Bucket with ice stands on the table near the glasses
Dry ice is the name given to the solid form of carbon
dioxide (CO₂), which at –78.5°C sublimates and acts as a very powerful cooling
agent. From the preservation of fragile foods to the shipment of biological
samples, and from industrial cleaning through dry ice blasting, it finds a role
in almost all fields where extremely low-temperature control becomes
imperative. For its residue-free sublimation, combined with high cooling power,
dry ice has become irreplaceable, particularly in today’s fast-growing
cold-chain world.
Market Growth & Current Landscape The Dry Ice Market
was valued at US$ 587.68 million in 2022 and is projected to reach US$ 936.90
million by 2030. It is expected to record a CAGR of 6.0% during the forecast
period from 2022 to 2030.
The growth is being driven by several fundamental demand
drivers:
Food & Beverage Industry: Dry ice is utilized
massively in preserving and sending frozen and perishable items.
Healthcare and Pharmaceuticals: Vaccines, biologics,
and sensitive medical samples require ultra-cold transport, making dry ice a
linchpin in the pharmaceutical cold chain.
Industrial Cleaning: Dry ice blasting is gaining
ground as a non-abrasive, eco-friendly cleaning method in manufacturing,
automotive, and aerospace sectors.
Entertainment: It is used to create fog effects in
live events, theater, and film.
Technologically improved production methods and CO₂ recovery
increase efficiency and reduce costs on the supply side.
Growth Strategies
Capacity Expansion & Vertical Integration
Firms are investing in CO₂ liquefaction and capture
infrastructure to ensure a stable supply of raw material and decrease cost
volatility.
For example, Linde plc is doubling the capacity at its
Freeport, Texas CO₂ liquefaction plant, which will feed its dry ice production.
Decentralized Production
Portable and on-site dry ice generation units are gaining
popularity. These units have the ability to make dry ice close to demand
centers, such as distribution hubs and labs, therefore reducing storage losses
and logistics costs.
Innovation & Automation
Adoption of AI and smart supply chain tools for predictive
demand, inventory management, and optimized delivery to cope with sublimation
losses.
The new machines for dry ice production, pelletizers, and
packaging technologies are improving efficiency and extending shelf life.
Sustainability Focus
Recycling and reuse of CO₂ as part of production cycles to
minimize environmental impact.
In addition, companies are seeking to reduce their carbon
footprints by procuring low-carbon electricity and improving overall energy
efficiency. Linde is committed to significantly reducing emissions and
increasing renewable power usage.
Strategic Partnerships & M&A
Mergers, acquisitions, and alliances are helping the
companies expand geographically and vertically.
Partnerships with logistics providers and cold-chain
operators strengthen the supply chain and distribution networks.
Key Market Segments
By Type
Pellets
Blocks
By Application
Food and Beverages
Storage and Transportation
Health care
Industrial Applications
Opportunities & Future Trends
Cold-Chain Hubs: The growth in cold chain
infrastructure in emerging economies, like Asia and Latin America, will
increase the demand for dry ice.
On-Demand Production: Portable, small-scale dry ice
equipment can be utilized for niche but growing segments like remote labs,
mobile clinics, and specialty e-commerce.
Green CO₂ Sourcing: Carbon capture-and-utilization
(CCU) models can be deployed to enable greener dry ice production by attracting
sustainability-focused customers.
Smart Logistics: IoT/AI-based real-time tracking to
minimize dry ice loss during transportation.
Regulatory Tailwinds: Stricter environmental
regulations on traditional refrigerants could further tip the scales in the
favor of dry ice.
Key Players & Recent Developments
Linde PLC
Linde, a world leader in industrial gases, is significantly
investing in its CO₂ infrastructure. A second CO₂ liquefaction plant will be
built at the company’s Freeport, Texas site to double CO₂ production for dry
ice and other uses.
It’s also pushing sustainability: reducing emissions,
increasing low-carbon electricity sourcing.
Dry Ice UK Ltd.
While specific public announcements are limited, Dry Ice UK
is listed among key players in major market-research reports, reflecting its
relevance in the UK and European dry ice market.
The UK dry ice market in itself is forecast to grow at a
CAGR of ~7.33% up to 2035.
Reliant Dry Ice
There is limited publicly available data on recent strategic
announcements for Reliant Dry Ice specifically. It is, however, included in
industry analyses as a named key player, so it does have a contribution to the
competitive landscape against larger gas companies.
Challenges
CO₂ supply volatility, as it directly depends on
feedstock CO₂.
Handling and logistics: Dry ice sublimates, which
means losses if not handled properly.
Safety: CO₂ is an asphyxiant; handling, storage, and
transportation must be done according to strict safety procedures.
Regulatory compliance: Stringent workplace and
transport safety regulations can add cost barriers, especially for smaller
players.
Conclusion
With strong demand from food preservation, pharmaceutical
cold chains, and industrial cleaning, the dry ice market is well-placed for
solid growth. Strategic investments in capacity, on-site generation, and
sustainability place leading companies in a position to cater to a diverse and
growing customer base. This, matched with emerging opportunities in new
geographies, green CO₂ sourcing, and smart logistics, makes dry ice more than a
cooling agent-it’s fast becoming a key component of modern, efficient, and
sustainable supply chains.
Frequently Asked Questions (FAQs)
Why is dry ice preferred over regular (water) ice?
Dry ice sublimates, or goes from a solid directly to a gas,
without melting into water and does not leave any residual. Its temperature is
much lower at -78.5°C and is therefore useful in ultra-cold applications.
What are the main uses of dry ice?
Major applications include food & beverage shipment,
vaccine and biological sample transport, industrial cleaning (dry ice
blasting), and theatrical fog effects.
What can be expected in terms of dry ice market growth?
It is forecasted by various sources that the CAGR will lie
in the range of 6.75% to 7.8%, while the market size may reach US$ 4.46 billion
by 2034.
Who are the major players in the dry ice market?
The leading players in the market include Linde plc, Dry Ice
UK Ltd, Dry Ice Corp, and Reliant Dry Ice, among others.
The major challenges in the dry ice business are?
Challenges include risk related to the supply of CO₂,
sublimation losses during transport, issues related to safety and regulations,
and cost management.
Are there any sustainable ways of producing dry ice?
Yes, companies are increasingly using CO₂ capture,
recycling, and low-carbon energy to make the production of dry ice more
eco-friendly.
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