The food-grade gas market is estimated to grow at a CAGR of 4.49% to reach a market size of US$11.581 billion in 2027 from US$8.513 billion in 2020.
Food grade gases have an important role in the food and beverage industry and the agrogorod value chain. In food processing, gases such as nitrogen and carbon dioxide are used toward preservation, ripening, spoilage prevention, freezing, chilling, carbonation, and many more applications in a large number of foodstuffs such as bakery and dairy items, beverages, fish and seafood, fruits, vegetables, meats, poultry, prepared meals, and more. In particular, refrigeration processes such as chilling, freezing, subcooling, hardening, or cryogrinding use cryogenic industrial gases such as liquid nitrogen.
Rising demand for convenience F&B and other applications is expected to drive the market.
Gases are also a key component of the preservation of minimally processed foods such as fish, meats, fruits, and vegetables. One food processing application that uses industrial gases is modified atmosphere packaging (MAP). In this process, a pure gas such as nitrogen or a gas mixture is placed as the breathable atmosphere in a package to slow down microbial growth or spoilage such as discolouration, oxidation, or moisture loss. Gases also provide inert environments or, together with hermetic sealing, can serve as evidence markers. As a consequence of the growing demand for convenience food and beverage, the demand for exotic produce, among others, the food-grade gas market is poised to witness exponential growth during the forecast. The baby boomers, Gen Xs, Gen Ys as well as Gen Z's consumption tendencies towards food and beverages, albeit varied, were marked by the curiosity of sampling exotic cuisines, trying fusion cookery, and so on. A mix of traditionalist and experimentalist consumers across all age groups frequented pubs, local eateries, bars, and fine dining establishments, along with other types of food and beverage establishments.
Furthermore, as lives have become even more fast-paced due to technological advancements and the changing nature of deliverables and rotational working hours, there has been a surge in the need for meal-on-the-go kits.
Moreover, the pure-play online digitally delivery food and beverage servers are increasingly offering an all-inclusive meal option among the myriad of a la carte serving over their digital menus, which the consumers, namely digital adopters keen on due to the convenience associated with such options. Moreover, another pool of consumers called multichannel adapters has their consumption behaviour over various food and beverage establishments, for example, convenience stores like traditional shoppers. However, their rationale is that of speed and convenience. Hence, they will also prefer fast food establishments too. They are also keen on frequenting fine dining options to acquaint themselves with a celebrated preparation that may have received much media attention recently. Further, they will also turn to digital delivery options if they are highly recommended by their acquaintances. Thus, the food and beverage expenditure consequent to the habits and inclination has surged. In addition to the above is the impact of emerging economies and their shift in consumption patterns and rise in disposable income as an increasing number of homemakers supplement their household income by joining the job markets. This has led to a steep rise in demand for frozen food products as well as carbonated beverages.
Further, the increasing need for using cold storage technologies has the potential to give rise to energy supply issues; thus, food-grade gases for chilling and freezing applications are being increasingly preferred as means to offset the potential energy issues. This aspect is also in light of more natural, fresh, and minimally processed foods with fewer artificial additives, including preservatives. Such consumer demand for high nutritional quality is a strong long-term trend.
The other aspect that is expected to augment the growing food-grade gas market trend is that of government regulations.
To put things in perspective, the following legislations fall within the ambit of the same with regards to Europe: Directive EC/2008/84 covering specific purity criteria of food additives; regulation EC/178/2002—Food law covering hygiene and food safety requirements, including use of hazard analysis and critical control points (HACCP), labelling, lot marking, and traceability; regulation EC/852/2004 covering hygiene of foodstuffs; EC/1333/2008—Food additives and labelling; regulation EC/1935/2004 covering food contact materials compliance; regulations EC/2073/2005+1441/2007 covering microbiological criteria on foods; regulation EC/1107/2009 regarding plant protection products and Directive EC/528/2012 regarding biocides. Thus, along with consumer demand, regulatory compliance also makes it a mandatory aspect for the food processor to use food-grade gases to ensure the safety of the consumers. Further food-grade gas is critical to keep the supply chain alive. For example, the increasing heat as a result of climate change and the world cup in 2018 led to a sudden surge in demand for beers in pubs and other off-liquor shops.
