Liquid Co2 market size, Share, Growth, and Industry Analysis, By Type (Hydrogen, Ethyl Alcohol, Ammonia, Natural gas & Others) By Application (Food & Beverages, Chemicals, Electronics, Agriculture, Healthcare & Wastewater treatment), and Regional Insight and Forecast to 2033

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LIQUID CO2 MARKETOVERVIEW

The global Liquid Co2 market size valued at approximately USD 11.27 billion in 2024 and is expected to reach USD 16.85 billion by 2033, growing at a compound annual growth rate (CAGR) of about 5.1% from 2025 to 2033.

The growth of this industry is steady as liquid CO2 has wide application usage in food & beverages, chemicals, healthcare, and wastewater treatment industries. Liquid CO2 is an extremely versatile industrial gas that finds use in refrigeration, carbonation, fire suppression, and as a solvent in chemical processes. Captured and recycled CO2 from industrial emissions provides a fast-emerging market due to the growing use as a more sustainable and environment-friendly solution. Liquid CO2 is used for freezing, chilling, and carbonating soft drinks and beer in the food & beverage industry. In the health sector, it is utilized in cryotherapy and minimally invasive surgeries. It also facilitates pH control and reduction of contaminants in wastewater treatment. The market for liquid CO2 is further expected to rise in the next few years due to the quest of industries to find efficient, environment-friendly alternatives.

COVID-19 IMPACT

"Liquid Co2 Market Had a Negative Effect Due to Supply Chain Disruption During COVID-19 Pandemic"

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic badly affected the market for liquid CO2, leaving disruptions in virtually every industry whose products rely heavily on this liquid. The biggest consumers of this gas are usually from the food & beverage sectors. Lockdowns and cutback operations across restaurants, breweries, and manufacturers of carbonated beverages have crippled these sectors largely, causing massive setbacks to its consumption of liquid CO2 early in the outbreak. Meanwhile, ethanol plants, an important source of CO2 production, shuttered, leading to a shortage in supply. Lockdowns resulted in the decreased consumption of fuel; therefore, many ethanol manufacturers reduced or shut down their operations entirely, creating supply and demand imbalance that generated temporary price swings and regional shortages. The healthcare sector increased the demand for liquid CO2 since cryotherapy and cold storage of vaccines remained in demand. Wastewater treatment was another steady consumer of liquid CO2 because water treatment activities by industries and municipalities were never halted during the pandemic.

LATEST TREND

"Carbon Capture and Utilization (CCU) to improve pregnancy monitoring to Drive Market Growth"

The most important trend in the market for liquid CO2 is that CCU technologies are being adopted highly. In efforts to reduce their carbon footprints, industries are finding sustainable means to use captured CO2 in liquid form for commercial uses rather than letting it out into the atmosphere. This trend is being driven mainly by the increasing regulatory environment and net-zero emissions push. Increase adoption of CO2 recovery systems, chemistry and food & beverages have contributed to making a difference between the waste product and realizing circular economy, the technological forefront in supersonic flow application has caused significant impacts within the pharmaceutical application of supercritical CO2 food extraction and also in EOR. Hence the future of market outline with such scenario of sustainability which has gain much emphasis integrating CCU within the production process of CO2.

LIQUID CO2 MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Hydrogen, Ethyl Alcohol, Ammonia, Natural gas & Others:

• Hydrogen: Hydrogen-derived liquid CO2 is a byproduct of hydrogen production processes, mainly steam methane reforming and electrolysis. As it is highly pure, hydrogen-based CO2 is widely used in chemical and food industries. The growth in green hydrogen production will increase the market demand for hydrogen-based CO2. However, it will face significant cost and infrastructure issues for its deployment. Industry is investing in carbon capture technology to make the hydrogen-derived CO2 more sustainable.

• Ethyl Alcohol: Ethyl alcohol is one of the most commonly produced liquids that comes from the fermentation process at breweries and ethanol plants. Major end uses of CO2 derived liquid from ethyl alcohol include carbonation of beverages, food preservation, and industrial applications. Trends in ethanol production are affected by fuel demand and agricultural policies. Ethanol demand for CO2 is growing along with ethanol output in biofuels; supply chain disruptions of ethanol plants are also an availability concern. Sustainable ethanol production practices are likely to strengthen this segment in the future years.

