Food Grade Industrial Gases Market Overview
The Food Grade Industrial Gases Market size is estimated to reach $10.7 billion by 2027. Furthermore, it is poised to grow at a CAGR of 6.9% over the forecast period of 2022-2027. The food industry requires special demand on gas quality as gases provides a variety of tasks in the food industry that include long lasting quality, visual appeal, glowing freshness. The main purpose of food-grade gases is to preserve a product’s existing quality. Its application include freezing and packing, cooling during mixing processes and carbonation of beverages. Industrial gases provides various benefits in food production as it helps to enhance productivity and help to create healthy, natural and organic food products. Recently, the demand of packaging technologies for food and beverage products increases which further enhances the use of food grade industrial gases market. The food and beverage industry is increasingly in food-grade industrial gases in order to maintain the food products safe and fresh. Food-grade industrial gases include nitrogen, oxygen, and carbon dioxide that are primarily used to cool, freeze and package a variety of food products such as dairy and frozen products, beverages, fruits and vegetables, meat, fish, seafood, convenience food, bakery and confectionery. The demand of health-conscious among consumers for fewer additives, safer and fresher food products also enhancing the demand for industrial gases, which can be used in place of chemical ingredients. Gases is considered as important application in the food sector for preserving properties of products such as aroma, colour, fragrance and the normal appearance of the product. The robust growth in the application of end use industries including beverages, meat, poultry and seafood, dairy & frozen products, bakery & confectionery, etc, are some of the factors driving the food grade industrial gases Industry forward in the projected period of 2022-2027.
Food Grade Industrial Gases Market Segmentation Analysis – By Gas Type
The Food Grade Industrial Gases market based on gas type can be further segmented into Carbon Dioxide, Nitrogen, Oxygen, and Others. Carbon Dioxide held a dominant market share in the year 2021. It is owing to rising consumption of carbonated beverages among adults and children. Rising trend of adopting soft drinks during celebration increases the production of carbonated beverages. Recently, among younger generation the consumption of beer increases which increases the production in brewery sector, thus the demand of carbon dioxide increases. Recently, about 230 million tons of carbon dioxide are used every year as the demand of carbonated drinks becomes trends in the recent lifestyle of consumers which rising the production of carbon dioxide.
However, Nitrogen is estimated to be the fastest-growing, with a CAGR of 7.6% over the forecast period of 2022-2027. Nitrogen are mostly used in the bakery industry as it is used in freezing delicate products like muffins, scones and cakes. As the demand of packaged foods increases so, the use of nitrogen gas also increases as it helps to increases the shelf life of food. In 2020, the sales of packaged foods increased by 87% owing to changing lifestyle of consumers therefore, the usage of nitrogen gas also increases.
Food Grade Industrial Gases Market Segmentation Analysis – By Application
The Food Grade Industrial Gases market based on application can be further segmented into Beverages, Meat, Poultry and Seafood, Dairy, Frozen products, Bakery & Confectionery products, and Others. Beverages held a dominant market share in the year 2021. Recently, the consumption of different types of beverages increases which pushes manufacturers to increases the production of carbon dioxide gas as it is used in various carbonated beverages such as soft drinks and beer. The number of brewing facility increased by 8% that have resulted the increase demand in beverage sector.
However, Frozen Products is estimated to be the fastest-growing, with a CAGR of 7.9% over the forecast period of 2022-2027. The rising consumption of processed food increases the use of food grade industrial gas as it helps to increase the shelf life of food. Owing to busy schedule, people are not able to waste time in preparing food so, the adoption of frozen products increases so, manufacturers are using nitrogen gas in various frozen products in order to enhance the shelf life.
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Food Grade Industrial Gases Market Segmentation Analysis – By Geography
The Food Grade Industrial Gases market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held a dominant food grade industrial gases market share of 48% in the year 2021 as compared to the other counterparts. It is owing to the robust demand of industrial gas in various food applications such as dairy, frozen, bakery and many more. Among adult population, the consumption of convenient food increases that has led to increasing demand for packaged products. The food and beverage industry becomes the fastest growing sector in U.S. with an annual growth rate of 30% in 2019. With rising demand of food and beverage industry, the usage of industrial gases increases.
However, Asia-Pacific is expected to offer lucrative growth opportunities to the marketers in the projected period of 2022-2027 owing to the recent inclination of global manufacturers to outsource heavy production pertaining activities to the likes of India and China. China’s food market is estimated to be around $1.3 trillion, while growing at the fastest-pace compared to the world.