This added to the rising demand for food-grade carbon dioxide in the European market, whose supply was already under much stress due to a sudden growth in craft breweries. On this front, it might be noted that prominent end-user forms like AB InBev, which has their internal source of CO2, can withstand the shortage, but others may not have such an option at their disposal. Thus, the readiness of the supply side, which mainly comprises certain key suppliers, is also an important aspect. Such lapses act as a restraining factor of the food-grade gas market growth during the forecast period. Nevertheless, apart from breweries, another section is wines that will be given a major push to the already expanding food-grade gas market during the forecast period. This is again attributed to the rising disposable income around the world as well as urbanization. Furthermore, there appears to be a culture of pursuing premiumization of beverages which is also giving rise to boutique wineries, thus leading to the demand for food-grade gas.
the COVID-19 pandemic has had a significant impact on the food-grade gas market. Since the start of COVID-19, the processed food industry has had a consistent expansion, and consumer demand for frozen foods has increased. For instance, the American Frozen Food Institute reports that frozen food products saw a 21% increase from 2019 to 2020. People's preference for goods with a longer shelf life is the main driver of this trend. The extended restaurant closures, social isolation, and numerous lockdowns have prompted the production of frozen food items, which emit food-grade gases. Hence, despite a drop in restaurant patronage, food grade gases such as carbon dioxide have witnessed an increase in demand in the food industry has increased during the pandemic.
|Market Size Value in 2020||US$8.513 billion|
|Market Size Value in 2027||US$11.581 billion|
|Growth Rate||CAGR of 4.49% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Type, Solution, End-Use Products, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Air Liquide, Air Products, Inc, Wesfarmers Ltd. (Coregas), Linde plc, Messer Group GmbH, PeakGas, SOL Spa, TAIYO NIPPON SANSO CORPORATION, TOMCO2 Systems, Tyczka Industrie-Gase GmbH|
|Customization Scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the food-grade gas market size by 2027?
A1. The food-grade gas market is estimated to reach a market size of US$11.581 billion by 2027.
Q2. What factors are anticipated to drive the food-grade gas market?
A2. Rising demand for convenience F&B and other applications is expected to drive the food-grade gas market.
Q3. What is the size of the food-grade gas market?
A3. Food-Grade Gas Market was valued at US$8.513 billion in 2020.
Q4. What are the growth prospects for the food-grade gas market?
A4. The global food-grade gas market is estimated to grow at a CAGR of 4.49% over the forecast period.
Q5. How is the food-grade gas market segmented?
A5. The food-grade gas market has been segmented by type, solution, end-use products, and geography.
1.1. Market Overview
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. The Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. Food-Grade Gas Market Analysis, By Gas Type
6. Food-Grade Gas Market Analysis, By Application
6.3. Freezing & chilling
7. Food-Grade Gas Market Analysis, By End-Use Products
7.2. Bakery & confectionery products
7.4. Convenience food products
7.5. Dairy & frozen products
7.6. Fruits & vegetables
7.7. Meat, poultry, and seafood products
7.8. Others (oil, sauces, dressings, and condiments)
8. Food-Grade Gas Market Analysis, by Geography
8.2. North America
8.2.1. United States
8.3. South America
8.5. The Middle East and Africa
8.5.1. Saudi Arabia
8.5.2. United Arab Emirates
8.6. Asia Pacific
8.6.4. South Korea
9. Competitive Environment and Analysis
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix
10. Company Profiles
10.1. Air Liquide
10.2. Air Products, Inc
10.3. Wesfarmers Ltd. (Coregas)
10.4. Linde plc
10.5. Messer Group GmbH
10.7. SOL Spa
10.8. TAIYO NIPPON SANSO CORPORATION
10.9. TOMCO2 Systems
10.10. Tyczka Industrie-Gase GmbH
Air Products, Inc
Wesfarmers Ltd. (Coregas)
Messer Group GmbH
TAIYO NIPPON SANSO CORPORATION
Tyczka Industrie-Gase GmbH
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