Global Food Grade Gases Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

Food Grade Gases Market Analysis

The food grade gases market is essential for the preservation, packaging, and transportation of food products, ensuring freshness and extending shelf life. Key gases such as nitrogen, carbon dioxide, and oxygen are used in various applications such as modified atmosphere packaging (MAP), refrigeration, freezing, and carbonation. With the growing demand for packaged food, ready-to-eat food, and beverages, the market is experiencing significant growth. The increasing preference for convenience foods and the expansion of the food service industry are further driving the demand for food-grade gases. In recent developments, companies are focusing on improving the sustainability of these gases by adopting more eco-friendly solutions and increasing the efficiency of gas delivery systems. For instance, innovations in CO2 recovery and nitrogen generation technologies are gaining traction. In addition, the growing awareness of food safety and quality standards is also contributing to the rise of the food grade gases market.

Food Grade Gases Market Size

The global food grade gases market size was valued at USD 8.16 billion in 2024 and is projected to reach USD 10.55 billion by 2032, with a CAGR of 3.27% during the forecast period of 2025 to 2032. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, pricing analysis, brand share analysis, consumer survey, demography analysis, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework.

Food Grade Gases Market Trends

“Demand for Sustainable and Eco-Friendly Solutions”

A growing focus on sustainability is driving the demand for environmentally friendly food-grade gases, with businesses and consumers increasingly seeking solutions to reduce their carbon footprints. Technologies such as CO2 recovery and nitrogen generation are gaining traction, enabling industries to reduce emissions and minimize environmental impact. These innovations allow for the recycling of carbon dioxide, which can be repurposed in the food and beverage industry, while nitrogen generation systems reduce reliance on traditional gas suppliers, further enhancing sustainability. This trend is particularly prevalent in industries such as food packaging, where reducing the ecological footprint is a key priority. As sustainability becomes a priority, companies are adopting greener practices, reflecting the shift towards more responsible consumption and production within the food-grade gases market.

Report Scope and Food Grade Gases Market Segmentation  

Food Grade Gases Market Definition

Food grade gases are gases that meet strict quality standards for use in food processing, preservation, packaging, and transportation. These gases, such as nitrogen, carbon dioxide, oxygen, and argon, are used to maintain the freshness, flavor, and safety of food products. They are critical in processes such as modified atmosphere packaging (MAP), freezing, refrigeration, and carbonation, ensuring that food stays fresh for longer periods while preventing spoilage. Food grade gases are produced and handled under stringent regulations to ensure they do not contaminate food and are safe for consumption. They help preserve food quality, enhance shelf life, and support food safety standards in the global food supply chain.

Food Grade Gases Market Dynamics

Drivers

• Increasing Demand for Packaged and Processed Foods

The increasing consumer demand for convenient, ready-to-eat meals and packaged food products is significantly driving the food-grade gases market. As consumers seek convenience and time-saving food options, there is a greater reliance on packaging solutions that extend shelf life and preserve freshness. Food-grade gases such as nitrogen, carbon dioxide, and oxygen play a key role in these applications, particularly in modified atmosphere packaging (MAP) and vacuum sealing, which prevent spoilage and maintain food quality. This trend toward ready-to-eat meals and packaged products is a major market driver, fueling the growth of food-grade gases in the global food industry.

• Growth in Beverage Sector

The growing demand for carbonated beverages, including soft drinks, sparkling water, and alcoholic beverages, is a significant driver for the food-grade gases market. Carbon dioxide is essential in the production of these beverages, as it provides carbonation, enhancing taste and creating the characteristic fizziness. In addition, CO2 helps preserve the quality of these drinks by inhibiting bacterial growth and maintaining freshness. With consumers increasingly opting for carbonated beverages, the demand for food-grade gases such as CO2 continues to rise, fueling market growth. This trend reflects a broader consumer preference for refreshing, carbonated drinks, further boosting the food-grade gases sector.

Opportunities

• Expansion of Foodservice Industry

The expansion of the foodservice industry, especially with the rise of quick-service restaurants (QSRs), presents a significant opportunity for the food-grade gases market. As these establishments focus on offering fast, high-quality meals, the need for efficient food preservation, freezing, storage, and packaging solutions has increased. Food-grade gases, such as nitrogen and carbon dioxide, are used in freezing to extend the shelf life of food items, in storage to maintain freshness, and in packaging to ensure product quality and safety. This growth in foodservice operations, driven by consumer demand for convenience, provides a strong market opportunity for food-grade gases in the foodservice sector.

• Advancements in Gas Production and Distribution

Innovations in CO2 recovery and nitrogen generation systems present a significant opportunity for growth in the food-grade gases market. As industries focus more on sustainability and cost-efficiency, advancements in these technologies are enhancing the production and application of food-grade gases. CO2 recovery systems reduce the need for new CO2 production, lowering environmental impact, while nitrogen generation systems offer a cost-effective and sustainable alternative to the traditional nitrogen supply. These innovations improve the efficiency of food preservation, packaging, and storage processes, making them more eco-friendly and economically viable. As sustainability becomes a priority, these technological advancements provide a strong market opportunity for growth in food-grade gas applications.

