Chicago, May 29, 2023 (GLOBE NEWSWIRE) -- The food grade gases market size is estimated to expand to USD 10.6 billion by 2027, exhibiting a CAGR of 6.9% from USD 7.6 billion in 2022. The global market for food-grade gases is driven by the increasing demand for packaged and processed food. Packaged and processed food is convenient and has a longer shelf life than fresh food. This is driving the demand for food-grade gases, which are used in the packaging of these products. MarketsandMarkets™ provides this information in its research report, titled “Food Grade Gases Market Global Forecast, 2022-2027”.
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Key Industry Development:
Consumers are becoming more concerned about the safety of their food. This is driving the demand for food grade gases, which are used to preserve food and prevent it from spoilage.
Report Scope & Segmentation:
| Report Metrics | Details |
| Forecast Period | 2022-2027 |
| Forecast Period 2022-2027 CAGR | 6.9% |
| 2027 Value Projection | 10.6 billion |
| Segments covered | Type, Application, Mode of supply, Industry, and Region |
| Regions covered | North America, Asia Pacific, South America, Europe, and RoW |
| Dominant Geography | North America |
Key Takeaways:
- Food grade gases market size is expected to grow to $10.6 billion by 2027.
- The food grade gases market is also driven by the growing popularity of convenience food. Convenience food is ready to eat and does not require any preparation. This is driving the demand for food grade gases, which are used in the packaging of these products.
- The nitrogen gas segment is estimated to register a CAGR of 6.6% during the forecast period. The quick cooling/freezing properties of nitrogen help retain the quality of products by preventing dehydration and crumbling. These properties drive the demand for nitrogen in the food & beverage industry.
- The food grade gases market is highly competitive, with numerous players operating in the industry. Key players include Air Products & chemicals, Inc, Cryogenic gases, American Welding & Gas etc.
- North America is projected to reach USD 3.4 Billion during the forecast period.
Drivers and Opportunities:
Shift toward convenient packaged foods
Food-grade gases such as carbon dioxide (CO2), nitrogen (N), and oxygen (O) are mainly used in the packaging of convenience foods to enhance the shelf-life of fresh food products. Rising health concerns among consumers, especially in North America and Europe, have led to a shift toward the consumption of safer, healthier, and higher-quality food products.
Owing to the rising concerns about food safety amongst consumers, food manufacturers are focusing on various advanced packaging technologies such as oxygen scavengers, modified atmosphere packaging (MAP), controlled atmosphere packaging (CAP), and active packaging. These technologies help in maintaining the levels of gases such as oxygen and nitrogen inside the packaging, prevent the oxidation of food products, and reduce the need for additives while maintaining product quality.
The global food-grade gases market is mainly driven by the increasing demand for packaged food. On-the-go lifestyles have emerged because of several factors. Longer working hours & commuting time and the growing number of smaller households contribute to the increased demand for convenient single-serving or packaged food products. The increase in the utilization of these packaging technologies in the food packaging industry will lead to the growth of the food-grade gases market.
Increasing consumer preference for frozen and chilled food products propels the market demand.
The increasing popularity of shelf-stable foods among consumers on a global level is expected to propel the demand for frozen and chilled food products over the next few years. According to an article published in Progressive Grocer in August 2021, the popularity of these foods including breakfast meals rose by 10.9%, and dinners/entrees were up by 4.9%. frozen meat, up 2.7%, and processed chicken (up 10.4%). Moreover, the utilization of these products by numerous end users such as full-service restaurants, hotels & resorts, and quick-service restaurants will further support the growth of this market.
Increasing demand for frozen sea food in countries away from the coast are escalating the market for food-grade gases. Additionally, the market is also expected to expand due to the increasing import and export of various packaged food products. For instance, in October 2021, Amul, the Indian food retailer expanded its frozen and ready-to-eat food offerings including food such as frozen potatoes, paneer, cheese parathas, and patties.
This growth is also fuelled by new legislation in the retail environment, which gives foreign investors and multinational retail chains access to these markets. These retail chains have organized distribution channels across these markets, which provides opportunities for setting up food & beverage industries here. The growing importance of food safety and the quality of processed foods in these countries has increased the need to prevent the deterioration of food with the use of proper packaging technologies, which has increased investments in refrigerated storage facilities.