• Ammonia: Ammonia production, especially through the Haber-Bosch process, produces CO2 as a byproduct. This type of liquid CO2 is commonly used in fertilizers, refrigeration, and chemical manufacturing. The ammonia industry will remain a solid source of CO2, and pressure on ammonia plants to produce fewer carbon emissions has led to a surge of investment in CCS. This part is still very important for the liquid CO2 market, at least in the long term if regulations push demand towards cleaner forms of ammonia-based fertilizers that will continue increasing.

• Natural gas: The natural gas processing process yields CO2, which is absorbed and used for enhanced oil recovery, food production, and as a fire suppression agent. It would mean that natural gas supply will continue to be copious in North America and the Middle East, while CO2, far from it, is still a long way from depletion. However, they also have fears of methane production and fossil fuels dependency, as industries look at greener technologies. However, demand for liquefied natural gas-derived CO2 for use in industry as well as medicinally remains consistent.

• Others: The "Others" category includes CO2 from biomass, waste incineration, and direct air capture. One of the emerging technologies that have attracted interest is these. They involve biomass-derived CO2, which is attractive, especially in the agriculture and food processing industries; and it provides an opportunity for direct air capture into a long-term carbon neutrality solution. Although these methods are still in the early stages, investments in carbon-negative technologies could expand this segment in the future.

By Application

Based on application, the global market can be categorized into Food & Beverages, Chemicals, Electronics, Agriculture, Healthcare & Wastewater treatment:

• Food & Beverages: Liquid CO2 is the most important element in the food and beverage industry. It is used in carbonation, freezing, and preservation. Therefore, it is used for carbonation in soft drinks, beer, and other sparkling water, thus making the products uniform in composition and flavor. Cryogenic freezing with liquid CO2 helps save the food quality and increases shelf life. Demand for liquid CO2 is being driven by the growing packaged food and beverage industry. Supply chain disruptions in CO2 production, particularly from ethanol plants, can affect availability. Innovations in CO2 recovery from fermentation are expected to stabilize this segment.

• Chemicals: Liquid CO2 is used extensively in the chemical industries as a solvent, reactant, and neutralizer. Supercritical CO2 is becoming increasingly popular as an eco-friendly alternative in chemical extraction and polymer production instead of traditional solvents. Furthermore, CO2 is also important in pH control for industrial purposes and is necessary to ensure the efficient completion of most chemical reactions. Carbon capture and utilization technologies are rapidly increasing demand for CO2 in chemical applications. Liquid CO2 will become even more vital in chemical processing as industries increasingly pursue low-emission and sustainable alternatives.

• Electronics: Liquid CO2 is widely used in electronics for the purpose of precision cleaning of semiconductor components and circuit boards. Supercritical CO2 is used here instead of more conventional cleaning agents because it leaves no residue behind, is not toxic, and is an environmental-friendly substance. Due to the rapid rate of electronics manufacturing, especially in Asia-Pacific, the demand for CO2-based cleaning solutions is growing. Additionally, CO2 is used in chip cooling applications to minimize energy consumption. In the electronics industry, as sustainability in the production process is being adopted, the use of CO2-based processes will be increased.

• Agriculture: Liquified CO2 in CEA is applied in greenhouses and hydroponic farming for crops to promote better growth. The increased levels of CO2 enhance crop yields while hastening growth in plants, besides being also used to inhibit pest infestations and aid in grain fumigation whereby the use of chemical pesticides may be reduced significantly. As concern for ecofriendly, high productivity agriculture increases demand, the increase in adoption will continue. This segment will experience one of its emerging growth areas in urban farming and vertical agriculture.

• Healthcare: Liquid CO2 is used widely in the healthcare sector, including cryotherapy, minimally invasive surgeries, and medical storage.CO2 is very vital in dermatology, pain management, and cancer treatments that entail controlled freezing. Additionally, it is applied during endoscopic surgeries and surgical inflation. The need for medical-grade CO2 in the growing surgeries and medical interventions is what leads to the requirement. In the health sector, CO2 is also being used for vaccine preservation and pharmaceuticals. With improvement in medical technology and cryogenic applications, liquid CO2 use in the health sector is anticipated to increase.

