.

KEY INDUSTRY PLAYERS

"Key industry players are improving beverage qualities and sensory characteristics of carbonated beverages for market expansion"

Key industry players have adopted food grade carbon dioxide to adroitly improve the quality and sensory characteristics of carbonated drinks to balance and preserve value propositions essential for repeat business from consumers. C02 is, therefore, very important for fizzing and taste perception in connection with soft drinks, soda, and sparkling water. This gas does not only produce the tingling sensation a feel-good factor expected by consumers, but also creates and contributes to a product's taste and mouthfeel. The accurate control of carbonation requires the usage of high purity food grade CO2 which results in uniformity of batches which is a key for brand image and customer satisfaction. As the competition progresses within the beverage industry, manufacturers are tied to obtain the highest quality CO2 to satisfy consumer demands since taste and quality are paramount for product consumers.

List of Market Players Profiled

• Air Products and Chemicals (U.S.)
• Matheson Tri-Gas (U.S.)
• Continental Carbonic Products (U.S.)
• Airgas (U.S.)
• Taiyo Nippon Sanso (Japan)
• Hunan Kaimeite Gases (China)
• India Glycols (India)
• Air Liquid (France)
• Messer Group (Germany)
• SOL Group (Italy)
• Linde (U.K.)
• Air Products and Chemicals (U.S)

INDUSTRIAL DEVELOPMENT

July 2024: Avara Foods has launched a sustainable CO2 source by partnering with RenEco, transforming its supply chain with eco-friendly practices. Utilizing poultry manure in anaerobic digesters, they produce biofuel and commercial-grade CO2, advancing their For Good initiative and promoting a circular economy. This shift enhances sustainability, reduces reliance on fossil fuels, and supports the food and beverage industry's needs.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.