Food Grade Industrial Gas Market
The future of the global food grade industrial gas market looks promising with opportunities in the beverage, meat, poultry, & seafood product, dairy & frozen product, bakery & confectionery product, and fruit & vegetable markets. The global food grade industrial gas market is expected to reach an estimated $18 billion by 2035 from $10 billion in 2027 with a CAGR of 6.9% from 2027 to 2035. The major drivers for this market are the increasing demand for processed food preservation, the rising beverage carbonation consumption across industries, and the growing food packaging technology adoption.
- Lucintel forecasts that, within the type category, carbon dioxide is expected to witness the highest growth over the forecast period due to growing penetration in packaging and processing industries.
- Within the end use category, beverage will remain the largest segment due to the increasing demand for carbonated beverages, along with the rising demand for food-grade gases in beverage processing applications.
- In terms of regions, APAC is expected to witness the highest growth over the forecast period due to rapid urbanization and growing consumption of packaged food and beverage.
Emerging Trends in Food Grade Industrial Gas Market
From 2025 to 2027, the food grade industrial gas market will differentiate from the commodity supply to certified, application-specific solutions. Demand will remain related to the expansion of the cold chain, use of modified atmosphere packaging, carbonation of beverages, and the reduction of food waste. Lucintel anticipates investment will focus on regional production, traceability, and less-polluting transport, as manufacturers set higher quality and sustainability standards.
- Sustainability: Food manufacturers are focused on reducing emissions and waste through the use of Nitrogen for freezing, Carbon dioxide for chill, and improved Modified Atmosphere Packaging; the adoption of optimized packaging for food and a target for 50% reduction in food waste by the EU by 2030 (February 2025) is encouraging. This will factor into purchasing as suppliers will be evaluated on the efficiency of gas used and their ability to meet customer reporting requirements.
- Regional Supply Diversification: Disruptions in supply of energy and transport, and bulk gas availability, are prompting local production and onsite gas generation combined with multiple sources; Air Products reported a fiscal 2024 sales of $12.1 billion which shows the extent of the infrastructure required for a distributed supply. In the next 3 to 5 years, resilience will outweigh slight cost differences for critical food operations.
- Digital Traceability: Food processors connect gas certificates with conditions of storage and delivery with software; in 2025, GS1's Digital Link continued to gain industry attention. The market will be impacted since purity and batch traceability will become a common feature of export and retailer contracts.
- Automation: Control of packaging lines, oxygen monitoring, and automated dosing replace the need for manual adjustments of gas flow; in 2025, food and beverage manufacturers continue to deploy machine vision along with connected sensors to improve control of automated operations and minimize the loss of product and exposure of employees to the hazards of uncontrolled shelf life. Automation will improve the control of gas flow along with a reduction of product loss and improvement of shelf life.
- Functional Products: Gas suppliers are now producing customer-specific blends of gasses for freshness, carbonation, freezing and, even, ripening, rather than just selling gas by the volume. Nitrogen and carbon dioxide are still expected to dominate the markets for beverages and packaged foods until 2027. With this predicted shift to higher margins, the technical service a supplier offers will be a deciding factor to the buyer.
AsN the buying markets show, purity will always be important, but buyers are now judging suppliers based on continuity, data and application know-how. Capacity and on-site systems will be advantages against the competition, especially if risk is introduced by the buyer due to high transport costs. For the next 10 years, suppliers that offer the highest quality of certified gases, supported by monitoring, and packing are likely to have the most business opportunities.
Recent Developments in the Food Grade Industrial Gas Market
As technology in food preservation and new methods of modified atmosphere and carbonated beverage packaging expand, so do the requirements for food grade industrial gas. Between 2025 and 2027, according to Lucintel, industry focus will shift from supply security to the lowering of carbon emissions and the digital management of the supply chain. During this time, food processing contracts will draw competition from both gas majors and regional suppliers.
- Capacity Expansion: In May, Linde invested €150 million to build up production and distribution of industrial gas in Germany. The investment will help push the limits of the food processing capacity in the region for the next 3 to 5 years.