• Wastewater Treatment: Liquid CO2 is considered a renewable substitute for traditional acids in carrying out pH balance in wastewater processing plants. Instead of producing side products that adversely affect the human environment, its use neutralizes alkaline waters. This treatment is commonly utilized in municipally and industrial wastewater treatment places for environmental needs. The implementation of CO2-based pH balance has been established due to escalating demands for such effective and natural solutions in treating water. Besides, CO2 is being explored as a medium to store pollutants and improve the quality of water. With issues of water pollution going hand in hand with effective resource utilization, the market for wastewater treatment shall only expand in the future.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factor

"Growing demand for sustainable and eco-friendly industrial solutions to Boost the Market"

An important driver for liquid Co2 market growth is the increasing demand for sustainable and environment-friendly solutions from all sectors. Increasing concerns over carbon emissions and global warming have led industries to try to capture and reuse CO2 in place of emission into the atmosphere. This ranges from carbon capture to utilization to represent some of the most applied CCU technologies for industry-wide CO2 capture and utilization towards various applications that are as specific as food processing, chemical manufacture, and even agriculture. Liquid CO2 is also highly in demand nowadays in greenhouse farming and hydroponics through controlled CO2 enrichment that increases the crop yield without chemical fertilizers. The chemical industry also appreciates the fact that supercritical CO2 is progressively replacing conventional solvents instead of emitting hazardous emissions. The wastewater treatment industry also appreciates the role of CO2-based pH control, proving safer and greener than the traditional acids. With such stringent environmental regulations forcing industries toward carbon-neutral operations, the requirement for liquid CO2 is likely to increase since companies have turned more towards sustainability.

"Growing Use in Food & Beverage and Healthcare Sectors to Expand the Market"

The food & beverage and healthcare sectors are among the biggest liquid CO2 users, and they are also going to fuel growth in the market. CO2 is utilized in the food sector for carbonation for soft drinks; freezing of food products; and maintaining freshness. High quality CO2 remains in demand due to increased consumer demand for convenience foods, packaged beverages, and frozen products. Brewer and microbrewery brewing also raises demand for more CO2 used in carbonation of beverages during the production of beverages. The liquified carbon dioxide is primarily used in all the health sectors, such as cryo therapy, gastroscopy, as well as all surgical procedures, and the greater use of least invasive surgeries elevated the requirement use of CO2 in medical. Moreover, liquid CO2 provides an instrumental role in vaccine storage and pharmaceutical manufacturing since temperature-sensitive medicines and biological samples require to remain stable. Innovation in medical technology and food preservation is gaining its momentum; these will increase demand in the pharmaceutical and food sector.

Restraining Factor

"Supply Chain Disruptions and Dependence on Byproduct Sources to Potentially Impede Market Growth"

One of the major challenges related to the supply of liquid CO2 is reliance on byproducts such as the production of ethanol, ammonia, and hydrogen, which can at times fluctuate. Because this gas is usually captured as part of a product from another process, the changing nature of related industries can actually affect the direct supply of CO2. For example, ethanol production declined during the COVID-19 pandemic due to which CO2 supply to food and beverages was restricted. Similarly, shut downs or slowdowns in ammonia and hydrogen plants can create supply constraints which affect multiple industries that are dependent on CO2 supplies. In addition, logistics problems are created by transportation and storage issues since liquid CO2 is stored in cryogenic storage tanks and requires specific transport conditions. Any form of supply chain disruptions, political tensions, or energy shortages can increase these constraints and make it difficult for industries to get a steady supply. Since the market is dependent on few sources of CO2 production, it makes it vulnerable to fluctuations, thus acting as a significant restraint to overall market growth.

Opportunity

"Carbon capture and utilization (CCU) technology adoption is rapidly growing to Create Opportunity for the Product in the Market"

The growing emphasis on carbon capture and utilization technologies gives the liquid CO2 market much scope for expansion. The imposition of ever-growing climate regulations and sustainability initiatives compel industries to develop ways of capturing CO2 emissions and finding further commercial use of them instead of releasing CO2 into the atmosphere. This has become possible with advanced capture technologies and converting CO2 to liquid CO2, making it applicable for food-processing industries, agriculture, and chemical manufacturing. Direct air capture (DAC) and CO2 recycling solutions have also started gaining investments from several companies and ensure that low-carbon and carbon-negative applications are available. CO2 recovery from electrolysis plants is also expected to surge because of the growth in green hydrogen production and possibly reduce its dependence on fossil fuel-derived sources of CO2. As governments and industries continue to push toward net-zero emissions, CCU innovations are expected to boost CO2 availability and expand its market applications, thus making it a key growth driver for the liquid CO2 industry.