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Segments:
The nitrogen gas segment is estimated to register a CAGR of 6.6% during the forecast period. The quick cooling/freezing properties of nitrogen help retain the quality of products by preventing dehydration and crumbling. These properties drive the demand for nitrogen in the food & beverage industry.
Nitrogen is a colorless, odorless, non-toxic, inert gas, which is why it is widely used in the food & beverage industry. Nitrogen displaces oxygen and decreases moisture inside of packaged food. Moisture in packaged foods creates bacteria, mold, and mildew, which is why nitrogen is necessary for the food preservation process. This gas also preserves freshness and retains nutrients, which helps the food or beverage last longer. Larger quantities of nitrogen may be required than oxygen or vice versa, depending on what food to preserve. Red meats tend to lose their color when they are deprived of oxygen, so less nitrogen is used when packaging red meat. On the other hand, coffee and beer require more nitrogen because it improves the quality of these drinks. Beer needs nitrogen to create foam, and coffee is dispensed with a higher pressure when brewed with nitrogen.
Some other applications of nitrogen are for sparging wines and filling the headspaces of various beverages to create an inert atmosphere and delay spoilage. Nitrogen is classified as a food additive when it is in direct contact with food and is designated an “E” number; the nomenclature for nitrogen is “E941.”.
Regional Insights:
North America: North America is a prominent market for food grade gases. The region has a well-established food and beverage industry with strict food safety regulations. The United States, in particular, is a major consumer of food grade gases, driven by the demand for carbonated beverages, convenience foods, and fresh produce preservation. The presence of key market players and advanced food processing technologies further contribute to the growth of the food grade gases market in North America.
Europe: Europe is another significant market for food grade gases. The region has a mature food and beverage industry with a strong emphasis on food safety and quality standards. Countries like Germany, France, and the United Kingdom have a high demand for food grade gases, driven by the carbonated beverage sector, convenience food consumption, and the need for extended shelf life of food products. The European market is characterized by stringent regulations, driving the adoption of food grade gases for food processing and preservation.
Asia Pacific: The Asia Pacific region is witnessing substantial growth in the food grade gases market. Countries such as China, India, Japan, and South Korea have expanding food and beverage industries due to urbanization, changing consumer lifestyles, and increased disposable income. The demand for convenience foods, carbonated beverages, and fresh produce preservation is driving the growth of the food grade gases market in the region. Additionally, technological advancements in cryogenic freezing and chilling techniques further boost market growth in Asia Pacific.
Latin America: Latin America is an emerging market for food grade gases. Countries like Brazil, Mexico, and Argentina have a growing food and beverage industry, driven by changing consumer preferences and urbanization. The demand for processed foods, carbonated beverages, and fresh produce preservation is fueling the adoption of food grade gases in the region. Moreover, the implementation of food safety regulations and increasing awareness of quality standards contribute to the market growth in Latin America.
Middle East and Africa: The Middle East and Africa region are experiencing significant growth in the food grade gases market. Countries like Saudi Arabia, UAE, and South Africa have a growing food processing and packaging industry. The demand for carbonated beverages, convenience foods, and preservation of fresh produce drives the adoption of food grade gases. Additionally, the region's hot climate necessitates the need for effective food preservation techniques, further boosting the market growth.
List of Key Players Mentioned in the 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)
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Frequently Asked Questions (FAQs):
What are food grade gases?
Food grade gases are gases that meet strict purity and safety standards for use in the food industry. They are used in food production, processing, packaging, and preservation. Common food grade gases include carbon dioxide (for carbonation and preservation), nitrogen (for packaging and freshness), oxygen (for modified atmosphere packaging), argon (for wine preservation), and helium (for packaging and texture enhancement). These gases help maintain product quality, extend shelf life, and ensure food safety.
What is the projected market value of the global food grade gases market?
The global food grade gases market size is projected to reach USD 10.6 billion by 2027.
What is the estimated growth rate (CAGR) of the global food grade gases market for the next five years?
The global food grade gases market is expected to grow at a compound annual growth rate (CAGR) of 6.9% from 2022 to 2027.
What are the major revenue pockets in the food grade gases market currently?
North America dominated the food grade gases market in 2022. Major players present in the North American food grade gases market are Air Products & Chemicals, Inc. (US), Cryogenic Gases (US), American Welding & Gas (US).
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