- Security of CO2 Supply: Air Liquide invested €50 million in March to a new CO2 recovery project in France. The recovery of merchant CO2 from industrial sources will increase supply of and decrease the processing industry's exposure to the disruption of refinery CO2 byproducts.
- Strategic Partnerships: Messer signed a 10-year agreement in February with a European food packaging producer to supply nitrogen and CO2. Long-term contracts shield processors of both foods and gas from the volatility of spot market purchasing.
- New Technology: Air Products released in September a new food freezing system and modified gas packaging to use less gas for each packaged item. Food manufacturers will increasingly opt for technologies designed to decrease emissions and improve efficiency.
- Legislative Changes: In February, the European Union's Packaging and Packaging Waste Regulation was implemented. Time sensitive regulations will increase demand for validated nitrogen flushed and CO2 packages in the food industry.
Demand for processed food will continue to be more closely related to processed food output than to gas consumption. Suppliers that can reliably source CO2 and provide application engineering should gain market share, while smaller distributors will experience increasing margin pressure. The best business opportunities will be in chilled food, ready meals, dairy, beverages, and export processing. Market growth will favor reliability, compliance, and reduction in waste from spoilage and packaging.
Strategic Growth Opportunities in the Food Grade Industrial Gas Market
The food grade industrial gas market is growing due to tighter control over shelf life by food processors, decreased waste, and higher throughput. This market will be further developed between the years 2024 and 2026 with the focus on preservation, mechanization, and the creation of premium products and processing with low emissions. For Lucintel, competitive advantages are application engineering and expansion of capacity.
- Modified Atmosphere Packaging (MAP): With processed food manufacturers extending the freshness of their products by using MAP with shorter shelf life products, the demand for carbon dioxide and nitrogen is expected to grow. According to the European Commission, in January 2025, food waste was estimated to be over 58 million tonnes across the EU. This creates an opportunity for the market as it will lead to more contracts for packing conversion and gas supply contracts.
- Cryogenic Freezing of Prepared Foods: Fast freezing of foods, such as prepared meals, seafood, bakery products, and plant-based foods, is essential to prevent food quality loss. In March 2025, frozen foods retail sales in the U.S. were over $78 billion, according to the American Frozen Food Institute. Within the next three to five years, contract manufacturers will make large purchases of cryogenic freezing tunnels to improve processing and decrease food quality loss.
- Beverage Carbonation and Dispensing: Carbon dioxide usage by beverage manufacturers is forecasted to expand across the soft drinks, beer, hard seltzer, and functional beverage categories. The Brewers Association reported in February 2025 that craft beer production in the U.S. was approximately 23.1 million barrels. This will create a strong growth opportunity for regional suppliers of food grade carbon dioxide in order to establish performance standards for both gas purity and process controls.
- Expansion in Processing Food Throughout The Emerging Regions: Indian, Southeast Asian, and Middle Eastern markets show opportunities for cold-chain and packaged-food development. In April 2025, the Indian government estimated that by 2025, the country's food processing sector would reach about $535 billion. Localized cylinder fleets and microbulk will aid market entry in highly distributed regions.
- Low-carbon Supply of Gas: Food grade certification is now a prerequisite for most customer purchases. By June 2025, the International Energy Agency had estimated that worldwide production of biomethane would reach 100 billion cubic meters by 2030. In the next 3 to 5 years, the supply of renewable carbon dioxide, energy-efficient plants, and traceable sourcing will support premium contracts.
Companies that integrate dependable logistics for certified purity, application support, and carbon data will first capture market share. Food processors avoid supply disruptions that can ruin production runs. For this reason, processors do not choose the lowest prices. Suppliers who finance onsite systems and serve smaller factories, as well as suppliers who tailor gas blends, will gain market share due to the decentralization of food manufacturing. The greatest market share will come from real waste reduction, and not from marketing.
