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2023

Carbon Dioxide Market

Carbon Dioxide Market Size, Share, Competitive Landscape and Trend Analysis Report by Form (Solid, Liquid, Gas), by Application (Food and Beverages, Oil and Gas, Medical, Fire Fighting, Agriculture, Metal Fabrication, Others): Global Opportunity Analysis and Industry Forecast, 2021-2031

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Author's: Naresh Mawlankar| Pratik Mandon | Eswara Prasad
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Carbon Dioxide Market Research, 2031

The global carbon dioxide market was valued at $84.2 billion in 2021, and is projected to reach $141.9 billion by 2031, growing at a CAGR of 5.5% from 2022 to 2031.

Report Key Highlighters:

  • The carbon dioxide market study covers 20 countries. The research includes a segment analysis of each country in terms of both value ($million) and volume (kilotons) for the projected period 2021-2031.
  • The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global markets and to assist stakeholders in making educated decisions in order to achieve their most ambitious growth objectives.
  • Over 3,700 product literatures, annual reports, industry statements, and other comparable materials from major industry participants were reviewed to gain a better understanding of the market.
  • The carbon dioxide market is highly fragmented, with several players including ACAIL GÁS, Buzwair Industrial Gases Factories, Dubai Industrial Gases, Ellenbarrie industrial Gases, Gulf Cryo, India Glycols Limited, Linde plc, Messer Group, SOL Spa, and Taiyo Nippon Sanso Corporation. Also tracked key strategies such as acquisitions, product launches, mergers, expansion etc. of the players operating in the carbon dioxide market.

Carbon Dioxide Market

Carbon dioxide is a colorless, odorless gas that is naturally present in the Earth's atmosphere. It is composed of one carbon atom and two oxygen atoms and is a byproduct of various natural and human activities, including respiration, combustion of fossil fuels, and natural processes such as volcanic activity and the decay of organic matter. Carbon dioxide is used in greenhouses to increase plant growth and yield. Controlled CO2 levels in the greenhouse can lead to up to 30% more yield.

CO2 can be added to the air using a variety of methods, such as burning natural gas or propane, or using compressed CO2 tanks or generators that produce CO2 through chemical reactions. The CO2 levels are typically maintained between 800 and 1,200 parts per million (ppm), which is higher than the current atmospheric concentration of around 400 ppm. Carbon dioxide (CO2) is widely used in the beverage industry to add carbonation or fizz to soft drinks, beer, sparkling wine, and other carbonated beverages. Carbonation is achieved by dissolving CO2 gas under pressure into the beverage, which then forms tiny bubbles of gas when the pressure is released.

Carbon dioxide adds a pleasant fizz to beverages, which contributes to their flavor and mouthfeel. Carbon dioxide can create a slight acidity in the beverage, which can enhance the perception of other flavors. It also creates a tingling or bubbly sensation in the mouth, which can enhance the overall drinking experience.

Carbon dioxide is used in a variety of industrial processes, including the production of carbonated beverages, the freezing of food products, and the extraction of metals from ores. One of the most important properties of CO2 is its ability to absorb and emit infrared radiation. This property, known as the greenhouse effect, is what makes CO2 and other greenhouse gases so important in regulating the Earth's temperature.

Growing demand for carbon dioxide from the food & beverage industry is expected to drive the growth of the carbon dioxide market.

The food and beverage industry relies on carbon dioxide for a variety of applications, such as carbonating soft drinks and beer, preserving packaged food, and modifying the atmosphere in food processing and storage facilities. CO2 is used in various food processing applications, including freezing and chilling, as well as in the production of certain foods like baked goods. It can also be used in vacuum packaging, which removes oxygen from the packaging to help preserve the product. In December 2021, Sonoco Products announced the $1.35 billion cash acquisition of Ball Metalpack, a manufacturer of sustainable metal packaging for food and household products, to expand its focus on sustainable packaging.

Carbon dioxide can be used as a natural preservative to inhibit the development of bacteria and other microbes. It also helps to increase the shelf life of many different types of goods by lowering the oxygen level of the packaging. CO2 is used as a propellant in aerosol cans to dispense products like whipped cream, cooking sprays, and other food products. Around 70% of the carbon dioxide produced in the U.S. is used by the food and drinks industry.

However, adverse impacts of carbon dioxide on humans and the environment are expected to hinder the growth of carbon dioxide market. CO2 is a naturally occurring gas that is essential to life on Earth, but high concentrations can have adverse impacts on both humans and the environment. Exposure to high levels of CO2 can cause a variety of health problems, including headaches, dizziness, fatigue, and shortness of breath.

