Liquid Carbon Dioxide (CO2) Market Size (2024-2030)

According to the report published by Virtue Market Research in Global Liquid Carbon Dioxide (CO2) Market was valued at USD 1474.66 million and is projected to reach a market size of USD 2074.99 million by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 5%.

In the past, liquid carbon dioxide was mainly used for food & beverage preparation and carbonation, as well as in chemical industries for controlling and neutralizing various chemical processes. Moreover, stringent environmental regulations limited its usage in various industries, as it associated carbon dioxide as a major component in greenhouse gas emissions. However, in the present scenario, with continuous research & development by laboratories, the applications of liquid CO2 have increased in various industries. These include medical, agriculture, renewable energy, power generation, automobiles, and others. Moreover, technological advancements in carbon capture and the development of CO2 removal systems have further increased the usage of liquid CO2 in many industries. The future holds positive for liquid carbon dioxide, as developments take place in carbon capture and storage technology along with increasing demand for renewable energy systems in various industries.

Key Market Insights:

As per the British Soft Drinks Association, carbonates hold the largest market share of about 38.1% in 2021.

As per a study published by the National Library of Medicine, the amount of food waste from fresh foods is 5.8-fold greater than from frozen foods. That, is, only 1.6% of frozen food was wasted compared to 9.3% of fresh food wastage.

As per American Frozen Food Institute, frozen food accounted for US$65.1 billion in retail sales, in the year 2020.

Liquid Carbon Dioxide (CO2) Market Drivers:

Increasing demand for food & beverage preservation has boosted the demand for liquid carbon dioxide (CO2) in the market.

Liquid CO2 is increasingly demanded in the food & beverage industry for preservation and refrigeration purposes. Many food products prepared from natural ingredients are exposed to early spoilage or perishability, therefore these food products are preserved using liquid CO2 that is sprayed on perishable food products to increase their shelf life. Moreover, it freezes them and also helps in maintaining their taste, quality, and texture. Rising demand for frozen food products such as frozen meat and vegetables is propelling the usage of liquid CO2 in the market. In addition, liquid CO2 is widely used for packaging food items, such as it is used in MAP (modified atmosphere packaging) for preventing food from spoilage, extending its shelf life, and maintaining the freshness of food products.

The rising need for liquid CO2 for the treatment of wastewater has boosted the market growth for liquid carbon dioxide.

With rising water pollution due to increased chemical releases into the water bodies, there is a need for efficient treatment mechanisms that help remove contaminants from the water and make it usable for the people. Therefore, liquid CO2 is widely used in the treatment of wastewater, as it helps in managing the pH level and desalinating the water. Moreover, liquid CO2 controls and eliminates foul odor caused due to sewage and effluent release. Furthermore, it is an environment-friendly solution, as it captures the CO2 released from entering into the atmosphere.

Liquid Carbon Dioxide (CO2) Market Restraints and Challenges:

Environmental concerns among consumers can decline the market growth of liquid carbon dioxide. Carbon dioxide is harmful to the environment, as it is a greenhouse gas. Excessive use of it in agriculture and industrial processes can pose serious harm to the environment by causing climate change and health issues to people.

Furthermore, fluctuations in carbon price in the energy market can affect the cost of handling and maintaining liquid carbon dioxide, leading to a decline in demand for liquid carbon dioxide in the market.

Liquid Carbon Dioxide (CO2) Market Opportunities:

The Liquid Carbon Dioxide (CO2) Market is anticipated to deliver lucrative opportunities for businesses, which include acquisitions, partnerships, collaborations, product launches, and agreements during the forecasted period. Furthermore, the increasing demand for food preservation by manufacturers and the rising use of liquid CO2 in welding, cutting, and other purposes on account of the increase in infrastructure projects is predicted to develop the market for Liquid Carbon Dioxide (CO2) and enhance its future growth opportunities.

LIQUID CARBON DIOXIDE (CO2) MARKET REPORT COVERAGE:

Liquid Carbon Dioxide (CO2) Market Segmentation

Liquid Carbon Dioxide (CO2) Market Segmentation: By Product Form

• Liquid CO2 in tanks
• Liquid CO2 in Cylinders
• Liquid CO2 (Dry Ice)
• Others

In 2022, based on market segmentation by product form, liquid CO2 in cylinders occupies the highest share of about 32% in the market. Liquid CO2 cylinders are widely used in food & and beverage for various purposes such as for beverage dispensing, refrigeration, and other purposes. In addition, it is also used for welding & and cutting purposes in various industrial processes. Furthermore, the growth of liquid CO2 cylinders is attributed to their portability, easy storage, and versatility in various industries.

