Food Grade Industrial Gases Market: Expansion of Food & Beverage Industry
The gradually changing preferences of the middle and upper-middle class families across the globe, especially in developing economies such as China, India, and Brazil have spurred the food processing sector and fuelled the growth of the food & beverage industry as well
Increase in number of nuclear families along with dual income sources and lifestyle challenges in metro cities and urban areas has resulted in transformation of the consumption pattern of the population including their food habits
These changes have resulted in an increase in preference for convenient and time saving options such as ready-to-eat or ready-to-cook segments of the food industry
Increase in disposable incomes and purchasing power of middle class families has led to an increase in demand for packaged food & beverages due to more spending on food products
Asia Pacific region is expected to become a major consumer of food & beverages worldwide by year 2030, as the demand for packaged food & beverages is now witnessing a shift from developed regions to developing countries
Key Drivers of Food Grade Industrial Gases Market
Increase in purchasing power and disposable income of the people have changed their preferences toward time and money. Currently, people prefer to save more time rather than money in their daily routine activities, so as to utilize the saved time for other recreational purposes. One of the major area where people have changed their preferences is food.
Rise in demand for packaged or convenience food is likely to drive the demand for the food grade industrial gases market. Changing lifestyle of the population, especially in urban and metro cities has changed their buying behavior and food preferences. People living in these areas are now opting for more convenient and less time consuming food options such as packaged food.
Surge in demand for carbonated drinks is also expected to drive the demand for food grade industrial gases during the forecast period. Carbonated drinks have become an essential part of every event, celebration, and other recreational activities. Even any small party or celebration has hard and soft drinks as a part of it. Moreover, working people taking breaks on weekends prefer hard or soft drinks to relax and enjoy their weekends. Increase in number of events across the globe is likely to boost the demand for carbonated drinks and, in turn, food grade industrial gases.
The advancements in packaging, storing, freezing, and chilling technologies are anticipated to drive the demand for food grade industrial gases. Increase in demand among consumers for fresh food products with minimal preservatives and chemicals has resulted in the advancement in packaging and storing technologies. Food & beverage companies are conducting research & development to ensure that their products remain fresh for longer duration to meet consumer demands. They are achieving this by using industrial gases such as nitrogen and argon to ensure their food remains fresh and healthy.
High Capital Costs for Food Grade Industrial Gases to Restrain Market
The food grade industrial gases market requires high capital investments to setup the plants and infrastructure. This is evident from the balance sheets of existing players, where plant & equipment segment comprises around 40%-45% of the total balance sheet. Thus, high capital investment requirement for food grade industrial gases plant setup is likely to restrain the market during the forecast period.
North America Anticipated to Lead Global Food Grade Industrial Gases Market
North America region is expected to lead the global food grade industrial gases market during the forecast period. It is projected to be followed by Europe and Asia Pacific regions. The region is one of the major food & beverage markets with high demand for packaged food & carbonated beverages. The U.S. accounted for a major share in the North America region. However, the market in the region is mature and highly saturated with limited scope for growth during the forecast period.
The Europe region has also become mature and saturated with little scope for growth in the market in comparison to other regions
Developing countries in Asia Pacific, especially China and India, are witnessing a rapid change in consumer behavior due to increase in purchasing power and disposable income in the region. Demand for packaged food & beverages is increasing at an exceptional rate in the region due to which the demand for food grade industrial gases is also increasing at a significant rate in the region.
The Middle East & Africa and Latin America regions held minimal shares of the global food grade industrial gases market but are likely to grow at a healthy pace during the forecast period
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