The Mexico carbon dioxide market was valued at $3.9 billion in 2022 and is projected to reach $6.6 billion by 2032, growing at a CAGR of 5.5% from 2023 to 2032.
Report key highlighters:
- The report outlines the current Mexico carbon dioxide market trends and future scenario of the market from 2022 to 2032 to understand the prevailing opportunities and potential investment pockets.
- The Mexico carbon dioxide market has been analyzed in terms of value ($ Billion) and volume (tons). The analysis in the report is provided on the basis of product type and end-use industry across the country.
- The Mexico carbon dioxide market is fragmented in nature with many players such as Air Products & Chemicals Inc., Messer Group, Taiyo Nippon Sanso Corporation, ACAIL Gas, and CO2 Liquid which hold significant share of the market.
- The report provides strategy planning and industry dynamics to enhance decision making for existing market players and new entrants entering the Mexico 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 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.
Rise in 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 food such as baked goods. It can also be used in vacuum packaging, which removes oxygen from the packaging to help preserve the product.
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 such as 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.
Growth in demand for carbon dioxide from food and beverage industry
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 food such as baked goods, where it is used to create a light, airy texture. In the baking industry, CO2 is used to create a light, airy texture in baked goods like bread and cakes.
It can also be used in the freezing and chilling of food products, helping to reduce the temperature of food such as meat, fish, and vegetables quickly and efficiently. CO2 can also be used in vacuum packaging, which removes oxygen from the packaging to help preserve the product. It can be added to the package to replace the oxygen that has been removed to maintain the color, flavor, and texture of the product. As per the Sonoco, 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 as well as a North American aerosol producer, to expand its focus on sustainable packaging.
Adverse impacts of carbon dioxide on humans and environment
Carbon dioxide is a naturally occurring gas that is essential to life on Earth, but high concentrations of CO2 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. Prolonged exposure to high levels of CO2 can cause respiratory problems, heart disease, and even death. CO2 is absorbed by the ocean, it 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 like corals and mollusks, which can struggle to form and maintain their shells in acidic conditions.
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 rising sea level.
The Mexico carbon dioxide market is segmented into form and application. 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.
Mexico carbon dioxide market, by form
By form, gas segment dominated the Mexico carbon dioxide market share in 2022. This is owed to CO2 being a common gas that is used as inert gas for shielding purposes during the welding process. It is also commonly used for extinguishing fire due to its non-combustion characteristics.
However, the liquid segment is projected to dominate the market growth during the forecast period. CO2 in liquid form is employed for chilling and freezing of food products; water treatment; carbonation of beverages; oil & gas well stimulations; low-temperature testing of electronic and aviation components and controlling chemical reactions. Moreover, it is used as a fire extinguishing agent in portable and built-in fire extinguishing systems.
By Form
Liquid is projected as the most lucrative segment.
Mexico carbon dioxide market, by application
By application, the food and beverages segment dominated the market revenue in 2022. Carbon dioxide is widely used across the food & beverage industry. It is used in fizzy drinks, drying in order to extend the shelf-life of fruits & vegetables, as dry ice for refrigeration of goods in transit, and others.
However, medical segment is projected to grow at highest CAGR during the Mexico carbon dioxide market forecast period. Carbon dioxide is widely utilized as an insufflation gas for endoscopy, laparoscopy, and arthroscopy to widen and stabilize body cavities to offer better visibility of the surgical area. It is used as respiratory stimulant before and after anesthesia.
Major players operating in the Mexico carbon dioxide market includes Linde Plc, Air Liquide, Air Products & Chemicals Inc., Messer Group, Taiyo Nippon Sanso Corporation, ACAIL Gas, CO2 Liquid, SA de CV, AOC Mexico, and Grupo Infra. These players adopted several growth strategies such as product launch and collaboration to strengthen their position in the market.
By Application
Medical is projected as the most lucrative segment.
Historical Data & Information
- In 1767, Joseph Priestley discovered that carbon dioxide can 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 the 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 regulations analysis
EPA regulates greenhouse gas emissions from power plants under Section 111 of the Clean Air Act, which allows EPA and the states greater flexibility in crafting and implementing a standard. Emissions from new and modified power plants have been finalized under Section 111(b), as described below. Emissions for existing power plants are still being developed under Section 111(d).
In June 2019, EPA issued GHG emission regulations for existing fossil fuel-fired power plants in the Affordable Clean Energy (ACE) Rule. The rule would direct states to require coal-fired power plants to use prescribed technologies to improve their heat rate (i.e., increase efficiency), as a best system of emission reduction for carbon dioxide.
On September 23, 2021, EPA issued a final rule that phase down the U.S. production and consumption of HFCs by 85% over the next 15 years, as mandated by the AIM Act. A global phasedown of hydrofluorocarbons (HFCs) is expected to avoid up to 0.5°C of global warming by 2100.
The U.S. Supreme Court has limited the Environmental Protection Agency's (EPA) authority to regulate greenhouse gas emissions from existing coal plants the EPA does not have the authority to mandate carbon reductions from existing coal-fired power plants.
Key benefits for stakeholders
- The report includes in-depth analysis of different segments and provides Mexico carbon dioxide market estimation between 2023 and 2032.
- A comprehensive analysis of the factors that drive and restrict the growth of the Mexico carbon dioxide market is provided.
- Porter’s five forces model illustrates the potency of buyers & sellers, which is estimated to assist the market players to adopt effective strategies.
- Estimations and forecast are based on factors impacting the Mexico carbon dioxide market growth, in terms of value.
- Key market players are profiled to gain an understanding of the strategies adopted by them.
- This report provides a detailed analysis of the current Mexico carbon dioxide market trends and future estimations from 2023 to 2032, which helps identify the prevailing market opportunities.
Mexico Carbon Dioxide Market Report Highlights
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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 are 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 estimated market size for Mexico carbon dioxide market was $6.6 billion by 2032.
The emerging players in the Mexico carbon dioxide industry are Linde Plc, Air Liquide, Air Products & Chemicals Inc., Messer Group, Taiyo Nippon Sanso Corporation, ACAIL Gas, CO2 Liquid, SA de CV, AOC Mexico, and Grupo Infra.
The major areas for development for Mexico carbon dioxide market are oil & gas, firefighting, and metal fabrication industry.
Food & beverages and medical industry is projected to increase the demand for Mexico carbon dioxide Market.
The most influencing segment of the market is liquid carbon dioxide.
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