Carbon dioxide is absorbed by the ocean and reacts with seawater to form carbonic acid, which can lower the pH of the ocean and make it more acidic. This can have negative impacts on marine life, particularly shell-forming organisms such as corals and mollusks, and changes in temperature and ocean chemistry can have far-reaching impacts on ecosystems, including changes in the distribution and behavior of plant and animal species, and increased risks of invasive species. Human-caused CO2 emissions are leading to rising global temperatures, melting ice caps, and sea level rise.

The carbon dioxide market is segmented into form, application, and region. On the basis of form, the market is categorized into solid, liquid, and gas. On the basis of application, the market is divided into agriculture, metal fabrication, food and beverages, oil and gas, medical, firefighting, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

Carbon Dioxide Market by Form

The liquid segment dominated the global carbon dioxide market in 2021. Carbon dioxide gas is commonly used as a shield gas in metal inert gas (MIG) and metal active gas (MAG) welding, where it protects the weld puddle from oxidation by the nearby air. Nowadays, an argon-CO2 mixture is mainly used to achieve a higher welding rate while reducing the need for post-weld treatment. 

Carbon Dioxide Market by Application

The food and beverages segment dominated the global carbon dioxide market in 2021. Carbon dioxide is mainly infused in beverages to prevent spoilage during storage, which causes them to fizz. CO2 is converted to carbonic acid when it comes into touch with water.  CO2 is used to immobilize creatures prior to slaughter. Following the slaughter of these creatures, the meat is processed, stored, and preserved using cryogenic freezing or dry ice. Cryogenic freezing is a method of chilling that uses CO2 as a refrigerant. Dry ice is used in the transportation and shipment of frozen foods.

Carbon Dioxide Market by Region

The Asia-Pacific segment dominated the global carbon dioxide market in 2021. Carbon dioxide utilization is seen as a promising way to reduce greenhouse gas emissions while also generating new economic opportunities in the Asia-Pacific region.  Carbon dioxide can be used as a feedstock for the production of chemicals such as methanol and urea by businesses such as Carbon Clean Solutions, which has operations in India and China.

Major players operating in the global carbon dioxide market includes ACAIL GÁS, Buzwair Industrial Gases Factories, Dubai Industrial Gases, Ellenbarrie industrial Gases, Gulf Cryo, India Glycols Limited, Linde plc, Messer Group, SOL Spa, and Taiyo Nippon Sanso Corporation. These players adopted several growth strategies such as product launch and collaboration to strengthen their position in the market.

On May 1, 2020, Messer Group launched a new Carbon Dioxide (CO2) plant in Keyes, California. The plant provides up to 450 tons-per-day of CO2, which is an essential product for carbonated beverages, food freezing and chilling, and electronics.

On October 31, 2022, Linde Plc and Schlumberger Limited (SLB) announced a strategic collaboration on carbon capture, utilization and sequestration (CCUS) projects to accelerate decarbonization solutions across industrial and energy sectors. The collaboration will combine decades of experience in carbon dioxide (CO2) capture and sequestration innovative technology portfolios, project development and execution expertise capabilities.

IMPACT OF COVID-19 ON THE GLOBAL CARBON DIOXIDE MARKET

  • The COVID-19 pandemic has had a significant impact on the global economy, with disruptions to supply chains and changes in demand patterns contributing to fluctuations in prices and availability. In many countries, the closing of bars and restaurants has resulted in a fall in demand for carbonated beverages, resulting in a decrease in demand for CO2 used in the carbonation process.
  • According to Advanced Science, the total carbon emissions of 184 nations were reduced by 438 megatons (Mt) in 2020 as compared to 2019. CO2 levels in several of the world's top emitting locations were 0.14 to 0.62 parts per million lower than projected in a pandemic-free scenario, with yearly worldwide emissions reductions of 3% to 13%.
  • The COVID-19 pandemic has increased demand for medical gases, such as oxygen and carbon dioxide, which has led to a shift in production towards medical gases and reduced the availability of carbon dioxide for other uses. Global energy-related CO2 emissions flattened in 2019, but carbon dioxide levels continued to rise and set a new record high in 2021 at 414.72 parts per million.

