The global food grade gases market was valued at USD 7.6 billion in 2022 and is projected to reach USD 10.6 billion by 2027, growing at a CAGR of 6.9% during the forecast period. The market’s growth is being shaped by both macroeconomic and microeconomic factors across key countries, significantly driving value sales.
Growth Drivers
The increasing demand for perishable foods, coupled with expansion in international food trade due to trade liberalization, has led to a surge in R&D investments aimed at improving food-grade gas technologies. As a result, the usage of packaged food products has increased significantly within the food and beverage industry.
To ensure longer shelf life and reduced food wastage, manufacturers utilize various food-grade gases for freezing, chilling, and packaging. These gases play critical roles depending on the application:
- Carbon Dioxide (CO₂): Primarily used for carbonating beverages.
- Nitrogen (N₂): Commonly employed in packaging to displace oxygen and reduce moisture.
- Hydrogen (H₂): Used in the hydrogenation of oils and fats.
These gases help preserve a wide array of food products such as fruits and vegetables, bakery items, dairy and frozen desserts, meat and seafood, convenience foods, and others like sauces, oils, and dips. Given their sensitivity, such foods require tightly controlled environments to avoid microbial contamination and maintain quality in terms of taste, texture, and nutrition.
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Spotlight on SOL Group
SOL Group is a leading global manufacturer of food-grade gases. The company is involved in the production, research, and distribution of pure, industrial, and medical gases and also produces medical equipment. SOL serves industries such as chemical, electronics, iron & steel, engineering, and food & beverage and contributes to sectors focused on environmental protection and healthcare research.
Operating under two business segments—Technical Gases and Homecare—the company sells its food-grade gases via the Technical Gases division. SOL Group operates in 24 European countries and also has a presence in Turkey, Morocco, Brazil, and India. One of its key joint ventures, SICGILSOL India Pvt. Ltd., is among the largest producers of industrial and medical gases in India.
Nitrogen: A Key Segment
The nitrogen gas segment is expected to grow at a CAGR of 6.6% during the forecast period. Known for its inert, odorless, and non-toxic properties, nitrogen is highly valued in the food industry. It helps:
- Prevent dehydration and crumbling during quick freezing.
- Displace oxygen and reduce moisture in packaging, thereby limiting bacterial growth.
- Preserve freshness and nutrient content, increasing shelf life.
Different foods require different nitrogen-to-oxygen ratios. For example, red meat retains its color better with more oxygen, while coffee and beer benefit from higher nitrogen levels—improving foam creation and brewing pressure, respectively.
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Carbon Dioxide & the Rise of Carbonated Beverages
The work-from-home trend has contributed to increased consumption of carbonated beverages, such as soft drinks, sparkling water, and carbonated wine. CO₂ is integral in creating their bubbly and fizzy texture through the carbonation process. While CO₂ is added manually in most cases, beer manufacturers typically utilize the CO₂ generated during fermentation.
Carbonation not only enhances sensory appeal but also displaces oxygen, making beverages more shelf-stable. As demand for carbonated drinks grows, so too does the need for food-grade CO₂, further propelling the market.
Regional Insights: North America
North America is expected to reach a market value of USD 3.4 billion by 2027. Key contributing countries include the US, Canada, and Mexico. Growth in this region is driven by:
- A strong pork and beef industry.
- Rising consumption of ready-to-eat (RTE) and bakery products.
- The presence of about 38,000 food processing and manufacturing companies in the US as of 2019 (USDA).
A significant factor is the prevention of food waste, which remains a major challenge. A 2017 report by Canada’s Commission for Environmental Cooperation highlighted that 168 million tons of food are lost or wasted annually in North America. Food-grade gases like nitrogen offer an affordable solution to this problem by extending product shelf life through oxygen exclusion.
The US dominates the North American market, accounting for 84.8% of the regional share in 2019. With its large seafood exports and status as the second-largest global milk producer (FAO), the country relies heavily on food-grade gases for freezing and chilling perishable items.
In 2022, the US convenience food market generated USD 48.32 billion in revenue, and volume is forecasted to reach 5,993.8 million kg by 2027, with a 2.65% annual growth rate.
Leading Food Grade Gases Companies:
Prominent companies operating in the food-grade gases market include:
- Air Products and Chemicals, Inc. (US)
- Cryogenic Gases (US)
- American Welding & Gas (US)
These players continue to invest in innovation and regional expansion to meet growing demand across multiple food and beverage applications.