Food Grade Industrial Gases Market Drivers
Growing demand of packaged food has led to the use of industrial gases in food and beverage industry that have readily aided the market growth
The trend in the snack food consumption has increased rapidly as about 17% of people do not have time for a meal to overcome their hunger, so they more snack food that further growing the demand of packaged food. Recently, the sales of packaged food increased by 95% that pushes manufacturers to increase the production of nitrogen gas as it is used to preserve the packaged food. Gases is considered as important application in the food sector for preserving characteristics of products such as aroma, colour, fragrance and the general appearance of the product. Thus, the demand of industrial gases increases in the food and beverage industry.
Growing advancement in brewery sector is driving the market growth
Nowadays, brewing industry is rapidly growing and has shown an increased trend during the last decade. Among adults, the popularity of beer is continued to rise and in order to serve quality beer manufacturer need to utilize the right gas blend to preserve each beer’s unique flavor. Recently, about 85% of adults consume beer in a daily basis. As, beer needs 30% carbon dioxide and 70% nitrogen to get preserved. Growing trends of pubs among adults resulting the rise in brewery industry. Rising number of brewery sector increases the production of beer that further surging the supply of carbon dioxide and nitrogen gases. Thus, the demand of food grade industrial gases increases in beverage sector.
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Food Grade Industrial Gases Market Challenges
Strict government regulations regarding food grade industrial gas are some of the factors impeding the market growth
Food grade industrial gases are tightly regulated by the government agencies in order to ensure that the gas quality and consumer health are not affected by the introduction of gaseous elements and compounds. Recently, the specification for food grade nitrogen gas is determined by the European Industrial Gases Association, (EIGA), in conjunction with the Joint Expert Committee on Food Additives where the food grade nitrogen gas used in preservatives should be 99% and 1% should be oxygen. So, the rising regulation and specification of gases tends to impact the production of preserved food.
Food Grade Industrial Gases Industry Outlook
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Food Grade Industrial Gases Market. Food Grade Industrial Gases top 10 companies include:
1. Taiyo Nippon Sanso
2. Sol-Spa
3. Messer Group
4. Air Liquide
4. Gulf Cryo
6. Emirate Industrial Gas
7. Universal Industrial Gases Inc.
8. Matheson Tri-Gas Inc.
9. Praxair Inc.
10. Linde Group
Recent Developments
In July 2020, Air Products & Chemicals launched a new industrial gases plant which is forecasted to offer increased reliability and sustainability, with improved energy efficiency and reduced emissions. Air Products recently announced its intent to begin the process of converting its global fleet of approximately 2,000 distribution vehicles to hydrogen fuel cell zero-emission vehicles starting in 2022. Air Products also has liquid hydrogen production plants operating in New Orleans, Louisiana; Sacramento, California; Sarnia, Ontario, Canada; and Rotterdam in The Netherlands.
In May 2020, Messer launched new carbon dioxide plant. This new plant helped beverage manufacturers to increase the production in carbonated beverage sector that further surging the sales of carbonated beverages. This helps to increase the company’s position in the market. The new plant provides up to 450 tons-per-day of CO2, an essential product for carbonated beverages, food freezing and chilling, and electronics manufacturing companies in the area. Messer collaborated with Aemetis, Inc., which recently started supplying raw CO2 feedgas to Messer for processing from its ethanol plant.
In October 2019, Air Liquide acquired Southern Industrial Gases Sdn Bhd. This acquisition increases the packaged Gases filling capacity that further expanding the position in market. SIGSB is one of the key industrial gas players in the Malaysian market, generating close to 80 million Malaysian ringgit (approximately 20 million euros) in revenue annually. With more than 200 employees, it has 8 manufacturing and refilling facilities locations across Malaysia, with a distribution network that covers all of Malaysia’s key industrial basins.
Key Takeaways
Geographically, North America held a dominant market share in the year 2021. It is owing to increasing number of food and beverage industries. The food and beverage industry becomes the fastest growing sector in U.S. with an annual growth rate of 30% in 2019. With rising demand of food and beverage industry, the usage of industrial gases increases. Recently, U.S. consumed about 60% of industrial gases as the production of processed food increases which increases the usage of industrial gases in order to increase the shelf life. In U.S., sales of carbonated soft drinks surging and becomes a largest seller with $32 billion in 2020 and a 9% year-over-year increase in multi-outlets so, the demand of industrial gases also increases in the beverage industry.
Growing demand of packaged food has led to the use of industrial gases in food and beverage industry and growing advancement in brewery sector are some of the factors driving the Food Grade Industrial Gases Market. However, strict government regulations are some of the factors impeding the market growth.
A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Food Grade Industrial Market Report.
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