DRY ICE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Dry Ice Market Size and Forecast – 2024 - 2031

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 of the Dry Ice Market:

• The sliced segment is expected to account for 40.1% of the market share in 2024.
• The liquid CO2 method segment is expected to hold 49.8% share of the market in 2024.
• The food & beverage segment is expected to account for 38.7% of the market share in 2024.
• Asia Pacific is projected to lead the global market with a 33.3% share in 2024, followed by the North America region, which is expected to hold a 29.7% share

Market Overview:

Dry ice is increasingly being used for various applications such as food freezing, medial purposes, entertainment industry, etc. Rapid growth in the pharmaceutical industry and increasing demand for frozen foods are some key factors augmenting the demand for dry ice. Moreover, growing exports of seafood, meat, and other perishable products are also propelling the consumption of dry ice for transportation and storage purposes. Various properties of dry ice such as non-reactive nature and ability to induce cooling without leaving any residue behind makes it a preferred cooling medium across industries. Development of reliable distribution channels by manufacturers and growing awareness regarding benefits of dry ice over liquid nitrogen are further anticipated to drive the market growth during the next few years.

Segmental Insights

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Type Insights - Ease of Transportation and Storage Drives Demand for Sliced Dry Ice

In terms of type, the sliced segment is expected to contribute 40.1% share of the market in 2024, owing to its convenience in transportation and storage. Sliced dry ice pieces can be easily packed into smaller containers and shipped to customers without taking up excessive space. Its uniform thin slices also melt at a gradual, predictable rate, making it simple to estimate dry ice requirements for refrigeration during transport. Sliced dry ice is the preferred format for many food and pharmaceutical deliveries where precise temperature control is crucial over long distances. Its slices stack compactly yet maintain an extensive sublimating surface area inside packaging. This allows consistent and sustained cold temperatures without risk of freezing or over-chilling delicate payloads.

Production Method Insights - Liquid CO2 Method Optimizes Production Efficiency

Among the production method segment, the liquid CO2 method segment is expected to contribute 49.8% share of the market in 2024, owing to advantages in yield and economics. This involves liquefying carbon dioxide gas at high pressure, then releasing it to atmospheric conditions where it immediately transitions to its solid dry ice state. By liquefying CO2 at the source, this method maximizes the amount obtained from each batch. Up to 30% more dry ice can be produced per unit of liquefied CO2 compared to other processes.

Application Insights - Critical Preservation Needs Drive Food & Beverage Demand

Within the application segment, the food & beverage segment is expected to contributes 38.7% share of the market in 2024, owing to dry ice's necessity in temperature-controlled supply chains. Perishable and chilled foods require uninterrupted refrigeration from source all the way to consumers' tables to avoid spoilage. Seafood, meat, dairy, and delicate produce all face safety and quality risks if temperatures rise even slightly during cargo hauls. Dry ice maintains constant sub-zero conditions inside truck trailers and shipping containers without introducing moisture that can damage contents. This allows global sourcing of raw materials without refrigerated vehicles or extra insulated packaging.

Regional Insights

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Asia Pacific Dry Ice Market Trends

The Asia Pacific region is expected to lead the market in 2024, capturing 33.3% of the total market share. This dominance is driven by the strong presence of key industries such as food and beverages, healthcare, and electronics. Known for its early adoption of advanced technologies, the region has experienced a rising demand for dry ice in applications like packaging and shipping. Additionally, stringent regulations regarding safety and product quality have boosted the use of dry ice as a reliable cooling medium. Prominent companies, including Dry Ice International and Continental Carbonic, have reinforced their presence with extensive distribution networks across the region.

North America Dry Ice Market Trends

North America is projected to secure 29.7% of the dry ice market share in 2024, demonstrating the fastest growth among regions. This growth is fueled by an expanding middle-class population, a thriving manufacturing sector, and advancements in cold chain logistics. The U.S. and Canada are making significant investments in infrastructure and cold storage facilities, which are key drivers of dry ice consumption. Additionally, local companies such as Airgas Dry Ice have stepped up to meet the increasing demand across various industries.

Dry Ice Market Outlook for Key Countries

U.S. Dry Ice Market Trends

The U.S. is the largest market for dry ice, driven by its extensive use in the healthcare and food sectors. The demand for dry ice for vaccine transportation surged during the COVID-19 pandemic, with companies like Holston Gases acquiring Superior Dry Ice to enhance their production capabilities in May 2023. This trend is expected to continue as the need for temperature-sensitive logistics grows.