Historical Trends

  • In 1767, Joseph Priestley discovered that carbon dioxide could be used to make water "sparkling" by dissolving it under pressure, thus creating carbonated water.
  • In 1850s, the first ice-making machines were developed, which used carbon dioxide as a refrigerant in food preservation, medical applications, and other purposes.
  • In the early 20th century, carbon dioxide use was started in the welding industry as a shielding gas to protect the welding arc and the molten metal from oxidation. CO2 was also used in fire extinguishers and as a propellant for aerosol cans.
  • In 1950s carbon dioxide was initially used in the oil and gas industry for enhanced oil recovery. It is injected into underground oil reservoirs to help extract more oil and improve recovery rates.
  • In the 21st century, CO2 was increasingly being used in the food and beverage industry for various applications such as carbonation, preservation, and modified atmosphere packaging.
  • In 2011, the first commercial-scale CO2 pipeline, the Alberta Carbon Trunk Line in Canada, began operation. The pipeline captures carbon dioxide from industrial sources and transports it to oil fields for use in enhanced oil recovery.
  • In 2018, the world's first direct air capture plant, the Climeworks plant in Switzerland, began operation. The plant captures carbon dioxide from the air and supplies it to a nearby greenhouse for use in plant growth.

Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the carbon dioxide market analysis from 2021 to 2031 to identify the prevailing carbon dioxide market opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the carbon dioxide market segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global carbon dioxide market trends, key players, market segments, application areas, and market growth strategies.

Carbon Dioxide Market Report Highlights

Aspects Details
Market Size By 2031
Market Size By 2031

USD 141.9 billion

Growth Rate
Growth Rate

CAGR of 5.5%

Forecast period
Forecast period

2021 - 2031

Report Pages
Report Pages

350

Carbon Dioxide Market By Form
By Form
  • Liquid
  • Gas
  • Solid
Carbon Dioxide Market By Application
By Application
  • Food and Beverages
  • Oil and Gas
  • Medical
  • Fire Fighting
  • Agriculture
  • Metal Fabrication
  • Others
Carbon Dioxide Market By Region
By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Germany, France, UK, Spain, Italy, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Brazil, Saudi Arabia, South Africa, Rest of LAMEA)
Key Market Players
Key Market Players

Gulf Cryo, Taiyo Nippon Sanso Corporation, Ellenbarrie Industrial Gases, Linde plc, SOL Spa, ACAIL GÁS, India Glycols Limited, Buzwair Industrial Gases Factories, Messer Group, Dubai Industrial Gases

Analyst Review

According to the opinions of various CXOs of leading companies, carbon dioxide market is driven by rise in demand from gas industry. Carbon dioxide gas is widely used to carbonate beverages, such as soda, beer, and sparkling water. It is added to the liquid to create carbonic acid, which creates the bubbles that give these drinks their characteristic fizz.

Rise in use of carbon dioxide in healthcare industry drive the growth of carbon dioxide market. CO2 is increasingly being used in the healthcare industry for a variety of applications, including diagnostic, therapeutic, and surgical procedures. It is commonly used in laparoscopic surgery, where it is used to inflate the abdomen and improve visibility. CO2 is preferred over other gases because it is readily absorbed by the body and does not pose a risk of explosion.

However, adverse impacts of carbon dioxide on humans and the environment is expected to restrain industry expansion. CO2 is a naturally occurring gas that is essential to life on Earth, but high concentrations can have adverse impacts on both humans and the environment. Exposure to high levels of CO2 can cause a variety of health problems, including headaches, dizziness, fatigue, and shortness of breath.

The Asia-Pacific region is projected to register robust growth during the forecast period. Carbon dioxide can be used as a feedstock for chemicals, such as methanol and urea. In 2022, Australian cement manufacturer Boral partnered with Southern Oil Refining to produce a lower-carbon cement using CO2 captured from the refining process.

Author Name(s) : Naresh Mawlankar| Pratik Mandon | Eswara Prasad
Frequently Asked Questions?

The global carbon dioxide market was valued at $84.2 billion in 2021 and is projected to reach $141.9 billion by 2031.

The application of Carbon Dioxide Market includes agriculture, metal fabrication, food and beverages, oil and gas, medical, firefighting, and others.

Gas segment is the leading application of Carbon Dioxide Market.

Asia-Pacific is the largest regional market for Carbon Dioxide.

ACAIL GÁS, Buzwair Industrial Gases Factories, Dubai Industrial Gases, Ellenbarrie industrial Gases, Gulf Cryo, India Glycols Limited, Linde plc, Messer Group, SOL Spa, and Taiyo Nippon Sanso Corporation are the top companies to hold the market share in Carbon Dioxide.

Surge in carbon recycling for renewable materials and energy supply are the upcoming trends of Carbon Dioxide Market in the world.

Growth in demand for carbon dioxide from food & beverage industry and rise in use of carbon dioxide in healthcare industry are the driving factor of the Carbon Dioxide Market.

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Carbon Dioxide Market

Global Opportunity Analysis and Industry Forecast, 2021-2031