The global food grade gases market is estimated to be valued at USD 7.6 billion in 2022. It is projected to reach USD 10.6 billion by 2027, recording a CAGR of 6.9% during the forecast period. The changing food consumption patterns in developed markets, rising consumption of processed food & beverage products, and increased trade from processed food-producing countries to emerging markets such as India, China, and countries in South America have led to an increase in the demand for chilling, freezing, packaging, and carbonation of food & beverage products. This has led to an increase in the consumption of food-grade gases.
Food-grade gases need to conform to “food-grade” regulations, that is, the EC directive 96/77/EC on food additives within EU countries and the FDA (Food and Drug Administration) guidelines in the US. Also, equipment such as cylinder regulators used with food packaging gases and with the FDA’s GRAS-approved food additive gases should be generally recognized as safe and comply with the European Commission Regulation No. 1935/2004. The FDA’s Food Safety Modernization Act (FSMA) is poised to impact the control for perishable foods significantly. The Act of 2010 (FSMA) was signed by President Obama on January 4, 2011. As a result of its implementation, there is increased control over milk products, meat, fish, baked goods, and any perishable food to prevent health hazards.
The Asia-pacific region is estimated to record a CAGR of 7.5% during the forecast period.
The Asia Pacific region is the fastest-growing market as the large population here demands a large number of food & beverage products, due to which the need for chilling, freezing, packaging, and carbonating these products is higher.Liquefied food-grade carbon dioxide is used in the beverage industry for carbonation.
It is also used to manufacture dry ice, which has a large market in the Asia Pacific region.
According to the Population Reference Bureau, the fastest-growing consumer markets of China, India, and a few other Asia Pacific countries had a combined population exceeding 4.46 billion people (as of 2020), which is projected to become an increasingly important driver for the global food-grade gases market over the next two decades. Other drivers that would have a positive impact on this market are the rising household incomes and the growing middle-class population.
Key factors such as industrialization, growing middle-class population, rising disposable income, changing lifestyles, and the rising consumption of packed products are expected to drive the demand for food-grade gases during the forecast period.
Key players in the food grade gases market are Taiyo Nippon Sanso Corporation (Japan), Air Water Inc. (Japan), Wesfarmers Limited (Australia), PT Aneka Gas Industri Tbk (Indonesia).
The carbon dioxide segment of the food-grade gases market is projected to grow at the highest CAGR of 7.1% during the forecast period. The high demand for carbon dioxide can mainly be attributed to its wide applications in refrigeration, cooling, modified-air packaging, and cryogenic cooling.
Carbon dioxide is a colorless, odorless, and non-toxic gas and can be produced in an air separation unit. Carbon dioxide is used for refrigeration and cooling in the solid (dry ice) and liquid form because it sublimates to gas at a very low temperature of -78.5°C (-109.3°F). It is widely used for carbonation in soft drinks, beers, and other alcoholic drinks. The gas also has applications in conserving wine, grape juices, and other juices. Beverage-grade carbon dioxide, which is considered an ingredient in the beverage industry, should be compliant with the strongest regulations of the EC (E290) and International Society of Beverages Technologists (ISBT). Carbon dioxide is also used for MAP; it is injected and frequently removed to eliminate oxygen from the package. This is known as modified-atmospheric packaging.
Carbon dioxide helps to extend the shelf-life of food products by preventing molecular breakdown.It also helps prevent discoloration and preserves flavor.
It can prevent the spoilage of many foods, including fruits, raw meats, and packaged baked snacks.
The bulk segment in the food-grade gases market is projected to grow at a higher CAGR of 7.2% during the forecast period. This segment also accounted for the larger share of the market in 2021. Bulk storage makes it easy to store food-grade gases, which, in turn, makes it convenient for transportation.
Bulk gases are generally supplied in large volumes either as a cryogenic liquid or in a high-pressure gas form.The liquefied gas is often stored in the air separation unit so as to be transported in bulk.
During transportation by rail/road, the temperature of the tank must be well maintained.Bulk gas plants are mostly designed to produce liquid products that can be economically transported.
Bulk gases are transported in large quantities to the customer through tanks, trucks, or rail.These gases, when supplied in bulk, are easier to transport and store.
The bulk form also requires a much smaller storage space than the normal gaseous form; hence, the bulk mode of supply of these gases is usually preferred.
Food-grade gases, which include carbon dioxide, oxygen, nitrogen, hydrogen, and argon, are supplied in tankers or tube trailers.Large food & beverage manufacturers generally prefer the bulk form of these gases.
Carbon dioxide and nitrogen are the most commonly supplied bulk gases because of their use in high volumes in soft drinks and food packaging.If an end user requires a gas for various processes, the liquid is first vaporized and then delivered as a gas through a supply pipe.
If the processes require liquids, it is delivered directly from the storage vessel through a cryogenic vacuum-insulated pipeline. Almost all the key players offer bulk gases.
Break-up of Primaries:
• By Value Chain: Demand side - 41%, Supply side – 59%
• By Designation: Managers – 24%, CXOs – 31%, and Executives- 45.0%
• By Region: Europe - 29%, Asia Pacific – 32%, North America - 24%, RoW – 15%
Leading players profiled in this report:
• Linde PLC. (Ireland)
• Air Products & Chemicals, Inc. (US)
• Air Liquide (France)
• The Messer Group GmbH (Germany)
• Taiyo Nippon Sanso Corporation (Japan)
• Wesfarmers Limited (Australia)
• PT Aneka Gas Industri Tbk (Indonesia)
• Massy Group, Inc. (Caribbean)
• Air Water Inc. (Japan)
• Sol Group (Italy)
• Gulf Cryo (UAE)
• National Gases Ltd (Pakistan)
• Gruppo SIAD (Italy)
• Cryogenic Gases (US)
• Lez Gas Industriels Ltd. (Mauritius)
• Aditya Air Products (India)
• Sidewinder Dry Ice & Gas (South Africa)
• Axcel Gases (India)
• Chengdu Taiya Industrial Gases Co. (China)
• Yingde Gas Group Shanghai (China)
• Siddhi Vinayak Industries Gases Pvt. LTD. (India)
• American Welding & Gas (US)
• Ijsfabriek Strombeek N.V (Belgium)
• Air Source Industries (US)
• Purity Cylindrical Gases (US)
The report segments the food grade gases market on the basis of type, application, mode of supply, industry, and region. In terms of insights, this report has focused on various levels of analyses—the competitive landscape, end-use analysis, and company profiles, which together comprise and discuss views on the emerging & high-growth segments of the food grade gases market, high-growth regions, countries, government initiatives, drivers, restraints, opportunities, and challenges.
Reasons to buy this report:
• To get a comprehensive overview of the food grade gases market
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• To gain insights about the major countries/regions in which the food grade gases market is flourishing