Food Grade Gases Market Research Report – Global Forecast till 2030

Food-Grade Gases Market: Information by Type (Oxygen, Nitrogen, Carbon Dioxide), by Application (Freezing & Chilling, Carbonation, Packaging), End-use (Fruits & Vegetables, Beverages, Dairy & Frozen Products, Others), Region — Forecast till 2030

ID: MRFR/CnM/6139-HCR | February 2021 | Region: Global | 140 pages         

Food-Grade Gases Market

Food-Grade Gases Market is projected to be worth USD 11.87 Billion by 2030, registering a CAGR of 7.9% during the forecast period (2021 - 2030).

Segmentation

By Type Oxygen Nitrogen Carbon Dioxide
By Application Freezing & Chilling Carbonation Packaging
By End-use Fruits & Vegetables Beverages Dairy & Frozen Products

Key Players

  • Air Products and Chemicals Inc (US)
  • TAIYO NIPPON SANSO CORPORATION (JAPAN)
  • SOL Group (Italy)
  • The Linde Group (Ireland)
  • National Gases Ltd (Pakistan)
  • Praxair Technology
  • Air Liquide (France)
  • Messer Group (Germany)
  • WESFARMERS LIMITED (Australia)
  • Gulf Cryo (Kuwait.)
  • AIR WATER INC (Japan)
  • Massy Group (Spain)
  • PT Aneka Gas Industri (Indonesia)
  • The Tyczka Group (Germany)
  • Parker Hannifin Ltd (US)

Drivers

  • Emerging need for meat fish carbonated beverages and ready-to-eat convenience food is fueling the market growth.
  • The rise in meat and seafood production is estimated to drive the food-grade gases market growth
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Food-Grade Gases Market Overview


As of 2018, the Food Grade Gases Market was valued at USD 5.7 billion and is forecast to grow by 6.5% by 2025.

A food additive, a food ingredient, or a food processing aid used to preserve food and beverages is defined as food-grade gas. Food markets are growing due to the growing demand for meat, fish, carbonated beverages, and ready-to-eat convenience foods. World meat production jumped from 330.4 mt to 336.4 mt between 2017 and 2018, according to the food and agriculture organization. A positive economic outlook in developing and developed countries has led to an increase in seafood trade of 8.3%, accelerating the application of food-grade gases for freezing and cooling seafood. Food-grade gases market growth will therefore be bolstered by rising meat and seafood production in the forecast period. The application of gases such as oxygen, nitrogen, and carbon dioxide to the storage, mixing, transporting, and dispensing of beverages is also impacting consumer demand.


In developing countries, 4.5 billion people spend 5 trillion dollars each year on food and beverage purchases. The application of food-grade gases is driven by high spending on food and beverage products. Furthermore, nitrogen-based food-grade gases can be used to prolong the shelf-life of packaged food products, while also preventing aerobic microbe growth and preserving nutrients. Many food products are sensitive to risks such as fatty fish, meat, vegetables, and ready-to-eat products. Food grade gases are most commonly used in these products. Gases of the food-grade kind so that they can modify the packaging's atmosphere and make the product safe until it reaches the customer play a significant role in ensuring the safety of the food during transportation.


COVID-19 Analysis


In many developing nations, the economic revival is expected to drive the growth of the Food-grade Industrial Gases market over the forecast period. Despite this, gloomy forecasts are being created because of unprecedented conditions due to the anticipated third and further waves. Study of future changes in the food-grade industrial gas market from 2001 to 2028 examines different scenarios of COVID-19's impact.


Competitive Landscape


With several major players such as Linde PLC, Air Liquide SA, and others holding most of the market share, the market for food-grade industrial gases is extremely competitive. Companies prefer acquiring companies, acquiring products, and engaging in mergers and acquisitions to gain a competitive advantage. International expansion is one of the major goals of these strategies. To increase its competitiveness in the American market, Linde acquired one of the country's leading industrial gas companies, Praxair. Key players also intend to expand their innovation centers, which will allow them to collaborate to develop new products, reformulate formulations, and make investments with customers.


