Demand for Food Grade Gases to Rise Steadily; Scarce Availability of Raw Materials amid COVID-19 Pandemic to Impede Market Growth, Says a New Future market Insights Study

DUBAI, UAE / ACCESSWIRE / April 28, 2020 / The global food grade gases market is on a positive growth trajectory with a steady CAGR of 5.6% during the forecast period (2019-2029), according to a market study by Future Market Insights (FMI). Factors predominantly fuelling the growth are growing demand for convenience food products and carbonated beverages, coupled with the introduction of new food products.

Moreover, the advancements in packaging technologies are creating significant demand for food-grade gases. However, COVID-19 is likely to pose a challenge to the market’s positive growth trajectory, by causing supply chain disruptions. The consequent upsurge in prices of raw materials is expected to hinder the profit margins of manufacturers.

Furthermore, the unavailability of raw materials and the manpower shortage are hampering the overall workflow of the industry. If the pandemic prevailing for longer periods, the market will find it arduous to proliferate at the expected rate.

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Segmental Highlights

Carbon dioxide gas holds the lion’s share in market value owing to usage in the carbonation process in the manufacturing of soft drinks, beers, and other alcoholic drinks.

Freezing & chilling application segment accounts for the majority of market value, backed by the ability of food grade gases to prevent spoilage.

Packaging applications will register higher growth during the forecast period, on the back of technological advancements and wide adoption of food grade gases among manufacturers, consumers, and retailers.

Beverages segment will contribute a major chunk to global revenue by the end of the forecast period owing to rising adoption in the industry.

North America currently leads the global food grade gases market and accounts for nearly 1/3rd of global market value. The region’s dominance is primarily attributed to the high demand for processed food, which utilizes food grade gases.

Asia Pacific (Excluding Japan) is exhibiting tremendous growth owing to the expansion of the food & beverage industry in India and China coupled with technological advancements in processing and rising consumption of processed food.

Analyst’s Viewpoint:

“The growth of the market is hugely attributed to the increasing use of gases such as carbon dioxide, nitrogen, etc., in carbonated drinks, which are gaining traction among end-users. On the other hand, the unforeseen of COVID-19, and the subsequent transport restrictions and national lockdowns are severely affecting the growth of the market”, says the FMI study.

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Gas types covered: Carbon dioxide, nitrogen, oxygen and others

Applications covered: Freezing & chilling, packaging, carbonation and others

End-uses covered: Beverages, meat, poultry, and seafood products, dairy & frozen products, fruits & vegetables, convenience food products, bakery & confectionery products and others

Modes of supply covered: Bulk and cylinder.

Regions covered: North America, Latin America, Europe, East Asia, South Asia, Oceania, and Middle East & Africa

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About Future Market Insights (FMI)

Future Market Insights (FMI) is a leading provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in London, the global financial capital, and has delivery centers in the U.S. and India. FMI’s latest market research reports and industry analysis help businesses navigate challenges and take critical decisions with confidence and clarity amidst breakneck competition.


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SOURCE: Future Market Insights

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