Food Grade Industrial Gas Market Drivers and Challenges
Growth in the food grade industrial gas market is determined by several factors including technology, economy and regulation. Market demand is stimulated by growth in the packaging of food and beverages and cold chain logistics. Further growth in the market is driven by advances in technologies for generating gas. An example of sustainability is the recovery of CO2 and increasing efficiency in process gas production. There are a number of constraints, including economic, supply, demand and regulatory. An example of Lucintel's market insights is food process innovation and the increasing consumer interest in safe food. It will take several years for the market to balance the requirements for a reliable supply, regulation, sustainability and price competition.
Drivers of The food grade industrial gas market Include: -
- Demand for Packaging Food: The demand for packaged, chilled and frozen food has increased the demand for nitrogen, CO2 and O2 for preservation, packing and processing, respectively. The large and rapidly growing food packaging market (>400 million metric tons per year) demonstrates a large and growing opportunity. Demand for longer shelf life and safe distribution will drive the food gas market for the next three to five years.
- Cold-Chain Expansion: Increasing refrigerated storage and transportation relies on gases for freezing, temperature control, and protection of food quality. In March 2025, the World Bank indicated that the development of cold chains alleviates food loss in developing economies. In the next three to five years, the growth of cold storage will promote consumption of industrial gases in seafood, meat, dairy, food and pharmaceutical logistics, and agriculture. The increased construction of warehouses and refrigerated vehicles will stimulate regional demand.
- Food-Safety Regulation: Higher requirements for control of contamination and achieving satisfactory levels of traceability and packaging integrity, along with the maintenance of hygienic, safe food processing environments, will promote the use of certified industrial gases. Further implementation of the main food-safety regulations in February 2025 continued to place emphasis on documented controls and validated processing conditions. The next three to five years will see a demand for high-purity gases, certified supply chains, and dependable control systems. A greater demand will also benefit suppliers that can provide documentation for each batch, perform tests of purity, and offer a high level of consistency.
- Gas-Generation Technology: Increased efficiency and greater flexibility for gas supply have been realized with the advancement of on-site nitrogen generation, CO2 recovery systems, and membrane separation. In April 2025, several suppliers were providing purity levels of 99% for both oxygen and nitrogen, which is acceptable for numerous food-processing applications. This technology will affect the market in the next three to five years by decreasing reliance on delivered gas cylinders and bulk tanks, improving supply at a lower cost and ensuring an uninterrupted supply. This will help remote processors maintain stable levels of production.
- Sustainability Initiatives: Manufacturers of food products are becoming interested in recovered CO2, efficient on-site energy generation, and optimized gas dosing as a way to decrease emissions and packaging waste and improve use of resources. In June 2025, many industrial sustainability initiatives continued to aim for a 30% reduction of emissions from a previous baseline year. Sustainability is projected to influence the market in roughly the next 3 to 5 years due to the increased evaluation of suppliers by customers and regulators based on the intensity of carbon they emit, plus their recovery efforts, logistics, and usage of renewable energy.
Market Challenges Include:
- Energy and Production Costs: Dedicated industrial gas separation and liquefaction, compression, and purification all add significant energy and maintenance costs to a process. In May 2025, industrial electricity prices in many major countries were still well above 2021 averages, putting further pressure on production. This market challenge will influence the food manufacturing industry over the next 3 to 5 years. Rising energy costs will drive up gas costs, reduce the margin potential of food processors, and deter food manufacturers from implementing more advanced solutions. Suppliers will need to have efficient equipment, long-term energy contracts, and an optimized distribution network to successfully stay competitive in the market.
- Supply Chain Disruptions: There are many factors that may disrupt gas supply including transportation issues, closures of production facilities, shortages of equipment, extreme weather, and limited carbon dioxide recovery. Some manufacturers were forced to hold additional inventories in July 2025 due to logistics disruptions which caused delivery lead time to go beyond 2 weeks in some locations. The market is expected to experience the above issues in the next 3 to 5 years because of the adoption of dual sourcing, regional production, buffer stockpiling, and improved service level agreements with suppliers. However, due to the inadequate and discontinuous infrastructure, small scale processors may experience shortages and abrupt increases in prices.