Food-grade gases have been a leading trend in the global market for years as a result of such strong companies such as 



  • Air Products and Chemicals, Inc (US),

  • TAIYO NIPPON SANSO CORPORATION (JAPAN),

  • SOL Group (Italy),

  • The Linde Group (Ireland),

  • National Gases Ltd (Pakistan), and Praxair Technology,

  • Air Liquide (France),

  • Messer Group (Germany),

  • WESFARMERS LIMITED (Australia),

  • Gulf Cryo (Kuwait.),

  • AIR WATER INC (Japan),

  • Massy Group (Spain),

  • PT Aneka Gas Industri (Indonesia),

  • The Tyczka Group (Germany),

  • and Parker Hannifin Ltd (US),

  • Inc (Kuwait).


Market Dynamics


Drivers



  • The market is growing as consumers consume more meat, fish, carbonated beverages, and convenience foods.

  • Growth in the food-grade gases market will be driven by an increase in meat and seafood production.


Technology Analysis


Packaging technologies that use food-grade industrial gases instead of synthetic preservatives are increasingly adopted by companies. For instance, Deccan Field Agro Industries from India utilized active modified atmosphere packaging (AMAP), which allowed them to export papaya to Dubai so that they could preserve the fruit for up to four weeks. Food and beverage manufacturers use industrial gases to produce fresh foods and packaged products to meet increasing consumer demand. Convenience or packaged food has grown because of longer working hours and changing lifestyles. The technology behind freezing has also grown along with convenience or packaged food. The main industrial gases used in various food processing operations, including freezing, packaging, chilling, and grinding, are nitrogen, carbon dioxide, and oxygen.


Market Segmentation


Based on type, application, end-use, and region, the global food-grade gases market has been segmented. Oxygen, nitrogen, carbon dioxide, and others make up the segments of the global market. In the global market for cooling technologies, carbon dioxide is projected to grow fastest at a healthy CAGR and will dominate thanks to its beneficial cooling properties. Among the global markets for freezing and chilling, packaging, carbonation, and other applications, freezing & chilling is the most widely used. Food spoilage during transportation is a concern for the freezing and chilling segment since vegetables and fruits are perishable and therefore require food aids such as nitrogen, oxygen, and carbon dioxide to prevent damage and preserve freshness during shipment.


Market segmentation further breaks down the market by end-use industries, such as beverages, meat, poultry, and seafood, dairy & frozen, fruits & vegetables, convenience foods, bakery & confectionery, and others. High demand for frozen seafood and poultry products worldwide is expected to foster growth in the poultry and seafood segment.


Regional Analysis


A Significant Market Share was Recorded by the North American Region


During the forecast period, the rising demand from multiple end-use industries in North America, such as processed foods, bakery and confectionery products, and breakfast cereals, is expected to boost the market for food-grade industrial gases. A significant part of the region's demand is driven by the millennial generation, which is heavily focused on consuming low-preparation, convenient food products. As packaged food products become increasingly popular, this is largely due to their ease of reconstitution. Increasingly, Americans prefer healthy snacking, which makes frozen and chilled packaged snacks made with food-grade gases a very attractive product category. Alberto's government reports that Canadians have been buying more breakfast cereal, which is one of the major factors driving the market for a variety of food-grade industrial gases. Additionally, the region consumes a considerable amount of meat per capita. Meat processing uses industrial gases, which contributes to growth.


Intended Audience


Food-grade Gases Manufacturers


Traders and Distributors of Food-Grade Gas


Research and Development Institutes


Potential Investors


Raw Material Suppliers


Nationalized Laboratories


Recent Developments


November 2021: Many oxygen producers, like The Linde Group, a leading producer of food-grade grass, are implementing IoT (Internet of Things) technology to link equipment and smart devices in order to gain real-time insights and identify production process flaws. Furthermore, to enhance output and meet delivery deadlines, oxygen gas manufacturers are implementing new manufacturing technology. Customized multi-train air separation projects, especially in distant areas, can pose a variety of design and delivery issues.

