The dry ice market has witnessed steady growth over the past few years owing to increasing demand from food processing, medical & biotechnology, and transportation industries. Dry ice or solid carbon dioxide is a cooling agent used in various industrial applications. It is non-flammable, non-conductive, and turns directly from solid to gas at atmospheric pressure. Dry ice is used as a refrigerant for food stuff transportation to maintain the required temperature without leaving any residue. It is used to preserve perishable foods such as meat, seafood, fruits & vegetables, dairy products, and poultry during transportation and storage.
The global dry ice market is estimated to be valued at USD 1.55 Bn in 2024 and is expected to reach USD 2.55 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 7.4% from 2024 to 2031.
Key Takeaways
Key players operating in the dry ice market are Linde, Air Liquide, Air Products and Chemicals Inc., Messer Group, MESCO, SOL Group, Continental Carbonic Products, Inc., and Polar Ice.
The rising Dry Ice Market Demand from the food processing industry is a major factor driving the growth of the global dry ice market. Dry ice is widely used for freezing, chilling, and preserving various food products during transportation to maintain the quality and freshness. It leaves no residue and has no harmful environmental effects.
Technological advancements focused on developing efficient and cost-effective dry ice production equipment are contributing significantly to market growth. Companies are adopting innovative technologies like cryogenic freezing to produce dry ice pellets and shards at a large scale for various industrial applications.
Market Trends
One of the key trends in the dry ice market is increasing adoption in the healthcare industry. Dry ice is used for cooling vaccines, biological samples, diagnostic kits, and other medical supplies during transportation from manufacturing facilities to hospitals, clinics, and laboratories.
Rising focus on sustainable and eco-friendly dry ice production is another trend. Companies are investing in renewable energy-powered dry ice manufacturing plants to reduce carbon footprint. New production technologies allow converting waste carbon dioxide from industrial plants into dry ice pellets.
Market Opportunities
Development of advanced dry ice blasting equipment for industrial cleaning presents lucrative opportunities. These dry ice blasting machines help remove paint, rust, and coatings from various surfaces in many industries without using water or other chemicals.
Growing demand from floriculture industry also offers opportunities. Dry ice is used for packaging cut flowers and plants during international and domestic trade to extend their shelf life by maintaining appropriate temperature conditions.
Impact of COVID-19 on Dry Ice Market Growth
The COVID-19 pandemic has had severe implications on the dry ice market globally. During the initial lockdown phase, the market witnessed major declines as end use industries remained shut and supply chains were disrupted. Transportation restrictions imposed travel bans and social distancing measures impacted dry ice demand from food and beverage sector, healthcare, and other industries. However, with mass vaccination drives and economies restarting, the market is exhibiting signs of revival. Healthcare remained the only sector which saw increased requirement for dry ice as it is used for vaccine transportation and storage.
As lockdowns ease, other end use segments are also improving steadily. Food processing plants are scaling up operations andcold chain logistics iswitnessing recovery with resumption of cross border trade. Stockpiling by manufacturers and retailers has induced additional demandprovided stable supply is ensured. Governments globally are supporting industries and easing norms to facilitate trade. This will aid dry ice market regain lost momentum in coming years. Stronger healthcare infrastructure and vaccination programs bode well for future growth. Technology adoption for contactless delivery and digitalization of supplychains will further augment demand.
Geographical Regions with Highest Dry Ice Value
North America dominates dry ice market in terms of value currently. USA is the major revenue generator owing to large food processing, healthcare, and shipping industries requiring dry ice on regular basis. Europe is another lucrative region driven by industrial activities across UK, Germany, and France. Asia Pacific is poised to depict fastest value growth during the forecast period led by China, India and other Association of Southeast Asian Nations (ASEAN). Expanding middle class, growing perishable food trade, and strengthening healthcare infrastructure will propel dry ice consumption in developing Asian countries. Latin America and Middle East & Africa also offer promising opportunities for market expansion.
Fastest Growing Region for Dry Ice Market
The Asia Pacific region is projected to emerge as the fastest growing market for dry ice in terms of value over next few years. Countries like China, India, Indonesia, Vietnam and others are experiencing rising incomes, rapid urbanization and changing consumer lifestyles and food preferences. This is fueling expansion of food processing and cold chain logistics infrastructure. Increased pharmaceutical manufacturing and healthcare investments are further augmenting regional dry ice demand. Additionally, developing nations in Asia are major exporters of seafood, meat, fruits and other perishables requiring dry ice asrefrigerant during transportation globally. Stringent food safety regulations and quality standardsalso necessitate wider dry ice application. With strong economic growth and favorable government support for industrialization, APAC offers immense opportunities for dry ice market players.
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