The liquid CO2 in tanks is the fastest-growing segment during the forecast period. Liquid CO2 in tanks is used for heavy industrial purposes such as chemical synthesis, the production of various carbonated drinks, the treatment of wastewater, and in the medical industry respiratory therapy and surgical purposes. Moreover, liquid CO2 in tanks can cater to large supply demand in various industries, as it offers a continuous supply of liquid CO2 for various processes and is a cost-effective solution, as it helps to reduce transportation and installation costs.

Liquid Carbon Dioxide (CO2) Market Segmentation: By End-User Industry

• Healthcare & Medical
• Food & Beverage
• Pharmaceutical
• Chemical
• Automobile
• Water Treatment
• Agriculture
• Others

In 2022, based on market segmentation by end-user industry, food & and beverage occupies the highest share of about 27.5% in the market. Liquid CO2 finds major applications in the food & beverage industry for various purposes such as food processing, refrigeration, controlling pH levels, and others. Moreover, it is also used to produce and frizz in carbonated beverages such as sparkling water, soft drinks, and others. In addition, it is used for cooling and freezing food products, such as vegetables, fruits, meat, dairy products, and others, as it helps to increase the shelf life of these products.

The chemical segment is the fastest-growing segment during the forecast period. Liquid carbon dioxide is used as a solvent and as an extracting agent for producing various chemicals and compounds such as fragrances, essential oils, bio extracts from plants, and others. In addition, liquid CO2 is also used as a reactant in various chemical processes for producing specialized chemicals for various industries. Additionally, liquid CO2 is also used in controlling complex chemical reactions.

Liquid Carbon Dioxide (CO2) Market Segmentation: Regional Analysis:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

In 2022, based on market segmentation by region, Asia-Pacific occupies the highest share of about 33% in the market. Developed food & and beverage industry, with increasing demand for soft drinks and carbonated drinks, (as per Beverage Daily Article, soft drinks consumption is increasing by 5% each year in Asia-Pacific) and rising demand for liquid CO2 in the medical industry for supplying medical gas has contributed to the market growth of liquid CO2 in the region.

Europe is the fastest-growing region during the forecast period. Rising demand for food & beverage carbonation and packaging, and increased use of liquid CO2 for wastewater treatment in various parts of the regions (For instance, as per the European Environment Agency, Austria, Germany, Luxembourg, and the Netherlands treat 100% of their urban wastewater in compliance with government regulations.) has contributed to the demand for liquid carbon dioxide in the region.

COVID-19 Impact Analysis on the Liquid Carbon Dioxide (CO2) Market:

The pandemic had a significant impact on the liquid CO2 market. The demand for liquid CO2 witnessed an increase from the healthcare & and medical industry for the treatment of patients such as for various surgeries and respiratory therapies, for medical devices such as ventilators, and others. Moreover, liquified medical carbon dioxide in cylinders was increasingly demanded during the pandemic. However, on the flip side, due to the closure of restaurants, hotels, food outlets, and others, there was a decline in demand for liquid carbon dioxide in the market. In addition, supply chain disruptions and restrictions on movement across borders limited the production and distribution of liquid CO2 in the market.

Latest Developments:

The liquid carbon dioxide is witnessing a positive growth in the market on account of increased research & development by companies for its extensive applications in various industries. Moreover, due to its non-toxic and hazardous nature, it is witnessing increased applications in renewable energy for managing power supply and gas demand. Moreover, trends in carbon capture utilization have aided manufacturers and producers in cutting down carbon emissions during the production process and capturing the unreleased carbon for future use. This can largely be used in the chemical industry, wastewater purification & treatment, and for other purposes.

• In August 2023, Ace Gases launched its second liquid carbon dioxide plant in Malaysia. The aim is to cater to increased gas demand in Southeast Asia.
• In March 2023, Japanese company Mitsubishi Shipbuilding, launched a liquified CO2 carrier for its test ship. The aim is to encourage carbon capture, utilization, and storage (CCUS).

Key Players:

1. CO2 Plants
2. India Glycols Limited
3. Linde Engineering
4. Ace Gases
5. ACP Group
6. Air Liquide