Modified Air Packaging (MAP) is becoming increasingly popular


Food industries are adopting atmospheric modified packaging to extend the shelf life of their products and maintain other organoleptic properties as well as the increase in demand for packaged food products. By extending shelf life without chemical treatment of various food products, such as cheese, pasta, meat products, etc., MAP is now being used to package fresh as well as organic food products. As a consequence, the use of industrial food gases has accelerated across the world due to the availability of oxygen, carbon dioxide, and nitrogen, which are the three main gases used in MAP. By utilizing preservatives, MAP can ensure the freshness of processed foods, especially organic and fresh fruits, vegetables, and meats. Clean-labeled products are being marketed around the globe at appropriate doses following the trend toward clean labels.


Manufacturing companies in the Food-grade Industrial Gases market faced challenges due to global lockdowns in 2020 and continuing restrictions in 2021. Vendor profit margins are likely to continue declining due to intense competition, pricing challenges, and shifting consumer tastes.

Food-grade Industrial Gases market demand will be supported between 2021 and 2028 by the fast recovery of developing economies.


Report Overview


Carbon dioxide, nitrogen, oxygen, and other types of industrial gases are commonly used in the food and beverage industry. Gases used in food processing play an important role in different products, including beverages, poultry, meat, dairy products, frozen foods, fruit and vegetables, and bakery and confectionery products. Providing an overview of the markets in each regional market, the report on industrial food-grade gases provides information on potential opportunities. The report provides a detailed analysis of the latest trends shaping the Food-grade Industrial Gases industry, as well as key demand drivers and potential challenges to be faced during the forecast period.



Report Scope:
Report Attribute/Metric Details
  Market Size   2030: Significant Value
  CAGR   6.5% (2022-2030)
  Base Year   2021
  Forecast Period   2022-2030
  Historical Data   2019 & 2020
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Type, Application, End-use, and Region
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   The Linde Group (Ireland), Air Products and Chemicals, Inc (US), Air Liquide (France), Messer Group (Germany), TAIYO NIPPON SANSO CORPORATION (JAPAN), WESFARMERS LIMITED (Australia), SOL Group (Italy), Gulf Cryo (Kuwait.), AIR WATER INC (Japan), Massy Group (Spain), PT Aneka Gas Industri (Indonesia), The Tyczka Group (Germany), Parker Hannifin Ltd (US), National Gases Ltd (Pakistan), and Praxair Technology, Inc (Kuwait).
  Key Market Opportunities   High spending on food and beverage products is an instrumental factor driving the application of food grades gases
  Key Market Drivers

  • Emerging need for meat, fish, carbonated beverages and ready-to-eat convenience food is fueling the market growth.
  • The rise in meat and seafood production is estimated to drive the food-grade gases market growth


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    Frequently Asked Questions (FAQ) :

    The food-grade gases market valuation worldwide in 2018 was USD 5.7 BN.

    It is expected that during the assessment period (2018-2023), the global market for food-grade gases will register a CAGR of approximately 6.5%.

    Globally, the market for food-grade gases accounts for the majority of its revenue based on application, and a majority of its revenue is based on end-use industry, meat, poultry, and seafood.

    In terms of market share, the North American market accounts for the largest share followed by that of Europe and the Asia Pacific.

    Praxair Technology, Inc., The Linde Group (Ireland), Parker Hannifin Ltd (US), Air Products and Chemicals, Inc. (the US), PT Aneka Gas Industri (Indonesia), Air Liquide (France), Messer Group (Germany), Taiyo Nippon Sanso Corporation (JAPAN), Wesfarmers Limited (Australia), SOL Group (Italy), Gulf Cryo (Kuwait), Massy Group (Spain), The Tyczka Group (Germany), and Air Water Inc. (Japan).