Germany Dry Ice Market Trends

Germany dry ice market is expanding due to increasing demand in the pharmaceutical and food industries. The country is focusing on sustainable practices, with many companies opting for dry ice produced from recycled CO2. This aligns with the European Union's environmental regulations aimed at reducing carbon footprints, such as the EU Emissions Trading System (EU ETS).

China Dry Ice Market Trends

China dry ice market is rapidly growing, fueled by the booming e-commerce sector and the need for efficient cold chain logistics. The country is investing heavily in its cold chain infrastructure, with a report of the IIR published in 2022, indicating that the cold chain logistics market is expected to reach USD 100 billion by 2025, enhancing the demand for dry ice.

India Dry Ice Market Trends

The Indian dry ice market is experiencing significant growth, driven by increasing demand from the healthcare sector, particularly for vaccine storage and transportation. Government initiatives to enhance healthcare logistics, including improvements in cold chain facilities, are further propelling this demand. In 2023, the Indian government announced investments to bolster the pharmaceutical supply chain, aiming to reduce import dependence and enhance supply chain resilience. As of December 2023, investments worth ₹3,651 crore have been grounded by scheme participants, leading to local capacity creation for critical bulk drugs.

U.K. Dry Ice Market Trends

The U.K. market for dry ice is expanding, particularly within the food and beverage sector, where it plays a crucial role in preserving perishable goods during transportation. The increasing trend towards online grocery shopping has further amplified the demand for effective cooling solutions. According to Lumina Intelligence's Foodservice Delivery Report 2023, the U.K. foodservice delivery market is projected to grow by approximately 7.8% in 2023, reaching a total value of US$18.0 Bn.

Market Players, Key Devlopment, and Competitive Intelligence

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Key Developments:

• In July 2023, Cold Jet, a global leader in dry ice production and cleaning solutions, launched IceRocket dry ice blasting machine. Designed as an entry-level solution, this innovative equipment enhances cleaning and maintenance operations by minimizing downtime while maximizing performance. Cold Jet's extensive portfolio of dry ice solutions positions it as a pioneer in industrial cleaning technologies.
• In May 2023, Holston Gases, a leading supplier of industrial, medical, and specialty gases in the southeastern U.S., announced the acquisition of Superior Dry Ice, a company based in Cartersville, Georgia. Operations will continue at Superior Dry Ice’s facility at 3439 Hwy 411, ensuring uninterrupted service in the region and expanding Holston Gases' footprint in the dry ice market.
• In February 2023, POET, the world's largest producer of biofuels and a significant player in carbon capture and utilization technologies, expanded its CO₂ and dry ice production capabilities by establishing a new facility in Laddonia, near the company's administrative hub. The plant is equipped to capture over 200 tons of CO₂ daily, efficiently producing dry ice to support industrial and agricultural applications.
• In October 2021, Central McGowan, a prominent U.S. provider of automation and welding technologies, unveiled CRX Fab-Pak Cobot Welding Package at the 2021 ATX/Automation Technology Show in Minneapolis. This state-of-the-art system integrates advanced technologies from Lincoln Electric Automation and FANUC, offering a portable, reliable, and user-friendly robotic welding solution. The product significantly bolstered Central McGowan’s position in the U.S. automation market.
• In September 2021, Cold Jet acquired the dry ice division of Aquila Triventek, a Denmark-based company renowned for its innovative dry ice cleaning, production, and CO₂ recovery systems. With over 40 years of industry expertise, Triventek brought advanced technologies, sustainability-focused initiatives, and a robust customer base to Cold Jet’s operations. This acquisition expanded Cold Jet’s product offerings and strengthened its leadership in sustainable dry ice solutions.

Top Strategies Followed by Global Dry Ice Market Players

• Established players highly focus on research and development to come up with innovative products.
  • For instance, Linde, one of the market leaders, invested US$ 1.2 billion in 2020 on R&D to develop technologies like dry ice blasting. Such extensive R&D helps companies maintain leadership in high performance solutions. For example, partnership between Continental Dry Ice and Walmart provides dry ice supply across Walmart stores in the U.S.
• Mid-level players aim for cost leadership through efficient operations. They provide quality dry ice solutions at competitive prices to attract price-sensitive customers. For example, Solid Carbonic produces dry ice pellets at an affordable rate targeting local businesses.
• Small Scale Players - Some firms produce micronized or pelletized dry ice catering to specific applications in electronics or pharmaceuticals. Others utilize advanced equipment from startups to enhance production efficiency. These small players also collaborate with local institutions and businesses to gain local credibility.