- Compliance and Purity Requirements: Food grade gases are subject to a range of purity requirements, handling, labeling, storage and even traceability requirements which results in increased testing and certification costs for each of these requirements. In August 2025, food processing companies in a regulated environment had to attend to several documentation requests to ensure food safety and quality, and mitigate risks of allergens and contamination caused by suppliers. These requirements will continue in the next 3 to 5 years but will become more harmonized and even more stringent. If a supplier does not meet these requirements, the company may suffer a loss of reputation, contracts and even recalls.
Packaged food consumption, cold-chain investments, advanced technologies, and sustainability goals will drive demand for food grade industrial gas market growth. Even with an increase in demand, there will be safety concerns regarding gas supply reliability and higher gas usage. Manufacturers will need to be prepared for regional disparity because of an increase in volatile energy prices, transportation risks, compliance costs, and undeveloped regions. The supply of food-grade industrial gas will be the most important factor for growth over the next 3 to 5 years. Supply will need to be combined with certified quality, innovative recovery technologies, flexible distribution, and exceptional customer service. The market will experience steady growth, competitive pressure will remain constant, but those who are the most operationally resilient will enjoy the greatest returns.
List of Food Grade Industrial Gas Market Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies food grade industrial gas market companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the food grade industrial gas market companies profiled in this report include-
- Linde plc
- Air Products & Chemicals Inc.
- Air Liquide SA
- Messer Group
- Wesfarmers Limited
- Mitsubishi Chemical Holdings Corporation
- Massy Group
Food Grade Industrial Gas Market by Segment
The study includes a forecast for the global food grade industrial gas market by type, end use, and region.
Food Grade Industrial Gas Market by Type [Value ($B) from 2019 to 2035]:
- Carbon Dioxide
- Nitrogen
- Oxygen
- Others
Food Grade Industrial Gas Market by End Use [Value ($B) from 2019 to 2035]:
- Beverages
- Meat, Poultry, & Seafood Products
- Dairy & Frozen Products
- Bakery & Confectionery Products
- Fruits & Vegetables
- Others
Food Grade Industrial Gas Market by Region [Value ($B) from 2019 to 2035]:
- North America
- Europe
- Asia Pacific
- The Rest of the World
Country Wise Outlook for the Food Grade Industrial Gas Market
Tighter carbon regulations, investments in low-carbon projects, and secure regional supplies are reshaping the food-grade industrial gas market. Between 2025 and 2027, producers will integrate carbon capture, renewable hydrogen, and digital distribution with food processing. These changes warrant Lucintel's close attention to the market.
- United States: Investment in carbon capture and domestic supply. In January 2025, Air Products made a final investment decision for a clean-energy complex in Louisiana that includes carbon capture and sequestration. While the project fulfills other broad industrial demands, additional captured carbon dioxide would enhance food-grade supply. In the next three to five years, the domestic capture infrastructure should increase supply resiliency for customers of beverage and modified atmosphere packaging.
- China: Industrial gas capacity and localization. In March 2025, Linde continued to invest in manufacturing and distribution of industrial gases in China supported by long-term customer contracts and regional manufacturing demand. As reported in Linde's annual report for 2024, sales were $33.0 billion worldwide. The expansion of local capacity will be important because reliable deliveries of nitrogen and carbon dioxide, closer to food processing sites, will be required by food processors.
- Germany: Carbon management and energy transition projects. The implementation of the European Union's Net-Zero Industry Act in February 2025, advanced support for carbon capture technologies and related infrastructure, while German industrial gas producers continued to develop integrated production networks. These activities will shape the market by making it more economical to capture carbon dioxide and recover it for use in food applications."
- India: Increase in manufacturing capacity and formalization of food manufacturing...In February 2025, the Union Budget allocation of ₹10,000 crore for the National Manufacturing Mission by the government ...Industrial-gas suppliers are expanding their food and beverage-related investments, packaged-gas, bulk-liquid, and on-site capabilities. This is important because the expansion of manufacturing capacity leads to increased demand for hygienic supply of nitrogen, carbon dioxide, and oxygen.