Restraints/Challenges

• Competition from Alternative Preservation Methods

New and emerging food preservation techniques, such as high-pressure processing (HPP) and the use of natural preservatives, present significant competition to traditional preservation methods that rely on food-grade gases such as CO2 and nitrogen. These innovative methods offer advantages such as minimal impact on food taste and texture and cater to the increasing demand for clean-label products. As HPP and natural preservatives continue to gain popularity in the food industry, there may be a reduction in the demand for gases used in packaging and preservation. This shift could challenge the food-grade gases market to adapt and find new applications.

• High Cost of Raw Materials

The cost of raw materials, especially carbon dioxide and nitrogen, can be highly volatile due to factors such as market demand fluctuations, environmental regulations, and production complexities. For instance, CO2 prices can spike during periods of high demand in industries such as beverage carbonation or food preservation, while nitrogen costs may fluctuate due to energy prices affecting its production. These cost variations pose a significant challenge for suppliers in the food-grade gases market, as they may lead to inconsistent pricing and profitability. Companies may struggle to maintain competitive pricing while managing these volatile raw material costs, potentially impacting their bottom line and market position.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Food Grade Gases Market Scope

The market is segmented on the basis of type, application, end-user, and mode of supply. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Carbon Dioxide
• Nitrogen
• Oxygen
• Others

Application

• Freezing and Chilling
• Packaging and Carbonation
• Others

End-User

• Beverages
• Meat and Seafood
• Packaged Foods
• Dairy and Frozen Products
• Others

Mode of Supply

• Cylinder
• Bulk

Food Grade Gases Market Regional Analysis

The market is analysed and market size insights and trends are provided by country, type, application, end-user, and mode of supply as referenced above.

The countries covered in the market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

Europe dominates the food-grade gases market, driven by rising demand for processed food products and stringent food safety and hygiene regulations. Nitrogen and oxygen are in high demand, particularly in the U.S., due to their widespread use in packaging and preservation. In addition, the German food-grade gases market leads in market share, while the UK market is experiencing the fastest growth in Europe.

Asia-Pacific food-grade gases market is poised to grow at the fastest CAGR, driven by rising demand for processed and packaged food, especially in China and India. The region's growing population and increasing disposable income are key factors fueling market growth, with carbon dioxide being highly demanded in the carbonated beverage sector. In addition, China's food-grade gases market holds the largest market share, while India’s market is the fastest-growing in the Asia-Pacific region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.  

Food Grade Gases Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

Food Grade Gases Market Leaders Operating in the Market Are:

• Air Liquide (France)
• Air Products and Chemicals, Inc. (U.S.)
• AIR WATER INC (Japan)
• Coregas (Australia)
• Gulfcryo (UAE)
• Linde PLC (Ireland)
• TAIYO NIPPON SANSO CORPORATION (Japan)
• Massy Gas Products (Trinidad) Ltd (Trinidad and Tobago)
• Messer SE & Co. KGaA (Germany)
• Gruppo SIAD (Italy)

Latest Developments in Food Grade Gases Market

• In October 2022, Linde partnered with JSL to expand the production capacity of JSL's plant in Kalinga Nagar, India. Linde's involvement in the project includes supplying essential industrial gases such as carbon dioxide, argon, and oxygen, which are crucial for the plant’s operations. The partnership aims to meet the increasing demand for gases in the region while supporting JSL’s production expansion efforts in the steel and manufacturing sectors
• In October 2022 a strategic move to strengthen its presence in the Middle East, Air Products' joint venture, Abdullah Hashim Industrial Gases & Equipment Co. Ltd., acquired Air Liquide's Merchant Industrial Gases Business in Saudi Arabia in October 2022. This acquisition is set to expand Air Products' footprint in the region, particularly in the industrial gases sector, offering enhanced capabilities in supplying gases to various industries, including oil and gas and manufacturing
• In February 2022, Linde entered into a significant long-term agreement with BASF, one of the world’s largest chemical companies. Under this agreement, Linde is set to supply hydrogen and steam to BASF’s operations, which will help BASF reduce its carbon footprint and enhance operational efficiency. The partnership marks a major step for Linde in expanding its hydrogen production and distribution services in global chemical markets
• In March 2020, Air Products & Chemicals reached an agreement with PBF Energy for the acquisition of five operational hydrogen units for $530 million. This purchase agreement allows Air Products to expand its hydrogen production capabilities, supporting PBF Energy’s refineries with a steady supply of hydrogen. The acquisition helps enhance Air Products’ presence in the energy sector, particularly in the refining and petrochemical industries
• In July 2022, Air Products & Chemicals opened a new industrial gases plant in Louisiana, which is set to serve the nearby industrial operations of Huntsman Company. The facility, which was announced to operate on-stream, plays a crucial role in providing the necessary gases for Huntsman’s manufacturing processes. This plant is expected to bolster Air Products’ capabilities in the region, particularly in supplying high-demand gases to the chemical industry

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