Emerging Startups - Global Dry Ice Industry Ecosystem

• Several startups are bringing innovative technologies to the industry. For instance, Subco uses AI and IoT in smart dry ice machines to analyze production and automate replenishment. This allows on-demand dry ice generation minimizing waste.
• Startups like IceOnline focus on sustainability with eco-friendly solutions. They produce dry ice from recycled carbon dioxide helping reduce the industry's carbon footprint. Such startups will influence buyers to opt for greener alternatives.
• Some startups address niche applications. Dry ice blasting equipment provider, develops machines specific for industrial cleaning and surface preparation tasks. This allows them to capture untapped segments.
• New ventures also partner with other organizations. IceCold uses collaborations to commercialize its dry phase technology that densifies CO2 gas into solid form without liquid transformation.

Market Report Scope

Market Dynamics

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Dry Ice Market Growth Factors

Increasing demand for frozen food and delivery services

With more people preferring the convenience of frozen meals and ready-to-eat foods, the demand for frozen food has seen steady growth worldwide over the past decade. Large metro cities in particular have witnessed an explosive rise in home deliveries of food items as consumers seek to save time on household chores. Food retailers have heavily promoted their frozen food offerings through online channels and home delivery fleets. The perishable nature of frozen products necessitates reliable cold chain logistics during transportation from processing facilities to distributors to retailers. This is where dry ice plays a crucial supporting role by helping maintain optimal temperatures inside delivery trucks and storage areas.

Dry Ice Market Challenge - High production and storage costs of dry ice

One of the key challenges faced by the market is the high production and storage costs associated with dry ice. Dry ice is produced through the controlled condensation of carbon dioxide gas through compression and cooling processes. This production process is energy intensive and requires sophisticated machinery, which leads to higher capital and operating costs for dry ice producers. Additionally, dry ice has a short shelf life of only a few days and needs to be stored and transported at extremely low temperatures of around -78 degrees Celsius using specialized equipment and containers with coolants.

Dry Ice Market Opportunity - Expansion of E-commerce and Cold Chain Logistics

One of the key opportunities for the market is the continuous expansion of the e-commerce and cold chain logistics industries. With more people shopping online globally, the need for effective temperature-controlled logistics is growing rapidly. Dry ice finds major usage in ensuring proper cooling during the shipments of perishable items such as frozen food, seafood, meat, dairy products, fruits, and vegetables through the expanding e-commerce supply chains. It is also increasingly being utilized for maintaining chilled temperatures during the transportation of pharmaceuticals, biologics, clinical trials, and vaccines.

Analyst Opinion (Expert Opinion)

• The market is expected to grow steadily driven by increasing demand from the food and beverage industry. Dry ice is widely used for cold chain logistics in transporting perishable foods and frozen products. The growing frozen food retail sector along with rising international food trade will boost market expansion. However, environmental concerns around dry ice sublimation could restrain market growth to some extent.
• Asia Pacific currently dominates the dry ice market owing to well-established food processing and logistics industries in the region. Within Asia Pacific, China accounts for the largest share. However, over the forecast period, North America is likely to emerge as the fastest growing regional market. This can be attributed to growing industrialization, food processing, and retail sectors in countries such as the U.S. Manufacturers are expanding their production capacities in Asia Pacific to leverage the growth opportunities in the region.

Market Segmentation

• By Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Sliced
  • Pellets
  • Blocks
  • Others
• By Production Method Insights (Revenue, USD Bn, 2019 - 2031)
• • Liquid CO2 Method
  • Dry Ice Pellets from CO2 Gas
  • Others
• By Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Food & Beverage
  • Healthcare
  • Manufacturing
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
• • Linde plc
  • Air Products and Chemicals, Inc.
  • Continental Carbonic Products, Inc.
  • Messer Group GmbH
  • Praxair Technology, Inc.
  • The Ice Company
  • Ice-Box
  • American Dry Ice
  • Dry Ice Corp.
  • Polar Ice
  • Cryo-Cell International, Inc.
  • A.G. Halls
  • Kauffman’s
  • Yara International ASA
  • INEOS Group Holdings S.A.