- Japan: Focus on partnerships and low-emission production.. In April 2025, Taiyo Nippon Sanso reported its continued commitments for high-technology investments in its industrial-gas operations for advanced gas production and energy efficiency. This will impact Japan's market by establishing a reliable supply and decreased production burden, allowing food manufacturers to fulfill more stringent purchasing and sustainability requirements.
Features of the Global Food Grade Industrial Gas Market
- Market Size Estimates: food grade industrial gas market size estimation in terms of value ($B).
- Trend and Forecast Analysis: Market trends (2019 to 2026) and forecast (2027 to 2035) by various segments and regions.
- Segmentation Analysis: food grade industrial gas market size by type, end use, and region in terms of value ($B).
- Regional Analysis: food grade industrial gas market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
- Growth Opportunities: Analysis of growth opportunities in different types, end uses, and regions for the food grade industrial gas market.
- Strategic Analysis: This includes M&A, new product development, and competitive landscape of the food grade industrial gas market.
Analysis of competitive intensity of the industry based on Porter's Five Forces model.
If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more.
This report answers following 11 key questions:
- Q.1. What are some of the most promising, high-growth opportunities for the food grade industrial gas market by type (carbon dioxide, nitrogen, oxygen, and others), end use (beverages, meat, poultry, & seafood products, dairy & frozen products, bakery & confectionery products, fruits & vegetables, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
- Q.2. Which segments will grow at a faster pace and why?
- Q.3. Which region will grow at a faster pace and why?
- Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
- Q.5. What are the business risks and competitive threats in this market?
- Q.6. What are the emerging trends in this market and the reasons behind them?
- Q.7. What are some of the changing demands of customers in the market?
- Q.8. What are the new developments in the market? Which companies are leading these developments?
- Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
- Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
- Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
Table of Contents
1. Executive Summary
2. Market Overview
- 2.1 Background and Classifications
- 2.2 Supply Chain
3. Market Trends & Forecast Analysis
- 3.1 Macroeconomic Trends and Forecasts
- 3.2 Industry Drivers and Challenges
- 3.3 PESTLE Analysis
- 3.4 Patent Analysis
- 3.5 Regulatory Environment
4. Global Food Grade Industrial Gas Market by Type
- 4.1 Overview
- 4.2 Attractiveness Analysis by Type
- 4.3 Carbon Dioxide : Trends and Forecast (2019 to 2035)
- 4.4 Nitrogen : Trends and Forecast (2019 to 2035)
- 4.5 Oxygen : Trends and Forecast (2019 to 2035)
- 4.6 Others : Trends and Forecast (2019 to 2035)
5. Global Food Grade Industrial Gas Market by End Use
- 5.1 Overview
- 5.2 Attractiveness Analysis by End Use
- 5.3 Beverages : Trends and Forecast (2019 to 2035)
- 5.4 Meat, Poultry, & Seafood Products : Trends and Forecast (2019 to 2035)
- 5.5 Dairy & Frozen Products : Trends and Forecast (2019 to 2035)
- 5.6 Bakery & Confectionery Products : Trends and Forecast (2019 to 2035)
- 5.7 Fruits & Vegetables : Trends and Forecast (2019 to 2035)
- 5.8 Others : Trends and Forecast (2019 to 2035)
6. Regional Analysis
- 6.1 Overview
- 6.2 Global Food Grade Industrial Gas Market by Region
7. North American Food Grade Industrial Gas Market
- 7.1 Overview
- 7.2 North American Food Grade Industrial Gas Market by Type
