Dry Ice Business: Unlocking the Full Potential With Increasing Application Areas

Overview of the Dry Ice Market

The propelling demand for dry ice in the food and beverage industry is upsurging the size of the global dry ice market from USD 397.20 million in 2024 to USD 814.98 million by 2035. The progression of the sector, through the forecast period, will occur at a moderate CAGR of 6.75%.

Ice is a significant commodity. Dry ice works by cooling the air around food to lower its temperature below zero degrees Celsius. This makes it ideal for keeping outdoor objects cool in summer, either as insulation or as an ingredient in cocktails. Industries rely on ice for transporting goods and preserving perishable products.

Dry ice offers advantages over liquid nitrogen or water ice (snow): liquid nitrogen can sometimes damage products, whereas dry ice is safe to handle without specialized equipment, unlike snow, which requires freezers or insulated containers.

Dry ice is carbon dioxide in solid form. When it sublimates, it transitions directly from solid to gas without turning into liquid, hence the name "dry." It is produced by compressing carbon dioxide under high pressure until it liquefies and then releasing the excess pressure, solidifying the remaining CO₂.

Dry ice is widely used in cooling food and conducting temperature-sensitive scientific experiments. Its most common application is as insulation in refrigeration and transport of heat-sensitive goods, including human organs. Dry ice sublimates into gas rather than liquid water, ensuring more efficient temperature control.

Key Reasons for Increased Consumer Use

• Dry ice is cost-effective relative to its benefits.
• Being lighter than water but denser than most gases, dry ice is ideal as a packing material without raising shipping weight charges.
• It is safer than alternative packing materials.
• Dry ice transforms water into steam, preventing damage to products.
• Its sublimation into gas ensures predictable usage for shipments.
• It keeps food fresh for hours without requiring refrigeration.

Market Growth Factors

Population growth and the rise of online food shopping have driven demand for transport packaging. To maintain a medium-sized fridge freezer cold, approximately 10 kgs of dry ice are required.

Another factor is its use at music festivals and sporting events. Dry ice cools equipment and food items efficiently, allowing for reuse after events. Beginning with the 2014 FIFA World Cup in Brazil, dry ice has become an essential cooling solution, raising demand by more than 13%.

As populations grow and online shopping expands, the demand for dry ice will continue to increase, emphasizing the need for water-free cooling solutions.

Regional Analysis

The dry ice market is witnessing significant growth globally, with North America, Europe, and Asia-Pacific leading in demand. North America benefits from robust food distribution and pharmaceutical industries. Europe drives demand through industrial applications and increasing e-commerce shipments.

Asia-Pacific, particularly China, India, and Japan, shows rapid market expansion due to rising population, urbanization, and adoption in online food delivery, healthcare, and cold-chain logistics.

Emerging regions in Latin America and the Middle East are also witnessing growth as industries increasingly rely on efficient temperature-controlled transport solutions.