Challenge

"High Storage and Transportation Costs Could Be a Potential Challenge for Market"

Perhaps one of the main challenges related to the market in liquid CO2 is high costs associated with its storage and transportation. Storage in liquid CO2 requires tanks specialized for extremely low temperatures with pressure. As such, one must invest hugely in infrastructure by making insulated pipelines, pressurized containers, and refrigerated transport systems. Moreover, long-distance transportation is expensive as the process of keeping CO2 in liquid form is energy-intensive. Any variation in fuel prices, transportation constraints, or supply chain disruptions may increase the logistics cost, thereby making CO2 less accessible for industries located far away. With growing demand for CO2, developing low-cost and energy-efficient storage solutions is expected to help meet the challenge of high cost and energy consumption. Advances in technologies for capturing and storing CO2 are currently being researched; however, effective, cost-friendly deployment is considered one of the greatest barriers to entry in this market.

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LIQUID CO2 MARKET REGIONAL INSIGHTS

• North America

The provided data indicate that North America dominates, led by the huge demand of food & beverages, healthcare, and chemicals. Its major driver comes from the United StatesLiquid Co2 Market due to ethanol produced at large scale, which is a significant source of carbon dioxide for carbonation and food processing. It has a well-structured CCU sector with investment growth in DAC and CO2 recycling technologies. Additionally, the healthcare industry in the U.S. is expanding its use of medical-grade CO2 for applications such as cryotherapy and minimally invasive surgeries. However, the market faces supply fluctuations due to its dependence on ethanol and ammonia plants. Despite this, increased adoption of carbon capture projects and sustainable CO2 sourcing is expected to drive future growth in the region.

• Europe

Europe is a very regulated market for liquid CO2, with strong emphasis on environmental sustainability and emission reduction. Net-zero targets and carbon taxation policies of the European Union are forcing industries to embrace CO2 capture and utilization technologies. Germany, the UK, and France are investing in the recovery of CO2 from industrial emissions, thereby creating new sources of supply for various applications. The food & beverage industry is a major consumer, as CO2 is used in large quantities for carbonated drinks and food preservation. Moreover, the chemical sector is utilizing supercritical CO2 as an environmentally friendly substitute for traditional solvents. Natural gas supply disruptions and energy crises have, however, impacted the production of CO2 in the region. Nevertheless, government incentives for green technologies are expected to drive market expansion.

• Asia

Rapid expansion has been recorded by the Asian markets of liquid CO2 driven primarily by food and beverage, process, electronics industries, along with rapid growth for industrial applications within countries of Japan, India, and China - where, being leading manufacturers as well as end-users, beverages carbonation semiconductor cleaning greenhouse farming is seen driving the need of the future with growing hydro and hydroponic urban agriculture operations. Asia is a large chemical manufacturing hub, using CO2 for pH control and polymer production. Electronics, mainly in Japan and South Korea, drive demand for cleaning solutions based on CO2. However, transportation costs are high, and there is not enough infrastructure to store CO2. With investment in carbon capture technologies and more sustainable industrial practices, the Asian market is well positioned for significant growth.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market Through Innovation and Market Expansion"

Leading companies in the liquid CO2 market focus on innovation, sustainability, and geographic expansion for further strengthening market presence. A number of leading players are also investing in CCU technologies that can improve recovery of CO2 and reduce emission. Many other companies are increasing their production capacities and distribution network to ensure consistent supply of high-purity CO2 across the industries. On the other hand, strategic partnerships and acquisitions are giving companies diversified product offers and entering new markets regionally. Improvements in purification and storage solutions for CO2 as well as in applications of supercritical CO2 extend the growth of the industry. Based on this high and rising demand for quality, sustainable CO2, these key players are bound to shape the future of the market.

List of Top Profiled Companies

• Praxair, Inc. (U.S.)
• INOX Air Products Ltd. (India)
• Philippine CO2 Industry Inc. (Philippines)
• Linde AG (Germany)
• Showa Denko Gas Products Co., Ltd. (Japan)
• Air Liquide (France)

KEY INDUSTRY DEVELOPMENTS

August 2024: Linde recently announced expansion on CCU facilities to upgrade the high purity liquid CO2 supply in the industrial business. The new facility planned would help capture carbon from existing industrial processes, thus creating sustainable and stable sources for businesses using food and beverages, health and pharmaceutical products, and chemical materials. Such endeavors are considered under the greater agenda of mitigating carbon foot printing and achieving environment-friendly solutions at the industrial levels. By investing in the most advanced technologies in CO2 purification and storage, Linde hopes to overcome supply chain disruptions and variability in the availability of CO2. This expansion will bring the company a firmer footing in the market to support industries in their sustainability goals through reliable low-emission sourcing of CO2. In tightening regulations of emissions, this is expected to be an important development for a circular carbon economy.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis considers both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.