- 7.3 North American Food Grade Industrial Gas Market by End Use
- 7.4 The United States Food Grade Industrial Gas Market
- 7.5 Canadian Food Grade Industrial Gas Market
- 7.6 Mexican Food Grade Industrial Gas Market
8. European Food Grade Industrial Gas Market
- 8.1 Overview
- 8.2 European Food Grade Industrial Gas Market by Type
- 8.3 European Food Grade Industrial Gas Market by End Use
- 8.4 German Food Grade Industrial Gas Market
- 8.5 French Food Grade Industrial Gas Market
- 8.6 Italian Food Grade Industrial Gas Market
- 8.7 Spanish Food Grade Industrial Gas Market
- 8.8 The United Kingdom Food Grade Industrial Gas Market
9. APAC Food Grade Industrial Gas Market
- 9.1 Overview
- 9.2 APAC Food Grade Industrial Gas Market by Type
- 9.3 APAC Food Grade Industrial Gas Market by End Use
- 9.4 Chinese Food Grade Industrial Gas Market
- 9.5 Indian Food Grade Industrial Gas Market
- 9.6 Japanese Food Grade Industrial Gas Market
- 9.7 South Korean Food Grade Industrial Gas Market
- 9.8 Indonesian Food Grade Industrial Gas Market
10. ROW Food Grade Industrial Gas Market
- 10.1 Overview
- 10.2 ROW Food Grade Industrial Gas Market by Type
- 10.3 ROW Food Grade Industrial Gas Market by End Use
- 10.4 Middle Eastern Food Grade Industrial Gas Market
- 10.5 South American Food Grade Industrial Gas Market
- 10.6 African Food Grade Industrial Gas Market
11. Competitor Analysis
- 11.1 Product Portfolio Analysis
- 11.2 Operational Integration
- 11.3 Porter's Five Forces Analysis
- Competitive Rivalry
- Bargaining Power of Buyers
- Bargaining Power of Suppliers
- Threat of Substitutes
- Threat of New Entrants
- 11.4 Market Share Analysis
12. Opportunities & Strategic Analysis
- 12.1 Value Chain Analysis
- 12.2 Growth Opportunity Analysis
- 12.2.1 Growth Opportunity by Type
- 12.2.2 Growth Opportunity by End Use
- 12.2.3 Growth Opportunity by Region
- 12.3 Emerging Trends in the Global Food Grade Industrial Gas Market
- 12.4 Strategic Analysis
- 12.4.1 New Product Development
- 12.4.2 Certification and Licensing
- 12.4.3 Mergers, Acquisitions, Agreements, Collaborations, and Joint Ventures
13. Company Profiles of the Leading Players Across the Value Chain
- 13.1 Competitive Analysis Overview
- 13.2 Linde plc
- Company Overview
- Food Grade Industrial Gas Market Business Overview
- New Product Development
- Merger, Acquisition, and Collaboration
- Certification and Licensing
- 13.3 Air Products & Chemicals Inc.
- Company Overview
- Food Grade Industrial Gas Market Business Overview
- New Product Development
- Merger, Acquisition, and Collaboration
- Certification and Licensing
- 13.4 Air Liquide SA
- Company Overview
- Food Grade Industrial Gas Market Business Overview
- New Product Development
- Merger, Acquisition, and Collaboration
- Certification and Licensing
- 13.5 Messer Group
- Company Overview
- Food Grade Industrial Gas Market Business Overview
- New Product Development
- Merger, Acquisition, and Collaboration
- Certification and Licensing
- 13.6 Wesfarmers Limited
- Company Overview
- Food Grade Industrial Gas Market Business Overview
- New Product Development
- Merger, Acquisition, and Collaboration
- Certification and Licensing
- 13.7 Mitsubishi Chemical Holdings Corporation
- Company Overview
- Food Grade Industrial Gas Market Business Overview
- New Product Development
- Merger, Acquisition, and Collaboration
- Certification and Licensing
- 13.8 Massy Group
- Company Overview
- Food Grade Industrial Gas Market Business Overview
- New Product Development
- Merger, Acquisition, and Collaboration
- Certification and Licensing
14. Appendix
- 14.1 List of Figures
- 14.2 List of Tables
- 14.3 Research Methodology
- 14.4 Disclaimer
- 14.5 Copyright
- 14.6 Abbreviations and Technical Units
- 14.7 About Us
- 14.8 Contact Us